Waste To Diesel Market Size, Share & Trends Analysis Report By Source, By Technology (Gasification, Pyrolysis, Depolymerisation, Incineration), By Region, And Segment Forecasts, 2024 - 2030

Report Overview

The global waste to diesel market size was valued at USD 760.3 million in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 10.4% from 2024 to 2030. The increasing need for sustainable energy solutions and the reduction of environmental impact drives the market growth. As governments and industries worldwide seek to mitigate climate change, waste-to-diesel offers a promising alternative by converting various forms of waste, including plastic and municipal solid waste, into usable diesel fuel. This process helps reduce the volume of waste that would otherwise end up in landfills or oceans, addressing two major environmental challenges—waste management and greenhouse gas emissions.                               

The rising use of waste-derived diesel in ships, generators, boilers, vehicles, and machinery has fueled the expansion of the waste-to-diesel market. EPA has enforced stringent rules on the detrimental impacts of waste, increasing the need for the recycling sector. Increased research and development efforts have helped reduce the higher capital needed for setting up processing plants, thus aiding the growth of the waste-to-diesel market. The ongoing advancements in creating a portable reactor that can convert plastic into diesel create multiple possibilities in the waste-to-diesel industry.

Moreover, advancements in waste-to-diesel technology are improving its efficiency and cost-effectiveness, making it a more viable solution for various industries. As traditional diesel costs rise due to geopolitical factors and resource scarcity, industries are exploring alternative fuels like waste-derived diesel to ensure energy security. Thus, economic, environmental, and technological factors collectively increase the global demand for waste-to-diesel solutions.

The rapidly growing urbanization worldwide results in greater waste production, especially in urban areas. According to the UN Environment Program, municipal solid waste generation is projected to reach 3.8 billion tons by 2050.  This rise in waste requires efficient management strategies, such as transforming waste into diesel fuel, which can be used for multiple purposes, such as transportation and generating power. Additionally, heightened awareness and concerns about environmental problems are prompting consumers and industries to look for sustainable options. The waste-to-diesel process offers a sustainable solution by managing waste and generating fuel, supporting the worldwide focus on sustainability.

Source Insights

The municipal waste segment held the largest market revenue share of 47.5% in 2023. Municipal waste is abundant, readily available, and often underutilized, making it a preferred feedstock for converting waste into diesel. Governments and local authorities increasingly prioritize waste management and sustainability initiatives, focusing on reducing landfill use and minimizing environmental impact. Additionally, advancements in waste-to-energy technologies have made the conversion of municipal waste into diesel more efficient and economically viable. This helps reduce waste and contributes to producing cleaner, renewable diesel, aligning with global efforts to reduce carbon emissions and dependency on fossil fuels.

The plastic waste segment is expected to grow at the fastest CAGR of 10.5% over the forecast period. The growing need to manage the escalating amounts of global plastic waste drives the segment growth. Plastic waste is a significant environmental concern, and its improper disposal has long-term ecological impacts. As regulations tighten around plastic use and disposal, converting plastic waste into diesel offers an innovative and sustainable solution to reduce landfill accumulation. This process helps recycle plastic, minimize environmental hazards, and create alternative energy sources. Additionally, advancements in conversion technologies have made it more cost-effective and efficient, further boosting demand in this segment.

Technology Insights

The pyrolysis segment held the largest market revenue share in 2023. The demand for the pyrolysis segment in the technology segment of the waste-to-diesel market is increasing due to its ability to efficiently convert various waste materials, such as plastics and rubber, into usable diesel fuel. Pyrolysis operates by heating these materials without oxygen, breaking them down into valuable fuels and other by-products. This process is gaining popularity because it addresses waste management challenges and the growing need for alternative, cleaner fuel sources. Additionally, the pyrolysis technology is seen as a sustainable method for reducing landfill waste while providing a lower-carbon alternative to conventional diesel production, aligning with global environmental goals.

The gasification segment is expected to grow at the fastest CAGR over the forecast period. Gasification offers a cleaner and more sustainable solution than traditional incineration methods, as it reduces harmful emissions and enhances energy recovery from waste. Additionally, advancements in gasification technology have improved its scalability, making it more economically viable for large-scale operations. Growing environmental concerns, coupled with the need to reduce landfill usage and carbon emissions, further drive the adoption of gasification in waste-to-diesel processes.

