The U.S. Plastics-to-Fuel Market is estimated to be valued at US$ 128.21 Bn in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The U.S. plastics-to-fuel market involves conversion of plastic waste into gasoline, diesel, and other fuels through thermal and catalytic processes. Plastics are non-biodegradable and their disposal has become a major environmental issue. Converting plastics into fuels provides a sustainable solution to plastic waste management and also helps address the growing energy demand.
Market key trends:
The U.S. plastics-to-fuel market is primarily driven by rising demand for sustainable and renewable fuels. Stringent regulations regarding plastic waste recycling and disposal are further promoting adoption of plastics-to-fuel technology. Moreover, support from federal and state government in the form of funding and initiatives for development of advanced pyrolysis and gasification technologies is expected to support the market growth over the forecast period. For instance, the US Department of Energy provides financial assistance for research, development and demonstration of new plastic waste conversion technologies.
Porter’s Analysis
Threat of new entrants: The U.S. plastic-to-fuel market requires high capital investment for setting up plastic-to-fuel plants, acting as a barrier for new companies. However, supportive governmental policies promote new start-ups.
Bargaining power of buyers: The presence of numerous plastic waste collectors and recyclers gives high bargaining power to buyers in the market.
Bargaining power of suppliers: The abundant availability of plastic waste from various industries like packaging reduces the bargaining power of suppliers.
Threat of new substitutes: Emerging technologies to produce renewable fuels from agricultural waste pose a competitive threat.
Competitive rivalry: Companies compete on pricing and innovation in converting plastic waste into valuable fuels.
SWOT Analysis
Strengths: Established players have robust technology, resources and experience in plastic waste management. The process helps reduce environmental pollution.
Weaknesses: Higher production costs compared to traditional fuels. Dependency on plastic waste supply raises input price volatility.
Opportunities: Growing concerns over plastic waste and need for sustainable energy sources increase market potential. Supportive regulations boost market growth.
Threats: Fluctuations in crude oil prices impact demand-supply dynamics. Stringent emission norms increase compliance costs.
Key Takeaways
The U.S. Plastic-To-Fuel Market Growth is expected to witness high growth, exhibiting CAGR of 9.3% over the forecast period, due to increasing plastic waste generation. The per capita plastic consumption in the U.S. was 105 kgs in 2020 and is projected to rise further with growing e-retail.
Regionally, the Western U.S. holds a significant share due to large presence of end-use industries and supportive recycling policies of states like California. The Northeast region is poised to grow at a quick pace during the forecast period.
Key players operating in the U.S. plastic-to-fuel market are Plastic2Oil, Agilyx Corporation, Vadxx Energy, and Green Envirotec Holdings. Plastic2Oil leads with over 150 patents for thermal and catalytic plastic conversion technologies. Agilyx is an emerging innovator focused on chemical recycling technologies.
For more insights, read- https://www.pressreleasebulletin.com/u-s-plastic-to-fuel-market-trends-size-and-share-analysis/
