PUBLISHER: The Business Research Company | PRODUCT CODE: 1927342
PUBLISHER: The Business Research Company | PRODUCT CODE: 1927342
Waste oil refers to used or contaminated oil that has surpassed its original utility and cannot perform its intended functions. It finds applications in various industrial and manufacturing processes such as lubrication, hydraulics, buoyancy, and heat transfer.
Different categories of waste oil include transmission oils, engine oils, refrigeration and compressor oils, metalworking fluids and oils, lubricants, among others. Transmission oil facilitates the transfer of speed and torque from a power source (such as an engine) to another device (such as wheels) through gears and gear trains. Technologies such as vacuum distillation, distillation hydrogen treatment, and thin-film evaporation are employed in processes such as waste oil boilers, bio diesel, and re-refiners for various applications.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs are influencing the waste oil market by increasing costs of imported recycling equipment, distillation units, treatment chemicals, and filtration systems. North America and Europe are most affected due to reliance on imported processing technologies, while Asia-Pacific faces cost pressure on waste oil reprocessing infrastructure. These tariffs are raising operational costs for recyclers and re-refiners. However, they are also encouraging domestic equipment manufacturing, localized recycling capacity expansion, and investment in sustainable waste oil management solutions.
The waste oil market research report is one of a series of new reports from The Business Research Company that provides waste oil market statistics, including waste oil industry global market size, regional shares, competitors with a waste oil market share, detailed waste oil market segments, market trends and opportunities, and any further data you may need to thrive in the waste oil industry. This waste oil market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The waste oil market size has grown strongly in recent years. It will grow from $64.4 billion in 2025 to $68.2 billion in 2026 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to increasing generation of used industrial oils, expansion of automotive and industrial activities, rising adoption of re-refining processes, availability of waste oil collection systems, growth of lubricant consumption.
The waste oil market size is expected to see strong growth in the next few years. It will grow to $86.56 billion in 2030 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to growing regulatory focus on waste management, rising demand for alternative fuels, expansion of circular economy initiatives, increasing investment in advanced re-refining technologies, growing industrial sustainability requirements. Major trends in the forecast period include growing adoption of waste oil recycling technologies, rising use of re-refined oils, increased conversion into biodiesel feedstock, expansion of industrial waste oil collection networks, enhanced focus on circular resource utilization.
The booming automobile sector is expected to drive the growth of the waste oil market. The automobile industry comprises companies involved in manufacturing motor vehicles with two or more wheels, powered by internal combustion engines or electric systems. Waste oil is widely utilized in producing lubricants and engine oils for vehicles, fueling its demand. For instance, in 2023, the International Energy Agency (IEA), a France-based intergovernmental organization, reported that global electric vehicle (EV) sales reached 14 million, a 35% increase from the previous year, with EVs accounting for 18% of total vehicle sales. This trend underscores the automotive sector's growth and its contribution to the waste oil market.
Major companies in the waste oil market are focusing on innovations such as oil management services to streamline recycling and develop sustainable disposal and reutilization solutions. Used oil management involves collection, recycling, and proper disposal of discarded oils to ensure regulatory compliance and environmental protection. For instance, in 2025, Lootah Biofuels, a UAE-based biofuel company, launched a smart app to expand its used cooking oil (UCO) collection network. The app enables households and institutions to recycle waste oil efficiently, supporting clean energy and circular economy objectives. It provides home collection, digital tracking, and financial incentives, converting waste oil into biodiesel and reducing environmental pollution.
In April 2024, Castrol Limited, a UK-based lubricants company, partnered with Safety Kleen Systems, Inc., to launch a circular used-oil recycling program called MoreCircular. The collaboration integrates Safety Kleen's re-refined base oil, recovered from collected waste oil, into new high-quality lubricants, advancing sustainability goals and reducing product carbon footprints. Safety Kleen Systems, Inc., based in the U.S., specializes in industrial waste management, including used-oil collection and recycling for business and fleet customers.
Major companies operating in the waste oil market are Shell plc, BP plc, TotalEnergies SE, Exxon Mobil Corporation, Chevron Corporation, Valero Energy Corporation, Phillips 66 Company, Marathon Petroleum Corporation, Repsol S.A., Neste Oyj, PetroChina Company Limited, Sinopec Group, Indian Oil Corporation Limited, Reliance Industries Limited, Eni S.p.A., SK Innovation Co., Ltd., PJSC Lukoil, Equinor ASA, PKN Orlen S.A., Saras S.p.A.
Asia-Pacific was the largest region in the waste oil market in 2025. The regions covered in the waste oil market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the waste oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The waste oil market consists of sales of gearbox oil, combustion engine oil, and lubricating oil. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Waste Oil Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses waste oil market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for waste oil ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The waste oil market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Added Benefits available all on all list-price licence purchases, to be claimed at time of purchase. Customisations within report scope and limited to 20% of content and consultant support time limited to 8 hours.