The energy recovery from plastic waste provides the low cost renewable energy. The complexity associated with plastics products subject to the high cost involved in the recycling process. The high cost of recycling has increased the scope of the energy recovery from the plastic waste. The high recycling cost of plastic waste is major driving factor of global market. The rising crude oil prices are also driving the growth in the global market as the plastics waste are the big source of fuel and oil. The rising awareness for alternative synthetic fuels is positively impacting the growth in the market. The plastic waste is the replacement available in the market for the coal. Plastic waste is the big substitute of coal a major source of generating energy. Around 114 million ton of plastic waste can produce the energy equal to the energy produce by the 237 million ton coal. Thus the emergences of plastic waste as the low cost energy source is significantly impacting the global market.
The global energy market from plastic waste market is estimated to amount $2583.69 million by 2022 growing with a CAGR of 9.6% during the forecasted period. The strict government regulations for the use of waste treatment technology and high initial cost for setting up the treatment facility are hampering the growth of energy market from plastic waste in the global market. The government regulation for the carbon dioxide emission is the major government regulation which is hindering the growth in global market. The increasing adoption of new technology for the waste treatments and the increasing demand from emerging markets such as Asia pacific region are creating huge opportunities for the forecasted period in global energy market from plastic waste market.
The energy market from plastic waste is segmented on the basis of end product, waste materials, energy recovery process and geography. The end product segment is further segmented into RDF, Other chemicals and oil, Gasification and pyrolysis (syngas). Whereas the waste materials are segmented into Packaging waste (household and distribution), Building and construction, Automotive, electrical, and electronic waste, Agricultural waste, Others. The energy recovery process is segmented into Pyrolysis/thermal degradation, Gasification, Hydrothermal liquefaction. The waste material segments accounts to large share the automotive, packaging and electric waste contribute to a large share in the growth of the global market. The use of plastics in automotive segment is very high as the increasing demand for light weight and fuel efficient cars is increasing day by day. To maintain the fuel efficiency and light weight of the car, manufacturers are using high performance fibers in the cars at various places such as bumpers, body and dashboard. The automotive segment generate the large amount of the plastic waste which is increasing the growth of plastic waste production across the globe.
The global Energy market from plastic waste market is driven by the existence of some the prominent player in the market. Agilex Technologies, JBI Inc. (Plastic2oil), Covanta Holding Corporation, CFP GROUP, Cynar PLC, RES Polyflow, Enerkem, Vexor Technology, Wheelabrator Technologies. The mergers, acquisition, innovation, product development are the key strategies adopted by key players to sustain into competitive market. December 22, 2015, RES Polyflow an Ohio based manufacturers selected the Ashley, Indiana for the Midwest production facility. Phase one of the facility is expected to produce 17 million gallons of gasoline and ultra-low sulfur diesel on annual basis. Which will convert around 100, 00 ton plastic scrap by using the patented process of the company. The facility in Ashley will generate 136 full time jobs, the total capital investment amounts to $90 million. The Indian Economic development corporation (IEDC) presented $900,000 conditional tax credit and $100,000 training grants to RES Polyflow which will based on the job creation plan of the company.
On the basis of geography North America, Europe, Asia Pacific and RoW are the major segments. The Europe region dominates the energy market from plastic waste in the terms of revenue which is projected at $1074.68 million growing at CAGR of 9.3% during the forecast period. the market domination is driven by the increasing imports and exports done by the European nation for the waste treatment. The European nation are the largest consumer of waste materials in the world, as they use the waste materials as the renewable energy sources which is cheaper as compared to other energy sources available in the market. Followed by APAC region which holds the second largest share in the global market that is estimated to reach at $835.27 million by the end of 2022. The North America region is growing with High CAGR of 11.4%, the high growth in North America region is uplift by the increasing concern for renewable energy and the rising concern for the in-house waste treatment facilities which will help to reduce the export expenses associated with waste materials.
