Automotive Oil Recycling Market Forecasts to 2030 - Global Analysis By Recycled Oil Type (Base Oil, Blended Oils, Lubricants and Other Recycled Oil Types), Source, Recycling Process, Application, End User and By Geography

According to Stratistics MRC, the Global Automotive Oil Recycling Market is accounted for $49.72 billion in 2024 and is expected to reach $70.53 billion by 2030 growing at a CAGR of 6.5% during the forecast period. Automotive oil recycling refers to the process of reusing used motor oil from vehicles to minimize environmental impact and conserve resources. It involves collecting, filtering, and refining used oil to remove contaminants like dirt, metals, and water. The recycled oil is then reprocessed to meet industry standards, making it suitable for reuse in engines or as a base for new lubricants. This process reduces the need for new oil production, decreases waste, and helps lower harmful emissions, contributing to sustainability within the automotive industry.

According to the Environmental Protection Agency (EPA), two hundred million gallons of waste oil are improperly disposed in the United States.

Market Dynamics:

Driver:

Growing concerns about pollution and the environmental impact

As the harmful effects of improper oil disposal become more evident, governments and consumers are prioritizing sustainable practices, driving demand for oil recycling. Recycled oil reduces environmental pollution by preventing oil spills, contamination of water sources, and soil degradation. Additionally, recycling conserves natural resources by reducing the need for crude oil extraction. Increased awareness of climate change and resource conservation encourages industries and individuals to adopt recycled motor oils, further accelerating the market's expansion while aligning with eco-friendly initiatives.

Restraint:

Contamination issues

Contamination issues in automotive oil recycling arise when used oil is mixed with impurities such as dirt, water, heavy metals, or chemicals, making it difficult to process. Contaminated oil can reduce the efficiency of the recycling process, requiring additional steps for purification, which increases costs. Furthermore, it can lower the quality of the recycled oil, making it unsuitable for reuse in certain applications. This hampers market growth by raising operational costs and limits consumer and industrial confidence in recycled oil products.

Opportunity:

Rising automotive industries in emerging economies

Increased vehicle ownership and production in Asia Pacific, Latin America, and Africa lead to a higher demand for motor oil, resulting in greater volumes of used oil available for recycling. As these economies grow, so does the need for sustainable practices to manage oil waste, driven by environmental regulations and awareness. This, in turn, boosts the demand for oil recycling services and technologies, contributing to market expansion while reducing environmental impact and conserving natural resources.

Threat:

High initial investment

Automotive oil recycling requires high initial investment due to the need for advanced technology, specialized equipment, and infrastructure for collection, filtration, and refining processes. Establishing recycling facilities involves costs for setting up processing units, acquiring necessary permits, and ensuring compliance with environmental regulations. The high upfront costs can hinder market growth, slowing the adoption of oil recycling practices.

Covid-19 Impact

The covid-19 pandemic negatively impacted the automotive oil recycling market due to disruptions in vehicle usage, leading to a decline in oil consumption. Lockdowns and restrictions reduced automotive service operations, lowering the volume of used oil available for recycling. However, as economies recovered, demand for recycled oil has gradually increased, supported by the growing emphasis on sustainability and environmental concerns post-pandemic.

The base oil segment is expected to be the largest during the forecast period

The base oil segment is predicted to secure the largest market share throughout the forecast period. Base oil recycled oil, often referred to as re-refined oil, is a key component in automotive oil recycling. It is produced by refining used motor oil to remove contaminants such as dirt, metals, and chemicals. It offers a sustainable alternative to virgin base oils, reducing environmental impact and conserving natural resources in the automotive industry.

The vacuum distillation segment is expected to have the highest CAGR during the forecast period

The vacuum distillation segment is anticipated to witness the highest CAGR during the forecast period. Vacuum distillation is a key process in automotive oil recycling that separates contaminants from used motor oil. Vacuum distillation is effective in removing high-boiling-point contaminants, producing high-quality recycled oil that can meet industry standards and be reused in engine applications, contributing to sustainability and reducing waste.

Region with largest share:

Asia Pacific is expected to register the largest market share during the forecast period fuelled by increasing vehicle ownership, industrial growth, and rising environmental awareness. Countries like China, India, and Japan are key players, with growing government regulations promoting recycling practices to reduce environmental pollution. As regulations tighten and consumers become more eco-conscious, the region is expected to see further investment in recycling technologies and expanded collection networks, boosting market growth in the coming years.

Region with highest CAGR:

North America is expected to witness the highest CAGR over the forecast period driven by stringent environmental regulations, increased awareness of sustainability, and a growing focus on reducing waste. The U.S. and Canada have well-established recycling infrastructure, supported by government policies that mandate oil recycling and promote eco-friendly practices. The market also benefits from advancements in recycling technology and consumer preference for cost-effective alternatives to new motor oil. The region continues to lead in innovative recycling solutions.

Key players in the market

Some of the key players profiled in the Automotive Oil Recycling Market include TotalEnergies SE, Phillips 66 Company, Royal Dutch Shell Plc, Exxon Mobil Corporation, Chevron Corporation, Valvoline Inc., Safety-Kleen Systems Inc., Heritage-Crystal Clean Inc., Universal Lubricants, Castrol Limited, Veolia North America, Shell Global, Clean Harbors Inc., BP plc, Recochem Inc., Oil Salvage Company Ltd., O'Reilly Auto Parts, Stellantis NV, SquareOne Energy and Triumvirate Environmental.

Key Developments:

In August 2022, SquareOne Energy announced its advanced development of a sustainable oil re-refining facility, aiming to implement cutting-edge processes within the re-refining industry. The facility is designed to offer a holistic, sustainable approach to rejuvenating waste oil. This project emphasizes environmentally responsible practices, with the goal of creating a positive impact by improving resource recovery and reducing environmental footprint.

In June 2022, Safety-Kleen introduced a new brand of base oils, emphasizing the environmental benefits of using re-refined oil. This move aligns with increasing global emphasis on sustainability, particularly in industries like automotive, where oil consumption is high. The re-refined base oil product is a part of Safety-Kleen's broader sustainability initiative, helping to promote circular economy practices and reduce environmental impact.

Recycled Oil Types Covered:

• Base Oil
• Blended Oils
• Lubricants
• Other Recycled Oil Types

Sources Covered:

• Used Motor Oil
• Engine Flush Oil
• Transmission Fluids
• Other Sources

Recycling Processes Covered:

• Vacuum Distillation
• Hydrofinishing
• Clay Filtration
• Biological Treatment
• Other Recycling Processes

Applications Covered:

• Passenger Vehicles
• Commercial Vehicles
• Heavy Duty Trucks
• Off-Road Vehicles
• Other Applications

End Users Covered:

• Automobile Manufacturers
• Automotive Workshops/Service Stations
• Industrial Users
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
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