Automotive Oil Recycling Market Forecasts to 2030 – Global Analysis By Recycled Oil Type (Base Oil, Blended Oils, Lubricants and Other Recycled Oil Types), Source, Recycling Process, Application, End User and By Geography

February 2025 | 150 pages | ID: AB58DA650EE6EN
Stratistics Market Research Consulting

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According to Stratistics MRC, the Global Automotive Oil Recycling Market is accounted for $49.72 billion in 2024 and is expected to reach $70.53 billion by 2030 growing at a CAGR of 6.5% during the forecast period. Automotive oil recycling refers to the process of reusing used motor oil from vehicles to minimize environmental impact and conserve resources. It involves collecting, filtering, and refining used oil to remove contaminants like dirt, metals, and water. The recycled oil is then reprocessed to meet industry standards, making it suitable for reuse in engines or as a base for new lubricants. This process reduces the need for new oil production, decreases waste, and helps lower harmful emissions, contributing to sustainability within the automotive industry.

According to the Environmental Protection Agency (EPA), two hundred million gallons of waste oil are improperly disposed in the United States.

Market Dynamics:

Driver:

Growing concerns about pollution and the environmental impact

As the harmful effects of improper oil disposal become more evident, governments and consumers are prioritizing sustainable practices, driving demand for oil recycling. Recycled oil reduces environmental pollution by preventing oil spills, contamination of water sources, and soil degradation. Additionally, recycling conserves natural resources by reducing the need for crude oil extraction. Increased awareness of climate change and resource conservation encourages industries and individuals to adopt recycled motor oils, further accelerating the market’s expansion while aligning with eco-friendly initiatives.

Restraint:

Contamination issues

Contamination issues in automotive oil recycling arise when used oil is mixed with impurities such as dirt, water, heavy metals, or chemicals, making it difficult to process. Contaminated oil can reduce the efficiency of the recycling process, requiring additional steps for purification, which increases costs. Furthermore, it can lower the quality of the recycled oil, making it unsuitable for reuse in certain applications. This hampers market growth by raising operational costs and limits consumer and industrial confidence in recycled oil products.

Opportunity:

Rising automotive industries in emerging economies

Increased vehicle ownership and production in Asia Pacific, Latin America, and Africa lead to a higher demand for motor oil, resulting in greater volumes of used oil available for recycling. As these economies grow, so does the need for sustainable practices to manage oil waste, driven by environmental regulations and awareness. This, in turn, boosts the demand for oil recycling services and technologies, contributing to market expansion while reducing environmental impact and conserving natural resources.

Threat:

High initial investment

Automotive oil recycling requires high initial investment due to the need for advanced technology, specialized equipment, and infrastructure for collection, filtration, and refining processes. Establishing recycling facilities involves costs for setting up processing units, acquiring necessary permits, and ensuring compliance with environmental regulations. The high upfront costs can hinder market growth, slowing the adoption of oil recycling practices.

Covid-19 Impact

The covid-19 pandemic negatively impacted the automotive oil recycling market due to disruptions in vehicle usage, leading to a decline in oil consumption. Lockdowns and restrictions reduced automotive service operations, lowering the volume of used oil available for recycling. However, as economies recovered, demand for recycled oil has gradually increased, supported by the growing emphasis on sustainability and environmental concerns post-pandemic.

The base oil segment is expected to be the largest during the forecast period

The base oil segment is predicted to secure the largest market share throughout the forecast period. Base oil recycled oil, often referred to as re-refined oil, is a key component in automotive oil recycling. It is produced by refining used motor oil to remove contaminants such as dirt, metals, and chemicals. It offers a sustainable alternative to virgin base oils, reducing environmental impact and conserving natural resources in the automotive industry.

The vacuum distillation segment is expected to have the highest CAGR during the forecast period

The vacuum distillation segment is anticipated to witness the highest CAGR during the forecast period. Vacuum distillation is a key process in automotive oil recycling that separates contaminants from used motor oil. Vacuum distillation is effective in removing high-boiling-point contaminants, producing high-quality recycled oil that can meet industry standards and be reused in engine applications, contributing to sustainability and reducing waste.

Region with largest share:

Asia Pacific is expected to register the largest market share during the forecast period fuelled by increasing vehicle ownership, industrial growth, and rising environmental awareness. Countries like China, India, and Japan are key players, with growing government regulations promoting recycling practices to reduce environmental pollution. As regulations tighten and consumers become more eco-conscious, the region is expected to see further investment in recycling technologies and expanded collection networks, boosting market growth in the coming years.

Region with highest CAGR:

North America is expected to witness the highest CAGR over the forecast period driven by stringent environmental regulations, increased awareness of sustainability, and a growing focus on reducing waste. The U.S. and Canada have well-established recycling infrastructure, supported by government policies that mandate oil recycling and promote eco-friendly practices. The market also benefits from advancements in recycling technology and consumer preference for cost-effective alternatives to new motor oil. The region continues to lead in innovative recycling solutions.

