|Market Size in 2022||Market Forecast in 2030||CAGR (in %)||Base Year|
|USD 47.2 Billion||USD 67.1 Billion||4.5%||2022|
Waste Oil Market
The global waste oil market size was worth around USD 47.2 Billion in 2022 and is predicted to grow to around USD 67.1 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.5% between 2023 and 2030.
The waste oil industry report analyzes the global waste oil market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the waste oil market.
Waste oil is a refined oil that has been delivered for use in several different ways. Waste Oil contains several impurities, particles, and chemicals. Any synthetic or petroleum-based oil that is no longer pure and suitable for its intended use is referred to as waste oil. Crankcase and lubricant wastes are the main sources of production. Additionally, it is utilized as a dust-controlling road oil and occasionally blended with pure oil for use in boilers that produce electrical or heating energy.
Growing re-refining application drives the market growth
Re-refining used oil is becoming more popular since it helps to lower pollution levels and restores the oil's natural qualities. A wide range of waste oils, including hydraulic oils, fuel oils, and transmission oils, are gathered and re-refined to eliminate their contaminants and replace them with fresh oil. Re-refining activities are growing in the market, which is expected to fuel the waste oil industry's expansion throughout the forecast period. To make base oil and prevent environmental contamination, waste lubricating oil was re-refined using solvent extraction and clay adsorption technology, according to the 2020 publication by IOPscience. Increasing waste oil recycling and base oil production for use in various industries are expected to support market expansion over the forecast period.
Stringent regulations are expected to hamper the market
Waste oils are hazardous waste that must be managed under strict regulations set by numerous governing organizations, which could impede the global waste oil market's expansion during the forecast period. To prevent environmental pollution, waste oil is not dumped in landfills without being carefully inspected. According to statistics provided by the European Commission, regulations are put in place to guarantee the proper handling of waste oils to take advantage of their high potential for recovery and prevent environmental contamination. These waste oil management laws may have an impact on the market's expansion throughout the forecasted period.
The growing automobile industry provides a lucrative opportunity
The growing automotive industry is expected to provide lucrative opportunities for waste oil market growth over the forecast period. This oil is significantly used to develop lubricants and engine oils for vehicles in the automotive industry. Thus, the expansion of the automotive industry across the globe will provide huge potential for market growth. For instance, according to the European Automobile Manufacturers Association, in 2021, Germany witnessed a rise in demand for passenger cars which is about a 24.5% increase from the previous year.
The high installation cost of waste oil plants poses a major challenge to the market growth
The high installation cost of waste oil plants is expected to pose a major challenge to the waste oil industry growth over the forecast period. For instance, the fully continuous pyrolysis plant cost is relatively high, ranging from USD 240,000 to USD 500,000.
The global waste oil industry is segmented based on type, technology, end-use, and region.
Based on the type, the global market is bifurcated into transmission oils, transformer oils, hydraulic oils, fuel oils, lubricating oils, metalworking fluid oils, refrigerant oils, and others. The lubricating oils segment is expected to dominate the market during the forecast period. The growing need for lubricating waste oil is largely due to the growth of the automotive sector. The market is expanding as a result of expanding or changing environmental regulations governing the disposal of old lubricating oil. As the vehicle industry grows, used motor oils are in high demand because they may be recycled and used again. One of the main end-use sectors driving the growth of the lubricating waste oil market is the automotive industry. Thereby, driving the segment growth over the forecast period.
Based on the technology, the global waste oil industry is bifurcated into vacuum distillation, hydrogen treatment, thin film evaporation, and others. The vacuum distillation segment is expected to capture the largest market share during the forecast period. This technology enables the recycling of numerous waste oils into base oil with strong features of high recovery of up to 85%, low cost, energy-saving, and ecologically beneficial process. Because vacuum distillation has such a wide range of applications, market participants and research institutions have focused on them. For instance, refining of waste oil was carried out using several technologies, but vacuum distillation was found to be more efficient, according to the publication of the International Research Journal of Engineering and Technology (IRJET), vacuum distillation technology is predicted to have an increase in demand in the industry throughout the anticipated time frame.
