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  • Published On : Sep 2023
  • Code : CMI6305
  • Pages : 130
  • Formats :
      Excel and PDF
  • Industry : Energy

The Automotive Oil Recycling Market size is expected to reach US$ 69.97 Billion by 2030, from US$ 48.42 Billion in 2023, at a CAGR of 5.4% during the forecast period. Automotive oil recycling involves the re-refining and purification of used oils and lubricants from automotive sources into fresh lubricants or for other purposes. It helps recover the base oils and avoids wastage, while also reducing reliance on crude oil. The key drivers of the market include stringent environmental regulations, advancements in re-refining technologies, and rising automotive sales.

The Automotive Oil Recycling Market is segmented by oil type, collection method, technology, end-use industry, and region. By oil type, engine oils account for the largest share of the market. Used engine oils are readily available in large volumes across vehicle service stations and garages, supporting the growth of this segment. Engine oils also fetch higher prices after re-refining compared to other automotive fluid types.

Automotive Oil Recycling Market Regional Insights:

  • North America is expected to be the largest market for Automotive Oil Recycling Market during the forecast period, accounting for over 27% of the market share in 2023. The growth of the market in North America is attributed to stringent regulations around sustainable disposal of used oils in the region.
  • The Asia Pacific market is expected to be the second-largest market for Automotive Oil Recycling Market, accounting for over 19.9% of the market share in 2023. The growth of the market in is attributed to rapidly expanding automotive sales and vehicle parc in countries such as China and India.
  • The Europe market is expected to be the fastest-growing market for Automotive Oil Recycling Market, with a CAGR of over 23.1% during the forecast period. The growth of the market in Europe is attributed to high awareness and adoption of circular economy practices in the region.

Figure 1. Global Automotive Oil Recycling Market Share (%), by Region, 2023

 | Coherent Market Insights

Automotive Oil Recycling Market Drivers:

  • Environmental Awareness: Increasing awareness of environmental issues and the need for sustainable practices has driven the automotive industry to adopt recycling as a responsible way to manage used oil. Recycling helps reduce pollution and minimizes the carbon footprint associated with oil disposal.
  • Stringent Regulations: Government regulations and policies mandating the proper disposal and recycling of used automotive oil have significantly boosted the market. These regulations aim to prevent improper disposal and contamination of natural resources.
  • Rising Vehicle Sales: The global automotive industry continues to expand, leading to higher oil consumption. As the number of vehicles on the road increases, so does the generation of used oil, creating a growing need for recycling services.
  • Cost Savings: Recycling used oil can be more cost-effective than producing new oil from virgin sources. Businesses and consumers are increasingly drawn to recycling as a way to save money on lubricants and reduce overall operating costs.

Automotive Oil Recycling Market Opportunities:

  • Increasing Oil Consumption: As the global automotive fleet continues to grow, the consumption of automotive oil rises. This trend presents a significant opportunity for recycling companies to capture a larger market share and expand their operations.
  • Technological Advancements: Ongoing advancements in oil recycling technologies enhance the efficiency and cost-effectiveness of the recycling process. Companies that invest in and adopt these technologies can improve their competitive edge and offer higher-quality recycled oil products.
  • Circular Economy Adoption: The concept of a circular economy, where resources are reused and recycled, is gaining momentum. Automotive oil recycling is a key component of this concept and presents opportunities for businesses to position themselves as champions of sustainable practices.
  • Diversification of Recycled Oil Products: Beyond traditional lubricants, recycled automotive oil can be used in various applications such as asphalt production, power generation, and industrial processes. Exploring these alternative markets can lead to increased revenue streams.

Automotive Oil Recycling Market Report Coverage

Report Coverage Details
Base Year: 2022 Market Size in 2023: US$ 48.42 Bn
Historical Data for: 2018 to 2021 Forecast Period: 2023 - 2030
Forecast Period 2023 to 2030 CAGR: 5.4% 2030 Value Projection: US$ 69.97 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East & Africa: GCC Countries, Israel,  South Africa, North Africa, and Central Africa and Rest of Middle East
Segments covered:
  • By Oil Type: Engine Oils, Transmission Fluids, Brake Fluids, Greases, Gear Oils, Hydraulic Fluids, Others
  • By Collection Method: Garages & Service Stations, Automotive Manufacturers, Re-Refineries, DIY Collection Centers, Municipal Collection Centers, Independent Collectors, Others
  • By Technology: Vacuum Distillation, Thin Film Evaporation, Hydroprocessing, Clay Treatment, Acid/Caustic Treatment, Distillation, Others
  • By End-use Industry: Automotive, Industrial, Marine, Others
  • By Sales Channel: Direct Sales, Indirect Sales
Companies covered:

Safety-Kleen Systems, Inc., Valvoline, Heritage-Crystal Clean, LLC, Veolia Environnement, Clean Harbors, NexLube, Recytech, Universal Lubricants, Vertex Energy, Inc., Advanced Lubrication Specialties, Delta-Energy Group, LLC, GFL Environmental Inc., HCC Eagle Environmental Services, Inc., MidStates Oil Refining Co. LLC, PetroChoice, Sage Oil Vac, Inc., Solventis Ltd., Southern Oil Refining Pty Ltd, Suncor Energy Inc., Texas Used Oil Collection Program.

