Global Re-Refined Base Oil Market Outlook Report 2023-2028: Intense Competition and Technological Advancements Shape Global Re-Refined Base Oil Market

News provided by

Sep 28, 2023, 18:00 ET

DUBLIN, Sept. 28, 2023 /PRNewswire/ -- The "Global Re-Refined Base Oil Market - Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The global re-refined base oil market is expected to reach a value of $5.05 billion by 2028 from $3.4 billion, growing at a CAGR of 6.82% from 2022-2028

North America dominated the global re-refined base oil market, holding over 34% of revenue in 2022, driven by high product penetration and strong market growth in the U.S. and Canada. The region boasts a robust infrastructure, government support, and major players like Universal Lubricants, Valvoline, and Safety Kleen.

The U.S. is expected to witness growth in the re-refined base oil market, especially for construction and furniture applications, driven by a burgeoning hospitality and manufacturing sector and new commercial building construction.

The global re-refined base oil market is becoming increasingly competitive, with rapid technological advancements demanding continual innovation from vendors. The industry is largely consolidated, dominated by key players like Safety-Kleen Systems, Heritage-Crystal Clean, Vertex Energy, and STR Tecoil. Local vendors also compete in the market, providing similar products.

Growing emphasis on better fuel economy, engine oil durability, and pollution reduction is boosting demand for high-quality base oil, particularly Group II and Group III, in the re-refined base oil market. The decline of Group I base oil usage is due to its low thermal and oxidative stability and high sulfur content, posing environmental and health risks.

Government regulations are reshaping the industry, with sustainability trends driving interest in the re-refining base oil process. Consumers are less willing to dispose of used waste oil improperly, leading to various government programs incentivizing used oil collection and re-refining.

However, a major challenge hindering market growth is the collection of used base oil, with scattered generator points and inadequate waste oil collection infrastructure complicating the process. Collectors gather used base oil from sources such as car repair shops, service stations, department stores, marine vessels, and metalworking industries.

INSIGHTS BY GROUP

The global re-refined base oil market by Group is divided into three segments: Group I, Group II, and Group III. Regarding revenue, Group II re-refined base oil led the market, followed by Group I & Group III re-refined base oil. Due to the low sulfur content, low volatility, and lower viscosities, the automotive and industrial lubricant manufacturers highly prefer Group II base oil over Group I.

In addition, the growth of aviation, commercial road transport, mining activities, and food processing machinery is expected to contribute to the increasing demand for Group II re-refined base oil products. During the forecast period, Group II re-refined base oil is expected to dominate the re-refined base oil market and will witness higher growth.

INSIGHTS BY TECHNOLOGY

The different technologies used in re-refining the waste oil include clay treatment, vacuum distillation, solvent extraction, hydrotreating process, and others. Regarding revenue, the clay treatment led the global re-refined base oil market and is primarily used to produce Group I base oil. It is often used as a finishing step for lubricant extraction from vacuum distillation.

Clay treatment is generally suited for smaller plant capacities due to low capital investment. Solvent extraction is expected to dominate the global re-refined base oil market during the forecast period, and it is expected to grow at a CAGR of over 7%. Solvent extraction is still the most widely used technology for re-refined base stock formulations.

INSIGHTS BY END USERS

Re-refined base oils are primarily used across automotive, industrial, process, grease, metalworking fluid, and hydraulic oil. Automotive oil held the most dominant global re-refined base oil market share in 2022 and is expected to dominate the market during the forecast period.

Automotive engine oil is designed for light, medium, and heavy commercial vehicles, pump sets, agricultural tractors, marine engines, outboard motors, commercial & passenger cars, and two and three-wheelers. Automotive oil has a vast impact on the operability and efficiency of the oil.

The main function of automotive oil is to protect the metal surface from corrosion, reduce friction on moving parts, and clean the engine from sludge. In addition, these oils also extend the life of automotive gears.

KEY QUESTIONS ANSWERED:

How big is the re-refined base oil market?
What is the growth rate of the global re-refined base oil market?
Which region dominates the global re-refined base oil market share?
What are the significant trends in the re-refined base oil market?
Who are the key players in the global re-refined base oil market?

Global Overview

Driving Factors For Base Oil Market
Re-Refined Lubrication Oil Lifecycle
Key Facts & Figures
Expert Insights
Russia-Ukraine Conflict: Global Impact
Use Of Re-Refined Base Oil In Construction Vehicles, Equipment & Machinery
Surge In Residential Space
Key Highlights Of The Global Residential Construction Sector

Market Opportunities & Trends

Demand For High-Quality Base Oil
Increased Infrastructure Projects In Developing Economies
Conservation Of Energy & Natural Resources
New Airport Construction

Market Growth Enablers

Country-Wise Regulations
Key Insights
Increased Construction In Hospitality Industry
Growth In Re-Refining Capacity

Market Restraints

Collection Of Used Base Oil
Major Issue
Increase In Operational Cost
Upfront Cost
Installation Cost
Turbulent Global Political & Trade Relations
Volatility In Crude Oil Prices

Demand From Commercial Places

Office Spaces
Hospitals
Hotels & Restaurants
Airports
Shopping Malls

Value Chain Analysis

Generators
Collectors
Aggregators
Processors
End-Users

Key Company Profiles

Avista Oil Deutschland Gmbh
Heritage-Crystal Clean
Safety-Kleen System
Southern Oil
Veolia
China Petrochemical Corporation
China National Petroleum Corp

Other Prominent Vendors

Motul S.A.
AL Haya
Benzoil
Cator
Lwart Environmental Solutions
Masafee
Nas Oil & Fuel
One Ten Impex
Puraglobe
RA.M.OIL SpA
ReGen III
South West Petroleum (Asia Pacific) Ltd.
STR Tecoil
SENER Group
Tayras
Vertex Energy
Exxon Mobil Corp
Saudi Arabian Oil Co
Valero Energy Corp
Marathon Petroleum Corp
Rosneft Oil Co
Petroleos De Venezuela SA
Shell plc

For more information about this report visit https://www.researchandmarkets.com/r/zevt5b

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Media Contact:

Research and Markets
Laura Wood, Senior Manager
[email protected]

For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg

SOURCE Research and Markets