Regional Insights

North America market is expected to grow at the fastest CAGR over the forecast period. The growing emphasis on sustainability and stricter environmental regulations aimed at reducing carbon emissions drive the demand for waste to diesel. Governments and industries are focusing on alternative energy sources to minimize dependence on fossil fuels, and waste-to-diesel solutions provide a way to convert waste materials into usable fuel. Additionally, the push towards a circular economy motivates businesses to adopt cleaner technologies, while federal incentives and policies, such as renewable fuel standards, further drive investment in waste-to-diesel initiatives in the region.

U.S. Waste To Diesel Market Insights

The U.S. market is expected to grow significantly over the forecast period. The Environmental Protection Agency (EPA) has tightened regulations on waste disposal and greenhouse gas emissions, pushing industries to find innovative solutions such as converting waste into diesel. Additionally, states such as California have implemented aggressive carbon reduction targets and renewable fuel standards, creating a market for low-carbon diesel alternatives.

Europe Waste To Diesel Market Insights

Europe market held the largest market revenue share of 41.6% in 2023. The region's stringent environmental regulations and its push towards achieving a circular economy drive market growth. European Union directives, such as the Renewable Energy Directive (RED II), encourage using alternative fuels and renewable energy to reduce carbon emissions. Additionally, several European countries are investing in waste conversion technologies as part of their broader strategies to transition to low-carbon economies, further boosting demand for waste-to-diesel solutions.

Germany held the largest market revenue share regionally in 2023. Germany has established ambitious targets for waste reduction, energy efficiency, and renewable energy usage, which has driven the demand for sustainable fuel alternatives. Waste-to-diesel technology supports these goals by converting waste materials, such as plastics and organic waste, into usable diesel fuel, reducing the dependence on fossil fuels. Additionally, stringent regulations on waste management and the push to lower carbon emissions in sectors such as transportation encourage the adoption of waste-to-diesel solutions, which align with Germany's environmental and energy policies.

Asia Pacific Waste To Diesel Market Insights

Asia Pacific is projected to grow prominently in the coming years. Governments in the region are implementing stricter regulations to reduce waste and carbon emissions, driving investments in waste-to-energy technologies. Additionally, as the demand for diesel remains high for transportation and industrial sectors, converting waste into diesel offers an attractive alternative to reduce dependency on fossil fuels while addressing waste disposal issues. The focus on renewable energy and the rising need for cleaner fuels are also key factors behind this trend.

India market is expected to grow rapidly in the coming years. With rapid urbanization and industrialization, India faces significant challenges in managing its municipal solid waste. Additionally, India's commitment to reducing its carbon footprint and reliance on imported fossil fuels has led to greater adoption of waste-to-diesel processes. Government policies supporting renewable energy and cleaner fuels, along with increased investment in waste management infrastructure, further boost the demand for waste-to-diesel in the region.

Key Companies and Market Share Insights

Some key companies in the waste to diesel market include Reworld; Amec Foster Wheeler; Plastic2Oil; Ventana Ecogreen Inc.; Green Alliance; Klean Industries Inc.; and others.

• Reworld, has expanded its sustainable waste solutions to include converting waste into diesel. Their innovative services, such as ReDirect360 and ReKiln, focus on achieving zero waste-to-landfill and creating alternative fuels. By transforming waste into valuable resources such as diesel, Reworld helps companies and municipalities tackle complex waste challenges while minimizing environmental impact.

• Plastic2Oil (P2O) is a clean energy company that specializes in converting waste plastic into ultra-clean, low-sulfur diesel fuel. Their proprietary, patent-pending technology allows municipal solid waste depots to transform waste plastic into diesel, naphtha, and other petroleum products. This process not only provides economic benefits but also helps divert plastic waste from landfills, contributing to environmental sustainability.

Waste To Diesel Market Report Scope

Global Waste To Diesel Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the waste to diesel market report based on, source, technology, and region.

• Source Outlook (Revenue, USD Million, 2018 - 2030)

  • Oil & fat waste

  • Municipal waste

  • Plastic waste

• Technology Outlook (Revenue, USD Million, 2018 - 2030)

  • Gasification

  • Pyrolysis

  • Depolymerisation

  • Incineration

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • South Africa

    • UAE