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Re-refined Lubricant: Introduction

  • Lubricants are imperative for smooth functioning and operation of mechanical devices and equipment. Several lubricants are used in industrial and automotive applications, namely engine oils, transmission oils, gear oils, transformer oils, and turbine oils. These lubricants, which are 85% base oils and 15% additives, keep friction between contacting surfaces low and improve their lifespan. These lubricants are often collected and processed at the end of their lifespan. Most of the used lubricants, post collection, are used as fuel; however, some of these are cleaned, processed, and fractionated.
  • The re-refining process initiates with the collection of waste lube oils. Solid contaminants and water are removed from the collected lube oils. The mixture is then made ready for further processing. This mixture is distilled to eliminate low hydrocarbons and solvents.
  • Waste lubricating oil consists of toxic wastes in large amounts. Disposal of toxic waste in a wrong manner can lead to detrimental effects on the environment. Re-refined lubricants carry lower environment impact. They do not emit any hazardous substance and thus help save natural resources.

Key Drivers and Restraints of Re-refined Lubricants

  • The usage of re-refined lubricant has positive impact on the environment. Re-refining has the potential to make the lubricant industry circular and reduce the strain on the environment by lowering the dependence on crude oil and its extraction. More than 42 liters of crude oil is required for the production of 0.5 liters of lubricant/base oil; however, nearly 34 liters of lubricants/base oil can be made from 42 liters of used lube oil. The process also resolves the disposal issues of used lubricants. According to the API, the re-refining process requires 50% to 80% less energy than what is required for refining crude oil (to produce base oil). However, the process has certain drawbacks. It is expensive, as the used oil is usually a mixture of all grades and requires extensive refining. Disposal of wastes from re-refining is also a challenge. Furthermore, the variety of contaminants makes it difficult to establish set processes. These factors are anticipated to hamper the re-refined lubricant market.

COVID-19 Impact Analysis on Demand for Re-refined Lubricants

  • Governments of various countries have restricted the movement of goods & individuals and imposed a halt on operation of production facilities as part of measures to limit the spread of the COVID-19 pandemic. This has adversely affected the demand for two and four wheelers and automobiles across the globe. Demand for automotive oil is directly linked with the production volume of automobiles; therefore, decrease in the production volume of automobiles significantly impacts the demand for oil. In turn, this is expected to hamper the demand for re-refined lubricants.

Re-refined Lubricant Market Segmentation

  • The global re-refined lubricant market can be segmented based on source and process
  • In terms of source, the global re-refined lubricant market can be divided into automotive lubricants, greases, hydraulic oils, industrial gear oils, process oils, marine oils, and other industrial oils
  • In terms of process, the global re-refined lubricant market can be classified into dehydration, vacuum distillation, and solvent extraction

Re-refined Lubricant Market: Regional Segmentation

  • In terms of region, the global re-refined lubricant market can be split into Middle East & Africa, Latin America, Asia Pacific, Europe, and North America
  • North America is estimated to dominate the global re-refined lubricant market in the near future. The region accounted for large share of production of crude oil and other petroleum products in 2020. 
  • Asia Pacific is expected to be a highly lucrative region of the global re-refined lubricant market during the forecast period. China, Australia, Japan, and India are key countries in terms of consumption of lubricants around the world.
  • Europe is one of the key regions of the global lubricants market. The region has strict government regulations for used oil disposal. Growth of sustainable practices in countries such as Germany, Russia, Poland, and Turkey to protect the environment is expected to drive the re-refined lubricant market in Europe in the next few years. 

Key Players Operating in Global Market

  • Safety-Kleen Systems
  • Terrapure Environmental
  • VERTEX Energy
  • Southern Oil
  • Heritage-Crystal Clean, Inc
  • AVISTA Green
  • Whelan Refining Limited
  • LPC

Global Re-refined Lubricant Market: Research Scope

Global Re-refined Lubricant Market, by Source

  • Automotive Lubricants
  • Greases
  • Hydraulic Oils
  • Industrial Gear Oils
  • Process Oils
  • Marine Oils
  • Other Industrial Oils

Global Re-refined Lubricant Market, by Process

  • Dehydration
  • Vacuum Distillation
  • Solvent Extraction

Global Re-refined Lubricant Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Re Refined Lubricant Market