Automotive Oil Recycling Market to Expand with Significant CAGR by 2027

Posted by Priyanka Thakare on March 18th, 2020

Global Automotive Oil Recycling Market: Snapshot

Not all of the used oil from motors can be recycled—but those that can make for huge business propositions; large percentage of anthropogenic pollutants can make lubricating oil simply non-recyclable. According to one estimate, a contemporary processing system enables refining system to make 1 gallon of used motor oil can churn out 2.5 quarts of lubricating base oil. Regulatory agencies across the world are increasingly engaging in initiatives in educating about the vast health hazards of the inadequate disposal of used automotive oil. Mechanics, and auto repair business owners, and DIY oil change individuals are seeing options expanding. A case in point is the campaign launched by the U.S. EPA “You Dump It, You Drink It”. Re-refining used oil and oil filters are getting impetus from people doing it correctly and often in developed nations. The constant focus of regulatory agencies to prolong the utility of automotive fluids have brought advancements in pre-treatment methods, thus propelling the growth of the automotive oil recycling market, especially in developed nations. A case in point is focus on improvising propane de-asphalting.

A range of automotive manufacturers have become aware of the huge environmental significance of automotive oil recycling. The various types of oil that can recycled and repowered comprise metalworking fluids, transmission fluids, brake fluids, emulsions, coolants from HVAC, refrigeration oils, electrical oils, and heating media. The growing demand for re-refined used oil in petroleum refinery is also boosting the automotive oil recycling market.  A variety of novel solvent extraction blends has made way into the market, expanding its potential. The use of alumina adsorbents along with these blends has in some cases is found to hold promise for refiners. One of the key objectives to maximize the sludge removal and produce oil with high efficiency, underpinning the growth dynamic of the market.

Automotive Oil Recycling Market: Overview

  • Recycling is a process which considers a used product and converts it into a new re-usable product by reprocessing it
  • Automotive oil recycling is a process which involves recycling of used motor oil or hydraulic oil and converting it into new products such as boiler fuel, space heater fuel, lubricants etc.
  • Dumping or disposing of used oils in an incorrect way is hazardous to the environment. Hence, it is highly beneficial to recycle automotive oil and convert it into a reusable product.

Key Drivers of Automotive Oil Recycling Market

  • Increase in government regulations on disposal of hazardous substances is expected to drive the global automotive oil recycling market during the forecast period
  • Producing a gallon of re-refined base from used oil requires less energy than producing base stock from crude oil. Thus, recycling of automotive oil saves valuable resources, which is likely to boost the automotive oil recycling market during the forecast period.

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Engine Oil Segment to Expand Rapidly

  • Engine oil is an essential component for smooth functioning of cars, motorbikes, and trucks. However, engine oil used in vehicles is contaminated with impurities such as dirt and water which eventually makes the oil useless after certain duration. Every oil becomes useless after certain duration. This is expected to drive the engine oil segment during the forecast period.
  • Automotive vehicles sales is inclining constantly over the past few years, majorly in regions such as Asia Pacific and Europe
  • The increase in sales of vehicles is expected to propel the demand for engine oil during the forecast period. This, in turn, is expected to drive the automotive oil recycling market during the forecast period.

Industrial Heating Fuel Segment to Dominate Global Automotive Oil Recycling Market

  • Automotive recycled oil is majorly utilized as a fuel in boilers, space heaters, and industrial heating applications. Among these application segments, industrial heating fuel segment is expected to dominate the global automotive oil recycling market during the forecast period.
  • When an oil can no longer perform its original lubrication job, it is recycled and  water and impurities are removed so that the oil can be burned and used as a fuel to generate heat or electricity for industrial operations
  • Industrial applications require oil in large quantities. Hence, employing new oil is not economical. So, recycled oil is a highly suitable substitute in industrial operations. Recycled automotive oil is utilized in large quantities in industrial operations due to the lower cost and efficiency. Approximately more than 75% of automotive recycled oil is used for driving turbines, power plants, cement kilns, and manufacturing facilities (asphalt, steel etc.).

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Asia Pacific to Hold Prominent Share of Global Automotive Oil Recycling Market

  • Geographically, the global automotive oil recycling market can be split across five regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
  • Asia Pacific is the leading consumer of automotive oil recycling, followed by Europe and North America. Growth in the automotive aftermarket and automotive industries is projected to augment the automotive oil recycling market in Asia Pacific.
  • Increase in disposable income, change in lifestyle, and increase in demand for transportation are major driving factors which are boosting automotive industry in Asia Pacific, which in turn, driving the automotive oil recycling market in Asia Pacific
  • Manufacturing industries require a large quantity of engine oils for the working of large machineries. In emerging economies in Asia Pacific such as India and China, industrial sector is expanding which is likely to boost the demand for automotive oil recycling as large quantities of oil is employed in large machineries. This, in turn, is expected to drive the automotive oil recycling market in Asia Pacific during the forecast period.
  • Regions such as North America and Europe are also projected to hold key market share of automotive oil recycling market during forecast period. Prominent market share of North America and Europe can be attributed to the stringent environmental policies for recycling of hazardous substances by respective governments. These regions have well-developed countries with strict rules and regulations for protecting the environment from pollution.
  • North America and Europe have well established cycle of collection, recycling, and distribution of used motor oil.

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Key Players in Market:

Prominent players operating in the Automotive Oil Recycling market include:

  • World Oil Corp.
  • Safety-Kleen Systems, Inc.
  • Waste Management
  • DIRK Group
  • Nexlube
  • Lube Oil Re-refining Co., LLC
  • Pesco Beam Environmental Solutions Pvt. Ltd.
  • Oil Re-refining Co., Inc.
  • Alter Fuel Corp.
  • Auto Blue Oils
  • IFP Petro Products (P) Ltd.
  • Waste360
  • Veolia

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Priyanka Thakare

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Priyanka Thakare
Joined: May 6th, 2019
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