End-of-life tire pyrolysis Market Outlook 2026–2035: Growth Drivers, Key Companies, Strategic Developments & Adoption Forecast — A Meticulous Next™ Foresight Brief

This Meticulous Next™ brief examines end-of-life tire pyrolysis, meaning the thermal breakdown of used tires into recovered carbon black, pyrolysis oil, steel and gas. It tests whether recovered carbon black and pyrolysis oil entering tire and chemical supply chains turn pyrolysis from pilot plants into a source of circular rubber, and which plant developers, tire makers and chemical producers gain.

Tire makers are now committing to supply. Continental signed a development agreement with Pyrum in March 2022, a supply contract in March 2023 and a ten-year purchase agreement in July 2024, intends to use recovered carbon black in series-produced passenger-car tires and targets more than 40 percent renewable and recycled materials in its tires by 2030. The conclusion is that a long contract with advance payment gives plant developers the revenue certainty needed to finance capacity.

Quality approval has been the gate. The new milling and pelletising plant of Pyrum in Dillingen, Saarland, entered regular production in April 2026 at about 750 kilograms an hour, and Continental granted full delivery approval for its recovered carbon black in May 2026 after an audit of product quality and manufacturing consistency. The conclusion is that approval of each plant by a tire maker, not technology alone, decides when volumes can be sold, which makes qualification the pacing step.

The chemical industry is the second buyer. Pirelli, Pyrum, Synthos and BASF launched a European tire-to-tire initiative in July 2026 in which recovered carbon black goes to Pirelli, pyrolysis oil goes to BASF and certified synthetic rubber from Synthos returns to Pirelli, with recycled content tracked by mass balance under ISCC PLUS. The conclusion is that pyrolysis oil has a certified outlet in chemicals, which supports plant economics beyond carbon black.

The brief treats end-of-life tire pyrolysis as an accelerating signal with a nine year horizon to 2035. It identifies which products, regions and companies move first and what each means for tire makers, recyclers and chemical producers. It is a focused 120-page decision brief that presents an indicative trajectory rather than a segmented market model.

Shredded end-of-life tires are heated in an oxygen-limited reactor and break down into pyrolysis oil, a carbon-rich solid, steel and process gas. The gas is usually burned to heat the process.

The solid becomes usable carbon black only after upgrading. It is milled, classified, demineralised, purified and pelletised, then tested for use in rubber compounds, so product quality depends on the downstream plant as much as on the reactor.

Pyrolysis oil has a second route. BASF co-feeds it with fossil feedstock to make chemicals including butadiene and styrene, with recycled content attributed through mass balance to ISCC PLUS certified products, and Synthos uses the circular materials to make certified synthetic rubber.

Uses are recovered carbon black in tires and rubber goods, pyrolysis oil as chemical feedstock and recovered steel.

The limits are quality consistency, plant ramp-up delays, competition from virgin carbon black and the cost of collecting used tires. The period turns on whether more tire makers approve recovered carbon black and whether plants reach full capacity.

The end-of-life tire pyrolysis market, covering recovered carbon black, tire pyrolysis oil, and the plants and processing services that produce them from end-of-life tires, and excluding virgin carbon black, crumb rubber and tire-derived fuel burned for energy, is valued at USD 0.4–0.8 billion in 2026 and is projected to reach USD 2.39–4.79 billion by 2035, at a CAGR of 22%.

The 2026 base rests on sales of recovered carbon black and pyrolysis oil, plant construction and processing services, mainly in Germany, the Nordic countries, other European countries, the United States and India. Growth then follows plant capacity additions, further tire maker approvals and certified oil use.

The forecast is sensitive to recycled content targets, certification rules, virgin carbon black prices and plant ramp-up. Regionally, Europe holds the largest base, followed by North America and Asia Pacific.

The base case assumes plants reach nameplate capacity by 2028 and two or more further tire makers approve recovered carbon black, bringing the inflection to about 2031. An accelerated case assumes quick approvals and higher recycled content targets, bringing the inflection to 2029 and lifting the 2035 value to the top of the range. A delayed case assumes quality problems and low virgin carbon black prices, moving the inflection to 2034 and holding growth at the bottom of the range.

Growth drivers

• Recycled and renewable material targets.
• Offtake agreements from tire makers.
• Chemical industry demand for pyrolysis oil.
• Landfill and stockpile restrictions.

Enablers

• ISCC PLUS certification and mass balance.
• Customer approval of material quality.
• Reactor and milling technology.
• Advance payments and project finance.

Restraints and barriers

• Quality consistency.
• Plant ramp-up delays.
• Competition from virgin carbon black.
• Feedstock collection cost.

The direction of end-of-life tire pyrolysis is set by tire maker recycled content targets, certification of recovered materials, long-term offtake agreements, pyrolysis oil demand from chemical producers, and rules on collection of end-of-life tires.

The key participants in end-of-life tire pyrolysis include Pyrum Innovations AG, Scandinavian Enviro Systems AB, Contec GmbH, Klean Industries Inc., Continental AG, Pirelli & C. S.p.A., Compagnie Générale des Établissements Michelin, Bridgestone Corporation, The Goodyear Tire & Rubber Company, BASF SE, Synthos S.A., Orion S.A., Cabot Corporation, Black Bear Carbon B.V., Bolder Industries, Delta-Energy Group LLC, Genan Holding A/S, Liberty Tire Recycling, LLC, ISCC System GmbH, European Tyre and Rubber Manufacturers Association, Sumitomo Rubber Industries, Ltd., Hankook Tire & Technology Co., Ltd., Apollo Tyres Ltd, Nokian Tyres plc, Yokohama Rubber Co., Ltd., Toyo Tire Corporation, Birla Carbon, Tokai Carbon Co., Ltd., Shell plc, TotalEnergies SE, Eni S.p.A., Covestro AG, LANXESS AG, Trinseo PLC, ExxonMobil Corporation, Kal Tire Group, Ecolomondo Corporation, European Commission, United States Tire Manufacturers Association and Tire Industry Association.

The brief profiles representative participants in each archetype and assesses which are positioned to lead as plants reach full capacity.

Pyrum and Scandinavian Enviro Systems lead among pyrolysis developers with approved recovered carbon black, Continental and Pirelli lead among tire makers committing to supply, and BASF leads among chemical producers using certified pyrolysis oil. Competitive intensity is moderate, since few plants have passed tire maker qualification, and the main risk is quality consistency rather than rivalry.

Where value migrates.

In 2026 value sits with plant developers that win tire maker approval and reach full capacity. By 2031 it moves toward tire makers and chemical producers holding long contracts for recovered carbon black and certified oil. By 2035 it settles with circular tire supply chains in which recovered materials are a standard input. Margins hold for developers with approved quality and narrow for plants selling unqualified material at discount.

The signals converge on offtake and qualification. A ten-year purchase agreement, full delivery approval and a four-company tire-to-tire loop support growth, while quality consistency, ramp-up delays and virgin carbon black prices limit the pace.

Structural limits show where progress could slow: customer approvals, plant uptime, certification rules and feedstock cost. The brief therefore tracks four indicators: tire makers approving recovered carbon black, plant capacity in operation, recycled content share and pyrolysis oil volumes certified.

Approval of recovered carbon black by one tire maker first, then multi-plant supply to several tire makers, then certified oil at chemical scale are the expected order of adoption.