Re-refined base oils: A step towards environmental sustainability A $8.8 Billion Worth Industry

The global re-refined refined base oil market will reach $8.8 Billion by 2027, with a 6.5% CAGR between 2022-2027

Chicago, March 17, 2022 (GLOBE NETWORKIRE) — According Arizton’s most recent research report, the The re-refined oil base marketThe market is expected to grow at a 6.5% CAGR during 2022-2027. The market for re-refined oil is growing due to rising awareness about environmental sustainability and waste oil recyclability. The market is experiencing increased demand from the automotive and manufacturing sectors.

Click Here to Download the Free Sample

Re-Refined oil market – End-use industry growth facts:

• China is the world’s largest automotive manufacturing country. China produced around 30% of all vehicles globally each year.

• China saw a boom in new energy vehicles (NEVs). Production reached around 172,000 units in 2013, which grew to more than 1.2 million units by 2020.

• According to China’s Ministry of Industry and Information Technology in 2020, more than 25,000,000 vehicles were sold in China.

• The German automotive industry had a turnover in 2020 of $423.9 billion. This is roughly 20.0% of the total industry revenue.

• German advanced manufacturing is one of the major contributors to Germany’s GDP.

• Germany is one of the most important automation markets. Around 20,000 industrial robots are used in different industries in Germany.

• India’s manufacturing sector saw the greatest growth in 2021. Market growth can be further boosted by initiatives such as Make in India, FDI programs, and production-linked incentive (PLI).

Continue the story

Market for Refined Base Oil Opportunities:

A growing demand for high-quality oil, the preservation of crude oil reserves, and increased government regulation to reduce CO2 in the environment are all factors that have influenced the demand for refining of used oils. This has led to an increase in the capacity of refined base stocks. The increased capacity for re-refining base oils is also being fueled by regulatory mandates. The US, Western Europe (such Germany, France, and Brazil) have high levels of group II re-refined oil capacity. More are being added to meet increasing demand for base II oil. Mexico, Russia and India are the only emerging economies with low refinery capacity. This is due to a low demand for re-refined bases stocks due to a large supply of virgin base stock.

Recent DevelopmentsMarket vendors:

• Safety-Kleens parent company Clean HarborsVertex Energy, inc. has announced an agreement to acquire certain assets related to used motor oil collection. This agreement furthers the company’s commitment to sustainability. It is also expected that it will expand its reach in renewable lubricants/fuels.

• Turkey-based Tayras established its first reprocessing plant for used oils. The establishment will produce base oils by re-refining 60 000 t/yr of used oils using hydrogenation technology.

• Slicker Recycling bought Hydrodec. This acquisition allowed Slicker Recycling to expand its reach and forge into the North American market. Hydrodec, an oil re-refining firm that collects used transformer and naphthenic oil and treats it before reselling it as new transformer oils, is Hydrodec.

• Avista Greens 0.1 Mt per annum reprocessing plant in Kalundborg, Denmark has become operational. A joint venture between Avista Oil (Germany), and Slicker Recycling, UK, led to the construction of the rerefinery. These companies are the largest used oil collectors in Europe.

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”) are the major players in this market. These companies compete for the top position in the market with constant competition from local vendors.

Future Opportunities for Market Players and New Entrants

Re-refined oil base stocks will experience exponential growth in the next few years, compared to conventional lubricants. The demand for re-refined oil products will rise due to rapid industrialization, environmental sustainability mandates and automation in the industries.

The majority of premium oil is used in the Asia Pacific’s automotive industry, which is expanding rapidly. The region is currently witnessing a shift from group I base oil to group 2 & 2, as well as re-refined and refined base oil. This will continue to accelerate the region’s growth.

China, India, ASEAN and ASEAN are the key markets to high-quality and sustainable base oils. These countries have experienced increased urbanization and industrial activity over the last few years. Government policies that attract foreign players to set their manufacturing base and, most importantly the rising purchasing power of consumers has resulted in increased demand and sales of goods such as houses and consumer products.

Explore our website Materials and chemicalsProfile to learn more about the industry.

Click Here to Download the Free Sample Report

Check out these top-selling reports.

About Arizton

Arizton Advisory and Intelligence, a quality-driven company that provides cutting-edge research solutions for clients around the globe, is innovative and quality-driven. We excel at providing comprehensive market intelligence reports as well as consulting and advisory services.

We offer market research reports covering industries such as automotive and mobility, smart technology, healthcare, and life sciences. These reports provide detailed analysis of the industry, market share, growth drivers and trend forecasts.

Arizton is a team made up of enthusiastic and experienced analysts who are skilled in the creation of incisive reports. Our market research experts are highly skilled. Our team is trained in advanced research techniques, ethics, and research methods to produce impregnable reports.

Click Here to Contact Us

Call: +1-312-235-2040

+1 302 469 0707

CONTACT Arizton Advisory and Intelligence Phone: +1-312235-2040 +1302 469 0707