Recycled base oil is eco-friendly and it generates lower carbon emissions than virgin base oil. The process of production of virgin base oil is energy intensive and it generates higher emissions of carbon. Rise in the focus on sustainability of the environment across the globe is providing significant opportunity to the global recycled base oil market.
Rise in investments in research and development of the re-refining process and improvement in the quality of recycled base oil are other major factors driving the global recycled base oil market. Companies across the world are incorporating recycled base oil in their lubricant compositions. For example, some major lubricant manufacturer, has a line of lubricant products that contain 50% of recycled base oil.
Additionally, increasing number of automobiles across the globe is driving the demand for lubricants. Petrochemical sources are depleting and increasing prices of crude oil are encouraging oil manufacturers to find new methods to re-refine and utilize waste oil. This factor, in turn, is driving the demand for recycled base oil across the globe.
Automotive and Industrial Sectors to Offer Attractive Opportunities
- Recycled base oil is as good as virgin oil. Hence, use of recycled base oil is gaining momentum in automotive applications. It is used to manufacture lubricants for a wide variety of vehicles.
- Rising urbanization and increasing FDIs in the automotive sector, typically in India, China, and South Korea, are likely to offer significant opportunities to manufacturers of recycled base oil in the near future.
- Rising demand for recycled base oil for use in applications such as industrial oil and metalworking fluids is expected to provide lucrative opportunities to manufacturers operating in the global recycled base oil market in the next few years.
Global Recycled Base Oil Market, by Application
Automotive Lubricants.
- Automotive Fluids
- Process Oils
- Industrial Oils
- Metalworking Fluids
- Hydraulic Fluids
- Others