Key players in the market

Some of the key players profiled in the Automotive Oil Recycling Market include TotalEnergies SE, Phillips 66 Company, Royal Dutch Shell Plc, Exxon Mobil Corporation, Chevron Corporation, Valvoline Inc., Safety-Kleen Systems Inc., Heritage-Crystal Clean Inc., Universal Lubricants, Castrol Limited, Veolia North America, Shell Global, Clean Harbors Inc., BP plc, Recochem Inc., Oil Salvage Company Ltd., O’Reilly Auto Parts, Stellantis NV, SquareOne Energy and Triumvirate Environmental.

Key Developments:

In August 2022, SquareOne Energy announced its advanced development of a sustainable oil re-refining facility, aiming to implement cutting-edge processes within the re-refining industry. The facility is designed to offer a holistic, sustainable approach to rejuvenating waste oil. This project emphasizes environmentally responsible practices, with the goal of creating a positive impact by improving resource recovery and reducing environmental footprint.

In June 2022, Safety-Kleen introduced a new brand of base oils, emphasizing the environmental benefits of using re-refined oil. This move aligns with increasing global emphasis on sustainability, particularly in industries like automotive, where oil consumption is high. The re-refined base oil product is a part of Safety-Kleen's broader sustainability initiative, helping to promote circular economy practices and reduce environmental impact.

Recycled Oil Types Covered:
  • Base Oil
  • Blended Oils
  • Lubricants
  • Other Recycled Oil Types
Sources Covered:
  • Used Motor Oil
  • Engine Flush Oil
  • Transmission Fluids
  • Other Sources
Recycling Processes Covered:
  • Vacuum Distillation
  • Hydrofinishing
  • Clay Filtration
  • Biological Treatment
  • Other Recycling Processes
Applications Covered:
  • Passenger Vehicles
  • Commercial Vehicles
  • Heavy Duty Trucks
  • Off-Road Vehicles
  • Other Applications
End Users Covered:
  • Automobile Manufacturers
  • Automotive Workshops/Service Stations
  • Industrial Users
  • Other End Users
Regions Covered:
  • North America
    • US
    • Canada
    • Mexico
  • Europe
    • Germany
    • UK
    • Italy
    • France
    • Spain
    • Rest of Europe
  • Asia Pacific
    • Japan
    • China
    • India
    • Australia
    • New Zealand
    • South Korea
    • Rest of Asia Pacific
  • South America
    • Argentina
    • Brazil
    • Chile
    • Rest of South America
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • Qatar
    • South Africa
    • Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:
  • Company Profiling
    • Comprehensive profiling of additional market players (up to 3)
    • SWOT Analysis of key players (up to 3)
  • Regional Segmentation
    • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
  • Competitive Benchmarking
    • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
1 EXECUTIVE SUMMARY

2 PREFACE

2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
  2.4.1 Data Mining
  2.4.2 Data Analysis
  2.4.3 Data Validation
  2.4.4 Research Approach
2.5 Research Sources
  2.5.1 Primary Research Sources
  2.5.2 Secondary Research Sources
  2.5.3 Assumptions

3 MARKET TREND ANALYSIS

3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19

4 PORTERS FIVE FORCE ANALYSIS

4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 GLOBAL AUTOMOTIVE OIL RECYCLING MARKET, BY RECYCLED OIL TYPE

5.1 Introduction
5.2 Base Oil
5.3 Blended Oils
5.4 Lubricants
5.5 Other Recycled Oil Types

6 GLOBAL AUTOMOTIVE OIL RECYCLING MARKET, BY SOURCE

6.1 Introduction
6.2 Used Motor Oil
6.3 Engine Flush Oil
6.4 Transmission Fluids
6.5 Other Sources

7 GLOBAL AUTOMOTIVE OIL RECYCLING MARKET, BY RECYCLING PROCESS

7.1 Introduction
7.2 Vacuum Distillation
7.3 Hydrofinishing
7.4 Clay Filtration
7.5 Biological Treatment
7.6 Other Recycling Processes

8 GLOBAL AUTOMOTIVE OIL RECYCLING MARKET, BY APPLICATION

8.1 Introduction
8.2 Passenger Vehicles
8.3 Commercial Vehicles
8.4 Heavy Duty Trucks
8.5 Off-Road Vehicles
8.6 Other Applications

9 GLOBAL AUTOMOTIVE OIL RECYCLING MARKET, BY END USER

9.1 Introduction
9.2 Automobile Manufacturers
9.3 Automotive Workshops/Service Stations
9.4 Industrial Users
9.5 Other End Users

