A competitive growth strategy for the US plastics to fuels market based on type, application, end user and region
The US plastics-to-fuels market is estimated to generate US $ 42.78 million in revenue in 2015 and could reach US $ 98.26 million in 2020.
Plastic-to-fuel technology is expected to become a game changer in the energy market. There are three revenue models in the US plastics to fuels market.
- Revenue from selling processors
- Revenue from the sale of fuel manufactured using waste plastic processors
- Revenue from royalties earned by sharing unique technology.
The global need for alternative fuel technology due to the depletion of natural resources, and the increasing use of plastics, are one of the major drivers of the plastic-to-fuel market. Increasing the generation of waste plastic requires recycling technology that not only converts waste into combustible fuels that meet environmental standards, but also reduces landfill waste.
The availability of abundant raw materials combined with its low cost (sometimes zero cost) attracts more players in this market. However, the complexity of conversion technology and the high initial setup costs of plastic-to-fuel conversion facilities have been witnessed as key constraints on the growth of the US plastic-to-fuel market.
The US plastics to fuels market is ready to reach a valuation of $ 92.78 million in 2015 to $ 98.26 million in 2020. The market is expected to witness a CAGR of approximately 6.79% from 2016 to 2020. The conversion technology is further subdivided into crude oil and diesel, which is expected to lead the market share in 2015.
Plastics to fuel conversion technologies mainly include pyrolysis, depolymerization and gasification. A major player in the plastic-to-fuel market uses pyrolysis technology to convert waste plastic into fuel. However, all players have incorporated certain changes into their patented process as a proprietary technology.
Some processes require pretreatment of waste plastic, but market players are developing technologies to reduce pretreatment. This is due to the high cost of pretreatment, and in order to be profitable, pretreatment costs must be kept to a minimum.
The US plastic-to-fuel market is dominated by major companies such as Plastic2Oil, Agilyx Corporation, Vadxx Energy, Green Envirotec Holdings LLC and RESpolyflow. This player on the market is partnering with waste plastic raw material providers such as waste plastic producing industries and municipalities.
Most companies have plans to expand over the next few years, which could increase the revenue generated by the US plastics-fuels market.
As far as government subsidies for recycling technology are concerned, pyrolysis, which is widely used to convert waste plastics into fuel, is not covered by state government-provided recycling subsidies.
This is because this technology is not classified as a recycling technology and is called a conversion technology. However, you can get government grants to create green jobs and credit incentives to start a unit in rural areas.
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