Base Oil Market Overview
The global Base Oil Market size was valued at USD 20.8 billion in 2021 and is projected to reach USD 30.9 billion by 2030, growing at a CAGR of 4.5% during the forecast from 2022 To 2030.
Base oil is a synthetic material or refined petroleum mineral that is used to manufacture motor oil, lubricating greases, and metal processing fluids. This oil is obtained by extracting and processing crude oil and high-viscosity material from vacuum gas oil or vacuum reside distillation cuttings. The driving factors for the base oil market are the increase in demand for high-grade oils in the automotive industry and increasing industrialization across emerging economies. In addition, the GDP growth of developing countries in the Asia Pacific is further acting as catalyzing factor for the growth of the market across the globe.
COVID-19 Impact on Base Oil Market
The pandemic is predicted to have a significant influence on the base oil end-use industries, which is estimated to be reflected during the years 2020–2021. The demand for cars and commercial vehicles was halted during this widespread various company such as Hyundai, Honda, Fiat Chrysler Automobiles, Ford, Tesla, General Motors, etc. temporarily paused the production of vehicles. In addition, the imposition of stringent lockdown policies also leads to the scarcity of resources in the manufacturing sector, which has triggered extreme economic uncertainty. For instance, the demand for industrial oil decreased between January and March as a result of a sharp decline in industrial production, retail sales, and investments. However, the gradual opening of the lockdown and rising government support to the manufacturing and industrial sector is substantially supporting the market growth in the global market.
Base Oil Market Segmentation:
The global Base Oil Market is segmented on the basis of Group (Group I, Group II, Group III, Group IV, Group V), the basis Application (Automotive Oil, Industrial Oil, Metalworking Fluid, Greases, Hydraulic Oil, Others)
Group I segment is expected to be the largest segment of the Base Oil Market
The Group-I segment dominated the market and recorded the highest number of market revenue shares in 2021. The group I segment offers various benefits such as better affordability, high viscosity index, simple processing, low volatility, and lubrication properties. Thus, these advantages of group I of base oil are increasingly adopted by rail lubricants, automotive, and marine. The group is categorized by its paraffinic nature and low aromatic compound content, which is a combination of diverse hydrocarbon chains with little uniformity.
Whereas, the group II product segment is projected to grow at the highest CAGR over the forecasting years. Group II base oil is gaining high traction in applications such as marine and gas engines. Group II provides abridged sulfur concentration, oxidation stability, and stronger lower volatility, which are appropriate for use in lubricant formulations. This group is easily available at a competitive price, along with the establishment of new capacity across the countries in the Asia Pacific and the Middle East region is contributing to the segment growth in the impending years.
Base Oil Market Dynamics:
Drivers:
Surging demand for high-grade oils in the automotive industry
The emergence of advanced engine technology is presenting a huge impact on the demand for high-grade lubricants. The properties of high-grade lubricants including compatibility to compatibility and fast-moving parts are gaining huge traction across the automotive industry. The selection of the best base oil has a significant influence on the performance of the finished lubricants owing to the engine oils being manufactured with 70–90 percent base oil and 10–30 percent additives. Therefore, it is anticipated that the market for base oil is also be stimulated by the rising demand for high-grade engine oils. Diesel trucks, passenger automobiles, light-duty trucks, and stationary engines are utilizing high-performance engine oils that help them resist rigorous and extreme circumstances. According to the India Brand Equity Foundation, the market for passenger cars in India was valued at US$ 32.70 billion in 2021, and it is anticipated to grow to US$ 54.84 billion by 2027, with a CAGR of nearly 9%. Hence, the rising demand for passenger cars, light-duty trucks, diesel trucks, and other automobiles is prompting the need for base oil, which is augmenting the market growth across the globe.
Base Oil Regional Analysis:
The Asia Pacific Base Oil Market is expected to account for the largest market size in 2021.
The Asia Pacific is expected to account for the largest market size in 2021 owing to the increasing emphasis on industrial activities propelling the demand for base oil in this region. The presence of a huge consumer base in the region such as India, China, and Japan is stipulating the regional market demand. The increasing rate of motorization is leading to a significant rise in the GDP rate in the Asia Pacific region, which is fueling the demand for base oil. Moreover, the execution of stringent regulations by the regulatory bodies to strict performance standards is a further factor that is responsible for the growth of the base oil market in the Asia Pacific.
