Dublin, July 25, 2022 (GLOBE NEWSWIRE) — The “U.S. Re-Refined Base Oil Market – Industry Outlook and Forecast 2022-2027” report has been added to from ResearchAndMarkets.com offer.
Group II is the largest segment of the US re-refined base oil market
The re-refined base oil market is divided into three segments according to their group, group I, group II and group III. Group II refined base oil is expected to dominate the market over the forecast period and witness higher growth.
Automotive and industrial lubricant manufacturers prefer Group II re-refined base oil over Group I due to its low sulfur content, volatility and viscosity. Growing demand for automobiles, growth in aviation and commercial road transportation in the United States are expected to contribute to growing demand for Group II re-refined base oil products in the United States.
Hydrotreating is the largest segment and is expected to experience similar growth over the forecast period due to its ability to deliver quality base oil products more than other processes. It improves base oil quality, color and color stability and also reduces the level of sulfur, nitrogen, halogen, oxygen and metal compounds. It is mainly used to produce Group II base oil.
Automotive oil is the largest and fastest growing segment of the re-refined base oil market.
Re-refined base oils are primarily used in automotive oil, industrial oil, process oil, grease, metalworking fluid, and hydraulic oil. Going forward, auto oil is also expected to dominate the market over the forecast period. Automotive engine oil is designed for light, medium and heavy commercial vehicles, passenger cars and two and three wheelers. Automotive oil plays a vital role in engine performance, protecting against wear on an engine’s moving parts.
The American automotive industry is one of the largest and most successful industries in the world. In 2020, the country reported production of around 8.8 million vehicles. Similarly, according to data from the American Automotive Policy Council, motor vehicle production will increase by an average of 12 million vehicles per year through 2025. Thus, representing a significant opportunity for automotive petroleum products in the States -United.
The southern region of the United States was the second largest and is expected to be the fastest growing market for refined base oil from 2022 to 2027. Texas and Florida led the region. The demand for re-refined base oil in the southern United States is driven by stringent waste oil regulations, emissions regulations, and the growing sustainability trend. Additionally, booming automotive, manufacturing, and construction industries are also supporting the growth of the market.
BMW, Ford Motor, General Motors, Nissan Motor Company, Kia Motors, and Toyota Motor Corporation are automotive players operating in the southern region of the United States and consume a large share of base oil.
Used base oil re-refining is a process that removes all impurities, including dirt, additives and water, from used oil by methods such as vacuum distillation, hydrotreating, clay processing and solvent extraction technology. These used oils are collected from garages, service shops, car manufacturers and marine industries and taken to a refinery and re-refined to produce Group I, Group II and group III.
The U.S. re-refined base oil market is an established market due to the well-established infrastructure for used oil collection and the government’s ongoing efforts to reduce its carbon footprint. Over the past decade, used oil collection has increased dramatically in the United States, driven by stringent policies from the respective states and the United States Environmental Protection Agency (EPA), including the Resource Conservation and Recovery Act (RCRA), which regulates the management of hazardous and hazardous waste. non-hazardous waste. According to data from the US Department of Energy (DOE), approximately 30% of the used oil collected is re-refined into base oil in the United States.
MARKET TRENDS AND DRIVERS
Conserve energy and natural resources
The preservation of natural resources is one of the main factors leading to wider acceptance of the re-refining process across the United States.
With the increase in population, industrialization and modernization, the consumption of natural resources such as fossil fuels increases. However, the continued depletion of fossil fuels (crude oil) can lead to shortages and undermine economic activity. In addition, burning fossil fuels leads to air pollution.
Therefore, the growing awareness of the population for the preservation of the environment leads to the adoption of environmentally friendly processes to produce base oil. Using a re-refined base oil process helps to slow crude oil depletion, save energy and limit environmental pollution. Because used oil, rather than crude oil, is used in the re-refining process to produce base oil. So, in this way, it conserves energy and natural resources.
