Plastic to Fuel Market Size, Share, and Industry Analysis, By Plastic Type (Polyethylene, Polyethylene Terephthalate, Polypropylene, Polyvinyl Chloride, and Others), By Technology (Pyrolysis, Depolymerization, and Gasification), By Source (Municipal Solid Waste (MSW) and Commercial & Industrial Waste), By End Products (Crude Oil, Hydrogen, Diesel, and Others), and Regional Forecast, 2025-2032

The initiative to use plastic as fuel is the start of focus in the energy sector. Consumers and businesses are creating awareness of the tremendous environmental harm. The cumulative production of plastics and their reuse is mainly driven by their properties perfect for numerous end-user industries such as building and construction, electronics, packaging, household, sports equipment, automotive, and agriculture. Fuel to plastic technologies and methods are getting attention from multiple governments. It is about to boost in the forecast years, driven by the rising population and urbanization.

• In November 2023, the Uttar Pradesh (India) government agreed with Bengaluru-based MK Aromatics Limited to use and convert plastic waste into automotive fuel responsibly.

The COVID-19 pandemic adversely affected multiple industries. It also had a harmful impact on the plastic-to-fuel market. The halt in the manufacturing units due to the low demand created a destructive effect on the market. Again, a halt in imports and exports of goods due to the closure of boundaries created barriers to the market.

KEY INSIGHTS

The report covers the following key insights:

• Recent Advancements in the Plastic to Fuel Market
• Key Industry Trends
• Regulatory Landscape for Plastic to Fuel Market
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Impact of COVID-19 on the Market

SEGMENTATION

ANALYSIS BY PLASTIC TYPE

By plastic type, the market is segmented into polyethylene, polyethylene terephthalate, polypropylene, polyvinyl chloride, and others. The polyethylene segment holds the maximum share and is considered the dominating segment globally. This plastic segment is mainly used in packaging material, food & beverages, and industrial packaging applications. Polyethylene Terephthalate is the fastest-growing segment in the plastic to fuel market, driven by its application in face masks, which are used mainly by the healthcare and medical sectors. Other plastic types are also contributing to the plastic-to-fuel market and hold the minimum share compared with the dominating and fastest growing.

ANALYSIS BY TECHNOLOGY

The global market based on the technology is segmented into pyrolysis, depolymerization, and gasification. The pyrolysis segment is the uppermost contributor to the worldwide market and is expected to grow the highest CAGR in the coming years. Pyrolysis technology is the market front-runner and is mostly used to convert plastic to fuel. Gasification is anticipated as the fastest-growing segment driven by the increasing use of hydrogen. Gasification converts waste into a clean gas and not in liquid form, making it ideal for some fuel conversion. Depolymerization is also one of the technologies used in the plastic-to-fuel market. It is not rapidly growing, as other technologies are more beneficial than depolymerization.

ANALYSIS BY SOURCE

Based on the source, the market covers municipal solid waste (MSW) and commercial & industrial waste. The commercial and industrial segment holds the maximum market share. This is owing to the industrial waste generated during the several processes. In addition, a significant portion of plastics is consumed by packaging, textiles, building and construction, and consumer goods. This factor is driving the market for the conversion of plastic to fuel. Municipal solid waste is also contributing to the global market. This is owing to the plastic generated by consumer goods packaging.

ANALYSIS BY END PRODUCTS

Based on the end products, the market covers crude oil, hydrogen, diesel, and others. The crude oil product is the dominating segment globally. The growing use of plastic crude oil in ships, automobiles, boilers, and power generators is expected to create opportunities for altering plastic to crude oil. Hydrogen-based fuel is the fastest growing segment in the region, driven by the rising hydrogen production globally. The diesel segment holds an ample amount of global share as consumers are shifting toward better alternatives such as hydrogen. The market for plastic to fuel is about to proliferate owing to the increasing awareness about renewable-based fuels.

REGIONAL ANALYSIS

The global market is geographically segmented into North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. Asia Pacific is the dominating region globally. The primary demand for plastic for fuel will probably arise from India, Vietnam, China, and Japan. Cumulative urbanization and development in this region are expected to boost market growth over the forecast years.

Europe is estimated as one of the fastest-growing regions in the global market. The European Union is going as per the plan and roadmap from 2011 to transition toward a less carbon economy by 2050. North America is also focusing on the plastic-to-fuel market. Increasing plastic waste in the U.S. has fortified the government to form strict guidelines against solid waste landfilling.

Latin America is slowly making progress in waste management. Lack of proper waste recycling practices and awareness are becoming barriers to the region's growth in the market. The Middle East and African plastics to fuel market is anticipated to rise in upcoming years. The development is attributable to better awareness of the long-term compensations and benefits of using recycled plastic.

KEY PLAYERS COVERED

Some critical businesses in the global plastic-to-fuel market are Plastic2oil, Alterra Energy, Neste, Agilyx Inc., BRADAM Group, LLC, Brightmark LLC, Klean Industries, Beston (Henan) Machinery Co. Ltd., Plastic Energy, Agilyx Inc., RES Polyflow, and JBI Inc.

KEY INDUSTRY DEVELOPMENTS

• In May 2024, researchers from the Ames National Laboratory successfully transformed plastic waste into fuel.
• In January 2024, Advanced Hydrocarbon Fuels Limited (AHFL) announced plans to deploy the first commercial-scale unit in the U.K. to showcase its revolutionary process for converting plastic into fuel.