Recycled Base Oil Market Size To Reach $1.27 Billion By 2030

Recycled Base Oil Market Growth & Trends

The global recycled base oil market size is expected to reach USD 1.27 billion by 2030, as per the new report by Grand View Research, Inc. The market is projected to grow at a CAGR of 5.0% from 2023 to 2030. The growth is majorly driven by the increasing demand for sustainable and eco-friendly products. Recycling helps to protect the environment by reducing the amount of waste oil that is generated and prevents the pollution caused by improper disposal.

Recycled base oil is produced from the recycling of used engine oils through various distillation and refining processes. This high-quality product is utilized for lubrication in industrial processes as well as automotive and marine engines. Numerous techniques are employed to produce the product, including vacuum distillation and clay treatment. The most significant advantage of using the product is the positive impact it has on the environment. By minimizing waste and reducing carbon footprint, the product is considered a sustainable and eco-friendly alternative to virgin oil.

The major factors driving the market growth include the rise in investments in research and development of the re-refining process, improvement in the quality of recycled base oil, and increasing awareness about the importance of sustainability and eco-friendly practices. In addition, governments and environmental agencies have introduced mandatory norms on industries to reduce their environmental footprint and adopt sustainable practices, which is increasing the adoption of the product over the period.

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Recycled Base Oil Market Report Highlights

• The market is estimated to advance with a CAGR of 5.0% from 2023 to 2030. This is attributed to the increasing demand from automotive, industrial, marine, and other industries

• Based on the type, the low-viscosity segment dominated the market in 2022 with a revenue share of over 40%. This growth is attributed to the increase in demand for passenger cars requiring low-viscosity engine oils and other lubricants in automobiles

• In terms of application, the industrial oil segment is anticipated to witness the fastest CAGR of 5.4% over the forecast period. This is attributed to the worldwide growth of the automotive industry. For instance, according to the Indian Brand Equity Foundation, the Indian passenger car market accounted for USD 32.70 billion in 2021 and is anticipated to witness a CAGR of 9% until the year 2027

• In terms of region, Asia Pacific emerged as the fastest-growing region with a revenue share of over 27% in 2022. This growth is attributed to the growing adoption of environment-friendly alternatives for base oil in automotive and industrial applications

Recycled Base Oil Market Segmentation

Grand View Research has segmented the global recycled base oil market based on type, application, and region:

Recycled Base Oil Type Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• High Viscosity Recycled Base Oil

• Medium Viscosity Recycled Base Oil

• Low Viscosity Recycled Base Oil

Recycled Base Oil Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Automotive Oil

• Industrial Oil

• Metalworking Fluids

• Other Applications

Recycled Base Oil Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • U.K.

  • France

  • Italy

  • Spain

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

• Central & South America

  • Brazil

  • Argentina

• Middle East & Africa

  • Saudi Arabia

  • South Africa

List of Key Players in the Recycled Base Oil Market

• Valvoline LLC

• NexLube

• VISION OILS

• Gulf Basin Petroleum Recycling Co.

• Terrapure BR Ltd.

• Hering VPT

• SHARAFCO OIL REFINERY & IND CO L.L.C

• Rahaoil, Inc.

• BENZOIL