Key Market Players and Competitive Landscape
Some of the key market players operating in the global Base Oil Market are:
- Chevron Corporation (US)
- Motiva Enterprises LLC (US)
- Exxon Mobil Corporation (US)
- Calumet Specialty Products Partners, L.P. (US)
- Nynas AB (Sweden)
- SK innovation Co., Ltd. (South Korea)
- S-OIL CORPORATION (South Korea)
- Sinopec Corp. (China)
- AVISTA OIL AG (Germany)
- Royal Dutch Shell Plc (Netherlands)
- H&R Group (Germany)
- Neste Oyj (Finland)
- Ergon, Inc. (US)
- Repsol S.A. (Spain)
- Hindustan Petroleum Corporation Limited or HPCL (India)
The Beyond Market Insights research has segmented the Global Base Oil Market report on the basis of Group, Application, and region
Base Oil Market, Group Outlook:
- Group I
- Group II
- Group III
- Group IV
- Group V
Base Oil Market, Application Outlook
- Automotive Oil
- Industrial Oil
- Metalworking Fluid
- Greases
- Hydraulic Oil
- Others
Base Oil Market, Regional Outlook
- North America
- Europe
- France
- Germany
- UK
- Italy
- Rest of the Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of the APAC
- Latin America
- Mexico
- Brazil
- Rest of Latin America
- Middle East & Africa
- UAE
- Saudi Arabia
- Israel
- South Africa
- Rest of the Middle East & Africa
Base Oil Market Report Scope |
| Report Attribute | Details |
| Market Size Value in 2022 | USD 21.7 billion |
| Revenue Forecast in 2028 | USD 28.3 billion |
| Growth Rate | CAGR of 4.5 % from 2022 to 2028 |
| Base Year for Estimation | 2021 |
| Historical Data | 2017 – 2021 |
| Forecast Years | 2022 – 2028 |
| Quantitative Units | Revenue in USD million and CAGR from 2022 to 2028 |
| Report Coverage | Revenue forecast, company ranking, Trends
competitive landscape, and growth factors |
| Segments Covered | Group, Application, and Region |
| Regional Scope | North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Country Scope | U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico and Others |
| Key Companies Profiled | Chevron Corporation (US), Motiva Enterprises LLC (US), Exxon Mobil Corporation (US), Calumet Specialty Products Partners, L.P. (US), Nynas AB (Sweden), SK innovation Co., Ltd. (South Korea), S-OIL CORPORATION (South Korea), Sinopec Corp. (China), AVISTA OIL AG (Germany), Royal Dutch Shell Plc (Netherlands), H&R Group (Germany), Neste Oyj (Finland), Ergon, Inc. (US), Repsol S.A. (Spain), Hindustan Petroleum Corporation Limited or HPCL (India) |
Table of Content
Base Oil Market Size, Share, Growth, and Forecast Report
1. Introduction
1.1. Report Description
1.1.1. Aim of the Report
1.1.2. Prospective Audience
1.1.3. Unique Selling Prepositions and Key Takeaways from the Report
1.2. Scope of the Research Study
1.3. Approach/Research Methodology
1.3.1. Secondary Research
1.3.2. Primary Research
1.3.3. Expert Panel Review
1.3.4. Market Data Breakdown and Data Triangulation
1.3.5. Research Approach for Market Size Estimation
1.3.5.1. Top-Down Approach
1.3.5.2. Bottom-Up Approach
1.3.6. Key Assumptions
1.4. Market Segmentation
1.4.1. Group
1.4.2. Application
2. Base Oil Market Overview
2.1. Introduction
2.2. Analysis by Group, 2016-2028 (US$ Billion)
2.3. Analysis by Application, 2016-2028 (US$ Billion)
2.4. Market Analysis by Region, 2016-2028 (US$ Billion)
3. Base Oil Market Dynamics
3.1. Introduction
3.2. Growth Drivers
3.3. Growth Restraints
3.4. Growth Opportunities
3.5. Porter’s Five Forces Analysis
3.5.1. Threat of New Entrants
3.5.2. Bargaining Power of Buyers/Consumers
