Waste Oil Market Size (2024 – 2030)

The Waste Oil Market was valued at USD 49.32 billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 67.12 billion by 2030, growing at a CAGR of 4.5%.

Refined oil designated for various applications transforms into waste oil, laden with impurities, particles, and chemical compounds. Waste oil encompasses synthetic or petroleum-based oils that have surpassed their prime suitability for their initial purpose. Predominantly sourced from crankcase and lubricant residues, waste oil serves various purposes, including its application as a dust-controlling agent on roads and occasional blending with pristine oil for utilization in boilers aimed at generating electrical or heating energy.

Key Market Insights:

Diverse types of waste oils, including transmission oils, hydraulic oils, lubricating oils, and fuel oils, are generated as byproducts of numerous industrial and manufacturing operations. These waste oils undergo collection and subsequent processing to yield lubricants such as engine oils, lubricating greases, and machine oils tailored for automotive and industrial usage. Globally, the automotive sector is experiencing significant growth, marked by heightened vehicle production and sales activities, which are poised to impact market expansion throughout the forecast period.

Waste Oil Market Drivers:

Increasing re-refining applications drives market growth

The resurgence of re-refining used oil is gaining traction due to its role in reducing pollution levels and reinstating the oil's inherent properties. A broad spectrum of waste oils, encompassing hydraulic oils, fuel oils, and transmission oils, is gathered and subjected to re-refining processes aimed at purging contaminants and replenishing them with fresh oil. Market trends indicate a surge in re-refining activities, poised to drive the expansion of the waste oil industry throughout the forecast period. As highlighted in a 2020 publication by IOPscience, waste lubricating oil is subjected to re-refining utilizing solvent extraction and clay adsorption technologies to yield base oil and mitigate environmental contamination. The anticipated rise in waste oil recycling endeavors and the production of base oil for diverse industrial applications are anticipated to bolster market growth in the forecasted timeframe.

Waste Oil Market Restraints and Challenges:

Strict regulations restrain market growth.

Waste oils, categorized as hazardous waste, fall under stringent regulatory frameworks established by various governing bodies, potentially hindering the global waste oil market's growth during the forecast period. Stringent measures are enforced to prevent environmental degradation, necessitating thorough examination before disposal in landfills. As per statistics furnished by the European Commission, regulatory directives are implemented to ensure the proper management of waste oils, leveraging their substantial recovery potential while mitigating environmental risks. The enactment of waste oil management legislation is anticipated to exert an influence on market expansion throughout the forecast period.

High cost of waste oil plants hinders market growth.

The significant upfront investment required for the establishment of waste oil plants is anticipated to present a notable obstacle to the growth of the waste oil industry throughout the forecast period. Notably, the cost of fully continuous pyrolysis plants is relatively steep, ranging from USD 240,000 to USD 500,000.

Waste Oil Market Opportunities:

Increasing the automobile industry provides a lucrative opportunity.

The burgeoning automotive industry is poised to offer promising prospects for the growth of the waste oil market throughout the forecast period. Waste oil plays a vital role in the formulation of lubricants and engine oils utilized in vehicles within the automotive sector. Consequently, the global expansion of the automotive industry presents substantial opportunities for market growth.

WASTE OIL MARKET REPORT COVERAGE:

Waste Oil Market Segmentation: By Type

• Transmission Oils

• Transformer Oils

• Hydraulic Oils

• Fuel Oils

• Lubricating Oils

• Metalworking Fluid Oils

• Refrigerant Oils

• Others

During the forecast period, the lubricating oils segment is anticipated to maintain dominance in the market. The increasing demand for lubricating waste oil is primarily attributed to the growth of the automotive sector. Market expansion is further propelled by evolving environmental regulations concerning the disposal of used lubricating oil. With the continuous growth of the automotive industry, there is a heightened demand for recycled and reused motor oils. Consequently, the automotive sector emerges as a key end-use sector propelling the growth of the lubricating waste oil market, thereby driving the segment's expansion over the forecast period.

Waste Oil Market Segmentation: By Technology

• Vacuum Distillation

• Hydrogen Treatment

• Thin Film Evaporation

• Others

During the forecast period, the vacuum distillation segment is anticipated to capture the largest market share. This technology facilitates the recycling of various waste oils into base oil, boasting notable attributes such as high recovery rates of up to 85%, cost-effectiveness, energy efficiency, and environmental benefits. Given its versatile applications, both market participants and research institutions have directed significant attention towards vacuum distillation. For instance, a study highlighted in the publication of the International Research Journal of Engineering and Technology (IRJET) revealed that, among several refining technologies, vacuum distillation emerged as the most efficient. As a result, vacuum distillation technology is forecasted to experience increased demand within the industry throughout the anticipated time frame.

