Saudi Arabia Tire Derived Fuel Market Report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Saudi Arabia Tire Derived Fuel Market Overview

• The Saudi Arabia Tire Derived Fuel Market is valued at USD 65 million, based on a five-year historical analysis derived from the share of tire-derived fuel within the national tire recycling market. This growth is primarily driven by increasing environmental regulations, rising energy demands, and the need for sustainable waste management solutions. The market is further supported by the growing adoption of tire-derived fuel in various industrial applications, particularly in cement manufacturing and power generation, where the high calorific value of tire-derived fuel makes it a competitive alternative to conventional fossil fuels.
• Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their industrial activities and proximity to major cement plants and power utilities. Large cement producers such as Saudi Cement Company, Yanbu Cement Company, Southern Province Cement Company, City Cement Company, Hail Cement Company, and Najran Cement Company operate plants predominantly in the Eastern Province, Riyadh region, and Western coastal areas, which drives localized demand for tire-derived fuel as an alternative fuel in kilns and industrial boilers. The concentration of manufacturing facilities and the presence of significant infrastructure projects in these regions contribute to the high demand for tire-derived fuel, making them pivotal players in the market.
• In 2023, the Saudi government implemented the National Waste Management Strategy under the broader framework of Vision 2030, which emphasizes the importance of recycling and the utilization of waste materials, including tires, for energy recovery. A key binding instrument supporting this is the Waste Management Law issued by Royal Decree No. M/59 of 1442H and its Implementing Regulations issued by the National Center for Waste Management, which set requirements for licensing of waste management activities, prioritization of recycling and recovery (including energy recovery), and restrictions on landfilling recoverable waste streams such as used tires. This regulatory framework aims to enhance the circular economy and reduce landfill waste, thereby promoting the use of tire-derived fuel in various sectors.

Saudi Arabia Tire Derived Fuel Market Segmentation

By Fuel Type:The fuel type segmentation includes various forms of tire-derived fuel, each with unique characteristics and applications. The subsegments are Shredded Tires (TDF chips), Whole Tires, Crumb Rubber for Energy Use, Pyrolysis Oil, and Others. Among these, Shredded Tires (TDF chips) are the most widely used due to their versatility and efficiency in combustion processes, particularly in cement kilns and industrial boilers, aligning with global trends where shredded TDF accounts for the majority of tire-derived fuel consumption. The increasing focus on sustainable energy sources and waste management practices, combined with the ease of handling, consistent particle size, and better combustion control of shredded tires, has further propelled the demand for this form of TDF, making it a dominant player in the market.

By End-Use Industry:The end-use industry segmentation encompasses various sectors utilizing tire-derived fuel, including Cement Manufacturing, Power & Utility Boilers, Pulp & Paper Mills / Industrial Boilers, Steel & Metallurgical Plants, and Others. Cement manufacturing is the leading sector, in line with global patterns where cement kilns account for the largest share of TDF consumption, driven by the industry's need for alternative fuels to reduce production costs and meet environmental regulations on emissions and clinker production. The high calorific value of tire-derived fuel, which is comparable to or higher than coal, makes it an attractive option for cement kilns and other energy-intensive processes, further solidifying its position as the dominant end-use industry.

Saudi Arabia Tire Derived Fuel Market Competitive Landscape

The Saudi Arabia Tire Derived Fuel Market is characterized by a dynamic mix of regional and international players. Leading participants such as Saudi Investment Recycling Company (SIRC) – Waste Tires & TDF Initiatives, EnviroServe Saudi Arabia LLC, Global Environmental Management Services (GEMS) – Waste-to-Energy Division, Tanmiah Industrial and Commercial Investment Co. – Recycling & Alternative Fuels, Batterjee Environmental Recycling Company – Tire Recycling & Alternative Fuels, Modern Tires Recycling Factory (Riyadh), Eastern Province Rubber Products Co. (EPRP), Al-Qaryan Group – Recycling & Industrial Services, Saudi Aramco – Industrial Fuel & Alternative Fuels Users (Cement & Utilities Interface), Saudi Cement Company – Co-processing of Tire Derived Fuel, Yanbu Cement Company – Alternative Fuels & Co-processing Program, Southern Province Cement Company – Use of Waste-derived Fuels, City Cement Company – Alternative Fuel Trials & Waste Tire Co-firing, Hail Cement Company – Regional Demand for TDF, Najran Cement Company – Potential Offtaker for Tire Derived Fuel contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Tire Derived Fuel Market Industry Analysis

Growth Drivers

• Increasing Demand for Sustainable Energy Sources:The global shift towards sustainable energy is reflected in Saudi Arabia's energy policies, with renewable energy investments projected to reach $9 billion in future. This trend is driven by the Kingdom's Vision 2030 initiative, which aims to diversify energy sources and reduce reliance on fossil fuels. The demand for Tire Derived Fuel (TDF) is expected to rise as industries seek eco-friendly alternatives, aligning with the country's commitment to sustainability and energy efficiency.
• Government Initiatives Promoting Waste-to-Energy Solutions:The Saudi government has allocated approximately $2 billion for waste management and recycling initiatives in future. This funding supports the development of TDF facilities, enhancing the waste-to-energy sector. The National Industrial Development and Logistics Program aims to increase the recycling rate to 40% in future, creating a favorable environment for TDF production and utilization, thereby driving market growth significantly.
• Rising Environmental Concerns and Regulations:With environmental regulations tightening, Saudi Arabia is focusing on reducing waste and emissions. The Kingdom's commitment to the Paris Agreement and its goal to cut greenhouse gas emissions by 278 million tons of CO2 equivalent annually in future are pivotal. This regulatory landscape encourages industries to adopt TDF as a cleaner alternative, fostering a market environment conducive to sustainable fuel solutions and enhancing overall environmental quality.

Market Challenges

• Limited Awareness Among Potential Users:Despite the benefits of Tire Derived Fuel, awareness remains low among potential users in Saudi Arabia. A recent survey indicated that only 35% of industrial stakeholders are familiar with TDF applications. This lack of knowledge hampers adoption rates, as many companies are unaware of the cost savings and environmental benefits associated with TDF, posing a significant barrier to market growth.
• High Initial Investment Costs:The establishment of TDF production facilities requires substantial capital investment, often exceeding $6 million. This financial barrier can deter potential investors, particularly small and medium-sized enterprises. Additionally, the long payback period associated with TDF projects, typically around 6-8 years, further complicates investment decisions, limiting the market's expansion potential in the short term.

Saudi Arabia Tire Derived Fuel Market Future Outlook

The future of the Tire Derived Fuel market in Saudi Arabia appears promising, driven by increasing investments in renewable energy and a strong governmental push towards sustainable practices. As industries adapt to circular economy principles, TDF is likely to gain traction as a viable energy source. Furthermore, technological advancements in fuel processing are expected to enhance efficiency and reduce costs, making TDF more competitive against traditional fuels, thereby fostering broader adoption across various sectors.

Market Opportunities

• Expansion of Recycling Facilities:The establishment of new recycling facilities is projected to increase TDF production capacity by 25% in future. This expansion will not only enhance local supply but also create jobs, contributing to economic growth. Increased recycling capabilities will facilitate the conversion of waste tires into fuel, aligning with national sustainability goals and improving waste management practices.
• Partnerships with Local Industries:Collaborations between TDF producers and local industries can enhance market penetration. In future, strategic partnerships are expected to increase TDF usage in sectors such as cement and power generation, potentially boosting demand by 20%. These alliances will leverage shared resources and expertise, driving innovation and expanding the market footprint of TDF in Saudi Arabia.