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

The report offers a comprehensive evaluation of the market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size. The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the market, including but not limited to: Regional markets, technology, types, and applications.

The study is a source of reliable data on:

  • Market segments and sub-segments
  • Market trends and dynamics
  • Supply and demand
  • Market size
  • Current trends/opportunities/challenges
  • Competitive landscape
  • Technological breakthroughs
  • Value chain and stakeholder analysis

The regional analysis covers:

  • North America (U.S. and Canada)
  • Latin America (Mexico, Brazil, Peru, Chile, and others)
  • Western Europe (Germany, U.K., France, Spain, Italy, Nordic countries, Belgium, Netherlands, and Luxembourg)
  • Eastern Europe (Poland and Russia)
  • Asia Pacific (China, India, Japan, ASEAN, Australia, and New Zealand)
  • Middle East and Africa (GCC, Southern Africa, and North Africa)

The report has been compiled through extensive primary research (through interviews, surveys, and observations of seasoned analysts) and secondary research (which entails reputable paid sources, trade journals, and industry body databases). The report also features a complete qualitative and quantitative assessment by analyzing data gathered from industry analysts and market participants across key points in the industry’s value chain.

A separate analysis of prevailing trends in the parent market, macro- and micro-economic indicators, and regulations and mandates is included under the purview of the study. By doing so, the report projects the attractiveness of each major segment over the forecast period.

Highlights of the report:

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  • Important changes in market dynamics
  • Market segmentation up to the second or third level
  • Historical, current, and projected size of the market from the standpoint of both value and volume
  • Reporting and evaluation of recent industry developments
  • Market shares and strategies of key players
  • Emerging niche segments and regional markets
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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.