Recycled Base Oil Market: A Sustainable Material

  • Countries across the globe are encouraging industries to develop and utilize environmentally sustainable products. This is driving the demand for use of recycled base oil across the world. Lubricant oils have a limited lifespan, after which these oils become unfit for use. The remaining lubricants are then flushed out of the system and new lubricants are added.
  • The waste oil collected from engines can be toxic and hazardous to the environment if disposed of in open spaces. Thus, environment protection bodies across the globe have formulated strict regulations to control the disposal of used oil.
  • Additionally, limited availability of feedstock required for the manufacture of virgin oil is driving the need for use of recycled base oil. Producing base oil from crude oil is an energy-intensive process. A refinery needs to process 100 gallons of crude oil in order to produce one gallon of base oil. On the other hand, only 1.4 gallons of used oil is sufficient to manufacture one gallon of base oil. This makes recycling of used oil a fairly viable process for base oil manufacturing.

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Increasing Focus on Sustainability of Environment to Boost Demand for Recycled Base Oil

  • Recycled base oil is eco-friendly and it generates lower carbon emissions than virgin base oil. The process of production of virgin base oil is energy intensive and it generates higher emissions of carbon. Rise in the focus on sustainability of the environment across the globe is providing significant opportunity to the global recycled base oil market.
  • Rise in investments in research and development of the re-refining process and improvement in the quality of recycled base oil are other major factors driving the global recycled base oil market. Companies across the world are incorporating recycled base oil in their lubricant compositions. For example, Valvoline, a major lubricant manufacturer, has a line of lubricant products that contain 50% of recycled base oil.
  • Additionally, increasing number of automobiles across the globe is driving the demand for lubricants. Petrochemical sources are depleting and increasing prices of crude oil are encouraging oil manufacturers to find new methods to re-refine and utilize waste oil. This factor, in turn, is driving the demand for recycled base oil across the globe.

Automotive and Industrial Sectors to Offer Attractive Opportunities

  • Recycled base oil is as good as virgin oil. Hence, use of recycled base oil is gaining momentum in automotive applications. It is used to manufacture lubricants for a wide variety of vehicles.
  • Rising urbanization and increasing FDIs in the automotive sector, typically in India, China, and South Korea, are likely to offer significant opportunities to manufacturers of recycled base oil in the near future
  • Rising demand for recycled base oil for use in applications such as industrial oil and metalworking fluids is expected to provide lucrative opportunities to manufacturers operating in the global recycled base oil market in the next few years

Intense Competition from Counterparts and High Flammability to Hamper Market

  • Recycled base oil faces intense competition from its virgin counterpart in applications wherein high purity is required. The two oils cost equal and possess similar chemical and physical properties. This factor is likely to hinder the market during the forecast period.
  • Additionally, lack of awareness about the re-refining process of used oils in developing economies and lack of knowledge about recycling of used oils can prove to be a major restraint of the global recycled base oil market during the forecast period.

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North America to Lead a Global Recycled Base Oil Market

  • In terms of region, the global recycled base oil market can be divided into five regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
  • North America is a leading consumer of recycled base oil, followed by Europe and Asia Pacific. Rising demand for lubricants in the U.S., Canada, and the U.K. is expected to generate high demand for recycled base oil during the forecast period. Additionally, implementation of stringent regulations on the disposal of used oil in developing countries of Asia Pacific, such as China, India, Indonesia, and Vietnam, is expected to offer considerable opportunity to manufacturers of recycled base oil operating in the region between 2019 and 2027.
  • Rising FDIs in the automotive industry in developing countries of Asia Pacific is also likely to fuel the market in the region during the forecast period.
  • Increasing demand for eco-friendly lubricants for use in industrial applications, such as hydraulic fluids, metalworking fluids, and heat transfer fluids, is driving the demand for recycled base oil in North America and Europe.
  • Rising focus on recycling of used oil in Latin America and Middle East & Africa is likely to boost the market in both regions during the forecast period.

Key Players Operating in the Market

The global recycled base oil market is highly fragmented, with top manufacturers accounting for approximately 10% to 15% share of the global market. Key players operating in the global recycled base oil market are:

  • Valvoline LLC
  • Vision Recycling & Reprocessing LLC
  • Gulf Basin Petroleum Recycling Co.
  • Fortum Corporation
  • Terrapure Environmental
  • Hering-VPT GmbH
  • SHARAFCO OIL REFINERY & IND. CO. LLC
  • National friendly Environment LLC
  • Green Oil and Lubes SRL
  • Rahaoil, Inc.
  • LOTOS Oil Sp. z o.o.
  • Southern Counties Lubricants, LLC.
  • Inmaa International
  • Benzoil Pty Ltd
  • EcoLube Recovery
  • Rajkamal Group of Companies

Global Recycled Base Oil Market: Research Scope

Global Recycled Base Oil Market, by Application

  • Automotive Fluids
  • Process Oils
  • Industrial Oils
  • Metalworking Fluids
  • Hydraulic Fluids
  • Others

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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Recycled Base Oil Market

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