Base Oil Market Research – 2030
The global base oil market size was valued at $34.9 billion in 2020, and is projected to reach $41.7 billion by 2030, growing at a CAGR of 1.8% from 2021 to 2030.
A refinery can produce base oil as one of its specialty products. Base oil is the refined petroleum mineral or synthetic material produced by a refinery to a required set of specifications, typically lubricant base stock. Base oils are made by extracting and processing high-viscosity material from vacuum gasoil or vacuum reside distillation cuttings. This necessitates unique processing through a range of lubes plant units. The quality of a lubricant can depend upon the type of base oil used for the refining and/or production method used to produce the base oil. It is critical toward the grade of lubricant as base oils normally make up to 70–97% of formulation of lubricants.
Demand for oils in the automotive industry, especially from developing countries, and stringent environmental legislation leading to strict performance standards drive the global base oil market growth. Furthermore, increase in demand for hydraulic oil in the automobile industry drives the growth of oil base market. However, fluctuating costs of crude oil and regulations concerning emission norms hamper the market growth. The global shift from group I base oils to group II & III present numerous growth opportunities to market players.
The base oil market is segmented on the basis of resin type, application, and region. Depending on type, the market is categorized into group I, II, III, IV, and V. According to application, it is classified into automotive oil, industrial oil, metalworking fluids, hydraulic oil, greases, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Comprehensive competitive analysis and profiles of major market players, such as Phillips 66 Company, Chevron Corporation, Exxon Mobil Corporation , Evonik Industries AG, Neste Oyj, PT Pertamina, S-OIL Corporation, Royal Dutch Shell Plc, AVISTA OIL AG, and Saudi Aramco are considered in the base oil market report.
Base Oil Market, by Type
The group I segment dominated the global base oil market size in 2020, and is expected to maintain its dominance during the forecast period, as group I base oils are the cheapest base oils available in the market. The range of temperature for these base oils is from 30 to 150 degree Fahrenheit. In addition, these base oils are produced from a simple refining process, and thus are solvent-refined, which reduces the overall cost of these oils.
By Type
Group I is projected as the most lucrative segment.
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Base Oil Market, by Application
The automotive oil segment dominated the global base oil market share in 2020, and is expected to maintain its dominance during the forecast period, owing to increase in demand for best quality base oils for automobiles across the globe.
By Application
Automotive Oil is projected as the most lucrative market.
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Base Oil Market, by Region
Asia-Pacific accounted for the largest share of the base oil market in 2020, and is expected to grow at the highest CAGR, in terms of both volume and value, owing to the growing rate of motorization in the developing countries. This is driving the demand for lubricants, which, in turn, increases the demand for base oil.
By Region
Asia-Pacific is projected as the most lucrative segment.
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Key Benefits For Stakeholders
- The report provides in-depth analysis of the global base oil market along with the current trends and future estimations.
- This report highlights the key drivers, opportunities, and restraints of the market along with the impact base oil market trends during the forecast period.
- Porter’s five forces analysis helps to analyze the potential of the buyers & suppliers and the competitive scenario of the global base oil market for strategy building.
- A comprehensive market analysis covers the factors that drive and restrain the global base oil market forecasr.
- The qualitative data about market dynamics, trends, and developments is provided in the market report.
Base Oil Market Report Highlights
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Analyst Review
Changing lubricant grades necessitate the constant substitution of group I base oils by group II-and III-based products, leading to plant terminations across the globe. Low crude oil cost is expected to aid the industry for group I manufacturers and support for the base oil industry. Base oils in group I contain less than 90% saturates, greater than 0.03% sulfur, and Society of Automotive Engineers (SAE) viscosity index of 80 to 120. Operating temperature range is 32-150°F. These oils are solvent-refined, which is a less time-consuming refining technique, making them the most affordable base oils.
The global economy profits from reduction in oil costs because of high financial multiplier in emerging oil-importing economies. Therefore, base oil utilization in the automotive sector is expected to grow through both increase in purchasing power (new and second-hand automotive deals) and surge in vehicle usage. This growth is expected to be particularly noticeable in developing countries and control the decline in group I base oil demand. However, in 2020, COVID-19 had a negative impact on the market. Declining automotive industry and temporary shutdown of automotive manufacturing and industrial units as a result of the pandemic scenario, resulted in lower consumption of engine oil, gear oils, greases, and metalworking fluid, reducing the demand for base oil.
Asia-Pacific is expected to have a significant global market share by 2030, owing to enhanced demand from automotive sector and surge in industrial growth. Increase in inclination toward higher grade lubricants and base stocks expands Asia-Pacific’s market share, owing to lower costs of base oils.
The drivers, restraints, and opportunities are explained in the report to better understand the market dynamics. This report further highlights the key areas of investment. In addition, it includes Porter’s five forces analysis to understand the competitive scenario of the industry and role of each stakeholder. The report features the strategies adopted by key market players to strengthen their foothold in the market. Furthermore, it highlights the competitive landscape of the key players to increase their market share and sustain intense competition in the industry.
High industrial growth and increase in demand for high-grade oils in automotive industry are expected to boost the base oil market growth.
The market value of global base oil market in 2021 is expected to be $ 35.4 billion and projected to rise to $ 41.7 billion in 2030.
The leading players in the market Phillips 66 Company, Chevron Corporation, Exxon Mobil Corporation , Evonik Industries AG, Neste Oyj, PT Pertamina, S-OIL Corporation, Royal Dutch Shell Plc, AVISTA OIL AG, and Saudi Aramco
The automotive industry is projected to increase the demand for base oil market
The global base oil market is segmented on the basis of derivative type, application, and region.
Increase in demand for high-grade oils in the automotive industry is the main driver of base oil Market
Due to COVID-19 pandemic, transport limitations were implemented, resulting in reduced industrial production and disrupted supply chains, which affected global economic growth by a substantial proportion, severely impacting market growth.
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