The global automotive oil recycling market represents a multi-billion dollar industry. Automotive oil, often referred to as engine oil or motor oil, is a lubricant for internal combustion engines. It lubricates moving parts, reduces friction and removes heat from the engine. With rising vehicle ownership and mileage every year, large quantities of used automotive oil are generated requiring proper disposal and recycling. Automotive oil recycling involves collection of used oil from automotive service centers, households and other sources, removing impurities through various treatment processes and producing recycled products like lubricant base oils, greases and fuel oils.
The Global Automotive Oil Recycling Market is estimated to be valued at US$ 53.8 billion in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the automotive oil recycling are Xianmengprotect, TOWA, Vagabond, The Flexit Company. Key players are focusing on expanding their collection networks and treatment capacity to cater to the growing volumes.
The rising vehicle parc across countries and increasing miles clocked per vehicle has led to a surge in volumes of used engine oil generated every year, driving the need for proper recycling. Large scrap yards and commercial automotive workshops are partnering with oil recycling companies to ensure systematic used oil collection.
Global environmental regulations coupled with shortage of lubricant crude feedstock is prompting lubricant manufacturers to increase the used oil recycled content in their products. This is encouraging international expansion of leading automotive oil recyclers in high growth markets.
Market Key Trends
One of the key in the Automotive Oil Recycling Market Demand is the shift towards advanced used oil treatment technologies that improve recycling rates and product qualities. Conventional treatment relying on gravity separation and intermediate settling is now replaced by cutting-edge processes like advanced distillation and hydrocracking which remove impurities more effectively while producing end-products meeting strict specifications. This helps lubricant manufacturers to enhance the content of Group II and Group III base oils secured from recycled oil in their formulations.
Porter's Analysis
Threat of new entrants: The automotive oil recycling market requires high initial investments in plant and machinery which poses significant entry barriers for new players.
Bargaining power of buyers: The automotive oil recycling market possesses moderate bargaining power of buyers since there are large number of oil recycling companies operating globally.
Bargaining power of suppliers: The key raw material suppliers have lower bargaining power due to availability of substitute materials for recycling used automotive oil
Threat of new substitutes: There exists low threat from substitutes for recycling used oils as there are limited alternatives available for processing such hazardous waste.
Competitive rivalry: The global automotive oil recycling market witnesses high competitive rivalry among existing players due intense competition.
Geographical Regions
Europe dominates the global automotive oil recycling market in terms of value, with major recycling operations located across Germany, Italy, UK and France. This is attributed to stringent environmental regulations for processing hazardous automotive waste in the region.
The Asia Pacific region is expected to witness the fastest growth in the automotive oil recycling market over the forecast period. Rapid motorization and growth of the automotive aftermarket in developing nations such as China and India are driving the demand for oil recycling services.
Get More Insights on- Automotive Oil Recycling Market
For Deeper Insights, Find the Report in the Language that You want:
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
