?? Waste Oil Market Expected to Reach $70.6 Billion by 2031 | Rising Recycling & Industrial Demand

The waste oil market is set to reach $70.6B by 2031, driven by industrial growth, rising recycling demand, and strong recovery in automotive and manufacturing sectors.”
— Allied Market Research

WILMINGTON, DE, UNITED STATES, November 21, 2025 /EINPresswire.com/ --

According to a recent report from Allied Market Research, the global waste oil market size was valued at $45.0 billion in 2021 and is projected to reach $70.6 billion by 2031, growing at a CAGR of 4.7% from 2022 to 2031. As industries expand, transportation networks grow, and environmental policies strengthen, the demand for efficient waste oil recovery, recycling, and re-refining continues to surge worldwide.

?? What Is Waste Oil and Why It Matters?

Waste oil refers to contaminated, used, or degraded oil that can no longer perform its original function. This includes used engine oil, lubricants, transmission fluids, hydraulic fluids, and industrial oils.

Although “waste” oil may sound like a disposal burden, it has become a valuable resource due to its potential for:

?? Recycling and re-refining

?? Energy recovery

?? Use in industrial boilers and manufacturing

As sustainable practices gain importance across automotive, manufacturing, energy, and logistics industries, the waste oil market has evolved into a crucial contributor to the circular economy.

?? Market Drivers Fueling Strong Global Growth

?? 1. Rapid Industrialization & Automotive Sector Expansion

Rising industrial activities, increased vehicle ownership, and expanding manufacturing operations are significantly boosting waste oil generation. Countries such as China, India, the U.S., and Germany are witnessing major consumption of lubricants, motor oils, and hydraulic oils, leading to consistent waste oil availability and recycling opportunities.

?? 2. Growing Logistics & Transportation Sector

With global trade expanding and e-commerce accelerating, the logistics industry has become a key influencer in the waste oil market. Heavy vehicles, fleet trucks, and transport machinery consume large volumes of lubricants, generating steady waste oil output.

??? 3. Government Focus on Infrastructure & Road Connectivity

As countries invest heavily in highway construction, urban development, and public infrastructure, demand for construction machinery and heavy engines rises. This leads to higher lubricant consumption—and ultimately, more waste oil available for recycling.

?? 4. Rising Demand for Biofuels & Clean Energy Applications

Waste oil, especially used cooking oil and industrial oils, is increasingly being repurposed into biofuels, alternative fuels, and blended industrial heating oils, supporting global sustainability goals.

?? 5. Shift Toward Circular Economy & Resource Efficiency

Governments across Europe, North America, and Asia-Pacific are emphasizing waste-to-energy programs and eco-friendly recycling systems. The waste oil market is benefiting significantly from these initiatives.

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?? Impact of COVID-19 on the Waste Oil Market

The COVID-19 pandemic temporarily slowed the waste oil market due to:

?? Shutdown of manufacturing facilities

?? Suspension of automotive production

?? Decline in industrial lubricant consumption

?? Supply chain disruptions

Leading countries like China, the U.S., India, and the U.K. experienced reduced waste oil generation during 2020–2021.

However, post-2021, the market saw strong recovery driven by:

Reopening of industries

Surge in vehicle sales

Revival of logistics and transportation

Restarting of manufacturing and construction projects

Improved global supply chain conditions

As industrial activities return to full capacity, the waste oil market is experiencing continuous growth.

?? Waste Oil Market Segmentation Overview

?? By Type

Lubricants (Dominating segment – 56% market share in 2021)

Engine Oil

Transmission Oil

Lubricants dominate the segment due to their extensive industrial and automotive applications.

?? By Application

Re-refiners (fastest growing at 4.9% CAGR)

Waste Oil Boilers

Re-refining has gained traction as industries adopt cleaner and cost-effective oil recovery techniques.

?? By Technology

Vacuum Distillation Process (Highest CAGR – 4.9%)

Distillation Hydrogen Treatment

Thin-Film Evaporation

Vacuum distillation remains popular due to its superior efficiency in separating contaminants.

?? By Region

Asia-Pacific (Leading with 40.4% share in 2021)

North America

Europe

LAMEA

Asia-Pacific’s dominance is driven by rapid industrial expansion, manufacturing clusters, and large automotive fleets.

?? Key Market Players

Major companies operating in the global waste oil industry include: ENVA, GOINS Waste Oil Company, Gecco Fuels, Enfields Chemicals CC, Oil Salvage Ltd, MIB Waste Services, Alexandria Petroleum Company, Falzon Group, JJ. Richards & Sons Pvt Ltd, Safety-Kleen Systems, Silver Recycling, Alliance To End Plastic Waste, Neste, and others.

These companies focus on recycling innovations, advanced purification technologies, and international waste oil collection networks.

? Additional Insights & Opportunities (Added Points)

?? 1. Digital Transformation in Waste Oil Management

AI-based waste oil tracking, smart storage systems, and automated collection logistics are improving operational efficiency and compliance.

?? 2. Growing Potential in Energy Generation

Waste oil is increasingly being adopted for:

Industrial furnaces

Marine boilers

Heat recovery systems

This trend is expected to add significant revenue streams during 2024–2031.

?? 3. Regulations Supporting Sustainable Waste Oil Disposal

Countries are enforcing strict penalties for improper disposal, which is pushing industries toward certified waste oil recyclers.

?? 4. Expansion of Waste-to-Fuel Technologies

Advanced re-refining technologies are producing high-quality base oils that compete with virgin oils, making waste oil recycling more profitable.

?? Conclusion

The waste oil market is witnessing steady growth due to rising industrial activity, increased vehicle usage, expansion in logistics, and a global push toward sustainable waste recycling practices. Although the COVID-19 pandemic temporarily disrupted demand, the recovery of industrial and automotive sectors has strengthened market performance. With advancements in recycling technologies, growing energy recovery applications, and regulatory support for circular economy initiatives, the waste oil market is positioned for long-term expansion.

Asia-Pacific remains the highest contributor, while technology-driven re-refining processes—especially vacuum distillation—are setting new benchmarks in efficiency. As industries move toward eco-friendly operations, the demand for waste oil recycling, re-refining, and safe disposal is expected to accelerate globally through 2031.

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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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