U.S. Plastic-to-fuel Market Regional Outlook 2015 to 2020; Future Market Insights

Topics: Petroleum, Alternative fuel, Economics Pages: 7 (1119 words) Published: May 20, 2015
U.S. Plastic-to-fuel Market:
2015 - 2020


Plastic-to-fuel Market: U.S. Scenario, Trends,
Industry Analysis, Size, Share and Forecast, 2015 - 2020

Published Date:
May 2015

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U.S. Plastic-to-fuel Market:
2015 - 2020

Global UV Tapes Market Projected to reach US$ 437.9 Mn by 2020 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.

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.

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.

Future Market Insights


U.S. Plastic-to-fuel Market:
2015 - 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. 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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