Based on the end-use, the market is divided into boiler, road oil, biodiesel, space heater, asphalt plant, re-refiners, steel mills, and others. The re-refiners segment is expected to dominate the market during the forecast period. Waste oil is re-refined at re-refiner factories to remove impurities and contaminants and to restore the oil's original qualities, preparing it for industrial usage. The quality of the re-refined oil ranks on a level with or superior to base oils. Re-refining waste oil is becoming more and more popular because it benefits the economy and the environment. During the projected period, this demand is anticipated to fuel market expansion.
|Report Attributes||Report Details|
|Report Name||Waste Oil Market Research Report|
|Market Size in 2022||USD 47.2 Billion|
|Market Forecast in 2030||USD 67.1 Billion|
|Growth Rate||CAGR of 4.5%|
|Number of Pages||220|
|Key Companies Covered||J.J. Richards and Sons Pty Ltd, Goins Waste Oil Company Inc., Enva (Rilta Environmental Ltd), All Waste Matters Ltd, Alexandria Petroleum Company, Enfields Chemicals CC, Solway Recycling Ltd, Business Waste, Oil Salvage Ltd, Slicker Recycling, Safetykleen, Oil Monster, MIB Waste Services, Falzon Group, Gecco Fuels, Valgrove, EWOR and Omnia Group among others.|
|Segments Covered||By Type, By Technology, By End Use, and By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)|
|Historical Year||2017 to 2021|
|Forecast Year||2023 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
The Asia Pacific is expected to dominate the market during the forecast period
The Asia Pacific is expected to dominate the global waste oil market during the forecast period. The regional growth is attributed to the growing demand from the automotive sector as these sectors are in the booming stage in the countries like China and India. Different waste oil types, such as fuel oils, hydraulic oils, and transmission oils, are produced during various industrial and manufacturing processes. These waste oils are then gathered and refined to create lubricants for use in automobiles, such as engine oils and lubricating greases. Thus, the growing automotive industry in the region is expected to provide an enormous opportunity for market growth. For instance, according to the China Association of Automobile Manufacturers, Chinese commercial vehicle production reached 310000 units in September 2021, up 35.5% month on month. Similarly, the passenger car segment increased by 28.39%, with sales of passenger vehicles reaching 279,745 units in March 2021 compared to 2,17,879 units in March 2020.
North America is expected to capture a substantial waste oil market share during the forecast period. The growth in the region is attributed to the significant growth rate of industrialization. Additionally, North America is home to numerous oil refineries that produce a sizable amount of waste oil. The US alone is responsible for around a quarter of all production, making the region the world's greatest producer of waste oil. In North America, waste oil is primarily utilized as fuel, while it is also recycled to make new goods like lubricants and asphalt. The abundance of automotive and industrial facilities throughout the continent accounts for the high amount of waste oil produced there. These facilities' used oil needs to be collected and disposed of responsibly, which frequently entails recycling it into new products. Thus, this is expected to drive the market growth in the region.
The global waste oil market is dominated by players like:
By End Use
Waste oil is a kind of contaminated petroleum-based oil or synthetic oil with a large presence of impurities and loss of its original features that renders it unfit for its main purpose. The massive use of waste oil along with its recycling at a time when crude oil costs are high worldwide will create the necessity of producing waste oil. The product has many pollutants, chemicals, and dirt.
Large-scale use of waste oil in industrial and vehicle sectors will surge the expansion of the waste oil market in the years to come. Additionally, an increase in funding across the automotive sector along with swift urbanization will impel the market demand. With the introduction of new technologies, the product can be gathered and recycled. This has further imbued the demand for the product across the globe. Enforcement of strict laws about the reduction of hazardous harmful greenhouse emissions will stimulate the waste oil industry expansion.
According to the report, the global market size was worth around USD 47.2 billion in 2022 and is predicted to grow to around USD 67.1 billion by 2030.
The global waste oil market is expected to grow at a CAGR of 4.5% during the forecast period.
The global waste oil market growth is expected to be driven by the Asia Pacific. It is currently the world’s highest revenue-generating market owing to the growing automotive sector as the waste oil is used in making lubricants for automobiles.
The global waste oil market is dominated by players like J.J. Richards and Sons Pty Ltd, Goins Waste Oil Company Inc., Enva (Rilta Environmental Ltd), All Waste Matters Ltd, Alexandria Petroleum Company, Enfields Chemicals CC, Solway Recycling Ltd, Business Waste, Oil Salvage Ltd, Slicker Recycling, Safetykleen, Oil Monster, MIB Waste Services, Falzon Group, Gecco Fuels, Valgrove, EWOR and Omnia Group among others.