10 GLOBAL AUTOMOTIVE OIL RECYCLING MARKET, BY GEOGRAPHY

10.1 Introduction
10.2 North America
  10.2.1 US
  10.2.2 Canada
  10.2.3 Mexico
10.3 Europe
  10.3.1 Germany
  10.3.2 UK
  10.3.3 Italy
  10.3.4 France
  10.3.5 Spain
  10.3.6 Rest of Europe
10.4 Asia Pacific
  10.4.1 Japan
  10.4.2 China
  10.4.3 India
  10.4.4 Australia
  10.4.5 New Zealand
  10.4.6 South Korea
  10.4.7 Rest of Asia Pacific
10.5 South America
  10.5.1 Argentina
  10.5.2 Brazil
  10.5.3 Chile
  10.5.4 Rest of South America
10.6 Middle East & Africa
  10.6.1 Saudi Arabia
  10.6.2 UAE
  10.6.3 Qatar
  10.6.4 South Africa
  10.6.5 Rest of Middle East & Africa

11 KEY DEVELOPMENTS

11.1 Agreements, Partnerships, Collaborations and Joint Ventures
11.2 Acquisitions & Mergers
11.3 New Product Launch
11.4 Expansions
11.5 Other Key Strategies

12 COMPANY PROFILING

12.1 TotalEnergies SE
12.2 Phillips 66 Company
12.3 Royal Dutch Shell Plc
12.4 Exxon Mobil Corporation
12.5 Chevron Corporation
12.6 Valvoline Inc.
12.7 Safety-Kleen Systems Inc.
12.8 Heritage-Crystal Clean Inc.
12.9 Universal Lubricants
12.10 Castrol Limited
12.11 Veolia North America
12.12 Shell Global
12.13 Clean Harbors Inc.
12.14 BP plc
12.15 Recochem Inc.
12.16 Oil Salvage Company Ltd.
12.17 O’Reilly Auto Parts
12.18 Stellantis NV
12.19 SquareOne Energy
12.20 Triumvirate Environmental
LIST OF TABLES

Table 1 Global Automotive Oil Recycling Market Outlook, By Region (2022-2030) ($MN)
Table 2 Global Automotive Oil Recycling Market Outlook, By Recycled Oil Type (2022-2030) ($MN)
Table 3 Global Automotive Oil Recycling Market Outlook, By Base Oil (2022-2030) ($MN)
Table 4 Global Automotive Oil Recycling Market Outlook, By Blended Oils (2022-2030) ($MN)
Table 5 Global Automotive Oil Recycling Market Outlook, By Lubricants (2022-2030) ($MN)
Table 6 Global Automotive Oil Recycling Market Outlook, By Other Recycled Oil Types (2022-2030) ($MN)
Table 7 Global Automotive Oil Recycling Market Outlook, By Source (2022-2030) ($MN)
Table 8 Global Automotive Oil Recycling Market Outlook, By Used Motor Oil (2022-2030) ($MN)
Table 9 Global Automotive Oil Recycling Market Outlook, By Engine Flush Oil (2022-2030) ($MN)
Table 10 Global Automotive Oil Recycling Market Outlook, By Transmission Fluids (2022-2030) ($MN)
Table 11 Global Automotive Oil Recycling Market Outlook, By Other Sources (2022-2030) ($MN)
Table 12 Global Automotive Oil Recycling Market Outlook, By Recycling Process (2022-2030) ($MN)
Table 13 Global Automotive Oil Recycling Market Outlook, By Vacuum Distillation (2022-2030) ($MN)
Table 14 Global Automotive Oil Recycling Market Outlook, By Hydrofinishing (2022-2030) ($MN)
Table 15 Global Automotive Oil Recycling Market Outlook, By Clay Filtration (2022-2030) ($MN)
Table 16 Global Automotive Oil Recycling Market Outlook, By Biological Treatment (2022-2030) ($MN)
Table 17 Global Automotive Oil Recycling Market Outlook, By Other Recycling Processes (2022-2030) ($MN)
Table 18 Global Automotive Oil Recycling Market Outlook, By Application (2022-2030) ($MN)
Table 19 Global Automotive Oil Recycling Market Outlook, By Passenger Vehicles (2022-2030) ($MN)
Table 20 Global Automotive Oil Recycling Market Outlook, By Commercial Vehicles (2022-2030) ($MN)
Table 21 Global Automotive Oil Recycling Market Outlook, By Heavy Duty Trucks (2022-2030) ($MN)
Table 22 Global Automotive Oil Recycling Market Outlook, By Off-Road Vehicles (2022-2030) ($MN)
Table 23 Global Automotive Oil Recycling Market Outlook, By Other Applications (2022-2030) ($MN)
Table 24 Global Automotive Oil Recycling Market Outlook, By End User (2022-2030) ($MN)
Table 25 Global Automotive Oil Recycling Market Outlook, By Automobile Manufacturers (2022-2030) ($MN)
Table 26 Global Automotive Oil Recycling Market Outlook, By Automotive Workshops/Service Stations (2022-2030) ($MN)
Table 27 Global Automotive Oil Recycling Market Outlook, By Industrial Users (2022-2030) ($MN)
Table 28 Global Automotive Oil Recycling Market Outlook, By Other End Users (2022-2030) ($MN)

Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.



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