Authored By: Sarah
11 Jul 2024

 Re-Refined Base Oils Market Size to grow by USD 2643.4 million between 2024-2028

According to a research report “ Re-Refined Base Oils Market” by 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)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 2643.4 million, at a CAGR of  6.78% during the forecast period. The re-refined base oils market is witnessing a substantial growth due to the increasing demand for eco-friendly lubricants. This trend is driven by several factors, including heightened environmental concerns, a growing emphasis on sustainable business practices, and the need for cost-effective solutions. One of the primary factors fueling this demand is the rising awareness of the negative environmental impact of traditional oil production and disposal methods. Re-refined base oils, which are produced through the recycling of used oil via a meticulous refining process, offer an attractive alternative by delivering high-quality products with a reduced environmental footprint.

Browse market data tables, figures, and in-depth TOC on “Re-Refined Base Oils Market” by 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) Global Forecast to 2028. Download Free Sample

 

By Type, the Group I segment is projected to dominate the market size in 2024

Re-refined base oils represent an eco-friendly alternative to traditionally produced engine oils. Safety-Kleen, a subsidiary of Clean Harbors Inc., is a pioneering company in this segment. Through the reprocessing of used oil to eliminate contaminants and restore lubricating properties, Safety-Kleen reduces the environmental footprint of oil production and waste disposal. Their high-performance re-refined base oils meet the stringent standards set by leading automotive manufacturers, promoting sustainable practices within the industry. By advocating for the use of re-refined engine oils, Safety-Kleen contributes to minimizing the industry's environmental impact.

By Application, Engine oil  segment is expected to hold the largest market size for the year 2024

The Group I segment occupies a substantial market share in the global re-refined base oils industry. These oils are widely utilized in sectors including automotive, transportation, and manufacturing due to their superior properties. Notably, Group I re-refined base oils exhibit a high viscosity index, a critical attribute that allows them to maintain consistent viscosity in response to temperature fluctuations. This characteristic is highly desirable in applications prone to temperature variations, such as engine oils. For instance, in cold weather conditions when a vehicle is started, the oil must flow effortlessly to ensure adequate lubrication. Group I re-refined base oils excel in such situations, making them an indispensable choice for numerous industries.

APAC is forecasted to hold the largest market size by region in 2024

The Re-Refined Base Oils market represents a significant business opportunity for oil refiners and petrochemical companies. These oils, derived from used lubricating oils, offer cost-effective alternatives to virgin base oils. The market's growth is driven by increasing demand for sustainable and eco-friendly products, as well as the rising cost of crude oil. Re-refining technology advances and government regulations also contribute to the market's expansion. Companies in this sector aim to maximize profits by supplying high-quality re-refined base oils to various industries, including automotive, industrial, and consumer goods.

The Re-Refined Base Oils Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • 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
  • Vertex Energy Inc.
.

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Research Analysis Overview

The Re-Refined Base Oils market is witnessing significant growth due to the increasing demand for sustainable and eco-friendly lubricants. Re-refining is the process of recovering base oils from used lubricating oils through various technologies such as solvent extraction and hydrotreating. The marine industry, maintenance facilities, garages, and various industries including metalworking, process, automotive, and others, are major consumers of base oils. Re-refined base oils offer incentives such as reduced environmental impact and cost savings compared to virgin oils. Solvent extraction technology and hydrotreating are the most commonly used re-refining processes. Solvent extraction separates the base oils from the used lubricants using solvents, while hydrotreating removes impurities and improves the quality of the base oils through hydroprocessing. Incentives and penalties play a crucial role in the growth of the Re-Refined Base Oils market. Governments and regulatory bodies are offering incentives for the use of sustainable lubricants, while penalties for non-compliance with environmental regulations are driving the demand for re-refined base oils. Re-refined base oils find applications in various industries such as automotive (engine oils, transmission oils, gear oils), industrial (turbine oils, transformer oils, process oils), and automotive applications (lubricants for mechanical devices). Other technologies such as vacuum distillation, clay treatment, and hydrotreating process are also used for the production of re-refined base oils.

Market Research Overview

The Re-Refined Base Oils Market is a significant segment of the lubricant industry, playing a crucial role in the manufacturing industry's sustainable operations. Re-refining is the process of converting used oil into high-quality base oil through various techniques such as solvent extraction, hydrotreating, and vacuum distillation. Re-refining capacity has grown substantially due to increasing environmental concerns and the need to reduce CO2 emissions. Re-refining plants are essential for the marine, industrial, and automotive sectors, as they help in the recycling of waste oil and the production of stand-alone lubricants. The marine industry, in particular, benefits from re-refined base oils as they help reduce the carbon footprint of vessels and comply with stricter emission regulations. Regulatory programs and incentives from federal and regional governments have encouraged the growth of re-refining. For instance, the European Union's End-of-Life Vehicles Directive incentivizes the collection and recycling of waste oil. Similarly, the US Environmental Protection Agency's Toxics Release Inventory program rewards companies for reducing their pollution levels. Despite the benefits, re-refining faces challenges such as energy consumption, disposal issues, and contaminants in used oil. Technological advancements, such as hydrotreating and solvent extraction technology, have addressed some of these challenges. For instance, hydrotreating reduces sulfur levels, while solvent extraction removes contaminants like fines and water. Re-refined base oils are used in various applications, including engine oil, greases, hydraulic oil, and metalworking fluids. Original equipment manufacturers (OEMs) increasingly prefer re-refined base stocks due to their durability and fuel economy. However, drawbacks like higher energy consumption and the need for de-metallization and hydro-processing make re-refining an expensive process compared to virgin base oil production. In conclusion, the Re-Refined Base Oils Market is a critical component of the lubricant industry, offering environmental benefits and high-quality base oils for various industries. Despite challenges, advancements in technology and regulatory incentives continue to drive growth in this market.

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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