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Base oil Market: By Application (Automotive oil, Industrial oil, Hydraulic oil, Grease, Metalworking fluid, and Others); By Product type (Group I, Group II, Group III, Group IV, and Group V); , And Region – Global Analysis of Market Size, Share & Trends For 2019–2020 And Forecasts To 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.
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.
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 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.
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.
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.
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.
(Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)
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.
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.
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Report Attribute |
Details |
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Market size value in 2021 |
USD 35.3 billion |
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Revenue forecast in 2031 |
USD 43.1 billion |
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Growth Rate |
CAGR of 1.9% from 2021 to 2031 |
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Base year for estimation |
2021 |
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Quantitative units |
Revenue in USD million and CAGR from 2021 to 2031 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Product Type, Application and Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA) |
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Key companies profiled |
Phillips 66 Company, Chevron Corporation, Exxon Mobil Corporation, Evonik Industries AG, NesteOyj, PT Pertamina, S-OIL Corporation, Royal Dutch Shell Plc, AVISTA OIL AG, and Saudi Aramco, and Other Prominent Players. |
Base oil market size was estimated at USD 35.3 billionin 2021 and is expected to reach USD 43.1billion in 2031.
The refined petroleum mineral or synthetic material generated by a refinery to a set of requirements, usually lubricant base stock, is known as base oil. High-viscosity material is extracted and processed from vacuum gasoil or vacuum reside distillation cuttings to make base oils.
Group I segment accounted for the largest Base oil market share.
Key players: Phillips 66 Company, Chevron Corporation, Exxon Mobil Corporation , Evonik Industries AG, NesteOyj, PT Pertamina, S-OIL Corporation, Royal Dutch Shell Plc, AVISTA OIL AG, and Saudi Aramco
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.
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