Tire Derived Fuel Market to Record an Exponential CAGR by 2025
The
global tire-derived fuel market was valued at US$ 342.4 Mn in 2017
and is anticipated to expand at a CAGR of more than 2.9% from 2018 to
2026, according to a new report titled ‘Tire-derived Fuel Market -
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast,
2018–2026’ by Transparency Market Research (TMR).
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Report Overview @
Recovery
of energy from scrap tires is preferred over sending them to
landfills. Scrap tires are used as fuel because of their high heating
value. They are typically used as a supplement to traditional fuels
such as coal or wood. Normally, tires need to be reduced in size to
fit in most combustion units. Besides size reduction, the use of TDF
may require additional physical processing such as de-wiring.
Rise
in Demand for Tire-derived Fuel from the Cement Industry is driving
the Market
Fuel
prices are rising continuously, and there is no sign of relief in the
near future. Demand for fossil fuel is high, and the fuel is still
the leading natural resource used in cement-manufacturing facilities.
The cement industry depends heavily on coal, coke, and oil to fire
kilns, and it can consume as much as 300,000 tons of coal per
facility per year. Currently, cement-manufacturing companies use
tire-derived fuel (TDF) to supplement their primary fuel for firing
cement kilns. The heating value of an average-sized passenger tire is
approximately 13,000 to 15,000 British thermal units (BTUs) per
pound, which is the same as that of coal. The major purpose of using
tire fuel is to save on fuel costs. Moreover, high temperatures and
long fuel residence time in the kiln allow complete combustion of
tires. There is no smoke, odor, or visible emissions from tires.
Furthermore, the metal wire present in the tire is used as a raw
material or ingredient in the cement-manufacturing process. Each
passenger car tire comprises about 2.5 pounds of high-grade steel.
The steel portion of the tire replaces some or all of the iron
required by the cement-manufacturing process. Due to all these
factors, the demand for TDF in the cement industry is increasing
continuously. In 2015, the U.S. consumed 39.16% of TDF for cement
kilns, which increased to 46.43% in 2017.
Shredded
Tires to Remain a Dominant Segment over the Forecast Period
Based
on type, the shredded tire segment dominated the market in 2017.
Using a series of shredders, screening equipment, and magnetic
separation equipment, whole tires are reduced to two-inch pieces in
order to produce TDF size chips. The shredded tires are largely used
in cement plants, pulp and paper industry, utility boilers, and
industry boilers among others.
Major
Norms and Regulations Related to Tire-derived Fuel Market
Under
the European Union Landfill Directive (2006), tires have been banned
from being put into landfills. The directive introduced the ban on
sending whole tires to landfills in July 2003. The ban on shredded
tires came into effect in 2006. This directive encourages the re-use
of waste tires. Moreover, specific federal rules have been
promulgated by the EPA for facilities, such as cement kilns or
utility boilers, which may use TDF. Any new facility or existing
facility that proposes to use tires as a fuel source must comply with
the air regulations set by the government. These include the
Prevention of Significant Deterioration (PSD), found in 40 CFR Part
j2.21 and Non-attainment New Source Review (NNSR), which is
applicable for major facilities proposing to increase emissions of a
regulated pollutant above a threshold annual quantity for attainment
and non-attainment pollutants, respectively.
Cement
Manufacturing Segment Dominates the Global Tire-derived Fuel Market
Based
on end-user, the cement manufacturing segment dominated the global
tire-derived fuel market with a 40% share in terms of value in 2017.
The segment was followed by the pulp and paper mills segment. Cement
manufacturing companies use whole tires and shredded tires to
supplement their primary fuel for firing cement kilns. Numerous
characteristics, such as high British thermal unit (BTU) value, make
scrap tires a preferred fuel source for cement kilns. High
temperatures and long fuel residence time in a kiln allow the
complete combustion of tires. Hence, there is no smoke, odor, or
visible emissions from the tires.
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Countries
in Asia Pacific, especially Japan, to Lead the Tire-derived Fuel
Market
Asia
Pacific dominated the tire-derived fuel market in 2017. Japan is one
of the major consumers of tire-derived fuel in Asia Pacific. The
country accounted for more than 30% share of the tire-derived fuel
market in Asia Pacific in 2017. In 2017, more than 1 million tons of
scrap tires were generated in Japan. Out of these, 93% of tires were
recycled and re-used. In Japan, more than 650 thousand tons of
tire-derived fuel was used in cement plants, paper mills, and steel
plants in 2017. The country is closely followed by India, with a
consumption of more than 620 thousand tons of tire-derived fuel in
2017.
Highly
Competitive Market with the Domination of Top Players
The
global tire-derived fuel market is highly fragmented, with a large
number of local and international players providing tire-derived fuel
services. Leading players dominate the market. Key players operating
in the tire-derived fuel market are Ragn-Sells Group, Liberty Tire
Recycling, ResourceCo Pty Ltd., Lakin Tire West Inc., Renelux Cyprus
Ltd, Emanuel Tire, Globarket Tire Recycling LLC, Tire Disposal &
Recycling, Inc., West Coast Rubber Recycling Inc., Scandinavian
Enviro Systems AB, Front Range Tire Recycle, Inc., L & S Tire
Company, ETR Group, and Reliable Tire Disposal.
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