Pyrolysis Oil Market Research Report By Type (Fast Pyrolysis Oil, Slow Pyrolysis Oil, Hydrotreated Pyrolysis Oil), By Feedstock (Biomass, Plastic, Coal), By Application (Fuel, Chemicals, Power Generation), By Method of Upgrading (Hydrotreatment, Distillation, Steam Reforming), By Process Technology (Fluidized Bed Reactor, Rotary Kiln Reactor, Ablative Reactor) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Pyrolysis Oil Market Overview

As per MRFR analysis, the Pyrolysis Oil Market Size was estimated at 1.51 (USD Billion) in 2022. The Pyrolysis Oil Market Industry is expected to grow from 1.63(USD Billion) in 2023 to 3.32 (USD Billion) by 2032. The Pyrolysis Oil Market CAGR (growth rate) is expected to be around 8.21% during the forecast period (2024 - 2032).

Key Pyrolysis Oil Market Trends Highlighted

Key market drivers for pyrolysis oil include rising demand for sustainable fuels, increased environmental regulations, and advancements in pyrolysis technologies. Opportunities exist in developing cost-effective production processes, exploring novel applications in various industries, and expanding into emerging markets. Recent trends indicate a shift towards bio-based and renewable energy sources, driving the adoption of pyrolysis oil as an alternative fuel. 

Government incentives and policies promoting sustainable practices further stimulate market growth. Technological advancements, such as improved reactor designs and optimized operating conditions, enhance pyrolysis efficiency and oil yields, contributing to cost reductions and improved product quality. Additionally, research and development efforts focus on exploring new feedstocks, such as agricultural and industrial waste, expanding the potential sources of pyrolysis oil.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Pyrolysis Oil Market Drivers

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  Growing Demand for Sustainable Energy Sources

  
  

The hydraulic fracturing revolution and climate change have been important contributors to the transition from conventional fossil-based technologies to the use of renewable forms of energy. Pyrolysis oil is among such technologies, as it is a gaseous fuel resulting from the thermochemical breakdown of energy crops and biomass. Unlike conventional oil, pyrolysis oil is renewable, significantly reduces carbon intensity, and can potentially be produced more cheaply. Thus, the demand for frontrunner applications incorporating such renewable forms of energy, recognized by policymakers, suggests that a favorable regulatory environment supports the demand and supply sides of new markets.

Advancements in Pyrolysis Technologies

Continuous advancements in research and development activities have significantly improved several technologies with respect to pyrolysis. The development of cost-effective processes has led to better quality yield in terms of pyrolysis oil, which has made it a more feasible option for industrial applications. Innovation in pyrolysis technologies is anticipated to grow further and expand the market.

Expanding Applications in Diverse Industries

A variety of end-use industries, such as transportation, power generation, and manufacturing, use pyrolysis oil. The increasing number of its applications as a fuel and feedstock for various other processes propels the growth of the market. Owing to this, pyrolysis oil is found in automotive, aviation, chemicals, and other sectors, which would increase the market for such oils.

Pyrolysis Oil Market Segment Insights

Pyrolysis Oil Market Type Insights

Fast pyrolysis oil is the most popular kind of pyrolysis oil, and it occupied more than 60% of the market in 2023. It was produced when the biomass was rapidly heated, and liquid yield was extracted in the absence of oxygen. Such an approach led to the production of the dark, viscous liquid. Slow pyrolysis oil is produced by heating the biomass at a slower rate of time and in the presence of oxygen. It is a lighter and less viscous liquid. The hydrotreated pyrolysis oil was produced by the reaction of fast pyrolysis oil and hydrogen. Hydrotreated pyrolysis oil is enriched with oxygen and the presence of high levels of impurities.

The HPO is more stable, has no char and metals, and can be treated with hydrogen again to produce hydrocarbon pyrolysis oil. The fast pyrolysis oil segment is expected to dominate the market with a revenue of USD 1.2 billion by 2032. It will grow with the increasing demand for fast pyrolysis oil as a renewable fuel and chemical feedstock. Slow pyrolysis oil will be less common and will occupy 0.9 billion USD by 2032. Its growth will be driven by the demand for slow pyrolysis oil as the biofuel and soil amendment. Hydrotreated pyrolysis oil will grow fastest, and the revenue of the segment will be USD 0.7 billion by 2032.

