Scienza e Tecnologia
Focus on the Cement Industry for Maximum Gains in the Tyre Derived Fuel (TDF) Market, Says Fairfield Market Research
COVID-19 has battered multiple industries such as pulp and paper, electrical utilities, and cement manufacturing. The vast majority of tyre-derived fuel is deployed in the cement industry as a substitute fuel. In 2020, lockdowns resulted in production cuts or factory closures across the globe, leading to a fall in demand for tyre-derived fuel. Nevertheless, the recovery should be swift as countries take note of the 'Reduce, Reuse, and Recover' (3R) concept for scrap tyres, auguring well for companies in the tyre-derived fuel market.
Nearly 50% of the global tyre derived fuel market is held by the cement industry and this is predicted to remain for the foreseeable future. Industrial units worldwide rely on cement, paper mills, and pulp, and cement manufacturing is a key end-user of tyre-derived fuel. Fuel prices are on an upswing with no signs of immediate relief with fossil fuels consisting of the bulk of cement manufacturing cost. The cement industry can consume almost 300,000 tons of coal per facility on a yearly basis. Cement manufacturers utilise tyre-derived fuel to complement their primary fuel for firing cement kilns – primarily as a cost-saving mechanism.
Asia Pacific is a significant contributor to the tyre derived fuel market and accounted for 30% share in 2019. Japan is a major market for tyre-derived fuel with millions of scrap tyres generated on the island nation. However, robust growth is anticipated in China and India with Automotive Tyre Manufacturer's Association and Technology, Environment, Safety, and Standards (TESS) working in close coordination with the government of India to develop waste tyre mandates.
Cement processing plants are widespread in the U.S., explaining the huge demand for shredded tyres. As per the World Business Council for Sustainable Development, the U.S. and European Union throw 14% and 16% of their scrap tyres into landfills with half sent to landfills in Argentina ,
Russia , Ukraine , and
Saudi Arabia . Furthermore, vehicle ownership is very high in
Europe and North America and these continents are leading the shift towards electrification. This directly contributes to a rise in the production of scrap tyres, providing a further impetus to tyre-derived facilities in the west.
In 2019, three companies comprised 30% of the tyre derived fuel market.
In 2020, Liberty Tire Recycling completed its acquisition of Lakin Tire and it now annually collects 180 million tyres while recycling 2.6 billion pounds of rubber into environmentally-friendly products.
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