Base Oil Market Overview
The size of the Global Base Oil Market, estimated at USD 19.46 billion in 2022, is expected to increase at a compound annual growth rate (CAGR) of 5.6% from 2023 to 2030.
The global Base Oil market is projected to witness considerable growth in the forecast period. Rapid industrialization has improved the demand for lubricants among several end users. Development of sectors such as industrial machinery, automotive, and energy in developing countries, such as China, India, Brazil, and South Africa is boosting the demand for lubricants and their derivatives such as finished lubricants. This major fact remarkably contributes to the growth of the global Base Oil market.
Furthermore, demand for eco-friendly synthetic hydraulic oils or hydraulic fluids has been growing, due to the reduction of crude oil levels and rising focus on the protection of the environment. These oils are employed in several end-use industries such as aviation, manufacturing, construction, and automotive. Therefore, rapid industrialization and mechanization of industries are propelling the demand for hydraulic fluids. Eventually, it boosting the growth of the global base oil market.
Additionally, group II and III base oils possess higher oxidation stability and lower sulfur content and volatility. Also, they have higher solvency power. Hence, group II and III base oils are suitable for use in the formulation of lubricants, typically for passenger cars, heavy-duty vehicles, and automatic transmission engines. These characteristics of Group II and III base oils are expected to fuel the demand for these oils in the forecast period. This factor supports the growth of the global base oil market steadily.
On the other hand, volatility in prices of crude oil may hamper the growth of the Base Oil market.
Covid-19 Impact on Base Oil Market:
The ongoing COVID-19 pandemic conditions have severely affected every sector around the world. Whereas, the chemicals and materials sectors were moderately affected during the pandemic. This is primarily due to the uncut demand for chemicals for healthcare, life science, and cleaning agents. However, other elements of chemical and material sectors such as paints, industrial oil, construction materials are facing diminution in demand. Strict lockdown resulted in a nearly 50-60% reduction in supply for raw materials, which directly affected the manufacturing process. Further, halt on many end-use industries directly affected the chemical demand all around the world.
Base Oil Market Segment Overview
Based on application, the Automotive Fluids segment is projected to dominate the base oil market over the forecast period. In the automotive industry, base oils are extensively employed to manufacture lubricants. Lubricants play an important role in automotive engine, transmission, and steering mechanisms by reducing friction and heat generation. Additionally, the increase in the automotive sector in the developing regions further propelling the growth of the automotive fluids application segment. Moreover, Hydraulic Oils is another main segment of the global base oil market. Hydraulic oils provide superior thermal and oxidation stability, low pour points, high viscosity index, and superior heat transfer.
Base Oil Market, By Grade
Region-wise, Asia Pacific dominated the global base oil market. This can be attributed to the rapid growth of the automotive industry, and increasing demand for electric vehicles in this region. Similarly, North America is the second-largest market for base oils. Demand for lubricants in the U.S. is increasing moderately, owing to a rise in government spending to impose emission standards, increasing consumer inclination toward high-quality lubricants, and constant research in automation technologies in the field of blended lubricants in this region. This major fact expanding the base oil market in North America.
Base Oil Market, By Geography
· North America (US & Canada)
· Europe (UK, Germany, France, Italy, Spain, Russia & Rest of Europe)
· Asia-Pacific (Japan, China, India, Australia, & South Korea, & Rest of Asia-Pacific)
· LAMEA (Brazil, Saudi Arabia, UAE & Rest of LAMEA)
Base Oil Market Competitor overview
Some key developments and strategies adopted by manufacturers in the Base Oil are highlighted below.
· In September 2019, Repsol signed an agreement for the purchase of a 40% stake in United Oil Company, a Singapore-based lubricant manufacturer that produces and supplies Repsol’s products in Singapore, Indonesia, Malaysia, and Vietnam. This agreement would expand its presence in Southeast Asia, one of the world’s largest and most rapidly expanding industries for lubricants.
Base Oil Market, Key Players
· PetroChina Company Limited
· Royal Dutch Shell Plc
· Nynas AB
· S-OIL CORPORATION
· Refinery (India) Limited
· Repsol
· Calumet Specialty Products Partners
· L.P
· SAC Petrobras S.A.
· Apar Industries Ltd.
