NEW
YORK, July 5, 2024 /PRNewswire/ -- The global
re-refined base oils market size is estimated to grow by
USD 2.64 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a CAGR
of 6.78% during the forecast period. Rise in
demand for high-quality oils with lower environmental impact is
driving market growth, with a trend towards favorable government
regulations promoting use of recycled and re-refined oil products.
However, costly recycling process poses a challenge. Key
market players include ADVANCED LUBRICATION SPECIALTIES, AVISTA OIL
Deutschland GmbH, Biosynthetic Technologies, Clean Harbors Inc.,
Cleanaway Waste Management Ltd., COSAN S.A., Emerald Transformer,
GFL Environmental Inc., Heritage Crystal Clean Inc., Hydrodec Group
plc, Itelyum Regeneration S.p.A., Lwart Solucoes Ambientais, Neste
Corp., Nynas AB, PetroChoice, PURAGLOBE Germany GmbH, ReGen III,
Rock Oil Refining Inc., Shell plc, and Vertex Energy Inc..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Type (Group I, Group
II, and Group III), Application (Engine oil, Industrial oil,
Transmission oil, Gear oil, and Others), and Geography (APAC,
Europe, North America, Middle East and Africa, and South
America)
|
Region
Covered
|
APAC, Europe, North
America, Middle East and Africa, and South America
|
Key companies
profiled
|
ADVANCED LUBRICATION
SPECIALTIES, AVISTA OIL Deutschland GmbH, Biosynthetic
Technologies, Clean Harbors Inc., Cleanaway Waste Management Ltd.,
COSAN S.A., Emerald Transformer, GFL Environmental Inc., Heritage
Crystal Clean Inc., Hydrodec Group plc, Itelyum Regeneration
S.p.A., Lwart Solucoes Ambientais, Neste Corp., Nynas AB,
PetroChoice, PURAGLOBE Germany GmbH, ReGen III, Rock Oil Refining
Inc., Shell plc, and Vertex Energy Inc.
|
Key Market Trends Fueling Growth
Government regulations play a vital role in the growth of the
re-refined base oils market. In the US, the Renewable Fuel Standard
(RFS) mandates the blending of a specified volume of renewable
fuels, including re-refined base oils, into transportation fuel
each year, ensuring a consistent market for re-refined industrial
oil products and encouraging investment in re-refining facilities.
The European Union's Waste Framework Directive promotes a circular
economy by setting targets for the recycling and reuse of waste
industrial oils and encouraging the use of re-refined base oils in
various applications. Australia's
Product Stewardship (Oil) Act requires oil manufacturers and
importers to participate in a Product Stewardship for Oil (PSO)
scheme, which includes the collection and recycling of used oils,
creating a sustainable solution for managing used oil. These
regulations support the re-refining industry, contributing to a
more sustainable and efficient use of industrial oil resources,
reducing waste and greenhouse gas emissions, and decreasing
reliance on virgin crude oil. Consequently, favorable government
regulations are anticipated to boost the demand for re-refined base
oils, driving the growth of the global re-refined base oils
market.
The Re-Refined Base Oils market is experiencing significant
growth due to increasing focus on CO2 emissions reduction and
managing carbon footprint. Waste oil from service stations,
manufacturing establishments, heavy industry units, car repair
shops, motor pools, and other sectors is being effectively utilized
in re-refining. Re-refining waste oil into high-quality base oil is
an eco-friendly alternative to producing virgin base oil, reducing
the need for new extraction and refining processes. Governments are
offering incentives and penalties to promote used oil management,
leading to increased collection and recycling. Industries like
automotive, marine, aviation, commercial road transport, mining,
food processing, and metalworking are adopting re-refined base oils
for their operations. Hydrotreating and solvent extraction
technology are popular methods for re-refining. Universal
Lubricants and other market leaders are investing in advanced
technologies to produce high-quality base oils, meeting the demands
of various sectors. Hydraulic oil, greases, engine oil, and other
lubricants are being produced using re-refined base oils. The
market is expanding in the automotive, industrial, and marine
sectors, with regional and federal governments implementing
recycling programs to support the growth. Energy consumption is
also reduced as re-refining uses less energy compared to producing
virgin base oil.
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Market Challenges
- The global re-refined base oils market faces a significant
challenge due to the high costs associated with the recycling
process. Collecting and transporting used oil from various sources
necessitates dedicated infrastructure and personnel, adding to the
overall costs. The treatment and purification of the used oil to
remove contaminants and impurities involve expensive equipment and
chemical treatments, as well as compliance with environmental
regulations and quality standards. The small market size and
limited end-user base for re-refined base oils adversely affect the
cost of recycling, making it less economical compared to
traditional oil production methods. Additionally, the price
difference between non-recycled and re-refined base oils, as well
as the market price of crude oil, can discourage potential buyers
and hinder market growth. Despite these challenges, re-refining
used industrial oils remains an environmentally friendly solution
that reduces waste and conserves natural resources.
