Chicago, March 17, 2022 (GLOBE NEWSWIRE), — According to Arizton, the market for refined base oil is expected to grow at 6.5% CAGR between 2022 and 2027, according to Arizton’s latest research report. The market for re-refined oil is growing due to rising awareness about environmental sustainability and the need for high-quality base oils. The market is experiencing increased demand from the automotive and manufacturing sectors.
| REPORT ATTRIBUTES | DETAILS | |
| MARKET SIZE (2027) | $8.8 Billion | |
| CAGR (2022-2027). | 6.5% | |
| BASE YEAR | 2021 | |
| FORECAST YEAR | 2022-2027 | |
| MARKET SEGMENTS | Technology, Group, and End-User | |
| GEOGRAPHIC ANALYSIS | North America, Europe APAC, Latin America and Middle East & Africa | |
| COUNTRIES INCLUDED | USA, Canada. 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. | |
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Re-Refined Oil Market Growth Facts:
- China is the largest country in automotive manufacturing. China produced around 30% of all vehicles globally each year.
- China has seen a boom in the number of new energy vehicles (NEVs). In 2013, production was approximately 17000 units, and it grew to over 1.2million 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 sector had a turnover of $423.9Billion in 2020, which is approximately 20.0% of total industry revenue.
- Germany’s advanced manufacturing sector is one of the key contributors to its GDP.
- Germany is the largest automation market. The country has around 20,000 industrial robotics that are used in different industries.
- India’s manufacturing sector saw the greatest growth in 2021. Initiatives like Make in India and FDI programs, production-linked incentive (PLI), and other initiatives help to boost market growth.
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 refractory of used oil. This has led to an increase in the capacity of refractory base stock. The increased capacity for re-refining base oils is also being fueled by regulatory mandates. The US, Western Europe, Brazil, and France have large amounts of group II refined base oil capacities. More are being added to satisfy the growing demand for base II group oils. On the other hand, Mexico, Russia, and India have low re-refinery capacities. 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, Clear Harbors, announced an agreement to acquire certain assets in the used motor oil collection and reprocessing business from Vertex Energy, Inc. This deal is a further demonstration of the company’s commitment towards sustainability and will likely increase the company’s reach in the field of renewable lubricants/fuels.
- Turkey-based Tayras has established its first refinery plant for used oil. 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 is an oil refinery company that collects used and contaminated naphthenic and transformer oils and treats them before reselling them as new transformer oil.
- Avista Greens 0.1million tons per year re-refinery at Kalundborg, Denmark has been made operational. The construction of this re-refinery was made possible by a joint venture between Avista Oil, Germany and Slicker Recycling, UK. These companies are the largest used oil collectors in Europe.
Safety-Kleen Systems, Heritage-Crystal Clean (US), Avista Oil/Germany, Southern Oil/Australia, Benzoil/Australia and STR Tecoil/Finland are some of the major players in the market. These companies compete for the market’s top spot with constant competition from local vendors.
Future Opportunities for Market Player and New Entrants
Re-refined base oils will see exponential growth over conventional lubricants stock stocks in the coming years. 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 countries are key markets for high quality and sustainable base oils. This is due to increased urbanization over the past few decades, government policies attracting foreign actors to set up their manufacturing bases, and, most importantly, increased consumer purchasing power which results in an increased demand for goods like houses and vehicles.
To learn more about the industry, visit our Chemical and Materials Profile.
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