The industrial oil market is undergoing a significant transformation, shifting from a linear to a circular model. Instead of being used once and disposed of, industrial oils are being reused, regenerated, and replaced with bio-based alternatives. Companies like Veolia and Safety-Kleen are operating advanced re-refining facilities, processing millions of gallons of used oil annually. Re-refined oils can perform on par with virgin oils, offering environmental benefits and cost advantages. The adoption of synthetic and bio-based industrial oils is also gaining momentum, particularly in high-stress industries like wind energy and mining.
Regulations and ESG mandates are driving this change, with the European Union’s Circular Economy Action Plan and the US Environmental Protection Agency’s used oil management standards promoting sustainable oil practices. The industrial oil market is expected to grow from $70.44 billion in 2025 to $99.36 billion by 2035, with re-refined oils becoming increasingly cost-competitive. However, challenges remain, including limited infrastructure in developing countries and awareness gaps among small and medium-sized enterprises. Emerging innovations, such as decentralized micro-re-refining units, are helping to address these challenges and create a more sustainable industrial oil market.