Waste oil market seen reaching $70.6 billion by 2031

By AI, Created 5:51 AM UTC, June 04, 2026, /AGP/ – Allied Market Research says the global waste oil market could climb from $45.0 billion in 2021 to $70.6 billion by 2031 as recycling, re-refining and industrial recovery accelerate worldwide. The report points to stronger demand from automotive, manufacturing and infrastructure activity, plus tighter environmental rules.

Why it matters: - Waste oil is shifting from a disposal problem to a feedstock for recycled base oils, fuels and lubricants. - The market’s growth reflects broader demand for circular economy solutions, lower emissions and reduced dependence on crude oil. - The report projects the global waste oil market will grow from $45.0 billion in 2021 to $70.6 billion by 2031, a 4.7% compound annual growth rate from 2022 to 2031.

What happened: - Allied Market Research released a report on the global waste oil market on June 4, 2026. - The report says the market is being supported by rising industrialization, expanding transportation networks, higher vehicle ownership and investment in waste management infrastructure. - The report says stricter environmental regulations and demand for lower-cost alternatives to virgin petroleum products are increasing interest in waste oil recovery and recycling technologies. - More information is available in the downloadable PDF brochure. - The full report is available through the purchase page.

The details: - Waste oil includes petroleum-based or synthetic oil that has been contaminated and can no longer serve its original purpose. - Common waste oil streams include used engine oil, transmission oil, hydraulic fluids, lubricating oils, compressor oils and industrial process oils. - Recycling and re-refining can convert used oil into base oils, industrial fuels and lubricants. - The report says re-refining uses less energy than producing lubricants from crude oil and cuts greenhouse gas emissions. - Advanced treatment methods cited in the report include vacuum distillation, thin-film evaporation and hydrogen treatment. - Vacuum distillation is described as one of the most widely used technologies because it is efficient, scalable and capable of producing high-quality recovered oil products. - By type, lubricants held about 56% of market revenue in 2021 and are expected to grow fastest through 2031. - By application, the market is split between waste oil boilers and re-refiners, with re-refining positioned as the more attractive segment because it produces high-quality base oils from used lubricants. - Asia-Pacific held about 40.4% of global revenue in 2021 and is projected to post the fastest growth through 2031. - China, India, Japan and South Korea are key regional growth markets because of industrial expansion, vehicle fleets and infrastructure development. - North America is supported by advanced recycling infrastructure, strict environmental rules and high awareness of sustainable waste management. - Europe remains strong because of environmental legislation, circular economy policy and broad adoption of re-refining technologies. - Latin America, the Middle East and Africa are expanding waste oil management capabilities as industrial activity and regulation evolve. - The competitive field includes ENVA, GOINS Waste Oil Company, Gecco Fuels, Enfields Chemicals CC, Oil Salvage Ltd., MIB Waste Services, Alexandria Petroleum Company, Falzon Group, JJ Richards & Sons Pty Ltd., Safety-Kleen Systems, Silver Recycling, Alliance to End Plastic Waste and Neste.

Between the lines: - The report frames waste oil as an industrial input with measurable economic value, not just a waste stream. - Pandemic-era shutdowns in 2020 and 2021 reduced lubricant demand, slowed manufacturing and disrupted collection and processing, but the market began recovering in the second half of 2021. - The growth story is being driven as much by compliance and sustainability requirements as by industrial output. - Companies in the sector are pushing facility expansions, partnerships, mergers and technology upgrades to improve recovery rates and product quality. - The circular economy angle suggests recycled oil could capture a larger share of industrial lubrication demand if quality and economics keep improving.

What’s next: - The report expects continued market expansion as industrial activity, vehicle ownership and transportation networks grow. - Re-refining investments are likely to increase as companies seek better margins and lower-carbon production. - Governments and businesses are expected to keep tightening waste handling standards and expanding recycling infrastructure. - The market’s long-term trajectory will depend on how quickly advanced processing technologies can scale and how strongly circular economy policies are adopted.

The bottom line: - Waste oil is emerging as a growing industrial recycling business with a large addressable market, stronger regulation and improving technology behind it.