North America and Latin America Waste Oil Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, by Application, by Technology, by Region: Opportunity Analysis and Industry Forecast, 2023-2032

North America and Latin America Waste Oil Market Overview, 2032

The North America and Latin America waste oil market size was valued at $4.9 billion in 2022 and is estimated to reach $7.6 billion by 2032, exhibiting a CAGR of 4.5% from 2023 to 2032. Increase in industrialization, the expansion of the automotive industry, and regulatory initiatives aimed at promoting sustainability is expected to drive high growth potential in the waste oil market across North America and Latin America during the forecast period. Businesses operating in this sector are poised to capitalize on these opportunities by offering innovative solutions for waste oil collection, recycling, and re-refining, contributing to both environmental conservation and economic development in the regions.

Introduction

Waste oil refers to any petroleum-based or synthetic oil that has been used and is no longer suitable for its original purpose. This oil is considered contaminated due to impurities such as dirt, metals, water, or chemicals that accumulate during use. Waste oil is available from various sources such as vehicle engines, machinery, industrial processes, and cooking. Proper disposal or recycling of waste oil is crucial to prevent environmental pollution and conserve resources. Recycling waste oil involves processes such as re-refining for reuse or conversion into other products such as fuel oil or lubricants.

Key Takeaways

• The North America and Latin America waste oil market share has been analyzed in terms of value ($million). The analysis in the report is provided on the basis of type, application, technology, 2 major regions, and more than 5 countries.
• The North America and Latin America waste oil market report includes a detailed study covering underlying factors influencing the industry opportunities and trends.
• The key players in the North America and Latin America waste oil market analysis are Arslan Enginery, Coastal Oil Recovery LLC., DFW Waste Oil, GFL Environmental Inc., Goins Waste Oil Company Inc., Heritage-Crystal Clean, Inc, Noble Oil Services, Inc., Rock Oil Refining, Inc., Safety-Kleen Systems, Universal Environmental Services, and Vertex Energy.
• The report facilitates strategy planning and industry dynamics to enhance decision making for existing market players and new entrants entering the alternators industry.
• Countries such as the U.S., Canada, and Brazil hold a significant share in the North America and Latin America waste oil market growth.

Market Dynamics

The demand for waste oil is propelled by the growing emphasis on sustainability and environmental responsibility within industrial sectors. For instance, United States-Mexico-Canada Agreement (USMCA) focus on sustainability by governments, companies, and environmental interest groups. This spotlight extends to supply chains. Industries are actively seeking alternative ways to manage their waste streams, such as waste oil, to reduce their environmental footprint and comply with regulations. In addition, recycling waste oil aligns with these goals by offering a sustainable solution that minimizes the need for virgin oil production, conserves natural resources, and reduces greenhouse gas emissions associated with oil refining.

However, the handling and disposal of waste oil requires specialized infrastructure and processes to mitigate its toxic properties effectively. Improper handling or disposal result in leaks, spills, or improper containment, leading to environmental contamination and posing risks to ecosystems and public health. The need for stringent regulatory compliance and environmental safeguards adds complexity and costs to waste oil management that deters some industries from actively incorporating waste oil into their operations. All these factors are expected to hamper the growth of North America and Latin America waste oil market during the forecast period.

The expansion of re-refining capacity addresses the growing need for sustainable solutions in lubricants and oils. According to the U.S. Energy Information Administration (EIA), North America is expected to witness a significant increase in renewable refinery production capacity. By 2027, the estimated capacity is 13,142 million gallons per year. With increasing environmental concerns and regulatory pressures, industries are seeking alternatives for conventional oil that minimize environmental impact and promote resource conservation. Re-refined oil derived from waste oil offers a sustainable option by reducing the reliance on virgin oil production, conserving natural resources, and lowering greenhouse gas emissions associated with oil refining. All these factors are anticipated to offer new growth opportunities for North America and Latin America waste oil market during the forecast period.

Segments Overview

The North America and Latin America waste oil market Trends is segmented into type, application, technology, and region. On the basis of type, the market is classified into transmission oil, engine oil, lubricants, and electrical transformer oil. On the basis of application, the market is categorized into waste oil boilers and re-refiners. By technology, the market is bifurcated into vacuum distillation process and distillation hydrogen treatment. Region-wise, the market is analyzed across North America and Latin America.

On the basis of type, the market is classified into transmission oil, engine oil, lubricants, and electrical transformer oil. The lubricants segment accounted for less than half of North America and Latin America waste oil market share in 2022 and is expected to maintain its dominance during the forecast period. Technological advancements in lubricant formulation and oil reclamation technologies have expanded the capabilities and applications of lubricants in waste oil management. For instance, nanotechnology, synthetic lubricants, improved oil filtration, and advanced lubricant formulation enhance performance and longevity.

On the basis of application, the market is categorized into waste oil boilers and re-refiners. The re-refiners segment accounted for more than four-fifths of North America and Latin America waste oil market share in 2022 and is expected to maintain its dominance during the forecast period. Re-refining offers economic benefits that drive its adoption in waste oil management. The recovered base oils from re-refining processes are of high quality and sold as valuable products in the lubricants and petroleum industries.

By technology, the market is bifurcated into vacuum distillation process and distillation hydrogen treatment. The vacuum distillation process segment accounted for less than three-fourths of North America and Latin America waste oil market share in 2022 and is expected to maintain its dominance during the forecast period. The growing emphasis on environmental sustainability and regulatory compliance is driving the adoption of vacuum distillation as a preferred method for waste oil recycling.

Region-wise, the market is analyzed across North America and Latin America. The North America region accounted for more than four-fifths of North America and Latin America waste oil market share in 2022 and is expected to maintain its dominance during the forecast period. Advancements in waste oil recycling and reclamation technologies present opportunities for industries to adopt more sustainable practices and reduce environmental impact. For instance, the UN Environment Programme (UNEP) has developed a comprehensive compendium of recycling and destruction technologies for waste oils. This resource highlights feasible methods for recycling and disposing of waste oils. Innovative technologies enable the purification, re-refining, and repurposing of waste oil into valuable products such as base oils, lubricant additives, or alternative fuels. All these factors drive the demand for the North America and Latin America waste oil market in North America during the forecast period.

Competitive Analysis

Key players in the North America and Latin America waste oil industry include Arslan Enginery, Coastal Oil Recovery LLC., DFW Waste Oil, GFL Environmental Inc., Goins Waste Oil Company Inc., Heritage-Crystal Clean, Inc, Noble Oil Services, Inc., Rock Oil Refining, Inc., Safety-Kleen Systems, Universal Environmental Services, and Vertex Energy.

In the North America and Latin America waste oil market, companies have adopted acquisition to expand the market or develop new products. For instance, in February 2023, GFL ENVIRONMENTAL INC. acquired refining assets from Vertex. GFL Environmental Inc. purchased the Heartland used motor oil collection and refining business from Vertex. This acquisition helps to streamline the business, improve the focus on conventional fuels refining operations and initial renewable diesel production operations at Mobile, AL facility. Furthermore, in August 2021, Universal Environmental Services acquired Enterprise Oil Inc. based in Knoxville Tennessee. Enterprise Oil has been providing services to Tennessee, Alabama, Kentucky, North Carolina, South Carolina, Virginia and West Virginia for over 37 years. This acquisition increases the efficiencies of UES business organization.

Historical Trends of Waste Oil in North America and Latin America

• The early to mid-20th century marked the emergence of the waste oil market in North America and Latin America, primarily driven by the industrialization and expansion of various industries such as automotive, manufacturing, and oil refining. Companies started recognizing the potential value in recycling waste oil for various applications such as lubricants, fuel, and industrial heating.
• The 1970s witnessed significant advancements in waste oil recycling technology in both North America and Latin America, with the establishment of specialized facilities and processes for re-refining used oil. This era saw the commercialization of recycled oil products and the development of regulations aimed at promoting waste oil recycling and minimizing environmental pollution.
• In the 1980s, the waste oil market experienced further growth and innovation in North America and Latin America, driven by increasing environmental awareness and regulatory pressures. Companies invested in improving collection, transportation, and re-refining processes to meet stricter quality standards and environmental regulations.
• The 1990s marked a period of consolidation and expansion in the waste oil industry in both regions, with the emergence of larger waste oil management companies offering comprehensive recycling solutions. Technological advancements led to the development of more efficient re-refining methods, resulting in higher-quality recycled oil products suitable for a broader range of applications.
• The early 2000s saw a surge in demand for recycled oil products in North America and Latin America, fueled by growing environmental concerns and the need for sustainable alternatives to virgin oil. Companies focused on enhancing the efficiency and capacity of re-refining facilities to meet the increasing demand for recycled oil products in various industries, including automotive, manufacturing, and energy.
• By the 2010s, the waste oil market in North America and Latin America evolved to incorporate advanced technologies such as vacuum distillation and hydro-treating to produce high-quality base oils and specialty lubricants from recycled oil. Regulatory incentives and sustainability initiatives further encouraged the adoption of recycled oil products by industries and consumers alike.
• In the 2020s, the waste oil market continued to evolve in North America with a strong emphasis on sustainability and circular economy principles. Innovations such as bio-based additives, re-refined hydraulic fluids, and renewable energy sources for re-refining processes aimed to reduce the environmental impact of waste oil recycling and promote a more sustainable future. Collaboration between government agencies, industry stakeholders, and environmental organizations played a crucial role in driving the transition towards a more sustainable waste oil management ecosystem in both regions.

  North America and Latin America Waste Oil Market Report Highlights