Increase in U.S. regulations regarding re-refining of used oils
With the growing trend towards sustainability in the energy and transportation sector, the reduction in carbon footprint and the growing demand for higher quality base oil, the base oil refining process is gaining momentum. the extent.
The growing trend towards environmental sustainability has changed the perception of waste oil management. Consequently, consumers have become reluctant to dispose of used oils in sewers or waterways or to burn them. However, burning of waste oil continues, especially in underdeveloped or developing countries, due to lack of awareness and proper waste collection unit.
Consequently, several local and national governments have implemented various management and regulatory programs to encourage the collection and refining of used oils through incentives, laws and penalties, depending on the problem and the best how to collect and manage waste oil.
High cost of processing used base oil
One of the major restraints in the growth of the market is the cost of processing used base oil.
Overall, the re-refining process consists of two important steps (collection of used oil and manufacturing of the same, which involves the installation of a sophisticated manufacturing unit), which makes the running cost high, thus resulting in an inflated product cost. The price of a product plays an important role in the purchasing decision of individuals. An individual evaluates the following two costs while buying a product in the market.
The competitive scenario in the US re-refined base oil market is currently intensifying. Heritage-Crystal Clean, Vertex Energy, Puraglobe and Safety-Kleen Systems are some prominent players.
Re-refined base oil in the United States is one of the consolidated markets in the base oil vertical markets. The market has relatively low barriers to entry that drive vendors to consider innovation and differentiation in their customer offerings. Vendors typically gain an edge over competitors through differentiated offerings, ranging from updating product features to adopting a region-specific market expansion strategy.
The major companies operating in the market are Safety-Kleen Systems (Wisconsin, USA), Heritage-Crystal Clean (Illinois, USA), Amalie Oil Company (Florida, USA), Puraglobe (Florida, USA ), Evergreen Oil (Clean Harbor Inc.) (California, USA) and Vertex Energy (Texas, USA), among others. These companies are continually vying for the leadership position in the market, with continued competition from local suppliers.
- Legacy-Crystal Clean
- Safety System-Kleen
- Universal environmental services
- Universal lubricants
- vertex energy
Other Important Suppliers
- AGC Refining & Filtration
- Amelie Oil Company
- Lubricant Combo
- Evergreen oil
- Hicks Oil
- Noble Oil Services
- Rock oil refining
Main topics covered:
1 Research methodology
2 research objectives
3 Research process
4 Scope and coverage
4.1 Market Definition
4.2 Reference year
4.3 Scope of the study
5 Report assumptions and caveats
5.1 Main caveats
5.2 Currency conversion
5.3 Market Derivation
6 The market at a glance
7.2 Value chain
7.3 US regulations on used lubricating oil
8 Market Opportunities and Trends
8.1 Conservation of energy and natural resources
8.2 Demand for High Quality Base Oil for Lubricant Formulation
9 Market Growth Catalysts
9.1 Increased refining capacity and waste oil collection in the United States
9.2 Increased state regulations for re-refining used oil
10 Market Growth Constraints
10.1 High Cost of Waste Base Oil Processing
10.2 Collection and change of seasonality of used base oil
11 Market landscape
11.1 Market Overview
11.2 Geographical overviews
11.3 Pest Analysis
11.4 Market Size and Forecast
11.5 Five forces analysis
12.1 Market Overview and Growth Driver (Value)
12.2 Market Overview and Growth Driver (Volume)
12.3 Market Overview
12.4 Group I
12.5 Group II
12.6 Group III
13.1 Market Overview and Growth Driver (Value)
13.2 Market Overview and Growth Driver (Volume)
13.3 Market Overview
13.4 Clay treatment
13.5 Vacuum distillation
13.6 Solvent extraction
14.1 Market Overview and Growth Driver (Value)
14.2 Market Overview and Growth Driver (Volume)
14.3 Market Overview
14.4 Automotive oil
14.5 Process oil
14.6 Industrial oil
14.7 Metalworking fluid
15.1 Market Overview and Growth Driver
15.2 Overview of the region
For more information on this report, visit https://www.researchandmarkets.com/r/c0i75i