Automotive oil recycling involves collecting used motor oil and re-refining it to remove impurities and contaminants. The re-refined used oil can then be used as a lubricant and fuel. With strict emission norms being enforced globally, recycling used oil helps reduce vehicle emissions and promotes a circular economy. It also ensures conservation of natural resources by reusing existing oil.

The global Automotive Oil Recycling Market is estimated to be valued at US$ 48.42 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Stringent emission norms: Stricter emission regulations globally are forcing manufacturers to make engine lubricants from recycled motor oil which has lower emissions compared to virgin lubricants. This is driving higher adoption of recycled oil.

Sustainability efforts: Increased focus on sustainability and circular economy is pushing automakers, waste collectors and lubricant blenders to invest more in used oil recycling infrastructure and technology. Major global corporations have set ambitious sustainability targets which will require strengthening of used oil collection networks and recycling facilities.

SWOT Analysis
Strength: The automotive oil recycling market has high scope for re-refining used oil which improves resource efficiency. Used oil recycling reduces dependence on imported crude oil and provides cost-effective production of base oils. Stringent government regulations regarding used oil management boost growth of recycling infrastructure.
Weakness: Collection and transportation of used oil across remote locations increase operational costs. Lack of public awareness about proper used oil disposal practices limits overall recycling volumes.
Opportunity: Growing vehicle parc in emerging nations generates steady supply of used lubricants. Technological advances in re-refining processes enhance base oil yields and product quality.
Threats: Fluctuations in crude oil prices affect demand for re-refined base oils. Presence of contaminants in used oil poses challenges in re-refining.

Key Takeaways

The global Automotive Oil Recycling Market Demand is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing environmental regulations regarding proper waste oil management. Stringent norms such as the Resource Conservation and Recovery Act (RCRA) in the U.S mandate recycling of used automotive oils.

Regional analysis: North America dominates the global market, holding around 35% share in 2023. Developed recycling infrastructure and presence of leading industry players in the U.S and Canada support market growth. Asia Pacific exhibits highest CAGR during the forecast period due to rapidly growing vehicle fleet in China and India. Other Asia Pacific countries also implement used oil recycling plans to reduce environmental pollution.

Key players operating in the automotive oil recycling incorporate Safety-Kleen Systems, Inc., Valvoline, Heritage-Crystal Clean, LLC, Veolia Environnement, Clean Harbors, NexLube, Recytech, Universal Lubricants, Vertex Energy, Inc., Advanced Lubrication Specialties, Delta-Energy Group, LLC, GFL Environmental Inc., HCC Eagle Environmental Services, Inc., MidStates Oil Refining Co. LLC, PetroChoice, Sage Oil Vac, Inc., Solventis Ltd., Southern Oil Refining Pty Ltd, Suncor Energy Inc., Texas Used Oil Collection Program. These companies collect and recycle millions of gallons of used oil annually.

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