Automotive Oil Recycling is fastest growing segment fueling the...

Automotive Oil Recycling is fastest growing segment fueling the growth of Automotive Oil Recycling Market

Posted 2023-11-27 11:41:09

Market Overview:
Automotive oil recycling involves collecting used motor oil from do-it-yourself oil changers, automotive repair shops, and manufacturers and then reconditioning it through processes like vacuum distillation to remove contaminants. The recycled oil is then sold as recycled engine oil or rerefined base oil. This helps in conserving crude oil resources and prevents pollution.

Market key trends:
Stringent environmental regulations regarding the recycling and disposal of used motor oil have boosted the growth of the automotive oil recycling market. For instance, the U.S. Resource Conservation and Recovery Act (RCRA) regulates the collection and disposal of used oil. Similarly, the European Directive on Waste Oils lays down guidelines for used oil collection in the European Union. Also, growing environmental awareness regarding proper used oil disposal and recycling is driving the demand for automotive oil recycling services. Furthermore, rising automotive maintenance and repair activities amid growing vehicle fleet is generating a steady supply of used motor oil, thus fueling market growth over the forecast period.
Segment Analysis
The global Automotive Oil Recycling Market Demand is dominated by the base oil and lube oil segments. The base oil segment accounted for the largest market share in 2022 owing to the high demand for recycled base oil in producing new lubricants. Recycled base oil is cost-effective compared to virgin base oil as it requires less refining. The lube oil segment is expected to grow at the fastest rate during the forecast period due to the increasing reuse of used lubricating oil in grease, hydraulic oil, and gear oil production.

Key Takeaways
The global automotive oil recycling market is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period 2023-2030, due to increasing stringent environmental regulations regarding used oil disposal.

Regional analysis
North America dominated the global market in 2022 and is estimated to maintain its leading position throughout the forecast period. This is attributed to the presence of supportive legislative framework and established oil recycling infrastructure in the US and Canada. Europe is projected to be the fastest growing regional market between 2023-2030 due to the rising focus of EU countries on achieving circular economy goals.

Key players
Key players operating in the automotive oil recycling 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, 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. Safety-Kleen is one of the leading players owing to its extensive service station network across North America.