Waste Oil Market: Rising Demand for Recycling & Sustainability Fuels Growth to $70.6 Billion by 2031

Surge in Automotive & Manufacturing Sectors to Boost Global Waste Oil Market at 4.7% CAGR

WILMINGTON, DE, UNITED STATES, August 6, 2025 /EINPresswire.com/ --

According to a recent report by Allied Market Research, the global waste oil market was valued at $45.0 billion in 2021 and is projected to grow to $70.6 billion by 2031, registering a steady CAGR of 4.7% from 2022 to 2031. This upward trajectory is largely driven by expanding industrialization, urbanization, and increased awareness around sustainable oil recycling.

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♨️ What is Waste Oil?

Waste oil refers to used or contaminated oil that has outlived its original purpose. Unlike unused oil, waste oil contains impurities or has undergone degradation, making it unfit for its original function. However, instead of discarding it, industries are increasingly recognizing its value as a recyclable and reusable energy resource. This positions waste oil as a crucial part of the circular economy.

📈 Key Growth Drivers

A multitude of factors are contributing to the growing demand for waste oil:

Rapid industrialization and urban development are fueling machinery use, increasing the generation of used oil.

Automotive sector boom, particularly in countries like the U.S., China, Germany, and India, is leading to more frequent oil changes and waste oil production.

Government focus on infrastructure such as road expansion and logistics is amplifying lubricant demand.

Energy and manufacturing sectors are utilizing recycled oil as a cost-effective and sustainable alternative to virgin oil.

As a result, the market is witnessing expanded use across industries like automotive, manufacturing, power generation, and industrial equipment maintenance.

🦠 COVID-19 Impact on the Waste Oil Market

The pandemic had a temporary dampening effect on the waste oil industry. Lockdowns across countries led to:

Shutdown of manufacturing facilities

Suspended vehicle operations

Reduced construction activities

Supply chain disruptions and manpower shortages

These factors significantly curbed the production and recycling of waste oil during 2020 and 2021. However, the market began to rebound mid-2021 as vaccination campaigns allowed industrial operations to resume, reigniting the demand for recycled oil.

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🔍 Market Segmentation Highlights

The waste oil market is segmented by type, application, technology, and region.

📌 By Type:

Lubricants held the largest market share of 56% in 2021 and are forecasted to grow at a CAGR of 5.4%, driven by widespread use in vehicles and industrial machinery.

Engine oil and transmission oil also remain key segments.

📌 By Application:

Re-refiners are expected to exhibit the highest CAGR of 4.9%, emphasizing the shift toward oil recycling and reprocessing.

Waste oil boilers continue to play a vital role in energy generation from waste.

📌 By Technology:

Vacuum distillation process is projected to grow at 4.9% CAGR, showcasing its efficiency in separating contaminants and recovering usable oil.

Other technologies include thin-film evaporation and distillation hydrogen treatment.

🌏 Regional Insights

The Asia-Pacific region dominated the global waste oil market with a revenue share of 40.4% in 2021 and is expected to grow at a CAGR of 5.6% through 2031. Countries like China, India, and Southeast Asian nations are at the forefront, owing to rapid industrialization, population growth, and a strong push toward sustainability.

Other promising regions include:

North America – with a mature recycling infrastructure and regulatory backing.

Europe – driven by stringent environmental norms and oil reuse mandates.

LAMEA – gradually adopting waste oil technologies to support economic and environmental goals.

🏭 Key Industry Players

Leading market players driving innovation and expansion in the waste oil market include:

ENVA

GOINS Waste Oil Company

Gecco Fuels

Oil Salvage Ltd

Falzon Group

Safety-Kleen Systems

Neste

JJ. Richards & Sons Pvt Ltd

These companies focus on sustainable practices, efficient collection and recycling processes, and technological advancements.

💡 Future Outlook

As the world shifts toward sustainability and resource efficiency, the waste oil market is set to play a pivotal role in the global energy mix. From powering boilers to re-refining into high-quality lubricants, waste oil will continue to be a valuable energy source.

Government regulations promoting environmental conservation, along with growing industry initiatives in circular economy models, will further fuel the market growth. Additionally, innovation in waste oil reprocessing technologies is expected to improve yield and quality, attracting new entrants into the sector.

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✅ Conclusion

The global waste oil market is witnessing robust growth backed by a powerful combination of environmental awareness, technological advancement, and industrial demand. As industries worldwide embrace circular economy practices, waste oil is emerging as a sustainable, profitable, and indispensable resource.

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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Allied Market Research
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