Home > > Materials And Chemicals > > Bio Oil Market Size, Share, Demand, Industry Growth | Future Opportunities - 2032
ID : CBI_3371 | Updated on : | Author : CBI | Category : Materials And Chemicals
Bio Oil Market size is growing with a CAGR of 5.8% during the forecast period (2025-2032), and the market is projected to be valued at USD 2.03 Billion by 2032 from USD 1.29 Billion in 2024. Additionally, the market value for the 2025 attributes to USD 1.37 Billion.
Bio oil, which is also called as pyrolysis oil is a dark, viscous liquid that consists of various oxygenated organic compounds, and water. The compound is easy to handle, store, and transport, has low nitrogen and sulfur contents, and possesses high energy density. It usually contains a composite blend of deoxygenated compounds such as alcohol, ketones, carboxylic acids, esters, benzoids, and aldehydes. This oil is a form of liquid biofuel that is mainly derived from feed stock such as agricultural residues, algae, waste plastic, waste tire/rubber, and others. These oils find their application in transportation fuel, industrial fuel, power generation, agricultural products, and others.
Artificial Intelligence is transforming the bio oil market by improving production efficiency, process optimization, and market forecasting. In manufacturing, AI-powered systems analyze pyrolysis and refining conditions in real time, optimizing temperature, feedstock composition, and reaction time to maximize yield and quality. Machine learning models predict equipment performance and enable predictive maintenance, reducing downtime and operational costs. AI also supports the development of advanced bio oil formulations by simulating chemical reactions and evaluating potential catalysts. In addition, AI-driven analytics help forecast demand trends, optimize supply chains, and enhance sustainability reporting. As the global focus on renewable energy intensifies, AI is accelerating innovation, reliability, and scalability within the bio oil industry.
Bio oil is a type of biofuel that is mainly produced by pyrolysis of biomass. The pyrolysis method is a well-known optimizing method to maximize the production of biofuels. As the world shifts towards more sustainable energy sources, the role of this oil is a crucial intermediate in biofuel production. The increasing requirement for biofuels, driven by environmental regulations, and energy security concerns is influencing the use of these oils.
For instance,
Thus, the rise in the requirement for biofuels in various applications is influencing the bio oil market expansion.
Agricultural residue, also known as crop residue, are the materials that remain in the field or are generated after the crop has been harvested or processed. Agricultural residues suitable for bio oil production include items like rice straw, wheat straw, rice husk, corn stover, and other crop-related waste materials. The rise in the requirement for more bioenergy value feedstock is influencing the use of feed stock materials such as plant seeds.
For instance,
Thus, the rise in the requirement of these oils for essential feed stock is influencing the bio oil market demand.
The Bio Oil industry faces significant hurdles due to stringent regulatory standards imposed by various regulatory bodies worldwide. These standards are mainly designed for its production use and transportation. Regulations are necessary to ensure the quality and safety of these oils, their compatibility with existing infrastructure, and to verify claims of carbon reduction. Compliance with these standards is time-consuming and costly, particularly for smaller companies or those developing novel ingredients.
Additionally, changes in regulatory guidelines or the introduction of stricter regulations disrupt established processes and require significant investments in research, development, and manufacturing to meet the new standards. These factors contribute to increased costs, delayed product launches, and limited market access, ultimately hindering the growth of the market.
Adsorbents and catalysts play a crucial role in the purification of bio oil, that generally consists of water, acids, aldehydes, ketones, phenols, and other oxygenated compounds. Raw oil mainly consists of high viscosity, acidity, instability, and low heating value, hindering its direct use as fuel or chemical feedstock. Novel adsorbents and catalysts are designed to be employed in various stages of oil processing to remove impurities, reduce oxygen content, improve stability, and increase its overall quality.
For instance,
Thus, the development of adsorbents and catalysts for enhanced purification is creating lucrative bio oil market opportunities.