· Gulf Petrochem FZC
· Resolute Oil, LLC
· UniSource Energy, Inc.
The size of the Global Base Oil Market, estimated at USD 19.46 billion in 2022, is expected to increase at a compound annual growth rate (CAGR) of 5.6% from 2023 to 2030.
The global Base Oil market is projected to witness considerable growth in the forecast period. Rapid industrialization has improved the demand for lubricants among several end users. Development of sectors such as industrial machinery, automotive, and energy in developing countries, such as China, India, Brazil, and South Africa is boosting the demand for lubricants and their derivatives such as finished lubricants. This major fact remarkably contributes to the growth of the global Base Oil market.
Furthermore, demand for eco-friendly synthetic hydraulic oils or hydraulic fluids has been growing, due to the reduction of crude oil levels and rising focus on the protection of the environment. These oils are employed in several end-use industries such as aviation, manufacturing, construction, and automotive. Therefore, rapid industrialization and mechanization of industries are propelling the demand for hydraulic fluids. Eventually, it boosting the growth of the global base oil market.
Additionally, group II and III base oils possess higher oxidation stability and lower sulfur content and volatility. Also, they have higher solvency power. Hence, group II and III base oils are suitable for use in the formulation of lubricants, typically for passenger cars, heavy-duty vehicles, and automatic transmission engines. These characteristics of Group II and III base oils are expected to fuel the demand for these oils in the forecast period. This factor supports the growth of the global base oil market steadily.
On the other hand, volatility in prices of crude oil may hamper the growth of the Base Oil market.
Covid-19 Impact on Base Oil Market:
The ongoing COVID-19 pandemic conditions have severely affected every sector around the world. Whereas, the chemicals and materials sectors were moderately affected during the pandemic. This is primarily due to the uncut demand for chemicals for healthcare, life science, and cleaning agents. However, other elements of chemical and material sectors such as paints, industrial oil, construction materials are facing diminution in demand. Strict lockdown resulted in a nearly 50-60% reduction in supply for raw materials, which directly affected the manufacturing process. Further, halt on many end-use industries directly affected the chemical demand all around the world.
Base Oil Market Segment Overview
Based on application, the Automotive Fluids segment is projected to dominate the base oil market over the forecast period. In the automotive industry, base oils are extensively employed to manufacture lubricants. Lubricants play an important role in automotive engine, transmission, and steering mechanisms by reducing friction and heat generation. Additionally, the increase in the automotive sector in the developing regions further propelling the growth of the automotive fluids application segment. Moreover, Hydraulic Oils is another main segment of the global base oil market. Hydraulic oils provide superior thermal and oxidation stability, low pour points, high viscosity index, and superior heat transfer.
Base Oil Market, By Grade
- Group I
- SN 150
- BS 150
- SN 250
- SN 500
- Others
- Group II
- N 150
- N 500
- N 600
- Others
- Group III
- 2 cSt
- 4 cSt
- 6 cSt
- 8 cSt
- Group IV (PAO)
- Group V (Excl. Naphthenic)
- Naphthenic
- 35–60 SUS
- 80–130 SUS
- 200–300 SUS
- 400–800 SUS
- Above 1,200 SUS
- Re-refined
- Automotive Fluids
- Lubricants
- Gear Oils
- Transmission Fluids
- Power Steering Fluids
- Brake Fluids
- Others
- Process Oils
- Rubber Process Oils
- Textile Process Oils
- Industrial Oils
- Transformer Oils
- Turbine Oils
- Food-grade Oils
- Others
- Metalworking Fluids
- Emulsions
- Neat Oils
- Hydraulic Oils
- Petroleum-based
- Biodegradable
- Others
Region-wise, Asia Pacific dominated the global base oil market. This can be attributed to the rapid growth of the automotive industry, and increasing demand for electric vehicles in this region. Similarly, North America is the second-largest market for base oils. Demand for lubricants in the U.S. is increasing moderately, owing to a rise in government spending to impose emission standards, increasing consumer inclination toward high-quality lubricants, and constant research in automation technologies in the field of blended lubricants in this region. This major fact expanding the base oil market in North America.
