The global base oil market was worth $34.9 billion in 2020 and this study emphasises that revenue growth for the worldwide base oil market is anticipated to reach at a CAGR of 3.42% from 2022 to 2028.
Base Oil Market Overview
Base oil, commonly used as lubricant base stock, is the refined petroleum mineral or synthetic material created by a refinery to a particular set of requirements. High-viscosity material from vacuum gas oil or to make base oils, cuttings from vacuum reside distillation or other methods are extracted and processed. The use of engine oils in sectors such metallurgy, the automobile, chemical, heavy equipment, and power generation is thought to be the primary driver of the expansion. The kind of base oil used for refining or the process of base oil manufacture might affect the quality of a lubricant. As base oils typically make up between 70 and 97% of lubricant formulations, it is crucial for the grade of the lubricant. Automobile manufacturing is creating demand for engine oils which in turn is driving the growth of the market. Growing demand for renewable sources of energy is acting as a favourable factor driving the market growth. Increasing crude oil prices has increased the cost of production which in turn is acting as a restraint for the growth of the market. Stringent environmental regulations have caused reduced consumption of fuel which in turn is a restraint in the market growth. The markets of emerging economies and the use of latest technologies are opportunities for the growth of the market. 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.
Industry News
- In March 2021, Shell and Maserati have extended their technical and commercial collaboration by launching the new Shell Helix Ultra Hybrid oil for Maserati hybrid engines for long-lasting performance and superior protection to car engine lifespan.
- In August 2019, ExxonMobil Chemical Company, a subsidiary of Exxon Mobil Corporation, chose Synergy Additives Company S.A. de C.V. (Mexico) as the distributor of its Group IV/V base stocks (synthetic base stocks) in the regions of Mexico, Central America, and the Caribbean. The development helped enhance the company’s geographic presence.
What are the major Types and Applications for Base Oil Market?
Major Market Segment:
Base Oil Market by Type:
- Group I
- Group II
- Group III
- Group IV
- Group V
- Naphthenic
- Re-refined
Base Oil Market by Application:
- Automotive Oil
- Industrial Oil
- Metalworking Fluids
- Hydraulic Oil
- Greases
- Others
Base Oil Market Regional Analysis
North America, Latin America, Europe, Asia-Pacific, the Middle East, and Africa are all regions of the world with a base oil market. Over the coming years, the market is anticipated to grow at the fastest rate in Asia-Pacific. China's market is expanding as a result of rising demand for crude oil brought on by fast industrialization, strong economic growth, and an increase in the export of refined petroleum products. The nation also experienced a large increase in the manufacture and sale of automobiles. Accordingly, the OICA predicted that within a year, the overall production of cars and commercial vehicles will increase by over 1.5 million units. As a result, these elements are widening the base oil market's reach.
North America
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- Rest of the World
- Middle East & Africa
- Latin America
What is our Base Oil Market Report Scope?
Report Attributes
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Report Details
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Forecast Period 2022 to 2027 CAGR
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CAGR of 3.42% during the review period (2022 to 2027).
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By Type
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- Group I
- Group I I
- Group I I I
- Group IV
- Group V
|
By Application
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- Automotive Oil
- Industrial Oil
- Metalworking Fluids
- Hydraulic Oil
- Greases
- Others
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By Companies
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Shell, Chevron, Neste Oil, Exxon Mobil, Total, Sinopec.
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Regions Covered
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- North America
- Europe
- Asia-Pacific
- Rest of the World
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Countries Covered
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- US
- Canada
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- Latin America
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Base Year
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2022
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Historical Year
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2017 to 2021
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Forecast Year
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2022 to 2027
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Number of Pages
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86
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Customization Available
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Yes, the report can be customized as per your needs
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FAQ -
What is the study period of this market?
The Base Oil Market is studied from 2017 - 2027.
What is the growth rate of Base Oil Market?
The Base Oil Market is growing at a CAGR of 3.42% over the next 6 years.
What regions does this Base Oil Market report covers?
North America (the United States, Canada, and Mexico)
Europe (Germany, France, UK, Russia, and Italy)
Asia-Pacific (China, Japan, Korea, India, and Southeast Asia)
South America (Brazil, Argentina, Colombia, etc.)
The Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, and South Africa)
What is the COVID-19 impact on base oil end-use industries?
COVID-19 outbreak is expected to have a major impact on the various end-use industries of global demand for base oil market. The outbreak and the spread of the COVID-19 led to major disruptions across end-use industries such as automotive, manufacturing, mining and metalworking, thereby resulting in reduced demand for base oil products, particularly during the years 2020-2021.
All our reports are custom made to your company needs to a certain extent, we do provide 5 free consulting hours along with purchase of each report, and this will allow you to request any additional data to customize the report as your needs.
SECONDARY RESEARCH
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
PRIMARY RESEARCH
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
MARKET ENGINEERING
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
EXPERT VALIDATION
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.
