Waste Oil Market Report 2026

The waste oil market size has grown strongly in recent years. It will grow from $64.4 billion in 2025 to $68.2 billion in 2026 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to increasing generation of used industrial oils, expansion of automotive and industrial activities, rising adoption of re-refining processes, availability of waste oil collection systems, growth of lubricant consumption.

The waste oil market size is expected to see strong growth in the next few years. It will grow to $86.56 billion in 2030 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to growing regulatory focus on waste management, rising demand for alternative fuels, expansion of circular economy initiatives, increasing investment in advanced re-refining technologies, growing industrial sustainability requirements. Major trends in the forecast period include growing adoption of waste oil recycling technologies, rising use of re-refined oils, increased conversion into biodiesel feedstock, expansion of industrial waste oil collection networks, enhanced focus on circular resource utilization.

The booming automobile sector is expected to drive the growth of the waste oil market. The automobile industry comprises companies involved in manufacturing motor vehicles with two or more wheels, powered by internal combustion engines or electric systems. Waste oil is widely utilized in producing lubricants and engine oils for vehicles, fueling its demand. For instance, in 2023, the International Energy Agency (IEA), a France-based intergovernmental organization, reported that global electric vehicle (EV) sales reached 14 million, a 35% increase from the previous year, with EVs accounting for 18% of total vehicle sales. This trend underscores the automotive sector’s growth and its contribution to the waste oil market.

Major companies in the waste oil market are focusing on innovations such as oil management services to streamline recycling and develop sustainable disposal and reutilization solutions. Used oil management involves collection, recycling, and proper disposal of discarded oils to ensure regulatory compliance and environmental protection. For instance, in 2025, Lootah Biofuels, a UAE-based biofuel company, launched a smart app to expand its used cooking oil (UCO) collection network. The app enables households and institutions to recycle waste oil efficiently, supporting clean energy and circular economy objectives. It provides home collection, digital tracking, and financial incentives, converting waste oil into biodiesel and reducing environmental pollution.

In April 2024, Castrol Limited, a UK-based lubricants company, partnered with Safety Kleen Systems, Inc., to launch a circular used-oil recycling program called MoreCircular. The collaboration integrates Safety Kleen’s re-refined base oil, recovered from collected waste oil, into new high-quality lubricants, advancing sustainability goals and reducing product carbon footprints. Safety Kleen Systems, Inc., based in the U.S., specializes in industrial waste management, including used-oil collection and recycling for business and fleet customers.

Major companies operating in the waste oil market are Shell plc, BP plc, TotalEnergies SE, Exxon Mobil Corporation, Chevron Corporation, Valero Energy Corporation, Phillips 66 Company, Marathon Petroleum Corporation, Repsol S.A., Neste Oyj, PetroChina Company Limited, Sinopec Group, Indian Oil Corporation Limited, Reliance Industries Limited, Eni S.p.A., SK Innovation Co., Ltd., PJSC Lukoil, Equinor ASA, PKN Orlen S.A., Saras S.p.A.

Asia-Pacific was the largest region in the waste oil market in 2025. The regions covered in the waste oil market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the waste oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The waste oil market consists of sales of gearbox oil, combustion engine oil, and lubricating oil. 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.

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