Base Oil Market was valued at USD 22.78 Billion in 2021 and expected to reach USD 30.59 Billion by 2028 with the CAGR of 4.3% over the forecast period.
Global Base Oil Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2022-2028- Increasing demand for high grade oils in automotive industry, rising demand of hydraulic oil in automobile industry and growing adaption of group I and group II base oils are some of the major factors anticipated to drive the growth of Global Base Oil Market.
The oils which are used for manufacture of products such as motor oil, metal processing fluids and lubricating greases are called base boiling point range between 550 and 1050 F, containing of hydrocarbons with 18 to 40 carbon atoms. Refining crude oil is used for base oil production. Light and heavy hydrocarbons are separated from one another during production of crude oil and the light ones can be refined to make petrol and other fuels, while the heftier are used for the production of base oils. Group I, Group II, Group III, Group IV, are the types of base oil.
The covid-19 pandemic has shown a negative impact on the growth of global base oil market due to lockdown there was temporary shutdown of base oil manufacturing companies. Due to slowdown of economic activity, demand for petroleum and petroleum products plummeted. The drop in demand, coupled with an unexpected increase in supply, led to a collapse in crude oil prices and subsequent impacts on global base oil market.
The global base oil market is segmented on the basis of types, group, application and region & country level. On the basis of types, the global base oil market is segmented into mineral, synthetic and bio-base. On the basis of group, the market is segmented into group I, group II, group III, group IV and other types. On the basis of application, the global base oil market is segmented into automotive oil, engine oils, gear oils, metalworking fluids, general industrial fluids, process oils, and other applications.
The regions covered in the global base oil market report are North America, Europe, Asia-Pacific, Latin America, and the rest of the World. On the basis of country level, the market of global base oil market is sub divided into U.S., Mexico, Canada, U.K., France, Germany, China, Italy, India, Japan, South East Asia, Middle East Asia (Saudi Arabia, UAE, Egypt) GCC, Africa, etc.
|2018 - 2021
|2022 - 2028
|Market Size in 2021:
|USD 22.78 Billion
|Base year considered
|Forecast Period CAGR %:
|Market Size Expected in 2028:
|USD 30.59 Billion
|Tables, Charts & Figures:
|Base Oil Companies
|Chevron Corporation, Exxon Mobil Corporation, Royal Dutch Shell PLC, China Petroleum & Chemical Corporation, Evonik Industries AG and others.
|By Type, By Group, By Application
|North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa
Some major key players for the global base oil market report are Chevron Corporation, Exxon Mobil Corporation, Royal Dutch Shell PLC, China Petroleum & Chemical Corporation, Evonik Industries AG and others.
Chevron Announced First 100% Renewable Base Oil Production
On August 5th, 2020; First production of 100% renewable base oil announced by Chevron Products Company, a division of Chevron U.S.A. Inc., and Novvi LLC. from Novvi’s Deer Park, Houston Facility. Development, production, marketing, and distribution of high-performance base oils from renewable sources was done by Chevron which is California based company. The agreement signaling its commitment to the energy transition and climate change focused on three areas lowering carbon intensity cost efficiently, increasing renewables in support of its business, and investing in the future targeting breakthrough technologies.
Nynas Launched Metalworking and Lubricants Base Oil Compliant with FDA Regulations
On June 7th, 2019; NYNAS S 3B Base oil that meets FCA B requirements launched by NYNAS which defines the requirements of the food packaging industry, with virtually no aromatic content and no odour and with a flash point well above 100°C demanding applications such as aerospace and low-temperature hydraulics. It has higher flash pointed which is useful in metal removal applications like grinding, honing and lapping. This newly launched NYNAS S 3B offered has low-temperature properties and superior solvency.
Increasing Demand for High Grade Oils in Automotive Industry, Rising Demand of Hydraulic Oil in Automobile Industry and Growing Adaption of Group I and Group II Base Oils are Some of the Major Factors Anticipated to Drive the Market Growth
One of the major factors driving to the growth of the global base of market is its growing demand for high grade oils in automotive industry. Automotive industry uses base oils for the production of lubricants and lubricants are required in vehicles steering mechanism automotive engine, transmission and heat generation. Base oils used in greases in the automobile industry and engine oils and high-performance engine oils are also of durable conditions for cars and trucks. Thus, increasing demand of high grade oils in automotive industry is driving the market growth. For instance; according to US Economy in 2021; the total value of the car and automobile manufacturing market in the United States is $82.6 billion. In addition to that, rising demand of hydraulic oil in automobile industry is another factor supplementing the market growth. For transferring hydrostatic power in hydraulic machinery hydraulic oil is used. Hydraulic oil is formulated from highly refined mineral stocks and a specially chosen additive system i.e., antioxidants, anticorrosion, antiwear and antifoam additives. Hydraulic oil in automobile industry is used for excellent viscosity and as ideal properties of hydraulic oils are achieved by a combination of a base oil and additives.
Moreover, growing adaption of Group I and Group II base oils is also augmenting the market growth. As group I mineral-based oils have found most applications in industrial applications, such as with hydraulic systems and gearboxes due to its availability and affordability. Thus, demand for Group I and Group II base oil in the automotive industry are enormously driving the global base oil market.
However, changing crude oil prices depressingly affect base oil prices, which is expected to slow down market growth during the forecast period. In spite of that, industrial developments are providing opportunities to the global base oil market.
Asia Pacific is Expected to Show a Significant Growth in the Global Base Oil Market
The Asia Pacific is expected to show a significant growth in the global base oil market due to the increasing demand for lubricants, rising investments in automobile segment and growing industrial sector in this region. The lubricants are used for are variety of determinations in addition to industrial applications such as it is used in grease, gear oil, engine oil, transmission and hydraulic fluid, metalworking fluid, general industrial oil. Thus, driving demand of these products in turn fostering the demand of global base oil. In addition, rising investments in the automobile segment in developing countries like India, Thailand and is also boosting the market growth of global base oil market. For instance; Thailand’s Charoen Pokphand Group partnered with a British brand owned by China's SAIC Motors. This partnership is anticipated to increase engine oil consumption in the area over the forecast period. Moreover, growing industrial sector is also boosting the market growth. For instance; according to German Association of Automotive industry; China's yearly automobile sales reached 21,090,200 units in 2021.
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