TDP Catalog

As Table 4 shows, theoretically the greatest opportunity for market expansion in broad terms is in ground rubber markets, especially rubberized asphalt concrete. However, the relatively small molded and extruded segment is a high-value market with potential that could exceed the maximum market size, if technologies and business models are adapted to use ground rubber in a growing number of consumer products. Ground rubber markets, in aggregate, have the largest market size potential of between 44 and 61.7 million passenger tire equivalents per year. Within civil engineering, non-landfill applications have the greatest potential to divert more tires, with an estimated capacity of 14.1 to 20.7 million waste tires annually, vs. 3 to 4 million passenger tire equivalents through landfill civil engineering uses. The tire-derived fuel market reached a 39-51 percent market penetration rate in 2012. It has the potential to consume an estimated 15–20 million passenger tire equivalents annually; however, CalRecycle is statutorily prohibited from funding projects promoting this as an end use. It is expected that the consumption of tire-derived fuel among the four cement kilns using waste tires/tire chips as a fuel source will increase in 2013. In 2012 it is estimated that the alternative daily cover market reached a market penetration rate of 3 percent, with an opportunity to potentially consume an additional 35-40 million passenger tire equivalents over 2012 levels. However, alternative daily cover is a low-value market which can be mutually beneficial to landfills and processors, but is considered by most to be a market of last resort, before landfilling. Retreading has some room for growth, and some retreaders said they expected modest growth in 2013. Used tires appear to be at or near maximum size after a jump in 2012. Barriers to Expanding Diversion While there is opportunity to expand market penetration for the various market categories and segments, there are also important barriers to doing so. Table 5 lists some key barriers to growth, identifying them as either financial, policy, technical, research/informational or outreach/educational in order to indicate the types of activities that could potentially overcome them. Note: these barriers remain largely unchanged from those reported in 2011.

Table 5 Barriers to Expanding Market Penetration for Waste Tire Market Segments

Market Category/Sub- Categories

Barriers

Ground Rubber All Ground Rubber

Economic – Ground rubber producers are seeing reduced tip fee revenues and increased competition for tires due to expanding exports, and reduced revenue and increased competition for product sales due to incentivized producers outside of California and a North American oversupply of ground rubber.

Contractor’s Report to CalRecycle

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