3.5.3. Bargaining Power of Suppliers
3.5.4. Threat of Substitute Groups
3.5.5. Intensity of Competitive Rivalry
3.6. Attractiveness Analysis
3.6.1. Group
3.6.2. Application
3.6.3. Region
3.7. Value Chain Analysis
4. Base Oil Market Competition Analysis
4.1. Base Oil Market Share Analysis by Company, 2019 – 2021
4.1.1. Top 3 Players, 2019 – 2021
4.1.2. Top 6 Players, 2019 – 2021
4.2. Strategic Initiatives
4.2.1. New Products Launch
4.2.2. Mergers/Acquisitions
4.2.3. Agreement and Collaborations
4.2.4. Partnerships, Joint Ventures, Expansion, and Distribution
5. Global Base Oil Market Analysis by Group and Application, 2016-2028 (US$ Billion)
5.1. Group
5.1.1. Global Base Oil Market Share, by Group, 2021 and 2028
5.1.2. Global Base Oil Market Revenue, by Group, 2016-2028 (US$ Billion)
5.1.3. By Group I Market Analysis 2016-2028 (US$ Billion)
5.1.4. By Group II Market Analysis 2016-2028 (US$ Billion)
5.1.5. By Group III Market Analysis 2016-2028 (US$ Billion)
5.1.6. By Group IV Market Analysis 2016-2028 (US$ Billion)
5.1.7. By Group V Market Analysis 2016-2028 (US$ Billion)
5.2. Application
5.2.1. Market Share, by Application, 2021 and 2028
5.2.2. Market Revenue, by Application, 2016-2028 (US$ Billion)
5.2.3. By Automotive Oil Market Analysis 2016-2028 (US$ Billion)
5.2.4. By Industrial Oil Market Analysis 2016-2028 (US$ Billion)
5.2.5. By Metalworking Fluid Market Analysis 2016-2028 (US$ Billion)
5.2.6. By Greases Market Analysis 2016-2028 (US$ Billion)
5.2.7. By Hydraulic Oil Market Analysis 2016-2028 (US$ Billion)
6. Global Base Oil Market Group Analysis by Region, 2016-2028 (US$ Billion)
6.1. Group I Market Analysis 2016-2028 (US$ Billion)
6.1.1. North America
6.1.2. Europe
6.1.3. Asia Pacific
6.1.4. Latin America
6.1.5. Middle East & Africa
6.2. Group II Market Analysis 2016-2028 (US$ Billion)
6.3. Group III Market Analysis 2016-2028 (US$ Billion)
6.4. Group IV Market Analysis 2016-2028 (US$ Billion)
6.5. Group V Market Analysis 2016-2028 (US$ Billion)
7. Global Base Oil Market Application Analysis by Region, 2016-2028 (US$ Billion)
7.1. Automotive Oil Market Analysis 2016-2028 (US$ Billion)
7.1.1. North America
7.1.2. Europe
7.1.3. Asia Pacific
7.1.4. Latin America
7.1.5. Middle East & Africa
7.2. Industrial Oil Market Analysis 2016-2028 (US$ Billion)
7.3. Metalworking Fluid Market Analysis 2016-2028 (US$ Billion)
7.4. Greases Market Analysis 2016-2028 (US$ Billion)
7.5. Hydraulic Oil Market Analysis 2016-2028 (US$ Billion)
8. Base Oil Market Analysis by Geography, 2016-2028 (US$ Billion)
8.1. North America Base Oil Market Analysis 2016-2028 (US$ Billion)
8.1.1. U.S. Base Oil Market Analysis 2016-2028 (US$ Billion)
8.1.1.1. Group
8.1.1.2. Application
8.1.2. Canada Base Oil Market Analysis 2016-2028 (US$ Billion)
8.1.3. Mexico Base Oil Market Analysis 2016-2028 (US$ Billion)
8.2. Europe Base Oil Market Analysis 2016-2028 (US$ Billion)
8.2.1. UK Base Oil Market Analysis 2016-2028 (US$ Billion)
8.2.1.1. Group
8.2.1.2. Application
8.2.2. France Base Oil Market Analysis 2016-2028 (US$ Billion)
8.2.3. Germany Base Oil Market Analysis 2016-2028 (US$ Billion)
8.2.4. Spain Base Oil Market Analysis 2016-2028 (US$ Billion)
8.2.5. Russia Base Oil Market Analysis 2016-2028 (US$ Billion)
8.2.6. Italy Base Oil Market Analysis 2016-2028 (US$ Billion)
8.2.7. Rest of Europe Base Oil Market Analysis 2016-2028 (US$ Billion)
8.3. Asia Pacific Base Oil Market Analysis 2016-2028 (US$ Billion)