Base Oil Market, By Geography
· North America (US & Canada)
· Europe (UK, Germany, France, Italy, Spain, Russia & Rest of Europe)
· Asia-Pacific (Japan, China, India, Australia, & South Korea, & Rest of Asia-Pacific)
· LAMEA (Brazil, Saudi Arabia, UAE & Rest of LAMEA)
Base Oil Market Competitor overview
Some key developments and strategies adopted by manufacturers in the Base Oil are highlighted below.
· In September 2019, Repsol signed an agreement for the purchase of a 40% stake in United Oil Company, a Singapore-based lubricant manufacturer that produces and supplies Repsol’s products in Singapore, Indonesia, Malaysia, and Vietnam. This agreement would expand its presence in Southeast Asia, one of the world’s largest and most rapidly expanding industries for lubricants.
Base Oil Market, Key Players
· PetroChina Company Limited
· Royal Dutch Shell Plc
· Nynas AB
· S-OIL CORPORATION
· Refinery (India) Limited
· Repsol
· Calumet Specialty Products Partners
· L.P
· SAC Petrobras S.A.
· Apar Industries Ltd.
· Gulf Petrochem FZC
· Resolute Oil, LLC
· UniSource Energy, Inc.
Base Oil Market Study Global Market Analysis, Insights and Forecast, 2023-2030
1. Introduction
- 1.1. Research Scope
- 1.2. Market Segmentation
- 1.3. Research Methodology
- 1.4. Definitions and Assumptions
2. Executive Summary
3. Market Dynamics
- 3.1. Market Drivers
- 3.2. Market Restraints
- 3.3. Market Opportunities
4. Key Insights
- 4.1. Key Emerging Trends – For Major Countries
- 4.2. Latest Technological Advancement
- 4.3. Regulatory Landscape
- 4.4. Industry SWOT Analysis
- 4.5. Porters Five Forces Analysis
5. Global Base Oil Market Analysis (USD Billion), Insights and Forecast, 2023-2030
- 5.1. Key Findings / Summary
- 5.2. Market Analysis, Insights and Forecast – By Grade
- 5.2.1. Group I
- 5.2.1.1. SN 150
- 5.2.1.2. BS 150
- 5.2.1.3. SN 250
- 5.2.1.4. SN 500
- 5.2.1.5. Others
- 5.2.2. Group II
- 5.2.2.1. N 150
- 5.2.2.2. N 500
- 5.2.2.3. N 600
- 5.2.2.4. Others
- 5.2.3. Group III
- 5.2.3.1. 2 cSt
- 5.2.3.2. 4 cSt
- 5.2.3.3. 6 cSt
- 5.2.3.4. 8 cSt
- 5.2.4. Group IV (PAO)
- 5.2.5. Group V (Excl. Naphthenic)
- 5.2.6. Naphthenic
- 5.2.6.1. 35–60 SUS
- 5.2.6.2. 80–130 SUS
- 5.2.6.3. 200–300 SUS
- 5.2.6.4. 400–800 SUS
- 5.2.6.5. Above 1,200 SUS
- 5.2.7. Re-refined
- 5.2.1. Group I
- 5.3. Market Analysis, Insights and Forecast – By Application
- 5.3.1. Automotive Fluids
- 5.3.1.1. Lubricants
- 5.3.1.2. Gear Oils
- 5.3.1.3. Transmission Fluids
- 5.3.1.4. Power Steering Fluids
- 5.3.1.5. Brake Fluids
- 5.3.1.6. Others
- 5.3.2. Process Oils
- 5.3.2.1. Rubber Process Oils
- 5.3.2.2. Textile Process Oils
- 5.3.3. Industrial Oils
- 5.3.3.1. Transformer Oils
- 5.3.3.2. Turbine Oils
- 5.3.3.3. Food-grade Oils
- 5.3.3.4. Others
- 5.3.4. Metalworking Fluids
- 5.3.4.1. Emulsions
- 5.3.4.2. Neat Oils
- 5.3.5. Hydraulic Oils
- 5.3.5.1. Petroleum-based
- 5.3.5.2. Biodegradable
- 5.3.6. Others
- 5.3.1. Automotive Fluids
- 5.4. Market Analysis, Insights and Forecast – By Region
- 5.4.1. North America
- 5.4.2. Europe
- 5.4.3. Asia Pacific
