Global Base Oil Market: Key Highlights
- According to the new market research report “Base Oil Market by Group (Group I, Group II, Group III, Others), by Type (Mineral, Synthetic, Bio-based), by Application (Automotive Oil, Industrial Oil, Hydraulic Oil, Metalworking Fluid, Grease, Others), by Region (North America, Asia Pacific, Europe, Middle East & Africa, South America) – Global Forecast (2020 to 2027)”, the global base oil market is estimated to reach USD 43.1 Billion by 2027 at a CAGR of around 3.1% during the review period.
- Petroleum-based mineral oil functions very well as lubricants in probably 90 % of industrial applications
- The base oil is cost-effective and provides reasonable service life to engines if used properly
- The base oil can be either paraffinic or naphthenic in nature depending on the chemical structure of the molecules
- Group I type of base oil is widely used as it is least refined oil usually used in industrial and automotive application owing to cost-effectiveness as compared to other base oil
- Owing to the performance-enhancing ability of Group II and Group III base oil has also gained popularity
Global Base Oil Market: Key Market Dynamics
- Growing automotive industry owing to factors such as rising luxury trucks, increasing adoption of of electric vehicles, rising purchasing habits of millennials and consumer trend towards mobility has expected to surge the growth of product market
- Rise in demand for higher performance oil under extreme cold and high-temperature synthetic oil has anticipated to propel the growth of base oil market
- Fluctuating crude oil prices attributed to various factors such as supply & demand, natural calamities, and others may hinder the growth of the market
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Global Base Oil Market: Regional Overview
The Asia-Pacific is anticipated to experience steady growth in the base oil market during the forecasted period. This is attributed to increasing demand for efficiency and needs to reduce GHG emissions. Additionally, the automotive industry is also experiencing steady growth in the region. According to OICA, automotive sales in the Asia-Pacific were 47,410,253 in 2018. Thus, the need for higher fuel economy, energy efficiency, more severe operating condition and longer drain interval by the automotive industry may propel product growth.
Europe is expected to grow at substantial growth in the base oil market during the forecasted period owing to its enduring automotive sector. According to the European Commission, the turnover generated by the automotive sector represents over 7 % of EU GDP in 2018. In order to strengthen the competitiveness of the EU automotive industry and presence, the government is providing funding for research and development. For instance, according to the European Automobile Manufacturers Association (ACEA), the government has increased the spending by 6.75 to reach USD 64.9 billion annually.
Global Base Oil Market: Key Players Overview
- Exxon Mobil Corporation:
Exxon Mobil Corporation is energy providers and chemical manufacturers. The company operates through downstream, upstream, and chemical business segments. In 2018, the company invested USD 1 billion for research and development. In June 2019, the company expanded its Singapore refinery to upgrade its production of EHC Group II base stocks. This expansion will help to strengthen the global supply of high-quality base stock to meet growing demand.
- Nynas AB:
Nynas AB is a company offering niche market products and naphthenic specialty products and bitumen are its specialty products. The company operated through naphthenic and bitumen business segments. In June 2019, the company launched NYNAS S 3B base oil to its product portfolio. It is highly refined base oil which meet the requirements of FDA of food packaging industry.
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