Pyrolysis Oil Market Size, Share, Growth Analysis, By Type(Wood-based Pyrolysis Oil, Waste Plastic-based Pyrolysis Oil), By Application(Heat and Power Generation, Chemical Feedstock), By Process(Fast Process, Flash Process and Slow Process), By Region - Industry Forecast 2024-2031

Global Pyrolysis Oil Market size was valued at USD 322.36 Million in 2022 and is poised to grow from USD 334.71 Million in 2023 to USD 459.30 Million by 2031, growing at a CAGR of 4.06% in the forecast period (2024-2031). 

The global pyrolysis oil market is projected to continue growing steadily. The demand for renewable sources of energy is one of the major drivers of the pyrolysis oil market. With the challenges the world is currently facing environmentally, coupled with the need to reduce GHG emissions, there is a growing quest for finding alternative fuels that bring cleaner, more sustainable energy. For instance, biofuel production is rising significantly across the globe, with the United States, Brazil, and Indonesia as the top three producer nations. Among various types of biofuels, a significant amount of attention is received by pyrolysis oil, also known as bio-oil. From 2019 to 2020, the production of biofuels witnessed a drop of around 6%. Nevertheless, the sector recorded a strong comeback, as manifested by an estimated 10.8% growth from 2020 to 2022. 
 
Pyrolysis oil is a perfect alternative due to its manufacture from organic waste materials making it a contribution toward lessening the inflow of fossil fuels and creating a means for a circular economy. The industrial sectors take up a sizeable share in the global pyrolysis oil market. Industries related to power generation, chemicals, and transportation are thus coming forward to use pyrolysis oil as an alternate fuel instead of traditional fuels. On the other hand, demand from the agricultural sector is also growing due to the byproduct, biochar, which is used as a soil amendment. It is a charcoal-like product enriched with nutrients.

US Pyrolysis Oil Market is poised to grow at a sustainable CAGR for the next forecast year.