Automotive Oil Recycling Is Estimated To Witness High Growth Owing To Stringent Emission Norms

Purvaja Jadhao

posted on 9 months ago — updated on 1 second ago

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The automotive oil recycling market is estimated to be valued at US$ 48.42 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Automotive Oil Recycling Is Estimated To Witness High Growth Owing To Stringent Emission Norms

Market Overview:
Automotive oil recycling refers to the process of reclaiming used motor oil and reprocessing it into new lubricants such as engine oil, hydraulic oil, industrial oil, and others. Several automotive workshops, oil change shops generate large volumes of used oil that require proper handling and disposal. Improper disposal of used oil can pollute the environment. The growing automotive industry and stringent emission norms across regions are major factors driving the growth of the automotive oil recycling market.

Market Dynamics:
The Automotive Oil Recycling Market Demand is expected to grow at a significant rate owing to factors such as the stringent emission norms imposed by regulatory bodies worldwide regarding proper management and handling of used oil. For instance, the Environmental Protection Agency (EPA) in the U.S. regulates the disposal and management of used oil through programs such as recycling, rerefined oil, and oil filters. Furthermore, the expansion of the automotive industry and increasing vehicle fleet is leading to a substantial rise in the volume of used oil generated. This, coupled with initiatives to promote the commercialization of recycled oil products, is fueling the demand for automotive oil recycling. Additionally, growing environmental concerns regarding emission reduction and proper used oil disposal are anticipated to propel the automotive oil recycling market growth over the forecast period.

SWOT Analysis

Strengths:
- Well established regulations promote recycling of used oils which drives market growth.
- Presence of key recycling technologies help recover base oils from used motor oils efficiently.
- Increase in vehicle parc globally necessitates proper management of used automotive oils.

Weaknesses:
- Collection and transportation of used oils to recycling facilities increases overall costs.
- Variability in composition of used oils poses challenges in developing universal recycling solutions.

Opportunities:
- Growth in automotive industry in emerging economies increases waste oil volumes for recycling.
- Developing alternate end uses of recycled base oils aids in maximizing resource recovery.

Threats:
- Limited infrastructure for used oil collection in remote and underdeveloped regions.
- Competition from substitute materials hampers re-refined base oil market demand.

Key Takeaways

The global automotive oil recycling market is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing automotive production across the world. Asia Pacific region dominates the market currently owing to large vehicle parc and growing infrastructure for waste oil management in major countries like China and India.

Regional Analysis

Asia Pacific region accounted for around 35% of the global automotive oil recycling market in 2023. China and India are the fastest growing markets due to rapid increase in passenger and commercial vehicle sales. Both countries are focusing on developing a strong recycling ecosystem through regulations and strategic partnerships between collection agencies, recyclers and lubricant manufacturers.

North America is another major regional market led by the U.S. and presence of key industry players. Middle East & Africa and Latin America are projected to showcase high growth over the next decade backed by economic development and rising vehicle ownership in the regions.

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. The market is characterized by presence of both global as well as regional players.