Press release
According To FMI, U.S. Plastic-To-Fuel Market Is Anticipated To Grow At A Robust 6.79% CAGR During The Assessment Period
The U.S. Plastic-to-fuel market is driven by several factors such athe s increasing use of plastic, leading to easy feedstock availability. As estimated by the U.S. Environmental Protection Agency (EPA), plastics accounted for approximately 12.7% of the total Municipal Solid Waste (MSW) generation in the U.S. in 2012.Future Market Insights (FMI) announces the release of its latest report titled, "Plastic-to-fuel Market: U.S. Industry Analysis and Opportunity Assessment 2015 - 2020". As per FMI's projection, the U.S. Plastic-to-fuel market is estimated to generate US$ 42.78 million in revenues in 2015, which is likely to reach US$ 98.26 million in 2020 representing a CAGR of 6.79% through the forecast period of 2016 to 2020.
The US Plastic-to-Fuel Market is expected to earn US$ 42.78 million in revenue in 2015, rising to US$ 98.26 million by 2020.
Plastic-to-fuel technology is predicted to revolutionise the energy industry. In the US plastic-to-fuel sector, there are three revenue models:
Revenue generated by the selling of processors
Profits from the selling of fuels made from waste plastic processors
Royalties obtained by sharing proprietary technologies generate revenue.
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The strong need for an alternative fuel due to depleting natural hydrocarbon resources across the globe is also a strong driver for the U.S. plastic-to-fuel market growth. Furthermore, increasing tipping costs of landfills, coupled with a need for solid plastic waste recycling technology, are key factors leading to growth in the market.
However, the high initial setup cost of waste processing facilities, in addition to technological complexities occurring due to the delicate relationship between the type of waste plastic processed, technology, and the output can pose key challenges for growth.
Revenue Generated through Sale of Processor: Key Segment in the U.S. Plastic-to-Fuel Market
The U.S. plastic-to-fuel market is segmented based on revenue generation models followed by key market players. Revenue generation models include revenue earned through the sale of processors, revenue earned by the sale of fuel produced using conversion technology, and revenues grossed through royalties.
Amongst other segments, revenue generated through the sale of the processors is estimated to account for approximately 70% of the total plastic-to-fuel market in the U.S. However, revenues earned through royalties are anticipated to witness a CAGR of 7.81% during the forecast period, despite being expected to account for a negligible share in revenue in 2020.
Revenue generated through the sale of fuels is estimated to account for less than 40% of the total market in 2020. This model is likely to exhibit a lower CAGR as compared to other segments, which can be attributed to several technical difficulties faced during the plastic-to-fuel conversion process.
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Competitive Landscape
Key players in the plastic-to-fuel business in the U.S. are Plastic2Oil, Vadaxx Energy, Agilyx Corporation and RES Polyflow. The companies active in the market are undergoing expansion plans within and outside the countries. However, one of the key players in the market recently announced the closure of one of the plastic-to-oil production facilities.
Key market players target landfills, municipalities and major industrial plastic waste generators to ensure constant feedstock availability. Companies are raising capital through equity investors to implement these conversion technologies.
U.S. Plastic-to-fuel Market Segmentation by Revenue Generating ModelThe U.S. plastic-to-fuel market has been segmented into three revenue generating models, wherein the market revenues can be generated through the sale of processors, the sale of fuels and royalties earned by companies with proprietary technologies. The revenue generated through the sale of processors accounted for the leading share in 2020.
U.S. Plastic-to-fuel Market: Government GrantsAs far as the government grants for recycling technologies is concerned, Pyrolysis, which is widely used to convert waste plastic into fuel is not eligible for recycling grants offered by state governments.
This is because the technology is not categorized under recycling technology and is called conversion technology. However, it can still fetch government grants for green job creation and credit incentives for starting a unit in a rural area.
Key Segments CoveredThe report analyses the U.S. Plastic-to-fuel market based on the following segments:
Revenue generation model
Fuel
Processors
Royalties
End Products
Crude Oil
Diesel
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About Future Market Insights (FMI)
Future Market Insights (ESOMAR certified market research organization and a member of the Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favour the market growth in various segments based on Source, Application, Sales Channel and End-Use over the next 10 years.
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