Tire Derived Fuel Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the tire derived fuel market was valued at USD 390.2 million in 2022, and a CAGR of 3.7% is expected during the forecast period. It is used in cement kilns, pulp and paper mills, and electric and utility boilers. The market's significant growth can be attributed to rapid industrialization. Many factories do use environmentally sound alternative energy; increasing demand for chipped tires as fuel sources is driving the growth in the market.

It’s potential for energy recovery and waste tire management are important factors, due to which it is gaining traction. Factors affecting the market, including regulatory policies, environmental concerns, and demand for alternative fuels in industries like cement manufacturing, are driving growth in the market.

Impact of Covid-19

The COVID-19 pandemic has impacted various industries, including the tire-derived fuel market. Disruptions in the supply chain, reduced industrial activities, and economic uncertainties have affected tire derivative fuel production and consumption. The market experienced fluctuations like industries scaling back operations during lockdowns. However, the focus on sustainability and waste management drove renewed interest in the tire-derived fuel market with the recovery in the industry. Monitoring global economic conditions and industry resilience are the key factors behind the growth of the market.

Growth Drivers

Increasing emphasis on sustainable waste management solutions boosts the demand for tire-derived fuel as a way to repurpose used tires. Tire-derived fuel is sought after for its energy content, offering an alternative fuel source for industries, especially cement kilns and other energy-intensive processes. It is a cost-effective fuel source compared to traditional alternatives, appealing to industries looking to manage costs without compromising on sustainability.

Growing awareness of environmental issues encourages industries to adopt eco-friendly practices, making TDF an attractive option. Increasing emphasis on sustainable waste management solutions boosts the demand for TDF as a way to repurpose used tires. Environmental concerns are the key factors driving the growth of this market.

Segmentation

By Tire Source

·         Light Motor Vehicles

·         Heavy Duty Vehicles

·         Motorcycle

·         Aircrafts

·         Bicycle

·         Others

By Type

·         Shredded Tyre

·         Whole Tyre

By Application

·         Cement Industries

·         Power Plants

·         Pulp and Paper Mills

·         Others

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Tire Derived Fuel Market by Tire Source

On the basis of the tire source, the tire-derived market is segmented into light motor vehicles, heavy duty vehicles, motorcycles, aircraft, bicycles, and others. The tire-derived fuel market is influenced by various tire sources, including passenger cars, trucks, buses, and off-road vehicles. The demand for TDF from different sources depends on factors such as tire composition, size, and availability.

Passenger Cars segment contributes significantly to the tire-derived fuel market due to the sheer volume of tires generated from the source. The increasing use of scrap tires is driving the growth of the tire-derived fuel market significantly. Increasing demand for scrap tires worldwide to be used in various industries is driving growth in the tire-derived fuel market.

Tire Derived Fuel Market by Application Segmentation

On the basis of the application, the tire-derived fuel market is segmented into cement industries, power plants, pulp and paper mills, and others. The cement industry is the leading segment and is expected to dominate during the forecast period. Rapid growth in industrialization is driving the growth of tire-derived fuel in the cement market. Pulp and paper mills are also experiencing significant growth during the forecast period due to the increased use of scrap tires efficiently. The theory of the 3 Rs is driving the demand for scrap tires in industries heavily. The revolution in the automobile industry has increased the growth of tire-derived fuels, and millions of tons of tire waste are generated across the world, which is driving the market significantly for the use of tire-derived fuel. Increasing industrialization world-wide is driving growth in the tire-derived fuel market. Increasing awareness about the use of scrap tires as tire-derived fuel in the pulp and paper industry, the cement industry, and some other industries is increasing revenue growth in the tire-derived market. The rise in automobile production in developing countries is driving the growth of the tire-derived fuel market rapidly. With increasing prices of fossil fuels, the increasing demand for the tired-derived fuel is at its peak.

Regional Outlook

On the basis of the regions, the tire-derived fuel market is segmented into 5 parts: Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. North America is the leading market and is expected to dominate the market during the forecast period. North America generates enormous tire waste due to the big industries in the region. The infrastructure project and development in the automobile sector are the main reasons behind the growth in the market.

Asia Pacific is also a dominant region in the tire-derived fuel market due to major automobile companies shifting their plants to developed countries like China, Japan, India, and South Korea. Japan is expected to be a prominent region in the tire-derived fuel market due to the increase in the generation of new tires and the efficient use of scrap tires as well. The production of new tires is very high in India and Japan.

The extensive population and potential growth for vehicles enhance the growth of the market in the Asia-Pacific region. Lack of infrastructure and no proper vision for industrial growth are hampering the growth of the market in African countries. The Middle East, though, is noticing moderate growth during the forecast period. European countries like Germany, France, Italy, Russia, Greece, England, and Nordic countries are experiencing significant growth during the forecast period due to well-established business infrastructure, industries, and a rising economy.

Latin America, due to its poor infrastructure and industries, is experiencing slow growth in the region. Increasing awareness about recycling, reusing, and reducing theory is driving the growth in the tire-derived fuel market significantly. Tire derived fuel market is growing significantly worldwide.

Key Players

·         Ragn-Sells Group

·         Liberty Tire Recycling

·         Resource Co

·         Lakin Tire West

·         Renelux Cyprus

·         Tire Disposal and Recycling

·         West Coast Rubber Recycling

·         Globarket Tyre Recycling

·         Emanuel Tire

·         Other Players