Tire Derived Fuel (TDF) Market by Type, End-user and Geography - Forecast and Analysis 2023-2027

Global Tire Derived Fuel (TDF) Market Forecast 2023-2027

The Tire-Derived Fuel (TDF) Market size is forecast to increase by USD 72.57 million at a CAGR of 3.34% between 2022 and 2027. The Global Tire-Derived Fuel Market experiences growth driven by key determinants. As automotive fleets expand globally, there's a parallel increase in the demand for alternative fuel sources, with tire-derived fuel emerging as a viable option. Furthermore, the advantages of tire-derived fuel, including its efficiency and lower environmental impact compared to conventional fuels, drive its adoption across various industries. Additionally, regulatory mandates promoting sustainable waste management practices incentivize the use of tire-derived fuel, shaping market dynamics and fueling its growth trajectory. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. 

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

Tire-Derived Fuel-Market Forecast 2023-2027

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Market Dynamics

The market faces scrutiny from international environmental agencies and activists due to concerns over emissions of dioxins and furans during tire burning, posing a threat to the environment and human health, leading to increased regulations by the EPA and state-testing facilities for emission controls in combustion units such as utility boilers, cement kilns, pulp and paper mills, and electric utilities, as industrial facilities seek alternative Btu-value fuel sources like tire-derived fuel to mitigate greenhouse gas emissions while managing waste tires alongside conventional fuels like oil, coal, and wood from hydrocarbon reserves, fostering growth in the market for tire-derived fuel. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. 

Key Market Driver

Growing automotive fleets is the key market driver. The surge in automotive fleets acts as a primary catalyst propelling market expansion. The escalating demand for automobiles is driven by rapid urbanization, improved living standards, and increased consumer spending worldwide. Moreover, both developed and developing countries, notably China, India, and Nigeria, witness significant population growth, further fueling the demand for transportation. As industrialization and urbanization accelerate, various modes of transportation, including public, individual, and freight, witness an uptick.

Furthermore, the continuous growth in global economic conditions and consumer confidence drives the proliferation of automobile production worldwide. Consequently, the expanding vehicle count leads to a proportional increase in the number of tires in circulation. This, in turn, augurs well for the tire-derived-fuel (TDF) market's growth trajectory. Therefore, these factors are poised to foster market expansion during the forecast period without compromising environmental standards and regulations.

Significant Market Trends

Increase in demand for EVs and HEVs is the key market trend. There has been an increase in the adoption of r EVs and HEVs in the automotive industry in order to reduce GHG emissions and shift toward a sustainable ecosystem. Additionally, manufacturers have to comply with stringent regulations under the Paris Agreement. There is an increasing preference for EVs in the market as it is considered the best solution for minimizing carbon footprints as well as a green solution for the decarbonization of the transport sector. 

Furthermore, EVs are considered to emit only half the amount of GHGs when compared to conventional vehicles. Additionally, there is a rise in demand for  HEVs as they combine the benefits of both gasoline engines and electric motors and is customized to meet certain features such as improved fuel efficiency, increased power, or additional auxiliary power for power tools and electronic devices. Hence, such benefits are expected to positively impact the market growth. Thus, these factors are expected to drive market growth during the forecast period.

Major Market Challenge 

Economic constraint related to tire recycling is the major trend hindering the market growth. One of the significant challenges regarding the market is the inadequate supply of scrap tires. Due to certain economic constraints of the scrap tire markets, the transportation distance of tires or tire-derived fuel is limited. For instance, in the case of whole tires, it is limited to a certain distance before the cost of transportation exceeds the value of the scrap tires. Thus the growth of the market highly relies on the scrap tire markets.

Hence, the economies of scrap tires highly depend on both the price received when the tire-derived fuel is sold to the end-user and the front-end tip fee, usually collected from the original owner of the scrap tires. Furthermore, the amount a customer would be willing to invest for the tire-derived fuel would not be enough to dispose of tires and process them to the proper size. Hence, such a demand and supply gap will negatively affect market growth. Hence, such factors are hindering the market growth during the forecast period.

Market Segmentation

Type Segment Analysis

The shredded tire segment is estimated to witness significant growth during the forecast period. The process of a tire cracking a vehicle and breaking into pieces is termed shredding. This segment is extensively used as a lightweight backfill in gas venting systems, leachate collection systems, and operational liners. Additionally, it can be utilized in landfill capping and closures and as a material for daily cover.

