Global Re-Refined Base Oil Market Insights Forecasts to 2033

• The Global Re-Refined Base Oil Market Size was estimated at USD 2.17 Billion in 2023
• The Market Size is Expected to Grow at a CAGR of around 5.98% from 2023 to 2033
• The Worldwide Re-Refined Base Oil Market Size is Expected to Reach USD 3.88 Billion by 2033
• Europe is expected to Grow the fastest during the forecast period.

The Global Re-Refined Base Oil Market Size is expected to cross USD 3.88 Billion by 2033, growing at a CAGR of 5.98% from 2023 to 2033. The market for re-refined base oil is expanding due to the increased demand for high-quality base oil, specifically Group II and Group III, as a result of the developing trends towards improved fuel economy, longer engine oil lifespan, and lower pollution levels.  

Market Overview  

The gathering and processing of spent oils for high-quality, reusable base oils fall within the re-refined base oil market. This process has the effect of minimizing the impact on the environment while saving resources and preventing waste. Since the process minimizes the need for virgin crude oil as well as the devastating effects of waste oil disposal on the environment, the market for re-refined base oil is critical to sustainability and environmental conservation. Refined oils are used in industrial oils, automotive lubricants, and many other products that require high-grade base oils. The growing environmental efforts to cut CO2 emissions, the need to meet the growing demand for high-quality base oil, and government regulations or a mix of incentives and penalties to promote re-refined waste oil all play a major role in the expansion of the global market. Rising re-refining capacity and country-specific laws are the main factors driving the growth of the re-refined base oil market. Growing consumer demand for premium oils with less of an impact on the environment is the main factor driving the growth of the re-refined base oil market.      

Report Coverage

This research report categorizes the re-refined base oil market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the re-refined base oil market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the re-refined base oil market.

Driving Factors

Government policies promoting the use of recycled and re-refined oil products, growing regulatory measures and strict environmental laws, and the growing need for premium lubricants in the manufacturing, industrial, and automotive sectors are the main factors propelling the growth of the re-refined base oil market. The market for re-refined base oil has grown as a result of the shifting perspective of spent oil management brought about by the growing trend toward environmental sustainability. The need for affordable solutions, growing concerns about environmental pollution, and growing knowledge of environmentally friendly corporate practices are some of the factors driving demand in the market. Strong laws governing the disposal of waste oil and growing public awareness of the environmental advantages of re-refining technologies are anticipated to drive market expansion.   

Restraining Factors

High operational and processing expenses, a shortage of high-quality used oils, regulatory obstacles, little consumer awareness, and competition from less expensive virgin base oils are some of the issues restricting the growth re-refined base oils market.   

Market Segmentation

The re-refined base oil market share is classified into group, technology, and end-user.       

• The group II segment held the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period.

Based on the group, the re-refined base oil market is divided into group I, group II, and group III. Among these, the group II segment held the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period. Developers of automotive and industrial lubricants favor group II base oil due to its lower viscosities, minimal volatility, and reduced sulfur composition.

• The hydrotreating process segment held the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period.

Based on the technology, the re-refined base oil market is divided into clay treatment, vacuum distillation, solvent extraction, hydrotreating process, and others. Among these, the hydrotreating process segment held the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period. The eliminating nitrogen and sulfur compounds and increasing hydrogen content by saturating olefins and certain aromatics, the hydrotreating process improves the quality of oils.

• The automotive oil segment held the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period.

Based on the end-user, the re-refined base oil market is divided into automotive oil, industrial oil, process oil, metalworking fluid, grease, and others. Among these, the automotive oil segment held the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period. In 75–85% of base oil several additives, including detergents, dispersants, and anti-wear compounds, make up automotive or engine oil. The main purpose of automotive oil is to remove sludge and detergents from the engine and reduce friction and wear and tear.     

Regional Segment Analysis of the Re-Refined Base Oil Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the re-refined base oil market over the predicted timeframe.

North America is anticipated to hold the largest share of the re-refined base oil market over the predicted timeframe. In North America, stricter pollution requirements, improved fuel efficiency, and the growing sustainability trend are driving demand. In addition, the requirement for non-residential development and the high level of consumer spending on home furnishings have raised the demand for construction equipment. The ongoing expansion of the manufacturing, packaging, automotive, and construction sectors thereby supports the North American market.   

Europe is expected to grow at the fastest CAGR growth of the re-refined base oil market during the forecast period. Europe, which includes nations like the UK, France, Italy, Germany, and Spain, is one of the biggest and most developed regions. Consequently, the development of world-class automobile, building, furniture, and defense industries since the industrial revolution has increased demand for the re-refined base oil market. The standard of living, inventiveness, and technology usage have all increased in Europe.  

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the re-refined base oil market along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Pentas Flora
• TotalEnergies
• Vertex Energy
• Safety-Kleen Systems
• One Ten Impex
• Heritage-Crystal Clean
• AL Haya
• Benzoil
• Southern Oil
• Puraglobe
• Nas Oil & Fuel
• Avista Oil
• Masafee
• Lwart Environmental Solutions
• Others   

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Recent Development

• In September 2024, Pentas Flora, a Malaysian company, launched its re-refined Group II N150 base oil grade, following industry trends that favor premium-quality base oils. The refiner began manufacturing Group I SN 150 in 2022, but since mid-August, it has switched to producing Group II base oils with a high viscosity index. Depending on market demand, the re-refiner can also create Group III base oils.       

• In June 2024, the first line of lubricants manufactured from regenerated base oils that perform on par with conventional oils, Quartz EV3R, was launched by TotalEnergies Lubrifiants, marking a revolutionary accomplishment. The automotive industry has reached a key milestone with the acceptance of this revolutionary product line from many major automakers.    

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the re-refined base oil market based on the below-mentioned segments: 

Global Re-Refined Base Oil Market, By Group  

• Group I
• Group II
• Group III

Global Re-Refined Base Oil Market, By Technology

• Clay Treatment
• Vacuum Distillation
• Solvent Extraction
• Hydrotreating Process
• Others

Global Re-Refined Base Oil Market, By End-User

• Automotive Oil
• Industrial Oil
• Process Oil
• Metalworking Fluid
• Grease
• Others

Global Re-Refined Base Oil Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa