Key Market Overview:
Base oil market size was valued at USD 20.2 billion in 2021, registering a CAGR of 4.6% during the forecast period (2022-2030), and the market is projected to be worth USD 31.1 Billion by 2030.
Base oils are produced through crude oil refining. A wide range of base oils is available in the market, including synthetic ester oil, PAO Oil, naphthenic base oil, and virgin base oil. Numerous engine oils such as lubricating oils, industrial gear, transmission greases, and lubricants are formulated from base oils. The quality of base oil has a critical role in deciding the lubricant’s quality as over 80-85 percent of motor oil consists of base oil by volume. Furthermore, base oils are produced by treating and extracting the high-viscosity substance from narrow distillation cuts present in the vacuum gas oil or reside. Thus, base oils offer wide applications as greases, gear and transmission lubricants, and other automotive products due to thermal stability, effective pour point, and volatility.
Base oils are suitable for blending into finished oils such as heavy-duty engine oil, passenger car motor oil, automatic transmission fluid, gear oils, or hydraulic fluids. Throughout the world, automobiles and truck engines are the key consumers who consume over 21 million tons of lubricants yearly, credited for half of the total lubricant utilization. In the coming years, the manufacturing capacity of Group II, III, and IV base oils has grown significantly globally. Furthermore, the Group II and III base oils are enormously receiving popularity for their usage in lubricant formulations for transmission engines that automatic, passenger, and heavy-duty trucks. Thus, the advantageous features of base oils are anticipated to drive the advancement and growth of the global market of base oils during the forecast period. The growing population in the Asia Pacific region is propelling the base oil market demand for base oils, especially in the automotive industries. This region is expected to contribute the fastest CAGR growth in terms of value and volume. Thus, the demand for base oil is anticipated to rise owing to the advancement in motorization in emerging nations in the coming period.
Base oils are largely used in making high-grade automotive lubricants that support fast speed and high temperatures of vehicle components. Thus, the growing demand for high-purity engine oils boosts the market growth during the forecast period. Furthermore, the rising consumer adoption of engine oils for diesel trucks, light-duty trucks, and passenger cars accelerates the base oil market growth in terms of base oils as additives to these engine oils. Moreover, the increasing demand for oils in the industry of automotive exceptionally in emerging nations, and the stringent regulation towards environmental concerns is leading the market of base oil. Also, the growing demand for hydraulic oils in the industry of automobile is driving the market growth of base oil.
The fluctuation in crude oil costs is one of the major restraints as base oils are extracted from the distillation of crude oil. The cost fluctuation of crude oil extraction is directly proportionate to the base oil prices. Thus, the mentioned factor is expected to hamper the growth of the market during the forecast period. Additionally, the drop in demand for Group I base oils is responsible for the huge manufacturing of other groups such as Groups II, III, IV, and V oils. Therefore, the decreasing demand for group I base oil is challenging the market of base oil growth rate.
Multiple industries like the chemicals & materials industry faced unpredictable difficulties during the COVID-19 pandemic. The scarcity of labor and raw material, the closure of manufacturing facilities, and other various operational challenges under the protocol of COVID-19 safety, resulted in the desolation of product sales in the initial time of the pandemic. Additionally, the lockdown affected the transportation sector, which in turn lowered the movement of passenger and commercial vehicles across the world. All the above factors drastically impacted the market of lubricants during the pandemic. Furthermore, the sectors have initiated recovery post-pandemic and the demand for lubricants is expected to increase in the upcoming years.
Base Oil Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||31.1 Billion|
|By Product Type||Group I, Group II, Group III, Group IV, Group V.|
|By Application||Automotive oil, Industrial oil, Hydraulic oil, Grease, Metalworking oil|
|By Geography||North America– (U.S., Canada, Mexico)
Europe- (Germany, France, U.K., Russia, Italy, Spain, BENELUX, Rest of Europe)
Asia Pacific- (China, Japan, India, South Korea, Australia, ASEAN, Rest of Asia Pacific)
Latin America- (Brazil, Argentina, Chile, Rest of Latin America)
Middle East and Africa- (GCC, Turkey, Israel, and the Rest of MEA)
|Key Players||CNOOC Limited, PetroCanada Lubricants Inc., Petroleum & Chemical Corp. (SINOPEC), PETRONAS Lubricants International, PT Pertamina (Persero), PetroChina Co., Ltd., ExxonMobil Corporation, Abu Dhabi National Oil Company, Chevron Corporation, Shell plc, Indian Oil Corporation Ltd.|
By Product Type
The product type segment is separated based on Group I, Group II, Group III, Group IV, and Group V. The group I segment dominates and has the largest base oil market share of over 41.8% in the year 2021. Additionally, this is credited to rising utilization in rail, automotive and marine lubricants due to simple processing, affordability, high viscosity index, lubrication, and low volatility properties of base oils. Furthermore, this group has features like paraffinic nature and low aromatic compound content, and the range of temperature is from 32˚F to 150˚F, with comparison to all other groups, group I is less refined. Moreover, the group II product holds the second-largest share of revenue in the year 2021 due to its new capacity and easy availability additions near the territories in Asia Pacific and the Middle East with competitive prices.
The application segment is incorporated in automotive oil, industrial oil, hydraulic oil, grease, and metalworking oil. The automotive oils segment contributed the largest market and revenue share of over 43.2% in the year 2021. Moreover, its largest part is credited to the growing demand for engine oil, greases, gear oil, and others for the lubrication of automobile components. Additionally, with vehicle producers pushing towards meeting standards of pollution, the market of the automobile is expected to propel companies to manufacture base oils. Further, process oil holds the second-largest revenue share due to its utilization in a various variety of chemical and technical industrial sectors either as help in processing or as a raw material. They play a key role in numerous applications like leather goods manufacture, polymer industry, agriculture, foam control, textile production, sealants, and civil explosive production.
Based on the regional segment the market is segmented into Asia Pacific, North America, Europe, the Middle East, and Africa, Latin America. The Asia Pacific holds the largest market and revenue share of 51% in the year 2021. This is credited to the presence of developing nations and the growing disposable income of the population in the area making it an exceptional market for lubricant producers. Asia Pacific is the largest market for base oil worldwide, with China being the dominant territory. China is estimated to lead the base oil market in the Asia Pacific during the period forecast. The dominance is credited to the rising utilization of automobiles and the swift growth in the industry of manufacturing in the country.
Europe holds the second-largest share in terms of global revenue in 2021. Furthermore, increased lubricant consumption especially due to the high presence of automobiles in Europe as the lubricants are dependent on the base oils. The increasing utilization of base oil is intently related to the growth of the industrial and transportation sectors.
Base oil Market Competitive Landscape:
The competitive landscape of the market has been evaluated in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and Application launches have accelerated the growth of the Sample Preparation market. Key players in the market include-
Table of Content
To check our Table of Contents, please mail us at: [email protected]
Research MethodologyThe Market Research Community offers numerous solutions and its full addition in the research methods to be skilled at each step. We use wide-ranging resources to produce the best outcome for our customers. The achievement of a research development is completely reliant on the research methods implemented by the company. We always faithful to our clients to find opportunities by examining the global market and offering economic insights.
Market Research Community are proud of our widespread coverage that encompasses the understanding of numerous major industry domains. Company offers consistency in our research report, we also offers on the part of the analysis of forecast across a range of coverage geographies and coverage. The research teams carry out primary and secondary research to carry out and design the data collection methods.