Tire Derived Fuel (TDF) Market Size 2026-2030
The tire derived fuel (tdf) market size is valued to increase by USD 72.6 million, at a CAGR of 3.1% from 2025 to 2030. Increasing government initiatives and landfill diversion mandates will drive the tire derived fuel (tdf) market.
Major Market Trends & Insights
- APAC dominated the market and accounted for a 63.4% growth during the forecast period.
- By Type - Shredded tire segment was valued at USD 346.6 million in 2024
- By End-user - Cement kilns segment accounted for the largest market revenue share in 2024
Market Size & Forecast
- Market Opportunities: USD 127 million
- Market Future Opportunities: USD 72.6 million
- CAGR from 2025 to 2030 : 3.1%
Market Summary
- The Tire Derived Fuel (TDF) Market is expanding as a critical component of sustainable waste management and industrial energy strategy. Driven by stringent landfill diversion mandates and the economic advantages of fossil fuel substitution, industries are increasingly adopting this high calorific value fuel.
- The use of shredded tire chips and whole tires in cement kiln co-processing is a cornerstone of this market, offering a practical waste-to-energy solution. Trends are shifting towards more advanced thermal recovery process technologies, such as pyrolysis, which transform feedstock into tire pyrolysis oil (TPO) and recovered carbon black (rCB), aligning with a waste-to-materials model.
- For instance, a facility might leverage these advanced methods to convert feedstock not just into fuel but also into circular petrochemical feedstock, improving resource utilization. However, the sector faces challenges from logistical complexities in the feedstock supply chain and shifting regulatory landscapes that can impact the classification of TDF as a renewable resource, creating operational uncertainty.
What will be the Size of the Tire Derived Fuel (TDF) Market during the forecast period?
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How is the Tire Derived Fuel (TDF) Market Segmented?
The tire derived fuel (tdf) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2026-2030, as well as historical data from 2020-2024 for the following segments.
- Type
- Shredded tire
- Whole tire
- End-user
- Cement kilns
- Pulp and paper mills
- Utility and industrial boilers
- Source
- Light motor vehicles
- Heavy duty vehicles
- Others
- Geography
- APAC
- China
- India
- Japan
- Europe
- Germany
- UK
- France
- North America
- US
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Colombia
- Middle East and Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of World (ROW)
- APAC
By Type Insights
The shredded tire segment is estimated to witness significant growth during the forecast period.
The shredded tire segment is foundational to the tire derived fuel market, driven by its superior handling characteristics and combustion efficiency.
The process involves tire shredding technology to create uniformly sized shredded tire chips, which are easier to transport and feed into systems for industrial co-processing. This method enhances thermal recovery process efficiency and supports better emission control technology.
This segment's dominance, accounting for over 81% of the total volume, reflects a clear industrial preference for processed material over whole tire combustion. This preference is linked to operational cost savings and the demand from energy intensive industries fuel.
The use of this fuel aligns with corporate sustainability goals and circular economy principles, facilitating sustainable waste management through a practical waste-to-energy solution.
The Shredded tire segment was valued at USD 346.6 million in 2024 and showed a gradual increase during the forecast period.
Regional Analysis
APAC is estimated to contribute 63.4% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
See How Tire Derived Fuel (TDF) Market Demand is Rising in APAC Request Free Sample
The geographic landscape of the market is led by the APAC region, which is poised for the highest expansion, accounting for over 63% of the market's incremental growth.
This is driven by rapid industrialization and a growing focus on sustainable waste management to handle the massive volume of end-of-life tires. The region's growth rate, at 3.8%, significantly outpaces that of North America, which stands at 2.0%.
This dynamic reflects a proactive shift in waste management policy and a strong push for energy diversification strategy across developing economies. Key activities include investment in tire recycling infrastructure and the development of a more robust feedstock supply chain.
This supports both end-of-life tire management and the broader adoption of thermal recycling acceptance, reinforcing the region's pivotal role in the industry's future.
Market Dynamics
Our researchers analyzed the data with 2025 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
- Navigating the global tire derived fuel (TDF) market 2026-2030 requires a deep understanding of several interconnected factors. The economic advantages of tire derived fuel are a primary driver, yet realizing these benefits depends on overcoming significant logistical challenges in TDF supply.
- The regulatory impact on TDF market dynamics cannot be overstated, as shifting state-level renewable energy policies can alter market viability overnight. At the same time, the broader TDF's role in circular economy initiatives is gaining prominence, supported by developments like the tire recycling foundation impact, which aims to strengthen sustainable end-use markets.
- Central to growth is the use of TDF in cement manufacturing decarbonization, where it serves as an effective TDF as a coal substitute. However, the environmental impact of TDF combustion and challenges of TDF public perception remain persistent hurdles that require effective management of emissions from TDF combustion.
