Lubricating Oil Refining Market Report 2025

The lubricating oil refining market size has grown strongly in recent years. It will grow from $6.19 billion in 2024 to $6.6 billion in 2025 at a compound annual growth rate (CAGR) of 6.7%. The growth during the historic period can be attributed to the increasing demand for high-performance lubricants, a rising need for lubricants in the aviation sector, growing demand in the automotive sector, expanding demand in the industrial sector, and the increase in global trade.

The lubricating oil refining market size is expected to see strong growth in the next few years. It will grow to $8.46 billion in 2029 at a compound annual growth rate (CAGR) of 6.4%. The growth during the forecast period can be attributed to the increasing demand for cleaner fuels, a shift toward biofuels and renewable energy sources, rising industrialization, rapid urbanization, and a growing need for efficient and reliable lubricants. Key trends expected in this period include technological advancements, developments in lubricant formulations, a transition to bio-based lubricants, integration of digital technology in refining operations, and a stronger focus on circular economy practices.

The growing 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 produce fewer pollutants and greenhouse gas emissions compared to traditional fossil fuels. This increased demand is driven by the need to reduce air pollution, lower greenhouse gas emissions, and mitigate climate change, contributing to a healthier and more sustainable environment. Lubricating oil refining plays a vital role in producing cleaner fuels by removing impurities, sulfur, and unwanted compounds, which improves fuel efficiency and enhances engine performance. For example, in December 2022, the International Energy Agency (IEA) projected a 6% growth in global biofuel demand, which equates to an annual increase of 9.1 billion liters between 2021 and 2022. As a result, the rising demand for cleaner fuels is fueling 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 players 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, Clean Harbors Inc., Fuchs SE, AVISTA OIL AG, Valvoline Inc., Heritage-Crystal Clean Inc., Gulf Oil, Motul S.A., Pentas Flora, AVISTA Green, Hyrax Oil.

North America was the largest region in the lubricating oil refining market in 2024. The regions covered in lubricating oil refining report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the lubricating oil refining market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Lubricating oil refining is the process of converting crude or used oils into high-quality base oils, which are essential for producing lubricants. This process typically includes refining, filtering, and purifying oils to remove impurities and improve their performance for various industrial and automotive applications.

The main product types in lubricating oil refining are mineral oils, synthetic oils, bio lubricants, and semi-synthetic oils. Mineral oils are petroleum-based liquids derived from crude oil, commonly used as lubricants, coolants, and insulating fluids in numerous industrial and automotive applications. They come in various viscosity grades such as low, medium, and high viscosity. These oils also contain additives such as detergents, antioxidants, anti-wear agents, viscosity index improvers, and corrosion inhibitors. Mineral oils are used in a wide range of applications, including automotive oils, industrial oils, aerospace oils, marine oils, and specialty oils.

The lubricating oil refining market research report is one of a series of new reports that provides lubricating oil refining market statistics, including the lubricating oil refining industry global market size, regional shares, competitors with the lubricating oil refining market share, detailed lubricating oil refining market segments, market trends, and opportunities, and any further data you may need to thrive in the lubricating oil refining industry. This lubricating oil refining market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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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