Press release
6.79% CAGR Anticipated for U.S. Plastic-to-fuel Market During 2015 - 2020
Increasing Use of Plastics & Need for Developing Alternative Fuels: Key Drivers for U.S. Plastic-to-Fuel Market
The U.S. Plastic-to-fuel market is driven by number of factors such as increasing use of plastic, leading to easy availability of feedstock. 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.
Strong need for an alternative fuel due to depleting natural hydrocarbon resources across the globe is also a strong driver for growth of the U.S. plastic-to-fuel market. Furthermore, increasing tipping cost of landfills, coupled with a need for solid plastic waste recycling technology is amongst key factors leading to growth in the market.
However, high initial setup cost of waste processing facilities, in addition to technological complexities occurring due to delicate relationship between type of waste plastic processed, technology, and the output can pose key challenges for growth.
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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 on the basis of revenue generation models followed by key market players. Revenue generation models include revenue earned through sale of processors, revenue earned by sale of fuel produced using conversion technology, and revenues grossed through royalties.
Amongst other segments, revenue generated through sale of processor is estimated to account for approximately 70% of the total plastic-to-fuel market in the U.S. However, revenues earned through royalties is anticipated to witness a CAGR of 7.81% during the forecast period, despite expected to account for a negligible share in revenue in 2020.
Revenue generated through 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 a number of technical difficulties faced during the plastic-to-fuel conversion process.
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Fuels produced through conversion technologies are further divided into crude oil and diesel. Amongst these, crude oil market is anticipated to witness a high CAGR of 7.81% during the forecast period.
Competitive Landscape
Key players in 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 closure of one of the plastic-to-oil production facility.
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.
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