Pyrolysis oil market seen topping $480.9 million by 2031

Allied Market Research says the global pyrolysis oil market is set to grow from $318.5 million in 2021 to $480.9 million by 2031 as demand rises for alternative fuels, recycled feedstocks and waste-to-energy applications. The fastest growth is expected in automotive fuel, rubber feedstock and Asia-Pacific.

Why it matters: - Pyrolysis oil is gaining traction as companies look for lower-carbon fuel and feedstock options. - The market’s growth reflects higher energy and petroleum costs, more plastic use and broader infrastructure buildout. - Allied Market Research projects the market to reach $480.9 million by 2031, up from $318.5 million in 2021. - The forecast implies a compound annual growth rate of 4.3% from 2022 to 2031.

What happened: - Allied Market Research released a new global pyrolysis oil market report on July 7, 2026. - The report said the automotive fuel segment is expected to grow fastest, at a CAGR of 4.6% during the forecast period. - The report also identified the plastic segment, slow pyrolysis process and heat and power use as current market leaders. - The report included a sample request link for the study: Download sample pages of the research overview.

The details: - The plastic feedstock segment accounted for more than two-fifths of global revenue in 2021 and is expected to keep its lead through 2031. - The rubber feedstock segment is projected to be the fastest-growing feedstock category, with a CAGR of 4.6% from 2022 to 2031. - Slow pyrolysis held over half of the global market share in 2021 and is expected to remain the leading process. - Fast pyrolysis is forecast to expand at a CAGR of 4.5% through 2031. - The heat and power application segment represented nearly three-fifths of market revenue in 2021. - The automotive fuel segment is expected to register the fastest growth among end uses, also at a CAGR of 4.6%. - North America led the market in 2021 with nearly two-fifths of global share and is expected to maintain that position through 2031. - Asia-Pacific is projected to post the fastest regional growth, with a CAGR of 4.7%. - The report linked Asia-Pacific growth to industrialization, waste management initiatives and renewable energy investment. - Key companies named in the report include Bioenergy AE Cote-Nord, New Hope Energy, Green Fuel Nordic Oy, Agilyx, OMV Aktiengesellschaft, Plastic Advanced Recycling Corp., Quantafuel ASA, Alterra Energy, Ensyn and Niutech. - The report said market participants are pursuing product launches, partnerships, collaborations, expansions, joint ventures and technology upgrades. - Allied Market Research also provided a purchase page for statistical data and player strategies: Access the market data and graphs.

Between the lines: - The report points to a market built around waste conversion and fuel substitution rather than a single end-use category. - Faster growth in automotive fuel suggests pyrolysis oil is moving beyond industrial heat applications toward transportation-related use cases. - Regional growth in Asia-Pacific may reflect both waste pressure and policy support for cleaner energy systems.

What's next: - North America is expected to remain the largest regional market through 2031. - Asia-Pacific is expected to narrow the gap fastest if current industrial and renewable-energy trends continue. - Companies in the sector are likely to keep competing on process efficiency, partnerships and expansion capacity.