Waste Oil Market Segmentation: By End Use

• Boiler

• Road Oil

• Biodiesel

• Space Heater

• Asphalt Plant

• Re-Refiners

• Steel Mills

• Others

During the forecast period, the re-refiners segment is poised to emerge as the dominant force in the market. Re-refiner factories play a pivotal role in the re-refining process of waste oil, eliminating impurities and contaminants to restore the oil to its original quality for industrial applications. The quality of re-refined oil often matches or surpasses that of base oils. The increasing popularity of waste oil re-refining is attributed to its economic and environmental benefits. This burgeoning demand is expected to drive market expansion throughout the projected period.

Waste Oil Market Segmentation- By Region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

During the forecast period, the Asia Pacific region is projected to dominate the global waste oil market, driven by robust demand from the automotive sector, particularly in countries such as China and India experiencing rapid growth. Various types of waste oils, including fuel oils, hydraulic oils, and transmission oils, are generated across diverse industrial and manufacturing processes. These waste oils are subsequently collected and refined to produce lubricants for automotive applications, such as engine oils and lubricating greases. The burgeoning automotive industry in the region presents significant growth opportunities. For example, according to the China Association of Automobile Manufacturers, commercial vehicle production in China surged to 310,000 units in September 2021, marking a 35.5% increase month-on-month. Similarly, the passenger car segment witnessed a growth of 28.39%, with March 2021 sales reaching 279,745 units compared to 217,879 units in March 2020.

On the other hand, North America is poised to capture a substantial share of the waste oil market during the forecast period, primarily attributed to rapid industrialization. Moreover, the region hosts numerous oil refineries that contribute significantly to waste oil production, with the United States alone accounting for approximately a quarter of global production, solidifying its position as the world's leading waste oil producer. In North America, waste oil finds primary usage as fuel, alongside recycling for the production of new products like lubricants and asphalt. The abundance of automotive and industrial facilities across the continent leads to a high volume of waste oil generation. Proper collection and responsible disposal, often through recycling into new products, are imperative for these facilities, thus driving market growth in the region.

COVID-19 Pandemic: Impact Analysis

The Waste Oil Market experienced considerable disruption as a result of the COVID-19 pandemic. Challenges such as cross-border movement restrictions and supply chain disruptions adversely affected market operations. In response, market players implemented various measures to mitigate the impact of the pandemic and sustain business operations. Additionally, the market faced setbacks due to stagnant growth in automotive and oil refining activities worldwide. However, towards the end of 2020, the market began to recover and exhibit growth. Looking ahead, the Waste Oil Market is anticipated to experience significant growth, driven by the expansion of the automotive and other industrial sectors on a global scale.

Latest Trends/ Developments:

• In January 2023, Nestle made headlines with its acquisition of Crimson Renewable Energy Holdings, LLC's used cooking oil (UCO) collection and Aggregation Company, along with associated properties, on the US West Coast. This acquisition marks Neste's entry into a prominent UCO collection and recycling business on the West Coast of the United States, encompassing UCO collection, logistics, and storage operations across California, Oregon, and Washington.

• In June 2022, Shell unveiled a new used oil management service in India, aiming to streamline the country's waste oil disposal system and bolster re-refining efforts in line with circular economy objectives while minimizing waste. This initiative aligns with Shell's broader commitment to achieving net-zero emissions by 2050. Collaborating with used oil re-refiners, Shell initiated the collection and re-refining of old oil nationwide, fostering circular economy principles within the lubricants industry.

• In September 2022, BASF SE entered into a framework agreement with ARCUS Greencycling Technologies GmbH, a technology firm based in Ludwigsburg, Germany, to procure pyrolysis oil derived from mixed plastic waste. The agreement signifies the mutual intention of the two companies to leverage their expertise across the value chain to repurpose mechanically unrecyclable plastic waste in support of a circular economy and CO2 emissions reduction. Over the subsequent years, ARCUS will supply pyrolysis oil to BASF, enhancing its production capacity. BASF will utilize this oil as a raw material in its manufacturing processes to create recycled products.

Key Players:

These are the top 10 players in the Waste Oil Market: -

1. J.J. Richards and Sons Pty Ltd

2. Enva (Rilta Environmental Ltd)

3. Goins Waste Oil Company Inc.

4. All Waste Matters Ltd

5. Enfields Chemicals CC

6. Alexandria Petroleum Company

7. Oil Salvage Ltd

8. Solway Recycling Ltd

9. EWOR and Omnia Group

10. Business Waste