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The shredded tire segment was the largest segment and was valued at USD 245.85 million in 2017. Some of the key countries that contribute to the preservation of the environment by using tire-derived fuel from shredded and scrap tires include the US, Canada, and China. Furthermore, the National Institutes of Health performed a survey in 2017, which concluded that 43% of scrap tires were being converted into tire-derived fuel. Thus, such extensive applications of shredded tires are expected to increase the growth of this segment which in turn will drive the market growth during the forecast period.

Regional Analysis

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APAC is estimated to contribute 74% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  Some of the key countries that are significantly contributing to the global market include China, Japan, and India. There is an increase in production in China due to the high sales of automotive vehicles and the subsequent generation of stockpiles of tires over the years. Some of the key factors for this increasing production in China is due to rising economic standards, a vast population, and a rise in the standard of living of individuals in the region. 

Furthermore, the region is expected to have an increase in sales due to factors such as growing urbanization and high gross domestic product (GDP) growth in countries such as China and India. For Instance, as per the World Bank Group, the urban population in China grew from 49.23% in 2010 to 61.43% in 2020. Additionally, there is a significant increase in demand for EVs in China, which is expected to positively impact the market growth. Hence, such factors are expected to drive market growth in the region during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

CH2E: The company offers tire-derived-fuels from recycled waste tires which are processed into material used as fuel in various manufacturing applications.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Babcock and Wilcox Enterprises Inc, Beta Analytic Inc., 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, and West Coast Rubber Recycling Inc.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak based on their quantitative data analysis.  

Market Analyst Overview

The Global Tire-Derived Fuel Market is driven by the demand for alternative energy sources amidst growing concerns over coal and wood usage, which pose environmental challenges. Regulatory bodies like the EPA (Environmental Protection Agency) and state-testing facilities monitor emissions from utility boilers and other industrial facilities powered by fossil fuels. With the rise in vehicles, there's a burgeoning market for tire-derived fuel (TDF), utilizing discarded tires. However, activists and international environmental agencies raise concerns over greenhouse gas emissions and the emission of dioxins and furans, highlighting the threat to the environment. Despite challenges, TDF offers a viable Btu-value fuel alternative, prompting the adoption of emission controls in industrial facilities and electric utilities to mitigate environmental impact.

The growth of vehicles has led to an increased demand for energy sources, driving interest in tire-derived fuel (TDF) as an alternative to traditional fuels. This trend is particularly relevant given concerns over hydrocarbon reserves and their environmental impact on natural water bodies and human health. With the rise of the global automotive industry, including the expansion of electric vehicles, the need to adopt sustainable practices like Reduce, Reuse, and Recover (3R) has become paramount. Market players are exploring opportunities to utilize TDF in combustion units across various sectors, including pulp & paper mills and manufacturing plants, to improve boiler efficiency and reduce air emissions. While TDF offers potential benefits, stakeholders must address associated costs and ensure a high recovery rate to minimize reliance on landfills and promote environmental sustainability.

The utilization of raw materials for tire-derived fuels (TDF) has gained traction as a sustainable solution, particularly with the rising concerns of tire burning and its environmental implications. However, challenges persist, including the inhibition of the growth of tire-derived fuels due to regulatory constraints and limited infrastructure. Initiatives led by organizations like Cleanaway and the Clean Energy Finance Corporation (CEFC) aim to foster innovation and support development in the utilization of alternative and biomass fuels, mitigating the environmental impact of tire consumption. As middle-class consumers demand greener alternatives, there is a growing focus on infrastructure projects and development in the automobile sector to enable the widespread adoption of TDF. Established automakers are increasingly exploring opportunities to integrate TDF into their operations, driving forward sustainability efforts in the industry.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Shredded tire
  • Whole tire
• End-user Outlook 
  • Cement kilns
  • Pulp and paper mills
  • Utility and industrial boilers
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Tire-Derived Fuel-Market Scope
Report Coverage	Details
Page number	150
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 3.34%
Market growth 2023-2027	USD 72.57 million
Market structure	Fragmented
YoY growth 2022-2023(%)	2.78
Regional analysis	APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 74%
Key countries	US, China, Japan, India, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	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, and West Coast Rubber Recycling Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across APAC, Europe, North America, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of the key market companies

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