Tire Derived Fuel (TDF) Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Germany, Japan, India - Size and Forecast 2024-2028

Tire Derived Fuel Market Size 2024-2028

The tire derived fuel market size is forecast to increase by USD 68.5 million at a CAGR of 3.09% between 2023 and 2028.

• The market is experiencing significant growth due to several key factors. The growth of automotive fleet leasing and the subsequent generation of tire waste are driving market expansion. Advanced tire recycling technologies are being adopted to convert waste tires into valuable fuel sources, providing an environmentally friendly solution.
• Moreover, the rise in global infrastructural development and the need for sustainable energy alternatives to polybutadiene rubber are boosting market demand. Tire durability is also improving, leading to a decrease in the generation of tire waste. These trends are expected to continue shaping the growth trajectory of the TDF market.

What will be the Size of the Tire Derived Fuel Market During the Forecast Period?

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• The Tire-Derived Fuel (TDF) market is experiencing significant growth as industries seek sustainable alternatives to conventional fuels, such as oil, coal, and wood, for energy production. TDF, derived from the combustion of scrap tires in industrial facilities, offers a high BTU value and can be used in utility boilers, cement kilns, rotary kilns, and electric utilities. The increasing demand for TDF is driven by the growth of the vehicles sector, depleting hydrocarbon reserves, and concerns over the environmental impact of fossil fuels on natural water bodies and human health.
• However, the use of TDF in tire burning raises concerns from international environmental agencies and activists due to potential greenhouse gas emissions and the need for stringent emission controls.
• State-testing facilities are crucial in ensuring the safe and efficient use of TDF in industrial processes.

How is this Tire Derived Fuel Industry segmented and which is the largest segment?

The TDF industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • Shredded tire
  • Whole tire
• End-user
  • Cement kilns
  • Pulp and paper mills
  • Utility and industrial boilers
• Geography
  • APAC
    • China
    • India
    • Japan
  • Europe
    • Germany
  • North America
    • US
  • South America
  • Middle East and Africa

By Type Insights

• The shredded tire segment is estimated to witness significant growth during the forecast period.

The shredded tire segment holds a significant position in the market, given the extensive utilization of shredded tires in various applications, such as landfill operations and utility boilers. The shredding process, which involves reducing tires into smaller pieces, contributes to environmental conservation efforts in countries like the US, Canada, and China, by transforming scrap tires into fuel. This segment is projected to witness substantial growth during the forecast period, fueled by the increasing demand for sustainable waste management practices and the benefits of TDF over conventional fossil fuels. Applications in boilers, cement kilns, and pulp & paper mills further expand the market scope.

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The Shredded tire segment was valued at USD 248.50 million in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• APAC is estimated to contribute 80% 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.

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The Asia Pacific (APAC) region, specifically China, Japan, and India, dominates the market. China's significant contribution is due to its large population, rising economic standards, and the subsequent increase in automotive vehicle sales. With urbanization and high Gross Domestic Product (GDP) growth, the generation of tire stockpiles has escalated. In 2023, China accounted for the majority of TDF production in APAC. The automotive sector's expansion in countries like China and India is expected to continue, further boosting the TDF market. According to The World Bank Group, China's urban population grew from 49.6% in 2010 to 60.6% in 2020, indicating a continuous trend towards urbanization.

This demographic shift, coupled with the increasing demand for transportation, will continue to fuel the TDF market's growth. Companies like Cleanaway, Scandinavia, and others are capitalizing on this trend by providing TDF solutions to various industries.

Market Dynamics

Our tire derived fuel (TDF) market researchers analyzed the data with 2023 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.

What are the key market drivers leading to the rise in the adoption of Tire Derived Fuel (TDF) Industry?

Growing automotive fleets is the key driver of the market.

