Tyre Derived Fuel (TDF) Market

The Tyre Derived Fuel (TDF) Market is valued at USD 221.3 Mn in 2026 and is projected to reach USD 263.1 Mn, growing at a CAGR of 3% by 2033.

Market Analysis in Brief

There has been a steady increase in the demand for adequate fuel sources in various end-use industries such as the cement, and paper & pulp sectors. A growing number of industry players and governments are now focused on investing higher sums to achieve improved processes to lower emissions and to increase productivity levels. As urbanization and industrialization increase, the need for products from various end-use industries is expected to increase as well. This is expected to have a profound influence on the expansion of the global tyre derived fuel market over the forecast timeline.

Key Report Findings

• The global tyre derived fuel market was valued at USD 221.3 Mn in 2026
• Approximately 51% of tyres in the EU are recycled and 43% is used as fuel, including TDF
• Asia Pacific is expected to account for a majority of share in tyre derived fuel industry over the forecast period
• The TDF market is expected to expand at a CAGR of 3%

Growth Drivers

Increasing Effort on Scrap Tyre Management Through Alternative Solid Fuels

The demand for tyre derived fuel facilities is driven by governmental support, efficient waste management, and energy security through the use of alternate fuel. Several governments across the globe are using the concept of Reduce, Reuse, and Recover (3R) for scrap tyre management due to the various advantages it offers. Moreover, with fossil fuel price volatility, the demand for cheap alternatives is expected to lend the global tyre derived fuel market an excellent window to stir things up.

Growing concerns about the management of scrap tyres generated each year has paved ways for the development of facilities in the global tyre derived fuel market. Moreover, the diversion of tyres from landfills reserves capacity for other municipal waste and helps prevent scrap tyre piles. Scrap tyre piles pose risks, as they can catch fire, releasing copious amounts of toxic smoke and hazardous liquids that can contaminate air, water, and soil. The global tyre derived fuel industry is thus expected to present dual solutions to the world.

Growth Challenges

COVID-19 Impact

The COVID-19 pandemic has affected several industries including cement manufacturing, pulp & paper, and electrical utilities sectors. Most of the tyre derived fuel in whole form or shredded tyres is used in the cement industry as a supplemental alternative fuel. The temporary shut-down of cement, pulp & paper plants, etc., during the imposed lockdown phases in several nations, severely affected the tyre derived fuel market, particularly in Q1 2020. However, post the relaxing of these restrictions in several nations, the tyre derived fuel industry has continued to pick-up and is expected to regress at a fair pace.

Regulatory Restrictions, and Technological Limitations

TDF is subject to stringent regulations in various countries around the world, with some jurisdictions banning its use due to concerns related to emissions and environmental impacts. For example, in the EU, the tyre derived fuel market is strictly regulated under the Waste Framework Directive and the Industrial Emissions Directive.

Additionally, the technology for producing TDF still has limitations such as the need to remove steel and other contaminants from waste tyres before they can be used as a fuel source, which in turn increases the cost of production, and limits the availability of high-quality TDF. Factors such as these could hinder the market growth prospects for the TDS market in the coming years.

Overview of Key Segments

Cement Industry to Dominate TDF Consumption

Industrial facilities across the world including cement kilns, pulp and paper mills, and electric utilities use TDF as a supplemental fuel to increase boiler efficiency, decrease air emissions, and lower costs. Cement manufacturing is a major end-user segment of the tyre derived fuel industry. In 2020, the cement industry constituted a 52.7% share of the tyre derived fuel market. In terms of revenue, the cement manufacturing segment is expected to expand at a significant CAGR over the forecast period.

Fuel prices are continuously rising and there is no sign of relief in the future. Fossil fuel still makes up a major share of overall cement manufacturing costs. The cement industry depends heavily on coal, coke, and oil to fire kilns and can consume as much as 300,000 tons of coal per facility per year.

Currently, cement-manufacturing companies use tyre derived fuel to supplement their primary fuel for firing cement kilns. The heating value of an average-sized passenger tyre is approximately 13,000 to 15,000 British Thermal Units (BTUs) per pound, which is the same as that of coal. Analysts predict that global tyre derived fuel market is expected to have an incredible impact on savings related to fuel costs.

Growth Opportunities Across Regions

Asia Pacific Holds Staggering Growth Opportunity

The demand for shredded tyres is increasing in the US due to the presence of many cement plants. More than 49 million scrap tyres were used in cement plants in 2017. According to the World Business Council for Sustainable Development, every year the US, and the EU dump 14% and 16% of their scrap tyres into landfills respectively, while more than 50% of tyres go to landfills in Saudi Arabia, Russia, Ukraine, and Argentina. Additionally, the growing popularity of electric vehicles in North America and Europe is expected to boost vehicle sales. This is likely to result in increase in the flow of scrap tyres in the next few years which is expected drive the demand for TDF facilities in North America, and Europe, in turn fueling the growth of tyre derived fuel market.

Asia Pacific constituted 33% share of the global tyre derived fuel market in 2020. In Asia Pacific, end-of-life tyres are routinely disposed of in landfills or by using other methods such as burning, which have a harsh impact on the environment. This low recovery rate in developing countries of the Asia Pacific may hamper the market in the region over the forecast period. The Automotive Tyre Manufacturers’ Association (ATMA) together with the Technology, Environment, Safety and Standards (TESS) are working with India’s government to develop waste tyre legislation.

Key Market Players – Tyre Derived Fuel (TDF) Landscape

Some key companies in the global tyre derived fuel market include Liberty Tyre Recycling, ResourceCo Pty Ltd., Ragn-Sells Group, Tyre Disposal & Recycling, Reliable Tyre Disposal, Renelux Cyprus Ltd., L&S Tyre Company, Probio Energy International, Front Range Tyre Recycle Inc., ETR Group, Emanuel Tyre LLC, and Scandinavian Enviro Systems AB, to name a few. To gain a competitive edge, various established industry players are now more focused on new product launches, partnerships, collaborations, acquisitions, and alliances.

The Global Tyre Derived Fuel (TDF) Market is Segmented as Below:

By Scrap Tyre Type Coverage

• Chipped/Shredded Tyre
• Whole Tyre

By End-user Coverage

• Cement Plant
• Pulp & Paper Plant
• Utility Boiler
• Industrial Boiler, STE Plant, and Lime Kilns

By Geographical Coverage

• North America
• Europe
• Asia Pacific
• Rest of the World

Leading Companies

• Liberty Tyre Recycling
• ResourceCo Pty Ltd.
• Ragn-Sells Group
• L & S Tyre Company
• Reliable Tyre Disposal
• Emanuel Tyre, LLC
• Scandinavian Enviro Systems AB
• Renelux Group
• Tyre Disposal & Recycling
• FRONT RANGE TIRE RECYCLING