The global tyre derived fuel (TDF) market is poised for steady growth, with a projected revenue growth rate of 3.3% between 2021 and 2025. By the end of 2025, the market is anticipated to surpass a valuation of US$430 million. The insights presented in this report provide valuable information for understanding the markets growth trajectory over the forecast period.
Key Findings of the Report:
- The global tyre derived fuel market was valued at US$365.1 million in 2019.
- Approximately 51% of tyres in the EU are recycled, with 43% used as fuel, including TDF.
- Asia Pacific is expected to account for a significant share in the tyre derived fuel industry over the forecast period.
- The TDF market is projected to expand at a CAGR of 3.3%.
Market Analysis in Brief
The demand for reliable fuel sources in various end-use industries, including cement and paper & pulp, has been steadily increasing. Industry players and governments are investing significantly in improving processes to reduce emissions and enhance productivity. As urbanization and industrialization continue to rise, the demand for products from various end-use industries is expected to grow. This is anticipated to drive the expansion of the global tyre derived fuel market during the forecast period.
Drivers of Market Growth
- Increasing Effort on Scrap Tyre Management Through Alternative Solid Fuels: Governments worldwide are adopting the Reduce, Reuse, and Recover (3R) concept for scrap tyre management. This approach offers numerous advantages, including efficient waste management and enhanced energy security through the use of alternative fuels. With concerns about fossil fuel price volatility, there is a growing demand for cost-effective alternatives, providing an excellent opportunity for the global tyre derived fuel market to thrive.
- Environmental Benefits: Diverting tyres from landfills not only conserves space but also reduces environmental risks. Scrap tyre piles can pose a fire hazard, emitting toxic smoke and hazardous liquids that can contaminate the environment. Tyre derived fuel presents a sustainable solution to address these concerns.
Challenges Ahead
- COVID-19 Impact: The COVID-19 pandemic affected multiple industries, including cement manufacturing, pulp & paper, and electrical utilities sectors, which are major consumers of tyre derived fuel. The temporary shutdown of these facilities during lockdowns in various countries significantly impacted the tyre derived fuel market in Q1 2020. However, as restrictions were eased, the market began to recover.
- Regulatory Restrictions and Technological Limitations: TDF faces stringent regulations in different countries due to concerns related to emissions and environmental impact. For example, the EU strictly regulates the tyre derived fuel market under directives such as the Waste Framework Directive and the Industrial Emissions Directive. Technological limitations, such as the need to remove contaminants from waste tyres before using them as a fuel source, could increase production costs and limit the availability of high-quality TDF.
Overview of Key Segments
Cement Industry to Dominate TDF Consumption
The cement industry is a major consumer of tyre derived fuel, using it as a supplemental fuel to enhance boiler efficiency, reduce air emissions, and lower costs. In 2020, the cement industry accounted for a 52.7% share of the tyre derived fuel market. The revenue of the cement manufacturing segment is expected to grow significantly over the forecast period, offering substantial savings on fuel costs, which are continuously rising.
Growth Opportunities Across Regions
Asia Pacific Presents Significant Growth Opportunities
Asia Pacific held a 33% share of the global tyre derived fuel market in 2020. The regions low recovery rate for end-of-life tyres, which are often disposed of in landfills or by burning, has adverse environmental impacts. Collaborative efforts between organizations like the Automotive Tyre Manufacturers’ Association (ATMA) and the Technology, Environment, Safety and Standards (TESS) and the Indian government aim to develop waste tyre legislation. Additionally, the popularity of electric vehicles in North America and Europe is expected to lead to an increase in the flow of scrap tyres, further driving the demand for TDF facilities.
Key Market Players – Tyre Derived Fuel (TDF) Landscape
Prominent companies in the global tyre derived fuel market include Liberty Tyre Recycling, ResourceCo Pty Ltd., Ragn-Sells Group, Tyre Disposal & Recycling, and many others. These industry leaders are actively investing in expanding their capabilities and services through new product launches, partnerships, collaborations, acquisitions, and alliances.
Browse Global Tyre Derived Fuel (TDF) Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021-2025 – [2023 UPDATE Available – Forecast 2023-2030*] (By Scrap Tyre Type Coverage(Chipped/Shredded Tyre,Whole Tyre), End-user Coverage, By Geography, Leading Companies) : https://www.fairfieldmarketresearch.com/report/tyre-derived-fuel-tdf-market
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E-fuel Market: https://www.fairfieldmarketresearch.com/report/e-fuel-market
Contact
Fairfield Market Research
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Sahyadri Times journalist was involved in the writing and production of this article.