- 5.4.4. Latin America, Middle East and Africa
6. North America Base Oil Market Analysis (USD Billion), Insights and Forecast, 2023-2030
- 6.1. Key Findings / Summary
- 6.2. Market Analysis, Insights and Forecast – By Grade
- 6.2.1. Group I
- 6.2.1.1. SN 150
- 6.2.1.2. BS 150
- 6.2.1.3. SN 250
- 6.2.1.4. SN 500
- 6.2.1.5. Others
- 6.2.2. Group II
- 6.2.2.1. N 150
- 6.2.2.2. N 500
- 6.2.2.3. N 600
- 6.2.2.4. Others
- 6.2.3. Group III
- 6.2.3.1. 2 cSt
- 6.2.3.2. 4 cSt
- 6.2.3.3. 6 cSt
- 6.2.3.4. 8 cSt
- 6.2.4. Group IV (PAO)
- 6.2.5. Group V (Excl. Naphthenic)
- 6.2.6. Naphthenic
- 6.2.6.1. 35–60 SUS
- 6.2.6.2. 80–130 SUS
- 6.2.6.3. 200–300 SUS
- 6.2.6.4. 400–800 SUS
- 6.2.6.5. Above 1,200 SUS
- 6.2.7. Re-refined
- 6.2.1. Group I
- 6.3. Market Analysis, Insights and Forecast – By Application
- 6.3.1. Automotive Fluids
- 6.3.1.1. Lubricants
- 6.3.1.2. Gear Oils
- 6.3.1.3. Transmission Fluids
- 6.3.1.4. Power Steering Fluids
- 6.3.1.5. Brake Fluids
- 6.3.1.6. Others
- 6.3.2. Process Oils
- 6.3.2.1. Rubber Process Oils
- 6.3.2.2. Textile Process Oils
- 6.3.3. Industrial Oils
- 6.3.3.1. Transformer Oils
- 6.3.3.2. Turbine Oils
- 6.3.3.3. Food-grade Oils
- 6.3.3.4. Others
- 6.3.4. Metalworking Fluids
- 6.3.4.1. Emulsions
- 6.3.4.2. Neat Oils
- 6.3.5. Hydraulic Oils
- 6.3.5.1. Petroleum-based
- 6.3.5.2. Biodegradable
- 6.3.6. Others
- 6.3.1. Automotive Fluids
- 6.4. Market Analysis, Insights and Forecast – By Country
- 6.4.1. U.S.
- 6.4.2. Canada
7. Europe Base Oil Market Analysis (USD Billion), Insights and Forecast, 2023-2030
- 7.1. Key Findings / Summary
- 7.2. Market Analysis, Insights and Forecast – By Grade
- 7.2.1. Group I
- 7.2.1.1. SN 150
- 7.2.1.2. BS 150
- 7.2.1.3. SN 250
- 7.2.1.4. SN 500
- 7.2.1.5. Others
- 7.2.2. Group II
- 7.2.2.1. N 150
- 7.2.2.2. N 500
- 7.2.2.3. N 600
- 7.2.2.4. Others
- 7.2.3. Group III
- 7.2.3.1. 2 cSt
- 7.2.3.2. 4 cSt
- 7.2.3.3. 6 cSt
- 7.2.3.4. 8 cSt
- 7.2.4. Group IV (PAO)
- 7.2.5. Group V (Excl. Naphthenic)
- 7.2.6. Naphthenic
- 7.2.6.1. 35–60 SUS
- 7.2.6.2. 80–130 SUS
- 7.2.6.3. 200–300 SUS
- 7.2.6.4. 400–800 SUS
- 7.2.6.5. Above 1,200 SUS
- 7.2.7. Re-refined
- 7.2.1. Group I
- 7.3. Market Analysis, Insights and Forecast – By Application
- 7.3.1. Automotive Fluids
- 7.3.1.1. Lubricants
- 7.3.1.2. Gear Oils
- 7.3.1.3. Transmission Fluids
- 7.3.1.4. Power Steering Fluids
- 7.3.1.5. Brake Fluids
- 7.3.1.6. Others
- 7.3.2. Process Oils
- 7.3.2.1. Rubber Process Oils
- 7.3.2.2. Textile Process Oils
- 7.3.3. Industrial Oils
- 7.3.3.1. Transformer Oils
- 7.3.3.2. Turbine Oils
- 7.3.3.3. Food-grade Oils
- 7.3.3.4. Others
- 7.3.4. Metalworking Fluids
- 7.3.4.1. Emulsions
- 7.3.4.2. Neat Oils
- 7.3.5. Hydraulic Oils
- 7.3.5.1. Petroleum-based
- 7.3.5.2. Biodegradable
- 7.3.6. Others
- 7.3.1. Automotive Fluids
- 7.4. Market Analysis, Insights and Forecast – By Country
- 7.4.1. UK
- 7.4.2. Germany
- 7.4.3. France
- 7.4.4. Italy
- 7.4.5. Spain
- 7.4.6. Russia
- 7.4.7. Rest of Europe
8. Asia Pacific Base Oil Market Analysis (USD Billion), Insights and Forecast, 2023-2030
- 8.1. Key Findings / Summary
