Published on : May 25, 2016
The demand for converting plastics to oil has picked up speed in recent years due to the rising awareness among the global population and governments across the world about the ecological damage caused by plastics, which are among the most widely used materials in the world and are produced at rampant rates. Conventional plastics aren’t biodegradable, which makes them a biohazard. They harm the ecology of their dumping area and can be a choking hazard for a wide range of animals.
As a result of rising awareness about these issues, the solution of converting plastic products to oil has picked up speed. Plastics are made from petroleum products, so they can be reconverted to obtain oil. The technological knowhow of this process is not that advanced, but the high costs of the process have kept the market in check. Nevertheless, according to Transparency Market Research, a leading market intelligence firm, the global recycled plastic and plastic waste to oil market is expected to exhibit a robust 12.6% CAGR from 2016 to 2024 to rise to a valuation of more than US$1.9 bn. The market was valued at US$542.8 mn in 2015.
Polyethylene Plastic Most Used, Diesel Most Obtained Fuel
Of the various types of plastics used in recycled plastic and plastic waste to oil conversion, polyethylene, particularly high-density polyethylene, took up the largest share in the market in 2015. The high energy density of polyethylene is responsible for the dominant share of the segment.
Correspondingly, of the various types of fuels obtained from recycled plastic and plastic waste conversion, diesel is the leading category. The increasing demand for fuel for transportation in developing economies such as India, China, Brazil, Indonesia, South Korea, Argentina, etc. is responsible for the dominant share of diesel production in the global recycled plastic and plastic waste to oil market.