Pyrolysis Oil Market
1.What pyrolysis oil is and why it matters
The liquid output from pyrolyzing a mixture of plastics, scrap tires, or biological materials is called pyrolysis oil or pyoil for short. The end product is a dense and highly energy-packed oil suitable for burning, further processed to fuels, or used as a source material. As far as manufacturers are concerned, the product created by your machines is the key factor determining buyer interest, price, and the cost-effectiveness of further upgrading the oil.
As a consequence of using various types of raw materials, reactors, and processes, pyrolysis oil varies widely. However, this variety brings both a problem and an opportunity, the latter being the production of a consistently high-quality pyoil.
2.Market size & forecasts — what the reports say
The exact figures on the size of the market vary greatly based on what each research company measures (pure plastic only, or including tires and biomass, or also upgrading services). A few selected forecast data points published recently:
Emergen Research foresees the market as valued at ~USD 552.6M in 2024 growing to ~USD 2.89B in 2033 (CAGR ≈ 20.2%).
According to Mordor Intelligence’s research, a somewhat more optimistic forecast of fast growth is possible, where the market is valued at USD 1.44B in 2025 and expected to grow into multiple billions during the early 2030s.
Precedence Research and Market Research Future present conservative to mid-market forecasts for specific sectors like tire-specific waste and pure plastics (various billions up until 2035).
Lastly, Allied Market Research presents a conservative forecast: from USD 318.5M in 2021 to USD 480.9M by 2031 (CAGR ≈ 4.3%).
Takeaway: credible companies estimate that the market is indeed growing, although not necessarily in the same rate and to the same degree. Such a forecast can be expected, considering that the definition of the waste being used, geographic region, as well as the inclusion of upgraded products may differ.
3.Why demand for pyrolysis oil is rising
Increasing waste streams. Plastic and end-of-life tire wastes continue to rise in global quantities, providing feedstock material suitable for chemical recycling and, more specifically, pyrolysis operations.
Circular economy initiatives and regulations. National governments and large-scale consumers have established recycled content and waste minimization goals, thereby generating demand for recycled feedstocks capable of displacing fossil-based feedstock. Carbon prices, incentives, and regulations can greatly enhance economic feasibility in pyrolysis operations.
Industrial refining capacity & upgradation advancements. Studies and trials have found that upcycled pyrolysis liquids can be co-processed in refinery equipment (FCC, hydrocracking), as well as upgraded via hydrotreating into drop-in fuel products, thus mitigating the challenge faced by industrial customers.
Advancements in technology. Process reactor design, catalysis, and process controls (automation and AI) are advancing efficiency and consistency – two factors crucial to industrial buyers looking for consistent oil composition.
Byproduct utilization. Carbon black recovered from pyrolysis tires and gas/char streams provide additional revenue sources for projects. Scientific literature supports carbon black recovery as an effective replacement for commercially produced carbon black in some industries.
4.Main applications of pyrolysis oil
Heat and power production
The easiest way is combustion of pyoil in industrial boilers and thermal systems for heat or steam generation. There is room in many industries to use poorer quality fuels for heat generation, thus providing a market for crude pyoil.
Chemical feedstock and refinery co-processing
Following upgrading, pyoil will be more similar to feedstock for refineries and could be co-processed in existing refinery processes, a trend being investigated in various research and pilot programs. It increases the value of oil as a partial replacement for naphtha/gasoil.
Fuel production for transportation
Upgraded pyoil can be processed into diesel, gasoline components, and blending stocks. This approach needs capital investment in hydroprocessing plants or cooperation with refineries to take the upgraded products.
Chemicals and new uses
Investigations include selective separation of building blocks for chemicals or hydrogen, and co-pyrolysis of plastics mixed with biomass would alter the product distribution for specialty products.
Utilization of by-product streams (rCB, gas, char)
The potential economic value from recovered carbon black and gas/char streams would offset the cost of processing. The recovery of carbon black is being studied for its use in tires and rubber products after purification.
5.Upgrading: how pyoil becomes refinery-ready
Upgrading is the engineering link between the raw fuel and the valuable feedstock. Typical processes include:
Hydrotreating / hydroprocessing to strip out sulfur, oxygen, and lower aromatic contents, enhancing stability and refinery integration.
Catalytic cracking or FCC co-processing for converting larger molecules into smaller fuels, pilot plant trials and NREL studies highlight feasible methods for blending and processing the pyrolysis products.
Fractionation / distillation for separating light fractions suitable for blending as naphtha and diesel fuel and heavier components requiring additional processing.
Physical and chemical purification of solids, chlorine compounds, and metallic elements based on contaminant content in the feedstock.
Buyer tip: the cost of upgrading can be substantial; most operators prefer to market their product locally as a heat source until there is a secure source of feedstock and a committed off-taker for their output.
6.How to evaluate a pyrolysis unit — buyer’s checklist
Use this checklist when comparing machines or vendors:
Feedstock flexibility. Can the unit process mixed plastics, tires, or biomass? How much pre-sorting is required?
Oil yield & mass balance. Ask for typical yields (% oil, gas, char) by feedstock and lab reports from independent testing.
Oil quality specs. Request API gravity, sulfur, chlorine, water, ash, and heavy aromatics. Consistency matters more than a single “best” number.
Energy efficiency & self-consumption. Net energy balance, external fuel needs, and heat recovery.
Emissions & compliance. Does the system meet local air permits and expected future regulations? Can the vendor provide emissions test reports?
Contaminant handling. How does the machine handle PVC/halogens or heavy metals? What pre-treatment is recommended?
Scalability & modularity. Can capacity be increased in modules? Are upgrade units (e.g., small hydrotreaters) offered?
Operational uptime & maintenance needs. Mean time between failures, spare parts list, and local support.
Testing & pilot data. Independent lab analyses and case studies tied to real feedstock runs.
Total cost of ownership & project modelling. Ask for sample economic models (feedstock cost, capital, operating costs, expected oil price ranges and IRR scenarios).
Request spec sheets and independent lab reports during tendering — these documents are often the difference between a shortlist and a pass.
7.Regional outlook
Asia-Pacific: Fast uptake due to matching amounts of waste generation, refining capabilities, and use of industrial fuels. Multiple sources indicate that the APAC region is one of the leaders in market share.
Europe: Clear drive toward circularity and chemical recycling; licensing and environmental issues could be very stringent but there are also incentives.
North America: Heterogeneous set of state/province-level regulations; access to refining facilities and partnerships within companies might enable co-processing.
Since regional policy and availability of waste are key factors, develop tailored business development plans based on the region; the availability of feedstock, fuel pricing, and other incentives will define the realistic path.
8.How to position your product & next steps
Start with performance figures. Publish a brief report of pilot testing results and a spec sheet to download.
Provide modular upgrades. Customers love seeing a path from simple reactor setup → upgrade kit → connecting with buyers.
Be upfront about any shortcomings. It pays off to be open about any feedstock restrictions and how your system deals with contaminants.
Prepare an ROI calculator or case study. A single sheet project model will turn curious web visitors into customers.
9.Final thoughts
The market for pyrolysis oil is new, fragmented, and full of potential. There will be growth because of increasing amounts of waste, circular economy considerations, and technology innovations regarding upgrading and co-processing; however, there are many forecast variations, so plan accordingly.
From the point of view of machinery producers, the most obvious way to make money is to produce oil with predictable properties, provide upgrading opportunities, and provide evidence that mitigates risks for buyers.
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