- 8.2. Market Analysis, Insights and Forecast – By Grade
- 8.2.1. Group I
- 8.2.1.1. SN 150
- 8.2.1.2. BS 150
- 8.2.1.3. SN 250
- 8.2.1.4. SN 500
- 8.2.1.5. Others
- 8.2.2. Group II
- 8.2.2.1. N 150
- 8.2.2.2. N 500
- 8.2.2.3. N 600
- 8.2.2.4. Others
- 8.2.3. Group III
- 8.2.3.1. 2 cSt
- 8.2.3.2. 4 cSt
- 8.2.3.3. 6 cSt
- 8.2.3.4. 8 cSt
- 8.2.4. Group IV (PAO)
- 8.2.5. Group V (Excl. Naphthenic)
- 8.2.6. Naphthenic
- 8.2.6.1. 35–60 SUS
- 8.2.6.2. 80–130 SUS
- 8.2.6.3. 200–300 SUS
- 8.2.6.4. 400–800 SUS
- 8.2.6.5. Above 1,200 SUS
- 8.2.7. Re-refined
- 8.2.1. Group I
- 8.3. Market Analysis, Insights and Forecast – By Application
- 8.3.1. Automotive Fluids
- 8.3.1.1. Lubricants
- 8.3.1.2. Gear Oils
- 8.3.1.3. Transmission Fluids
- 8.3.1.4. Power Steering Fluids
- 8.3.1.5. Brake Fluids
- 8.3.1.6. Others
- 8.3.2. Process Oils
- 8.3.2.1. Rubber Process Oils
- 8.3.2.2. Textile Process Oils
- 8.3.3. Industrial Oils
- 8.3.3.1. Transformer Oils
- 8.3.3.2. Turbine Oils
- 8.3.3.3. Food-grade Oils
- 8.3.3.4. Others
- 8.3.4. Metalworking Fluids
- 8.3.4.1. Emulsions
- 8.3.4.2. Neat Oils
- 8.3.5. Hydraulic Oils
- 8.3.5.1. Petroleum-based
- 8.3.5.2. Biodegradable
- 8.3.6. Others
- 8.3.1. Automotive Fluids
- 8.4. Market Analysis, Insights and Forecast – By Country
- 8.4.1. China
- 8.4.2. India
- 8.4.3. Japan
- 8.4.4. Australia
- 8.4.5. South East Asia
- 8.4.6. Rest of Asia Pacific
9. Latin America, Middle East and Africa Base Oil Market Analysis (USD Billion), Insights and Forecast, 2023-2030
- 9.1. Key Findings / Summary
- 9.2. Market Analysis, Insights and Forecast – By Grade
- 9.2.1. Group I
- 9.2.1.1. SN 150
- 9.2.1.2. BS 150
- 9.2.1.3. SN 250
- 9.2.1.4. SN 500
- 9.2.1.5. Others
- 9.2.2. Group II
- 9.2.2.1. N 150
- 9.2.2.2. N 500
- 9.2.2.3. N 600
- 9.2.2.4. Others
- 9.2.3. Group III
- 9.2.3.1. 2 cSt
- 9.2.3.2. 4 cSt
- 9.2.3.3. 6 cSt
- 9.2.3.4. 8 cSt
- 9.2.4. Group IV (PAO)
- 9.2.5. Group V (Excl. Naphthenic)
- 9.2.6. Naphthenic
- 9.2.6.1. 35–60 SUS
- 9.2.6.2. 80–130 SUS
- 9.2.6.3. 200–300 SUS
- 9.2.6.4. 400–800 SUS
- 9.2.6.5. Above 1,200 SUS
- 9.2.7. Re-refined
- 9.2.1. Group I
- 9.3. Market Analysis, Insights and Forecast – By Application
- 9.3.1. Automotive Fluids
- 9.3.1.1. Lubricants
- 9.3.1.2. Gear Oils
- 9.3.1.3. Transmission Fluids
- 9.3.1.4. Power Steering Fluids
- 9.3.1.5. Brake Fluids
- 9.3.1.6. Others
- 9.3.2. Process Oils
- 9.3.2.1. Rubber Process Oils
- 9.3.2.2. Textile Process Oils
- 9.3.3. Industrial Oils
- 9.3.3.1. Transformer Oils
- 9.3.3.2. Turbine Oils
- 9.3.3.3. Food-grade Oils
- 9.3.3.4. Others
- 9.3.4. Metalworking Fluids
- 9.3.4.1. Emulsions
- 9.3.4.2. Neat Oils
- 9.3.5. Hydraulic Oils
- 9.3.5.1. Petroleum-based
- 9.3.5.2. Biodegradable
- 9.3.6. Others
- 9.3.1. Automotive Fluids
- 9.4. Market Analysis, Insights and Forecast – By Country
- 9.4.1. Brazil
- 9.4.2. Saudi Arabia
- 9.4.3. UAE
- 9.4.4. Rest of LAMEA
10. Competitive Analysis
- 10.1. Company Market Share Analysis, 2018
- 10.2. Key Industry Developments
- 10.3. Company Profile
- 10.4. PetroChina Company Limited
- 10.4.1. Business Overview
