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