- The Re-refined Base Oils market faces several challenges in its
production process. One major challenge is the fractionation
process, which separates base oils from waste lube oils. Solid
contaminants, water, and impurities must be removed before
re-refining techniques like acid and clay treatment, propane
extraction, flash distillation, de-metallization, and
hydro-processing can be applied. Environmental concerns are a
significant challenge. The recycling process of re-refined base
oils from crude oil and waste lube oils requires energy
consumption, which can lead to high operational costs. Disposal
issues also arise from the production of solid waste and the
emission of pollutants. Re-refining techniques like vacuum
distillation, solvent extraction, hydrotreating process, and other
technologies are used to improve the quality of re-refined base
stocks. However, drawbacks such as the presence of contaminants
like sulfur, aromatics, and hydroprocessed oil can impact the final
product's performance. Original equipment manufacturers (OEMs)
prefer Group II and III base stocks for automotive oil, industrial
oil, process oil, metalworking fluid, and grease due to their
superior performance. Re-refined base oils, on the other hand, are
often used for Group I base stocks. The market's future growth
depends on overcoming these challenges and meeting the demands for
sustainable and cost-effective solutions. Bio-based lubricants and
fuel economy are emerging trends in the market, offering potential
solutions to environmental concerns and engine oil durability.
However, the market's growth is also influenced by global refining
activities and the availability of refineries using advanced
re-refining techniques.
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Segment Overview
This re-refined base oils market report extensively covers
market segmentation by
- Type
- 1.1 Group I
- 1.2 Group II
- 1.3 Group III
- Application
- 2.1 Engine oil
- 2.2 Industrial oil
- 2.3 Transmission oil
- 2.4 Gear oil
- 2.5 Others
- Geography
- 3.1 APAC
- 3.2 Europe
- 3.3 North America
- 3.4 Middle East and
Africa
- 3.5 South America
1.1 Group I- The Group I segment holds a
substantial position in the global re-refined base oils market,
with extensive applications in industries like automotive,
transportation, and manufacturing. Group I re-refined base oils
offer advantages such as high viscosity index, excellent oxidation
stability, and good solvency properties. Their high viscosity index
makes them suitable for applications where temperature fluctuations
are common, such as engine oils. Their oxidation stability reduces
the risk of equipment failure and extends machinery lifespan.
Additionally, Group I re-refined base oils have good solvency
properties, preventing deposit formation and maintaining clean,
efficient operation. The Group I segment's growth is driven by
increasing demand for sustainable solutions and emission standards
compliance in automotive manufacturing and fuel efficiency
improvements in transportation. These factors are expected to boost
the adoption of Group I re-refined base oils in the global market
during the forecast period.
For more information on market segmentation with
geographical analysis including forecast (2024-2028) and historic
data (2018 - 2022) - Download a Sample Report
Research Analysis
The Re-Refined Base Oils market refers to the production and
sale of base oils derived from the re-refining of used lubricating
oils. These base oils are then used to manufacture various types of
lubricants, including engine oils, transmission oils, gear oils,
transformer oils, turbine oils, and others. Re-refining is an
environmentally-friendly process that extends the life cycle of
lubricants and reduces the dependence on crude oil. Mechanical
devices such as hydrotreating and solvent extraction technology are
commonly used in re-refining. Hydrotreating involves the use of
hydrogen gas to remove impurities and improve the quality of the
base oil, while solvent extraction separates the base oil from the
used lubricant. Automotive applications, including garages and
maintenance facilities, are significant consumers of base oils. The
market also caters to the industrial sector, with process oils used
in various industries, and metalworking fluids used in metal
fabrication. Incentives and penalties from governments and
regulatory bodies play a crucial role in driving the growth of the
market. The marine industry and refineries are other key end-users
of re-refined base oils.
Market Research Overview
Re-refined base oils are derived from the recycling process of
waste lubricating oils, transforming them into high-quality base
stocks for various lubricant applications. Mechanical devices such
as engines, transmissions, gears, turbines, and transformers
benefit from these base oils in their operations. Re-refining
techniques include distillation, acid & clay treatment, propane
extraction, and de-metallization & hydro-processing. The
re-refining process addresses environmental concerns by reducing
the need for crude oil extraction and minimizing waste disposal
issues. However, it faces challenges like contaminants from solid
particles, water, and fuel, which require effective cleaning and
processing methods. Re-refined base oils are categorized into
groups I, II, and III based on their molecular structure and
performance characteristics. They are used in automotive and
industrial applications, including engine oils, transmission oils,
gear oils, transformer oils, turbine oils, industrial oils, process
oils, metalworking fluids, greases, and more. The global refining
activities involve refineries, service stations, manufacturing
establishments, heavy industry units, car repair shops, motor
pools, department stores, marine vessels, metalworking industries,
aviation, commercial road transport, mining activities, food
processing machinery, and waste oil collection. Bio-based
lubricants and re-refined base stocks offer advantages like
improved fuel economy, engine oil durability, reduced pollution
levels, lower sulfur content, and reduced CO2 emissions, making
them a sustainable alternative to virgin base oils. However, there
are challenges like the drawbacks of the re-refining process, such
as higher energy consumption and potential contaminants, that need
to be addressed.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Type
-
- Group I
- Group II
- Group III
- Application
-
- Engine Oil
- Industrial Oil
- Transmission Oil
- Gear Oil
- Others
- Geography
-
- APAC
- Europe
- North America
- Middle East And Africa
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
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technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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