• The global automotive industry has witnessed significant growth, driven by urbanization and rising standards of living. By June 2020, over half of the world's population lived in urban areas, and this figure is projected to reach two-thirds by 2050. Developing and underdeveloped countries, particularly China, India, and Nigeria, are experiencing extensive population growth in urban areas. This industrialization and urban expansion have led to a surge in transportation demands. As the consumption of conventional fuels like oil, coal, and wood continues to rise, there is a growing interest in alternative fuels. Tire-derived fuel (TDF) has emerged as a viable option for industrial facilities such as utility boilers, cement kilns, and pulp & paper mills.
• TDF is derived from automotive tires and can be used as a substitute for fossil fuels. The use of TDF offers several advantages, including improved boiler efficiency, reduced air emissions, and cost savings. However, the market for TDF is not without challenges. The lack of infrastructure for tire collection and processing, relaxed environmental policies in some regions, and the high costs of transportation and labor are some of the factors limiting the growth of the TDF market. Despite these challenges, the TDF market is expected to grow, driven by the increasing demand for fuel and the need to reduce waste.
• In Scandinavia, for instance, Cleanaway and Ragn-Sells Group have established successful TDF businesses, while Liberty Tire Recycling has implemented an extensive infrastructure project in the US. As the trend towards electric vehicles continues to gain momentum, the demand for TDF may increase as manufacturing plants seek alternative raw materials. In conclusion, the TDF market presents an opportunity for industrial facilities to reduce their reliance on fossil fuels and minimize waste. However, the market faces challenges related to infrastructure, costs, and environmental policies. Despite these challenges, the market is expected to grow as the demand for fuel and the need to reduce waste continue to drive innovation and development.

What are the market trends shaping the Tire Derived Fuel (TDF) Industry?

Advances in tire recycling technologies is the upcoming market trend.

• Tire-derived fuel (TDF) is a sustainable alternative to conventional fuels such as oil, coal, and wood, derived from the processing of scrap tires. Utility boilers, cement kilns, and pulp & paper mills are among the industrial facilities increasingly adopting TDF as a raw material. The global automotive industry's growth, driven by the increasing popularity of electric vehicles, contributes to the extensive generation of scrap tires. TDF production involves the combustion of tires in a controlled environment, resulting in significant energy savings and reduced air emissions compared to the consumption of tire-derived fuel (TDF) in landfills. Boiler efficiency is a crucial factor in the TDF market, as the efficiency of the combustion unit directly impacts fuel costs.
• Infrastructure projects, such as state-testing facilities, are essential for ensuring the quality and safety of TDF. The development of TDF markets in regions like Scandinavia, where there is a lack of infrastructure for scrap tire disposal, is a growing trend. The tire recycling industry's advancements in machinery performance and output quality are essential to the TDF market's growth. Engineers are focusing on cost-saving solutions, such as increasing shaft diameters in primary and secondary shredders, to reduce energy consumption. However, human health concerns related to tire burning and the potential impact on natural water bodies remain significant challenges for the TDF market.
• Middle-class consumers' increasing awareness of the environmental benefits of TDF and the need to reduce relaxed environmental policies contribute to the market's development. Companies like Cleanaway and Ragn-Sells Group, along with Liberty Tire Recycling, are leading the way in the TDF market, providing innovative solutions for the sustainable disposal of scrap tires. The hydrocarbon reserves' depletion and the growing concern for human health and the environment make TDF a promising alternative fuel source.

What challenges does the Tire Derived Fuel (TDF) Industry face during its growth?

Increase in tire durability and rise in global infrastructural development is a key challenge affecting the industry growth.

• Scrap tires, a byproduct of the global automotive industry's growth, have become a valuable resource for various industries as an alternative fuel source. In 2023, the utilization of tire-derived fuel (TDF) surpassed traditional uses such as ground rubber production. The cement industry is a significant consumer of TDF, utilizing it in utility boilers to replace fossil fuels like coal, oil, and wood. However, the increasing durability and fuel efficiency of tires due to advancements in tire rubber compounding processes are extending their useful life. This, in turn, may impact the consumption of TDF. Industrial facilities, including pulp and paper mills, also use TDF as a raw material in their manufacturing processes.
• The extensive population and development in the US have led to an increase in the generation of scrap tires, necessitating the need for infrastructure projects to facilitate their proper disposal and utilization. Despite the benefits of TDF, there are concerns regarding boiler efficiency, air emissions, and costs. Landfills continue to be a significant disposal method for scrap tires, contributing to environmental issues. Relaxed environmental policies and the growing trend of electric vehicles may impact the demand for TDF. Middle-class consumers' increasing awareness of human health issues related to tire burning and the depletion of hydrocarbon reserves from natural water bodies have led to the exploration of cleaner alternatives.
• The market's growth is influenced by factors such as the availability of scrap tires, the demand for alternative fuels, and environmental regulations. The market's future is promising, with advancements in technology and changing consumer preferences shaping its trajectory.

