Chicago, March 17, 2022 (GLOBE NEWSWIRE) -- According to Arizton's recent research report, the re-refined base oil market is expected to grow at a CAGR of 6.5% during 2022-2027. Rising awareness towards environmental sustainability, waste oil recyclability, and demand for high-quality base oils is driving the market for re-refined base oil. The market is witnessing increased demand from sectors such as the automotive, and manufacturing industries.
| REPORT ATTRIBUTES | DETAILS | |
| MARKET SIZE (2027) | $8.8 Billion | |
| CAGR (2022-2027) | 6.5% | |
| BASE YEAR | 2021 | |
| FORECAST YEAR | 2022-2027 | |
| MARKET SEGMENTS | Group, Technology, and End-User | |
| GEOGRAPHIC ANALYSIS | North America, Europe, APAC, Latin America, and Middle East & Africa | |
| COUNTRIES COVERED | US, Canada, Germany, Russia, France, Spain, UK, Rest of Europe, China, India, Japan, South Korea, Australia, Rest of APAC, Brazil, Mexico, Rest of Latin America, Saudi Arabia, UAE, Iran, and Rest of Middle East & Africa | |
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Re-Refined Oil Market - End-use industry Growth Facts:
- China is the largest automotive manufacturing country globally. Annual vehicle production in China accounted for around 30% of the global production of vehicles.
- New energy vehicles (NEVs) boomed in China. Production was around 17 thousand units in 2013 which went over 1.2 million units in 2020.
- According to the Ministry of Industry and Information Technology, over 25 million vehicles were sold in 2020 in China.
- In 2020, the German automotive sector listed a turnover of $423.9 billion, which is around 20.0% of the total industry revenue.
- Advanced manufacturing is amongst the significant contributors to the GDP of Germany.
- Germany is amongst the largest automation market. The country employs around 20,000 industrial robots utilized in various industries.
- In India, the manufacturing sector recorded the highest growth in 2021. Initiatives such as Make in India and FDI schemes, production-linked incentive (PLI) further bolster market growth.
Re-refined Base Oil Market Opportunities:
The increasing demand for high-quality base oil, preserving crude oil reserves, and increasing government regulation to limit CO2 in the environment are some of the prime factors that increase the demand for re-refining of used oil, resulting in increased capacity of re-refined base stock. In addition, regulatory mandates regarding used base oil are also fuelling the increased capacity of re-re-refining base oil. In the developed countries of the US, Western Europe (such as Germany, France), and Brazil, the industry has group II re-refined base oil capacity, and more are being added to meet the increasing demand for base II group oil. Whereas on the other side, emerging economies of India, Russia, and Mexico have low re-refining capacity. This is primarily due to the low demand for re-refined base stocks due to an abundant supply of virgin base stocks.
Recent Developments by Vendors in the Market:
- Safety-Kleen’s parent company Clean Harbors, announced an agreement with Vertex Energy, Inc., to acquire certain assets of used motor oil collection and re-refinery business. This deal furthers the company’s commitment to sustainability and is also expected to further its reach in the renewable lubricants and fuels sector.
- Tayras, a Turkey-based company, established its first re-refinery plant for used oils. The establishment is expected to produce base oils by re-refining 60 thousand t/yr of waste oils using hydrogenation technology.
- Slicker Recycling acquired Hydrodec, which helped Slicker Recycling foray into the North American market and further its global reach. Hydrodec is an oil re-refining company that collects used and contaminated transformer and naphthenic oils, treats and resells them as new transformer oil.
- Avista Green’s 0.1 million tons per annum re-refinery in Kalundborg, Denmark, has become operational. The construction of the re-refinery was realized through a joint venture between Avista Oil (Germany) and Slicker Recycling (UK). These companies are among the leading used oil collectors in Europe.
The major companies operating in the market are Safety-Kleen Systems (US), Heritage-Crystal Clean (US), Avista Oil (Germany), Southern Oil (Australia), Benzoil (Australia), Puraglobe (US), Vertex Energy (US), and STR Tecoil (Finland) among others. These companies continually compete among themselves for the leading position in the market, with steady competition from local vendors as well.
Future Opportunities for the Market Players and New Entrants
Re-refined base oil is expected to witness exponential growth compared to conventional lubricants base stocks in the coming years. Rapid industrialization, environmental sustainability mandates, and automation in industries are expected to boost the demand for re-refined base oil products.
The major chunk of premium base oil is used in the automotive industry which is growing rapidly in the Asia Pacific. Currently, the region is witnessing a switch from Group I base oil to group II & II as well as re-refined base oil, and going forward it is expected to grow at a faster rate.
China, India, and ASEAN countries are the key markets for the high quality and sustainable base oils due to increased urbanization and industrial activities over the past few years, government policies attracting foreign players to set up their manufacturing base, and most importantly, the increasing purchasing power of consumers resulting in increased demand for goods such as vehicles, consumer products, houses, etc.
Explore our chemicals and materials profile to know more about the industry.
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