The increasing demand will be caused by the demand for hydrotreated pyrolysis oil as a renewable fuel and chemical feedstock. The market is growing for several reasons: increased demand for renewable fuels and chemicals, raised prices for fossil fuels and raised awareness of pyrolysis oil’s good for the environment. Pyrolysis is a sustainable method that can produce renewable fuel and chemicals with reduced amounts of GHG. Such an approach can help to reduce the number of carbon dioxide emissions and reduce dependency on fossil fuels because of their high price. Pyrolysis oil is a universal feedstock that can help to produce fuel or petroleum-related products.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Pyrolysis Oil Market Feedstock Insights

The Pyrolysis Oil Market segmentation by feedstock includes biomass, plastic, and coal. Among these, biomass holds the dominant position in the market, accounting for over 60% of the global revenue in 2023. The abundance of biomass resources, such as agricultural residues, forestry waste, and energy crops, makes it a cost-effective and sustainable feedstock for pyrolysis oil production. 

The growing demand for biofuels and renewable energy sources further drives the growth of the biomass segment. Plastic is another significant feedstock, with its market share expected to grow steadily over the forecast period. The increasing generation of plastic waste and the need to find sustainable waste management solutions contribute to the demand for pyrolysis oil derived from plastic. Coal, while still a widely used feedstock, is projected to experience a decline in its market share due to environmental concerns and the shift towards cleaner energy sources.

Pyrolysis Oil Market Application Insights

The increasing demand for pyrolysis oil as a sustainable and cost-effective alternative to fossil fuels is driving the market growth. Pyrolysis oil is used as a fuel in various industries, including power generation, transportation, and heating. It is also used as a feedstock for the production of chemicals, such as bioplastics and biofuels. The rising environmental concerns and the need to reduce carbon emissions are also contributing to the growth of the pyrolysis oil market.

Pyrolysis Oil Market Method of Upgrading Insights

The method of upgrading segment plays a crucial role in determining the quality and value of pyrolysis oil. Among the key methods employed in the Pyrolysis Oil Market are hydrotreatment, distillation, and steam reforming. Hydrotreatment, with a market share of around 45% in 2023, involves treating pyrolysis oil with hydrogen to remove impurities and upgrade its quality. 

Distillation, with a market share of approximately 30%, separates pyrolysis oil into various fractions based on their boiling points. Steam reforming, with a market share of around 25%, converts pyrolysis oil into hydrogen and carbon monoxide, which can be further utilized in various applications. The Pyrolysis Oil Market revenue is anticipated to grow at a CAGR of 8.21% from 2024 to 2032, with the method of upgrading segment contributing significantly to this growth.

Pyrolysis Oil Market Process Technology Insights

The Pyrolysis Oil Market segmentation by Process Technology includes Fluidized Bed Reactors, Rotary Kiln Reactor, and Ablative Reactors. Among these, the Fluidized Bed Reactor segment held the largest market share in 2023, and it is expected to continue its dominance throughout the forecast period. The Fluidized Bed Reactor technology offers several advantages, such as high conversion efficiency, uniform temperature distribution, and good gas-solid contact. The Rotary Kiln Reactor segment is projected to witness a significant growth rate during the forecast period. Rotary Kiln Reactors are well-suited for processing biomass with high moisture content and low bulk density. 

The Ablative Reactor segment is expected to hold a modest market share during the forecast period. The market growth is attributed to the increasing demand for renewable energy sources, stringent environmental regulations, and rising concerns about climate change. Pyrolysis oil is a renewable and sustainable fuel that can be used in various applications, including power generation, heating, and transportation. The market is also witnessing increasing investments in research and development activities to improve the efficiency and cost-effectiveness of pyrolysis technologies.

Pyrolysis Oil Market Regional Insights

The regional segmentation of the Pyrolysis Oil Market offers valuable insights into the market's geographical distribution and growth dynamics. North America is projected to hold a significant market share in 2023, driven by increasing demand from industries such as chemicals, transportation, and energy. Europe, with its focus on sustainability and renewable energy targets, is anticipated to exhibit steady growth in the coming years. 