Growth Drivers:
  • Environmental Awareness
  • Stringent Regulations
  • Rising Vehicle Sales
  • Cost Savings
Restraints & Challenges:
  • Low Consumer Awareness
  • Improper Disposal Practices

Automotive Oil Recycling Market Trends:

  • Increased Adoption of Re-refining: Re-refining technology, which reprocesses used oil into high-quality base oil, is gaining prominence. This trend is driven by the desire for more sustainable and environmentally friendly oil recycling practices.
  • Growing Use of Group II and Group III Base Oils: Recycled oil is increasingly being used as a source of Group II and Group III base oils, which meet higher performance standards. This trend reflects the improved quality and acceptability of recycled oils in various applications.
  • Shift Towards Synthetic Oils: As vehicle manufacturers recommend synthetic oils for modern engines, there is a corresponding demand for recycled synthetic oils. Recycling facilities are adapting to process and produce these specialized oils.
  • Emergence of Eco-Friendly Additives: Manufacturers are developing eco-friendly additives for recycled oil products, enhancing their performance while reducing environmental impact.

Automotive Oil Recycling Market Restraints:

  • Low Consumer Awareness: Despite efforts to educate the public, many consumers remain unaware of the benefits of recycling automotive oil. This lack of awareness can result in improper disposal of used oil and hinder market growth.
  • Improper Disposal Practices: Some individuals and businesses still engage in improper disposal of used oil, such as pouring it down drains or onto the ground, which can lead to environmental contamination and cleanup costs.
  • Quality Concerns: Ensuring the consistent quality of recycled oil products can be challenging. Variability in the quality of used oil feedstock and the recycling process itself can affect the performance of recycled oils, impacting their acceptance in the market.

Recent Developments:

New product launches:

  • In March 2022, Indian Oil Corporation Limited launched servo lubricants made from recycled base oils. This supports sustainability while delivering high performance.
  • In January 2021, Safety-Kleen Systems launched NextGen, a high-quality engine oil made from re-refined base oil. It meets top industry standards while promoting circularity.
  • In April 2020, Purvin & Gertz introduced extended life coolants using recycled ethylene glycol for automotive applications. It reduces coolant replacement frequency.

Acquisition and partnerships:

  • In September 2022, Heritage-Crystal Clean acquired Enevo's used oil collection business in Finland. This expanded its collection network in Europe.
  • In February 2021, Safety-Kleen acquired McKenna Environmental's used oil collection assets in Canada. It strengthened Safety-Kleen's customer base and infrastructure.
  • In December 2020, FCC Environmental partnered with Nexus Fuels to supply recycled base oils. The partnership enhanced both companies' circular economy credentials.

Figure 2. Global Automotive Oil Recycling Market Share (%), by End-use Industry, 2023

 | Coherent Market Insights

Top companies in Automotive Oil Recycling Market:

  • Safety-Kleen Systems, Inc.
  • Valvoline
  • Heritage-Crystal Clean, LLC
  • Veolia Environnement
  • Clean Harbors
  • NexLube
  • Recytech
  • Universal Lubricants
  • Vertex Energy, Inc.
  • Advanced Lubrication Specialties
  • Delta-Energy Group, LLC
  • GFL Environmental Inc.
  • HCC Eagle Environmental Services, Inc.
  • MidStates Oil Refining Co. LLC
  • PetroChoice
  • Sage Oil Vac, Inc.
  • Solventis Ltd.
  • Southern Oil Refining Pty Ltd
  • Suncor Energy Inc.
  • Texas Used Oil Collection Program

*Definition: The Automotive Oil Recycling Market refers to the industry associated with re-refining and purifying used oils and lubricants from automotive and transport sources into fresh, high-quality base oils and lubricants. It involves the collection, transportation, processing, and re-distribution of recycled oils and lubricants recovered from sources such as garages, service stations, workshops, auto manufacturers, as well as do-it-yourself consumers. The recycled oils can be re-purposed into new lubricating oils or can be used for other industrial applications. Automotive oil recycling provides environmental and economic benefits through resource circularity, reduced waste, lower crude oil consumption, and lower greenhouse gas emissions. The market has grown steadily in recent years, driven by rising vehicle sales, stringent regulations, advancements in re-refining technologies, and increasing adoption of sustainable practices in the automotive value chain. The market is segmented by type of oil/fluid, collection method, technology, end-use industry, and region.

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Frequently Asked Questions

The key factors hampering the growth of the Automotive Oil Recycling Market are the presence of contaminants in used oil, competition from low priced virgin lubricants, lack of collection infrastructure in emerging economies, improper disposal due to lack of awareness, and logistical challenges in collection and transportation.

The major factors driving growth of the Market are stringent environmental regulations, advancements in re-refining technologies, rising automotive sales, cost benefits of recycled oils, and adoption of sustainable practices by OEMs.

The leading component segment in the Market is engine oils, owing to their wide availability and higher value after re-refining.

The major players operating in the market are Safety-Kleen Systems, Inc., Valvoline, Heritage-Crystal Clean, LLC, Veolia Environnement, Clean Harbors, NexLube, Recytech, Universal Lubricants, Vertex Energy, Inc., Advanced Lubrication Specialties among others.

Asia Pacific is expected to lead the Market in terms of size.
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