Lubricating Oil Refining Market Report 2026

The lubricating oil refining market size has grown strongly in recent years. It will grow from $19.5 billion in 2025 to $20.74 billion in 2026 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to growth of automotive lubricant demand, expansion of industrial machinery usage, reliance on mineral base oils, investments in refinery infrastructure, growth of transportation sector.

The lubricating oil refining market size is expected to see strong growth in the next few years. It will grow to $26.5 billion in 2030 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to demand for low viscosity lubricants, growth of electric and hybrid vehicles, expansion of industrial automation, adoption of sustainable lubricants, investments in advanced refining technologies. Major trends in the forecast period include rising demand for high purity base oils, shift toward synthetic and bio-based lubricants, modernization of lubricant refining units, growth of re-refining and used oil processing, increasing focus on performance additives.

The rising demand for cleaner fuels is expected to drive the growth of the lubricating oil refining market in the coming years. Cleaner fuels are energy sources that generate fewer pollutants and greenhouse gas emissions compared to conventional fossil fuels. The growing demand for these fuels is fueled by their ability to reduce air pollution, lower greenhouse gas emissions, and mitigate climate change, ultimately supporting a healthier and more sustainable environment. Lubricating oil refining contributes to the production of cleaner fuels by removing impurities, sulfur, and other unwanted compounds, thereby enhancing fuel efficiency and improving engine performance. For example, in July 2025, the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, reported that biofuel production is projected to exceed 10 EJ by 2030 under the NZE Scenario, requiring an average annual growth of approximately 11%. Consequently, the increasing demand for cleaner fuels is propelling the growth of the lubricating oil refining market.

Companies in the lubricating oil refining market are focusing on innovations such as advanced re-refining technologies to improve efficiency, product quality, and environmental impact. These technologies recycle used lubricating oils, removing contaminants and restoring them to high-quality base oils suitable for reuse. In September 2024, Pentas Flora, a Malaysia-based waste management company, introduced re-refined Group II N150 base oil. This product aligns with industry trends towards high-performance, premium-grade oils, driven by the lubricant industry's demand for better fuel economy, extended drain intervals, lower emissions, and improved performance. Pentas Flora’s re-refining process, which includes distillation, solvent extraction, and lube polishing, produces higher-quality, low-sulfur base oils that meet Group II and III specifications.

In July 2024, TotalEnergies SE, a French petroleum company, acquired Str Tecoil Oy for an undisclosed amount. This acquisition aims to boost the circular economy in lubricants by expanding the use of re-refined base oils in lubricant production. It also seeks to enhance sustainability, reduce the carbon footprint of lubricants, and meet the growing demand for high-performance, eco-friendly products. Tecoil, a Finland-based oil re-refining company, specializes in recycling used lubricating oils and will help TotalEnergies achieve these goals.

Major companies operating in the lubricating oil refining market are Sinopec Group, PetroChina Company Limited, ExxonMobil Corporation, Shell plc, TotalEnergies SE, British Petroleum, Chevron Corporation, Idemitsu Kosan Co. Ltd., Lukoil, Neste Oyj, Fuchs SE, AVISTA OIL AG, Valvoline Inc., Heritage-Crystal Clean Inc., Gulf Oil, Motul S.A., Pentas Flora, AVISTA Green, Hyrax Oil, SK Lubricants Co. Ltd., Indian Oil Corporation Limited, Petro-Canada Lubricants Inc., Calumet Specialty Products Partners L.P., Nynas AB.

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

The lubricating oil refining market consists of sales of re-refined lubricants, grease-based lubricants, base oils, and finished lubricants. 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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