Base oil Market

Base oil Market Size

Global Base oil to surpass USD 43.1 billion by 2031 from USD 35.3 billion in 2021 at a CAGR of 1.9% in the coming years, i.e., 2021-31.

Base oil is basically the refined petroleum mineral or synthetic material generated by a refinery to a set of requirements, usually lubricant base stock. High-viscosity material is extracted and processed from vacuum gasoil or vacuum reside distillation cuttings to make base oils. This demands specialized processing by a variety of lubes plant units. The type of base oil used for refining and/or the production method utilized to manufacture the base oil can affect the lubricant's quality. Base oils typically make up between 70 and 97 percent of lubricant formulations therefore it is essential for the lubricant grade.

Market Highlights

Global Base oil market is expected to project a notable CAGR of 1.9% in 2031.

Global Base oil to surpass USD 43.1 billion by 2031 from USD 35.3 billion in 2021 at a CAGR of 1.9% in the coming years, i.e., 2021-31. This shrinkage is largely due to a growing preference for cleaner, higher-quality base oil, as Group I base oil contains a lot of contaminants such sulphur, nitrogen, olefins, and PCNA (Poly-Cyclic Nuclear Aromatics). For the reason that of the high sulphur concentration of Group I base oil, meeting mid SAPS (Sulfated Ash, Phosphorous, and Sulfur) criteria and matching the excellent performance of lighter viscosity grade oils is difficult.

Global Base oil: Segments

Automotive oil segment to grow with the highest CAGR during 2021-31

Global Base oil market is fragmented by application into automotive oil, industrial oil, hydraulic oil, grease, metalworking fluid, and others. Agriculture, additives, and detergents/dispersants are some of the various uses for base oils. In terms of both value and volume, the automotive oil application segment is expected to lead the market throughout the forecast period. The expansion of the automobile sector in developing countries is responsible for this segment's growth. Furthermore, rising population in Asia Pacific is increasing demand for the automobile industry, propelling the market for the automotive oil application segment of the base oil market.

Group I segment to grow with the highest CAGR during 2021-31

Global Base oil market is segmented by product type into Group I, Group II, Group III, Group IV, and Group V. For the reason that group I base oils are the cheapest base oils on the market, they dominated the global base oil market in 2020 and are likely to continue to do so over the forecast period. These basic oils have a temperature range of 30 to 150 degrees Fahrenheit. Furthermore, these base oils are solvent-refined and so generated through a simple refining process, lowering the overall cost of these oils.

Market Dynamics

Drivers

In the automotive industry, there is a growing demand for high-grade oils.

Advanced engine technology is driving demand for high-grade lubricants that can withstand high temperatures and fast-moving parts. The choice of base oil has a significant impact on the finished lubricant's overall performance. Engine oils are made up of 70% to 90% base oil and 10% to 30% additives. As a result, rising demand for high-grade engine oils is likely to drive up demand for base oil. High-performance engine oils can enable diesel vehicles, passenger automobiles, light-duty trucks, and stationary engines resist harsh circumstances. Base oil makes up the majority of engine oils. As a result, the base oil market is developing due to rising demand for high-grade oils in the automobile industry.

Advancement in R&D and large number of competitors

Engine oils are being used more frequently in industries like metallurgy, automotive, chemicals, heavy equipment, and power generation, which is driving the rise. The market is highly fragmented, with a significant number of very inventive competitors present. The battle is fierce as participants compete to keep their consumers in order to get a competitive advantage over one another. Companies are implementing collaborative business tactics to boost efficiency, supply consumers with high-quality products, and extend their geographical presence.

Restraint

Reduction in demand for base I oil

Group I has dominated base oil production since the early twentieth century. However, demand for Group I base oil is likely to decline significantly in the near future, particularly in Europe and North America. This shrinkage is largely due to a growing preference for cleaner, higher-quality base oil, as Group I base oil contains a lot of contaminants such sulphur, nitrogen, olefins, and PCNA (Poly-Cyclic Nuclear Aromatics). For the reason that of the high sulphur concentration of Group I base oil, meeting mid SAPS (Sulfated Ash, Phosphorous, and Sulfur) criteria and matching the excellent performance of lighter viscosity grade oils is difficult.

Global Base oil Market:

Key Players

• Phillips 66 Company

(Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

• Chevron Corporation
• Exxon Mobil Corporation
• Evonik Industries AG
• NesteOyj
• PT Pertamina
• S-OIL CORPORATION
• Royal Dutch Shell Plc
• AVISTA OIL AG
• Saudi Aramco
• Other Prominent Players

Global Base oil Market: Regions

Global Base oil market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. In 2021, the Asia Pacific region is expected to be the biggest market for base oil. In this region, China, Japan, and India are the major consumers of base oil. The demand for base oil in the Asia Pacific region has increased due to rising GDP and increased industrial activity. Furthermore, the Asia Pacific base oil market is growing due to the expansion of transportation, power generation, mining, and other sectors.

Impact of Covid-19 on Base oil Market

Due to the COVID-19 pandemic, transportation restrictions were established, resulting in lower industrial productivity and disrupted supply networks, which had a significant impact on worldwide economic growth.The COVID-19 epidemic wreaked havoc on the worldwide automotive industry quickly and dramatically. Parts shipments from China are being disrupted, large-scale production disruptions are happening across Europe, and assembly factories in the United States are crumbling. This puts a lot of pressure on an automobile industry that is already suffering from a global demand slump, and it will almost surely result in further merger and acquisition activity.

Global Base oil Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa and Rest of MENA

Global Base oil Market report also contains analysis on:

Base oil Market Segments:

• By Application
  • Automotive oil
  • Industrial oil
  • Hydraulic oil
  • Grease
  • Metalworking fluid
  • Others
• By Product type
  • Group I
  • Group II
  • Group III
  • Group IV
  • Group V
• Base oil Market Dynamics
• Base oil Market Size
• Supply & Demand
• Current Trends/Issues/Challenges
• Competition & Companies Involved in the Market
• Value Chain of the Market
• Market Drivers and Restrain

Base oil market Report Scope and Segmentation

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