8.3.1. China Base Oil Market Analysis 2016-2028 (US$ Billion)
8.3.1.1. Group
8.3.1.2. Application
8.3.2. Japan Base Oil Market Analysis 2016-2028 (US$ Billion)
8.3.3. South Korea Base Oil Market Analysis 2016-2028 (US$ Billion)
8.3.4. India Base Oil Market Analysis 2016-2028 (US$ Billion)
8.3.5. Australia Base Oil Market Analysis 2016-2028 (US$ Billion)
8.3.6. Southeast Asia Base Oil Market Analysis 2016-2028 (US$ Billion)
8.3.7. Taiwan Base Oil Market Analysis 2016-2028 (US$ Billion)
8.3.8. Rest of Asia Pacific Base Oil Market Analysis 2016-2028 (US$ Billion)
8.4. Latin America Base Oil Market Analysis 2016-2028 (US$ Billion)
8.4.1. Brazil Base Oil Market Analysis 2016-2028 (US$ Billion)
8.4.1.1. Group
8.4.1.2. Application
8.4.2. Argentina Base Oil Market Analysis 2016-2028 (US$ Billion)
8.4.3. Rest of Latin America Base Oil Market Analysis 2016-2028 (US$ Billion)
8.5. Middle East Base Oil Market Analysis 2016-2028 (US$ Billion)
8.5.1. Israel Base Oil Market Analysis 2016-2028 (US$ Billion)
8.5.1.1. Group
8.5.1.2. Application
8.5.2. Turkey Base Oil Market Analysis 2016-2028 (US$ Billion)
8.5.3. Saudi Arabia Base Oil Market Analysis 2016-2028 (US$ Billion)
8.5.4. UAE Base Oil Market Analysis 2016-2028 (US$ Billion)
8.5.5. Rest of Middle East Base Oil Market Analysis 2016-2028 (US$ Billion)
8.6. Africa Base Oil Market Analysis 2016-2028 (US$ Billion)
8.6.1. Egypt Base Oil Market Analysis 2016-2028 (US$ Billion)
8.6.1.1. Group
8.6.1.2. Application
8.6.2. South Africa Base Oil Market Analysis 2016-2028 (US$ Billion)
8.6.3. Rest of Africa Base Oil Market Analysis 2016-2028 (US$ Billion)
9. Company Profiles
9.1. Chevron Corporation (US)
9.1.1. Company Overview
9.1.2. Financial Performance
9.1.3. Product Benchmarking
9.1.4. Strategic Initiatives
9.2. Motiva Enterprises LLC (US)
9.3. Exxon Mobil Corporation (US)
9.4. Calumet Specialty Products Partners, L.P. (US)
9.5. Nynas AB (Sweden)
9.6. SK innovation Co., Ltd. (South Korea)
9.7. S-OIL CORPORATION (South Korea)
9.8. Sinopec Corp. (China)
9.9. AVISTA OIL AG (Germany)
9.10. Royal Dutch Shell Plc (Netherlands)
9.11. H&R Group (Germany)
9.12. Neste Oyj (Finland)
9.13. Ergon, Inc. (US)
9.14. Repsol S.A. (Spain)
9.15. Hindustan Petroleum Corporation Limited or HPCL (India)
10. COVID-19 Impact Analysis
10.1. Global Base Oil Market, 2020 – 2028, Pre-V/S Post COVID 19
10.2. Estimated Impact of The Coronavirus (Covid-19) Epidemic on the Base Oil Market Size In 2022, By Scenario
10.3. Impact on Supply Chain and Production in Base Oil Market
10.4. Impact on Import and Export
11. Import-Export Analysis
11.1. North America Base Oil Import-Export, 2016 – 2021
11.2. Europe Base Oil Import-Export, 2016 – 2021
11.3. Asia Pacific Base Oil Import-Export, 2016 – 2021
11.4. Latin America Base Oil Import-Export, 2016 – 2021
11.5. Middle East America Base Oil Import-Export, 2016 – 2021
11.6. Africa Base Oil Import-Export, 2016 – 2021
12. Base Oil Marketing Channel Analysis
12.1. Marketing Channel
12.1.1. Direct Marketing
12.1.2. Indirect Marketing
12.1.3. Development Trend
12.2. Market Positioning
13. Base Oil Manufacturing Cost Analysis
13.1. Key Raw Materials
13.2. Key Raw Material Suppliers
13.3. Market Concentration Rate
13.4. Manufacturing Cost Structure
13.5. Process Analysis
14. Conclusion
Base Oil Market, Group Outlook:
- Group I
- Group II
- Group III
- Group IV
- Group V
Base Oil Market, Application Outlook
- Automotive Oil
- Industrial Oil
- Metalworking Fluid
- Greases
- Hydraulic Oil
- Others
