PUBLISHER: The Business Research Company | PRODUCT CODE: 1929070
PUBLISHER: The Business Research Company | PRODUCT CODE: 1929070
Lubricating oil refining is the process of converting crude or used oils into high-quality base oils, which are essential for producing lubricants. This process typically includes refining, filtering, and purifying oils to remove impurities and improve their performance for various industrial and automotive applications.
The main product types in lubricating oil refining are mineral oils, synthetic oils, bio lubricants, and semi-synthetic oils. Mineral oils are petroleum-based liquids derived from crude oil, commonly used as lubricants, coolants, and insulating fluids in numerous industrial and automotive applications. They come in various viscosity grades such as low, medium, and high viscosity. These oils also contain additives such as detergents, antioxidants, anti-wear agents, viscosity index improvers, and corrosion inhibitors. Mineral oils are used in a wide range of applications, including automotive oils, industrial oils, aerospace oils, marine oils, and specialty oils.
Tariffs have impacted the lubricating oil refining market by increasing costs for imported additives, catalysts, and refining equipment. Higher duties have affected refinery upgrades and base oil production, particularly in asia pacific and europe. These tariffs have influenced production economics and pricing strategies. At the same time, tariff pressures have encouraged domestic refining capacity expansion, re-refining investments, and localization of lubricant value chains.
The lubricating oil refining market research report is one of a series of new reports from The Business Research Company that provides lubricating oil refining market statistics, including lubricating oil refining industry global market size, regional shares, competitors with a lubricating oil refining market share, detailed lubricating oil refining market segments, market trends and opportunities, and any further data you may need to thrive in the lubricating oil refining industry. This lubricating oil refining 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 lubricating oil refining market size has grown strongly in recent years. It will grow from $19.5 billion in 2025 to $20.74 billion in 2026 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to growth of automotive lubricant demand, expansion of industrial machinery usage, reliance on mineral base oils, investments in refinery infrastructure, growth of transportation sector.
The lubricating oil refining market size is expected to see strong growth in the next few years. It will grow to $26.5 billion in 2030 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to demand for low viscosity lubricants, growth of electric and hybrid vehicles, expansion of industrial automation, adoption of sustainable lubricants, investments in advanced refining technologies. Major trends in the forecast period include rising demand for high purity base oils, shift toward synthetic and bio-based lubricants, modernization of lubricant refining units, growth of re-refining and used oil processing, increasing focus on performance additives.
The rising demand for cleaner fuels is expected to drive the growth of the lubricating oil refining market in the coming years. Cleaner fuels are energy sources that generate fewer pollutants and greenhouse gas emissions compared to conventional fossil fuels. The growing demand for these fuels is fueled by their ability to reduce air pollution, lower greenhouse gas emissions, and mitigate climate change, ultimately supporting a healthier and more sustainable environment. Lubricating oil refining contributes to the production of cleaner fuels by removing impurities, sulfur, and other unwanted compounds, thereby enhancing fuel efficiency and improving engine performance. For example, in July 2025, the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, reported that biofuel production is projected to exceed 10 EJ by 2030 under the NZE Scenario, requiring an average annual growth of approximately 11%. Consequently, the increasing demand for cleaner fuels is propelling the growth of the lubricating oil refining market.
Companies in the lubricating oil refining market are focusing on innovations such as advanced re-refining technologies to improve efficiency, product quality, and environmental impact. These technologies recycle used lubricating oils, removing contaminants and restoring them to high-quality base oils suitable for reuse. In September 2024, Pentas Flora, a Malaysia-based waste management company, introduced re-refined Group II N150 base oil. This product aligns with industry trends towards high-performance, premium-grade oils, driven by the lubricant industry's demand for better fuel economy, extended drain intervals, lower emissions, and improved performance. Pentas Flora's re-refining process, which includes distillation, solvent extraction, and lube polishing, produces higher-quality, low-sulfur base oils that meet Group II and III specifications.
In July 2024, TotalEnergies SE, a French petroleum company, acquired Str Tecoil Oy for an undisclosed amount. This acquisition aims to boost the circular economy in lubricants by expanding the use of re-refined base oils in lubricant production. It also seeks to enhance sustainability, reduce the carbon footprint of lubricants, and meet the growing demand for high-performance, eco-friendly products. Tecoil, a Finland-based oil re-refining company, specializes in recycling used lubricating oils and will help TotalEnergies achieve these goals.
Major companies operating in the lubricating oil refining market are Sinopec Group, PetroChina Company Limited, ExxonMobil Corporation, Shell plc, TotalEnergies SE, British Petroleum, Chevron Corporation, Idemitsu Kosan Co. Ltd., Lukoil, Neste Oyj, Fuchs SE, AVISTA OIL AG, Valvoline Inc., Heritage-Crystal Clean Inc., Gulf Oil, Motul S.A., Pentas Flora, AVISTA Green, Hyrax Oil, SK Lubricants Co. Ltd., Indian Oil Corporation Limited, Petro-Canada Lubricants Inc., Calumet Specialty Products Partners L.P., Nynas AB
North America was the largest region in the lubricating oil refining market in 2025. The regions covered in the lubricating oil refining market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the lubricating oil refining market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The lubricating oil refining market consists of sales of re-refined lubricants, grease-based lubricants, base oils, and finished lubricants. 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.
Lubricating Oil Refining 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 lubricating oil refining 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 lubricating oil refining ? 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 lubricating oil refining 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.
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