by Automotive oil recycling involves collecting used motor oil from automotive shops, oil change facilities, Do-It-Yourself waste collectors, and other sources and processing it to remove impurities. The processed used oil can then be utilized for heat generation, asphalt production, or re-refined into new base oils and lubricating products. Increased adoption of recycling practices helps reduce landfilling and environmental contamination caused by improper disposal of used motor oil.
The global 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.
Market Dynamics:
The rising environmental concerns regarding disposal of used motor oil is a key driver for the automotive oil recycling market. Landfilling or dumping of used oil pollutes the land and water resources. Recycling ensures proper treatment and recovery of resources. Stringent environmental regulations regarding collection and disposal of used motor oil across regions encourage greater recycling. Additionally, the automotive oil recycling process yields valuable end-products such as refined base oils and remanufactured lubricants. This helps increase the profitability of recycling companies and boosts the market over the forecast period.
Segment Analysis
The automotive oil recycling market is dominated by the passenger vehicle segment. Over 60% of used engine oil generated comes from passenger cars which change engine oil frequently compared to commercial vehicles. Passenger vehicles require easy access to oil recycling centers which has led to establishment of numerous collection points such as auto shops, retail petroleum stations and quick lubes for used oil collection from passenger cars.
PEST Analysis
Political: Stringent emission norms regarding recycling of lubricants in many countries are boosting the market. For example, in US the used oil generated requires mandatory recycling under the resource conservation and recovery act.
Economic: Volatility in crude oil prices makes recycling of used oil an economically viable option for production of base lubricants. It reduces cost of materials for lubricant producers.
Social: Growing awareness regarding environmental protection and proper oil disposal is encouraging vehicle owners to recycle used engine oil instead of dumping. This is fostering market growth.
Technological: Advancements in oil re-refining technologies have improved yield and quality of base oils from recycled oil. This has enhanced commercial viability of oil recycling.
Key Takeaways
The global Automotive Oil Recycling Market Demand is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing stringent emission regulations regarding lubricant disposal and recycling in many countries.
Regional analysis: North America dominated the global market in 2023 with over 30% share owing to early implementation of stringent used oil recycling norms in the US and Canada. Asia Pacific is projected to be the fastest growing market during the forecast period supported by presence of major lubricant consumers and recyclers like China and India.
Key players analysis: 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. These players are focused on capacity expansion of collection and re-refining facilities to cater to the growing demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