- The adoption of advanced pyrolysis for tire recycling, underscored by major tire pyrolysis oil offtake agreements, signals a shift toward higher-value applications. This is occurring alongside consolidation trends in tire recycling, where infrastructure investment for TDF production is scaling up.
- The cost-effectiveness of shredded tire fuel is proven, but co-processing whole tires in kilns offers an alternative by reducing processing needs. Ultimately, the industry's trajectory is shaped by the interplay between the impact of ESG on TDF adoption, the quality of TDF quality for industrial boilers, and the role of tipping fees in TDF economics.
What are the key market drivers leading to the rise in the adoption of Tire Derived Fuel (TDF) Industry?
- The market is primarily driven by increasing government initiatives and landfill diversion mandates that necessitate sustainable alternatives for end-of-life tire management.
- Regulatory mandates and compelling economics are the primary forces driving market growth. Stringent landfill diversion mandates and waste management policy frameworks are compelling industries to adopt sustainable alternatives for end-of-life tire management.
- For example, a recent EU ban on rubber granulate infill for sports pitches, with its eight-year transition, is set to redirect millions of tires toward energy recovery, dramatically increasing the available scrap tire feedstock.
- This regulatory push is complemented by a strong pull from energy intensive industries.
- The cement sector's use of alternative fuels reached an all-time high of 16% of its total mix, a move driven by the significant operational cost savings and price stability offered by TDF compared to fossil fuels.
- This fossil fuel substitution is a cornerstone of corporate sustainability goals and a direct path to alternative resource utilization.
What are the market trends shaping the Tire Derived Fuel (TDF) Industry?
- A key market trend is the adoption of advanced pyrolysis and gasification technologies. These processes convert end-of-life tires into higher-value products beyond traditional fuel.
- Market evolution is increasingly defined by technological advancements and strategic consolidation. The trend toward a waste-to-materials model is accelerating, with advanced pyrolysis and gasification units for tire polymer deconstruction gaining traction over simple whole tire combustion.
- This shift, which produces tire pyrolysis oil (TPO) and recovered carbon black (rCB), is attracting major industrial players, with recent offtake agreements for renewable marine fuel and circular petrochemical feedstock underscoring its commercial viability. Concurrently, the landscape is maturing through vertical integration in recycling, as evidenced by acquisitions of major processors by infrastructure funds.
- This consolidation enhances economies of scale and stabilizes the feedstock supply chain. For instance, the cement industry's strategic integration of alternative fuels has led to record-high usage rates, with some producers achieving a 30% alternative fuel share in their energy mix, directly supporting industrial decarbonization strategy.
What challenges does the Tire Derived Fuel (TDF) Industry face during its growth?
- Regulatory volatility and shifting policy landscapes present a key challenge, creating uncertainty that can hinder market growth and investment.
- The market's expansion is constrained by regulatory volatility, public opposition, and logistical hurdles. Shifting waste management policy and inconsistent renewable energy classifications create significant investment uncertainty, as seen when changes in state-level rules can eliminate demand overnight.
- This is compounded by the persistent public perception of incineration as a harmful practice, leading to opposition that can delay or block new facility permits. The informal recycling sector further complicates the establishment of reliable supply chains. Logistical complexities, including high transportation cost impact and the need for major investment in waste management infrastructure, also hinder growth.
- These challenges are particularly pronounced in regions where a formal feedstock supply chain is underdeveloped, limiting the ability to process high volumes of micronized rubber powder or other recycled materials efficiently and increasing reliance on less desirable tire disposal alternatives.
Exclusive Technavio Analysis on Customer Landscape
The tire derived fuel (tdf) market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the tire derived fuel (tdf) market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of Tire Derived Fuel (TDF) Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, tire derived fuel (tdf) market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Champlin Tire Recycling Inc. - Key offerings focus on transforming end-of-life tires into standardized, high-energy fuel substitutes for industrial applications, advancing waste valorisation and circular economy principles.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- Champlin Tire Recycling Inc.
- Ecore International
- Emanuel Tire LLC
- Entech, Inc.
- Genan A/S
- Globarket Tire Recycling LLC
- Golden Bear Recycling LLC
- Klean Industries Inc.
- L and S Tire Co.
- Lakin Tire
- Liberty Tire Recycling LLC
- Mahantango Enterprises
- Renelux Cyprus Ltd.
- ResourceCo Pty Ltd.
- Rumpke Consolidated Co. Inc.
- Zhengzhou GEP Ecotech Co. Ltd
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Tire derived fuel (tdf) market
- In October, 2024, the Portland Cement Association reported that 2023 was a record year for energy efficiency, with alternative fuels, including TDF, reaching an all-time high of 16% of the total fuel mix in the US cement industry.
- In May, 2024, BP p.l.c. signed an eight-year offtake agreement with Circtec to purchase renewable marine fuel and circular naphtha derived from end-of-life tires, signaling major investment in advanced pyrolysis.
- In May, 2024, the U.S. Tire Manufacturers Association and the Tire Industry Association jointly launched the Tire Recycling Foundation to promote and expand sustainable, circular end-use markets for scrap tires.
- In October, 2025, it was announced that infrastructure investment manager I Squared Capital entered into an agreement to acquire Liberty Tire Recycling, the largest tire recycler in the United States.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Tire Derived Fuel (TDF) Market insights. See full methodology.
| Market Scope | |
|---|---|
| Page number | 288 |
| Base year | 2025 |
| Historic period | 2020-2024 |
| Forecast period | 2026-2030 |
| Growth momentum & CAGR | Accelerate at a CAGR of 3.1% |
| Market growth 2026-2030 | USD 72.6 million |
| Market structure | Fragmented |
| YoY growth 2025-2026(%) | 3.0% |
| Key countries | China, India, Japan, South Korea, Indonesia, Australia, Germany, UK, France, Italy, Spain, The Netherlands, US, Canada, Mexico, Brazil, Argentina, Colombia, South Africa, Saudi Arabia, UAE, Egypt and Morocco |
| Competitive landscape | Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The tire derived fuel market is driven by the dual imperatives of sustainable waste management and the industrial demand for cost-effective energy. At its core, the market leverages tire shredding technology to produce shredded tire chips, a high calorific value fuel used for clinker production fuel.
- This waste-to-energy solution is critical for end-of-life tire management, offering a viable alternative to landfills. A key trend is the advancement beyond simple whole tire combustion towards a more sophisticated thermal recovery process, including tire polymer deconstruction via pyrolysis. This waste-to-materials model yields valuable outputs like tire pyrolysis oil (TPO), recovered carbon black (rCB), and non-condensable synthetic gas.
- For boardroom consideration, the decision to invest in advanced thermal treatment facilities that facilitate a waste-to-chemicals pathway is a strategic one, directly impacting long-term compliance and circular economy alignment. Such investments, which may involve cryogenic grinding and magnetic separation of steel, can elevate a company's sustainability profile.
- This is crucial as industries globally, from cement manufacturing to those using process engineered fuel (PEF), aim to increase their thermal substitution rate, with some achieving a 30% share for alternative fuels.
- The market's infrastructure, encompassing everything from tire derived aggregates to high-BTU tire chips, is maturing to support this industrial symbiosis and waste valorisation, though it requires robust emission control technology and flue gas cleaning systems to meet regulatory standards.
What are the Key Data Covered in this Tire Derived Fuel (TDF) Market Research and Growth Report?
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What is the expected growth of the Tire Derived Fuel (TDF) Market between 2026 and 2030?
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USD 72.6 million, at a CAGR of 3.1%
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What segmentation does the market report cover?
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The report is segmented by Type (Shredded tire, and Whole tire), End-user (Cement kilns, Pulp and paper mills, and Utility and industrial boilers), Source (Light motor vehicles, Heavy duty vehicles, and Others) and Geography (APAC, Europe, North America, South America, Middle East and Africa)
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Which regions are analyzed in the report?
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APAC, Europe, North America, South America and Middle East and Africa
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What are the key growth drivers and market challenges?
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Increasing government initiatives and landfill diversion mandates, Regulatory volatility and shifting policy landscapes
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Who are the major players in the Tire Derived Fuel (TDF) Market?
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Champlin Tire Recycling Inc., Ecore International, Emanuel Tire LLC, Entech, Inc., Genan A/S, Globarket Tire Recycling LLC, Golden Bear Recycling LLC, Klean Industries Inc., L and S Tire Co., Lakin Tire, Liberty Tire Recycling LLC, Mahantango Enterprises, Renelux Cyprus Ltd., ResourceCo Pty Ltd., Rumpke Consolidated Co. Inc. and Zhengzhou GEP Ecotech Co. Ltd
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Market Research Insights
- The market's momentum is sustained by a push for industrial decarbonization strategy and greater corporate sustainability goals. The adoption of TDF is driven by clear economic benefits, with facilities achieving thermal substitution rates of up to 30% and the cement sector reporting an alternative fuel mix of 16%, significantly lowering operational cost savings.
- This shift toward alternative resource utilization is a key response to volatile fossil fuel prices. However, growth is moderated by challenges in waste management infrastructure and the need for consistent regulatory compliance for emissions.
- Success hinges on balancing economic incentives with environmental, social, and governance (ESG) criteria, as companies navigate evolving waste management policy and public perception to secure a stable feedstock supply chain.
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