Exclusive Customer Landscape

The tire derived fuel 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 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

Key Companies & Market Insights

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.

Babcock and Wilcox Enterprises Inc. - The company specializes in the production of Tire Derived Fuel (TDF), transforming recycled waste tires into a valuable resource for various manufacturing processes.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Babcock and Wilcox Enterprises Inc.
• Beta Analytic Inc.
• CH2E
• Emanuel Tire LLC
• Front Range Tire Recycle Inc.
• George K. Moss Co. Inc.
• Lakin Tire
• Liberty Tire Recycling LLC
• MS Tire Recycling LLC
• Ragn-Sells Group
• Reliable Tire Disposal
• Renelux Cyprus Ltd.
• ResourceCo Pty Ltd.
• Scandinavian Enviro Systems AB
• Tire Disposal and Recycling Inc.
• Tire Stewardship Manitoba
• Tyrec Ltd.
• Weibold
• West Coast Rubber Recycling Inc.

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.

Research Analyst Overview

Tire-derived fuel (TDF) is a sustainable alternative to conventional fuels, derived from the pyrolysis or gasification of waste tires. This process converts tires into a fuel source that can be used in utility boilers, cement kilns, and pulp & paper mills, among other industrial facilities. TDF is an attractive option for industries seeking to reduce their reliance on fossil fuels, such as oil and coal, and minimize their carbon footprint. The global automotive industry is experiencing significant development, with the growth of electric vehicles (EVs) and the increasing concern for human health and environmental sustainability. This trend is driving the demand for TDF as a viable alternative fuel source.

However, the extensive population and lack of infrastructure in some regions pose challenges to the widespread adoption of TDF. The production of TDF involves the collection and processing of scrap tires, which would otherwise end up in landfills. The recovery rate of scrap tires for TDF production is an essential factor in the market dynamics. Factors such as labor costs, raw materials, and infrastructure development play a significant role in the production and distribution of TDF. The use of TDF in industrial processes offers several advantages, including increased boiler efficiency and reduced air emissions. However, the costs associated with TDF production and transportation can be a barrier to entry for some industries.

Moreover, the relaxation of environmental policies in some regions may hinder the growth of the TDF market. TDF is a versatile fuel source that can be used in various industries, including utility boilers, cement kilns, and pulp & paper mills. The combustion unit's design and configuration determine the optimal use of TDF in these applications. The hydrocarbon reserves in TDF are similar to those in conventional fuels, making it a viable alternative for industries seeking to reduce their carbon footprint. The Scandinavian region has been a pioneer in the use of TDF as a fuel source. Companies such as Cleanaway and Ragn-Sells Group have been at the forefront of TDF production and distribution in the region.

The infrastructure project's development in this area has facilitated the widespread adoption of TDF as a sustainable alternative fuel source. The consumption of TDF is expected to increase as industries seek to reduce their reliance on fossil fuels and minimize their carbon footprint. The growing concern for human health and environmental sustainability is also driving the demand for TDF as a viable alternative fuel source. However, the lack of infrastructure in some regions may pose challenges to the widespread adoption of TDF. In conclusion, the TDF market is an essential component of the global transition towards sustainable energy sources. The use of TDF offers several advantages, including increased boiler efficiency, reduced air emissions, and a reduction in the reliance on fossil fuels. The challenges posed by the lack of infrastructure and the costs associated with TDF production and transportation must be addressed to facilitate the widespread adoption of TDF as a sustainable fuel source.

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What are the Key Data Covered in this Tire Derived Fuel Market Research and Growth Report?

• CAGR of the TDF industry during the forecast period
• Detailed information on factors that will drive the Tire Derived Fuel growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the tire derived fuel market growth of industry companies

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