- 10.4.2. Segment 1 & Service Offering
- 10.4.3. Overall Revenue
- 10.4.4. Geographic Presence
- 10.4.5. Recent Development
- 10.5. Royal Dutch Shell Plc
- 10.6. Nynas AB
- 10.7. S-OIL CORPORATION
- 10.8. Refinery (India) Limited
- 10.9. Repsol
- 10.10. Calumet Specialty Products Partners
- 10.11. L.P
- 10.12. SAC Petrobras S.A.
- 10.13. Apar Industries Ltd.
- 10.14. Gulf Petrochem FZC
- 10.15. Resolute Oil, LLC
Research Process
Data Library Research are conducted by industry experts who offer insight on industry structure, market segmentations technology assessment and competitive landscape (CL), and penetration, as well as on emerging trends. Their analysis is based on primary interviews (~ 80%) and secondary research (~ 20%) as well as years of professional expertise in their respective industries. Adding to this, by analysing historical trends and current market positions, our analysts predict where the market will be headed for the next five years. Furthermore, the varying trends of segment & categories geographically presented are also studied and the estimated based on the primary & secondary research.
In this particular report from the supply side Data Library Research has conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and SOFT) of the companies that active & prominent as well as the midsized organization
FIGURE 1: DLR RESEARH PROCESS
Extensive primary research was conducted to gain a deeper insight of the market and industry performance. The analysis is based on both primary and secondary research as well as years of professional expertise in the respective industries.
In addition to analysing current and historical trends, our analysts predict where the market is headed over the next five years.
It varies by segment for these categories geographically presented in the list of market tables. Speaking about this particular report we have conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and many more) of the major players active in the market.
Secondary ResearchSecondary research was mainly used to collect and identify information useful for the extensive, technical, market-oriented, and Friend’s study of the Global Extra Neutral Alcohol. It was also used to obtain key information about major players, market classification and segmentation according to the industry trends, geographical markets, and developments related to the market and technology perspectives. For this study, analysts have gathered information from various credible sources, such as annual reports, sec filings, journals, white papers, SOFT presentations, and company web sites.
Market Size EstimationBoth, top-down and bottom-up approaches were used to estimate and validate the size of the Global market and to estimate the size of various other dependent submarkets in the overall Extra Neutral Alcohol. The key players in the market were identified through secondary research and their market contributions in the respective geographies were determined through primary and secondary research.
Forecast Model