The Asia-Pacific region, particularly China and India, presents immense growth potential due to rapid industrialization and increasing awareness of environmental concerns. South America, the Middle East, and Africa (MEA) regions are expected to witness moderate growth, with emerging economies driving demand for pyrolysis oil in sectors like construction and agriculture. With a growing emphasis on circular economy and waste management, the Pyrolysis Oil Market is poised for significant expansion across these regions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Pyrolysis Oil Market Key Players And Competitive Insights

Companies worldwide, especially the major players, are always struggling to improve their market position. In order to achieve this, they are constantly implementing various strategies to increase their share in the global market. This may include product development, mergers and acquisitions, growth of production capacity, and even geographic expansion. Merger and acquisition activity is one of the most prominent ways to develop the Pyrolysis Oil Market. Companies are beginning to acquire smaller companies in order to grow both their geographical presence and the share of products offered.

The competitive landscape of the Pyrolysis Oil Market is characterized by the presence of only a few major players. These companies mostly focus on the development and commercialization of new technologies in order to meet the ever-changing needs of their customers. Apart from major companies, there are many smaller companies and players in the Pyrolysis Oil Market. These small companies and players, however, tend to be more focused on the development of products for local markets or for a niche application in a specific industry. 

Consequently, they have a broader, better understanding of their local market. Despite the completion, the Pyrolysis Oil Market is still at the very beginning of its development. The market is quite dynamic, and there are still many opportunities for growth. Furthermore, the demand for renewable sources of energy is also growing. Another major rival of the Pyrolysis Oil Market is Bioenergy DevCo. This US-based company is a major player in the North American region. The Bioenergy DevCo is known for producing pyrolysis oil from various feedstock such as wood chips, sawdust, or agricultural residues. This paper presents what Bioenergy DevCo is and what makes it such a strong rival in the Pyrolysis Oil Market.

Key Companies in the Pyrolysis Oil Market Include

• Futec


• Enerkem


• Anellotech


• Vapotherm


• KATCDS


• Greenergy


• Ensyn


• Alterra Energy


• KiOR


• CRL


• IFP Energies nouvelles


• BTG Biomass Technology Group


• Pyrowave


• Licella


• Dynamotive Energy Systems Corporation

Pyrolysis Oil Market Industry Developments

The Pyrolysis Oil Market is projected to grow from USD 1.63 billion in 2023 to USD 3.32 billion by 2032, at a CAGR of 8.21%. Rising demand for sustainable and cost-effective energy sources, coupled with increasing environmental concerns, is driving market growth. Recent developments include strategic partnerships and acquisitions to expand production capabilities. 

For instance, in 2023, BTG and VOPAK announced a JV to build a commercial-scale pyrolysis oil plant in the Netherlands. Technological advancements, such as the development of more efficient and cost-effective pyrolysis processes, are also contributing to market expansion. Key players in the market include:- BTG- VOPAK- Arkema- Anellotech- CRI Catalyst Company

Pyrolysis Oil Market Segmentation Insights

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  Pyrolysis Oil Market Type Outlook

  
  
  
  
  • Fast Pyrolysis Oil
  
  
  • Slow Pyrolysis Oil
  
  
  • Hydrotreated Pyrolysis Oil
  
  
  
  

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  Pyrolysis Oil Market Feedstock Outlook

  
  
  
  
  • Biomass
  
  
  • Plastic
  
  
  • Coal
  
  
  
  

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  Pyrolysis Oil Market Application Outlook

  
  
  
  
  • Fuel
  
  
  • Chemicals
  
  
  • Power Generation
  
  
  
  

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  Pyrolysis Oil Market Method of Upgrading Outlook

  
  
  
  
  • Hydrotreatment
  
  
  • Distillation
  
  
  • Steam Reforming
  
  
  
  

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  Pyrolysis Oil Market Process Technology Outlook

  
  
  
  
  • Fluidized Bed Reactor
  
  
  • Rotary Kiln Reactor
  
  
  • Ablative Reactor
  
  
  
  

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  Pyrolysis Oil Market Regional Outlook

  
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa