Market Overview:
The automotive oil recycling market involves collecting and processing used automotive lubricating oils such as engine oil, transmission fluid, hydraulic oil, and gear oil. Used oil recycling helps conserve resources, reduces pollution, and supports sustainable production and consumption. Recycled oil is processed to remove contaminants and is re-refined to produce base oil and other products such as lubricating greases. Recycled base oil finds applications in automotive, industrial, and marine lubricants as well as in engine oil, gear oil, hydraulic oil, and greases.
Market key trends:
One of the major trends in the Automotive Oil Recycling Market Demand is the growing focus on circular economy. Circular economy promotes maximizing value of resources by reusing, repairing, refurbishing and recycling existing materials and products for as long as possible. This reduces waste and pressure on the environment. With rising environmental concerns, automotive manufacturers and oil recycling companies are focusing more on circular business models and promoting recycling initiatives. Growing consumer awareness about sustainability is also driving the demand for recycled automotive lubricants. Strict environmental regulations regarding used oil management are further boosting the automotive oil recycling market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low due to high capital requirement for recycling plants and competition from existing players.
Bargaining power of buyers: The bargaining power of buyers is moderate since there are substitutes available and switching costs are low.
Bargaining power of suppliers: The bargaining power of suppliers is high as raw materials i.e. used automotive oil is dependent on vehicle servicing industry.
Threat of new substitutes: The threat of new substitutes is low as there are limited substitutes available for recycling used automotive oil.
Competitive rivalry: The competitive rivalry is high due to presence of numerous regional and global players.
Key Takeaways
The global Automotive Oil Recycling Market is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing environmental regulations regarding appropriate disposal of used automotive oil.
The Asia Pacific region dominated the global market in 2023, accounting for around 35% of the overall shares, owing to presence of emerging economies like China and India. China is expected to remain the key market during the forecast period.
Key players operating in the automotive oil recycling market are 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. Safety-Kleen Systems captures around 15% of the global market share due to wide serving network and partnership with major OEMs.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it