The collection, processing, and rejuvenation of spent automobile lubricants—including hydraulic, gearbox, and engine oils—are the main objectives of the automotive oil recycling sector. These oils are treated to remove pollutants and impurities so they can be reused in a variety of industries, including the automotive, industrial, and maritime sectors, as opposed to being thrown away.

The responsible management of spent oil in the automotive sector through recycling has gained prominence due to a heightened awareness of environmental concerns and the imperative for sustainable practices. Recycling, as highlighted by the U.S. Environmental Protection Agency, serves to mitigate pollution and reduce the carbon footprint associated with oil disposal. Stringent government regulations and policies mandating proper disposal and recycling of used automotive oil have played a pivotal role in propelling the market forward. With the global automotive industry experiencing continual growth and an increasing number of vehicles on the road, there is a parallel rise in used oil generation, fostering a growing demand for recycling services. Recycling used oil emerges as a cost-effective alternative to manufacturing new oil from virgin sources, attracting businesses and consumers alike as a means to save on lubricant expenses and decrease overall operational costs. 

However, the automotive oil recycling market is not without challenges. Even with public education campaigns, a large number of consumers are still not aware of the advantages of recycling vehicle oil. This ignorance may lead to inappropriate disposal of spent oil, impeding the expansion of the market. Used oil is still sometimes disposed of improperly by some people and companies, such as by spilling it on the ground or down drains, which can contaminate the environment and incur clean-up expenses. It can be difficult to guarantee recycled oil products are of a consistent grade. Furthermore, the performance of recycled oils can be impacted by variations in the quality of the used oil feedstock and the recycling process itself, which can have an impact on the oils' market acceptance. The advantages of recycling spent motor oil are still largely unknown to the public. This ignorance may impede the market's expansion.

Due to imposed travel restrictions and reduced vehicle usage amid lockdowns, there was a notable decrease in the demand for automotive oil, resulting in a corresponding reduction in the volume of used oil available for recycling. The economic downturn and financial uncertainties associated with the pandemic likely contributed to diminished investments in the automotive oil recycling sector. Moreover, pandemic-related concerns necessitated additional health and safety measures in recycling facilities, potentially increasing operational costs. These combined factors underscore the multifaceted challenges faced by the automotive oil recycling industry during the global health crisis.

By Oil Type: Based on the Oil Type, Global Automotive Oil Recycling Market is segmented as; Brake Fluids, Engine Oils, Gear Oils, Greases, Hydraulic Fluids, Transmission Fluids, Others.

By Collection Method Type: Based on the Collection Method Type, Global Automotive Oil Recycling Market is segmented as; Automotive Manufacturers, DIY Collection Centers, Garages & Service Stations, Independent Collectors, Municipal Collection Centers, Re-Refineries, Others.

By Technology: Based on the Technology, Global Automotive Oil Recycling Market is segmented as; Acid/Caustic Treatment, Clay Treatment, Distillation, Hydroprocessing, Thin Film Evaporation, Vacuum Distillation, Others.

By End-use Industry: Based on the End-use Industry, Global Automotive Oil Recycling Market is segmented as; Automotive, Industrial, Marine, Others.

By Distribution Channel: Based on the Distribution Channel, Global Automotive Oil Recycling Market is segmented as; Direct Sales, Indirect Sales.

By Region: This research also includes data for North America, Asia-Pacific, Latin America, Middle East & Africa and Europe.

This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.