Based on the feed stock, the market is categorized into agricultural residues, algae, waste plastic, waste tire/rubber, and others
Trends in the Feed Stock:
The agricultural residue segment accounted for the largest market share in 2024.
The waste plastic segment is expected to grow at the fastest CAGR over the forecast period.
Based on the application, the market is categorized into transportation fuel, industrial fuel, power generation, agricultural products, and others.
Trends in Application:
The industrial fuel segment accounted for the largest Bio Oil market share of 37.49% in the year 2024.
The transportation fuel segment is expected to grow at the fastest CAGR over the forecast period.
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
In 2024, North America accounted for the highest Bio Oil market share at 38.46% and was valued at USD 0.50 Billion and is expected to reach USD 0.72 Billion in 2032. In North America, the U.S. accounted for the highest market share of 72.18% during the base year of 2024. Biofuels in the U.S. are primarily utilized as transportation fuel. Biofuels, including the potential contributions from upgraded bio oil, play a significant role in the transportation fuel industry, mainly influenced by the Renewable Fuel Standard (RFS) program. This federal policy mainly mandates a minimum volume of renewable fuels to be combined into the nation's transportation fuel supply. This aims to reduce greenhouse gas emissions and enhance energy security. These factors lead to the rise in the production of biofuel in the U.S. region.
For instance,
Thus, as per the market analysis, the rise in the utilization of biofuels is influencing growth and bio oil market trends in this region.
Asia Pacific is experiencing the fastest growth with a CAGR of 7.6% over the forecast period. The purification of bio oil generally uses adsorbents and catalysts, driven by the need for sustainable energy sources and the use of abundant agricultural and forestry residues. Various research efforts and some industrial applications focus on using cost-effective and locally sourced materials as adsorbents to remove impurities such as alkali metals, water, and particulate matter. This improves the stability of oil and reduces the catalyst deactivation in subsequent upgrading processes. Thus, as per the market analysis, the rise in the use of enhanced material for purification is influencing the use of bio oil.
Bio oil production from agricultural residues in Europe is a field of increasing interest mainly because of the European Union's commitment to renewable energy targets, waste reduction, and the development of a circular bioeconomy. Various projects and research initiatives across Europe are exploring different agricultural residues, such as straw, corn stover, and other crop wastes, as feedstocks for bio oil production through technologies like fast pyrolysis and hydrothermal liquefaction. Thus, these aforementioned factors are influencing the bio oil market trends in this region.
There is a growing opportunity for the adoption of bio oil from feed stock such as waste plastic. The significant plastic waste management issues in various MEA countries, along with increasing energy requirement and a desire for sustainable solutions, are driving the interest for this type of oil. Several projects and research initiatives are exploring pyrolysis and other thermochemical conversion technologies to transform plastic waste into valuable oil and other products. Thus, as per the bio oil market analysis, the rise in the research for waste plastic derived oil is influencing the market growth in this region.
Latin American countries, face significant challenges with the disposal of end-of-life tires. Pyrolysis, a thermochemical process that converts tires into tire pyrolysis oil, is being explored as a significant solution for waste management and resource recovery. The concept of a circular economy that aims to minimize waste and maximize resource utilization, is gaining in Lati significant potential in America. Thus, as per the market analysis, tire pyrolysis aligns with this principle by transforming a waste product into potentially valuable materials.
The global Bio Oil market is highly competitive with major players providing precise products to the national and international markets. Key players are adopting several strategies in research and development (R&D) and product innovation to hold a strong position in the global Bio Oil market. Key players in the Bio Oil industry include-
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 2.03 Billion |
| CAGR (2025-2032) | 5.8% |
| By Feed Stock |
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| By Application |
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| By Region |
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| Key Players |
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| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
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Asia Pacific is the fastest-growing region in the Bio Oil market.
In 2024, the Bio Oil market is USD 1.29 Billion.
Feed Stock and Application segmentation details are covered in the Bio Oil market.
Stanley Black & Decker, Inc. (United States), Valmet (Finland), BTG Bioliquids (Netherlands) are some of the major players in the market.