Base Oil Market by Type (Group I, Group II, Group III, Group IV, and Group V) and Application (Automotive Oil, Industrial Oil, Metalworking Fluids, Hydraulic Oil, Greases, and Others): Global Opportunity Analysis and Industry Forecast, 2021–2030

Base Oil Market Statistics – 2030

The global base oil market was valued at $34.9 billion in 2020, and is projected to reach $41.7 billion by 2030, growing at a CAGR of 1.8% from 2021 to 2030.

Statement for COVID-19 banner: The COVID-19 pandemic has negatively affected the base oil market due to a reduction in consumption and over-supply of refined petroleum products and declining economic development due to various lockdown measures implemented globally.

A refinery can produce base oil as one of its specialty products. Base oil is the refined petroleum mineral or synthetic material produced by a refinery to a required set of specifications, typically lubricant base stock. Base oils are made by extracting and processing high-viscosity material from vacuum gasoil or vacuum reside distillation cuttings. This necessitates unique processing through a range of lubes plant units. The quality of a lubricant can depend upon the type of base oil used for the refining and/or production method used to produce the base oil. It is critical toward the grade of lubricant as base oils normally make up to 70–97% of formulation of lubricants. 

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. The global shift from group I base oils to group II & III present numerous growth opportunities to market players.

The base oil market is segmented on the basis of resin type, application, and region. Depending on type, the market is categorized into group I, II, III, IV, and V. According to application, it is classified into automotive oil, industrial oil, metalworking fluids, hydraulic oil, greases, and others. Region wise, it  is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Comprehensive competitive analysis and profiles of major market players, such as Phillips 66 Company, Chevron Corporation, Exxon Mobil Corporation , Evonik Industries AG, Neste Oyj, PT Pertamina, S-OIL Corporation, Royal Dutch Shell Plc, AVISTA OIL AG, and Saudi Aramco are considered in the report. 

Base Oil Market, by Type

The group I segment dominated the global base oil market in 2020, and is expected to maintain its dominance during the forecast period, as group I base oils are the cheapest base oils available in the market. The range of temperature for these base oils is from 30 to 150 degree Fahrenheit. In addition, these base oils are produced from a simple refining process, and thus are solvent-refined, which reduces the overall cost of these oils.

Get more information on this report : Request Sample Pages

Base Oil Market, by Application

The automotive oil segment dominated the global base oil market in 2020, and is expected to maintain its dominance during the forecast period, owing to increase in demand for best quality base oils for automobiles across the globe.

Get more information on this report : Request Sample Pages

Base Oil Market, by Region

Asia-Pacific accounted for the largest share of the base oil market in 2020, and is  expected to grow at the highest CAGR, in terms of both volume and value, owing to the growing rate of motorization in the developing countries. This is driving the demand for lubricants, which, in turn, increases the demand for base oil.

Get more information on this report : Request Sample Pages

Key Benefits For Stakeholders

• The report provides in-depth analysis of the global base oil market along with the current trends and future estimations. 
• This report highlights the key drivers, opportunities, and restraints of the market along with the impact analysis during the forecast period.
• Porter’s five forces analysis helps to analyze the potential of the buyers & suppliers and the competitive scenario of the global base oil market for strategy building.
• A comprehensive market analysis covers the factors that drive and restrain the global base oil market growth.
• The qualitative data about market dynamics, trends, and developments is provided in the report.

Impact Of Covid-19 On The Global Base Oil Market

• Transport limitations were implemented, resulting in reduced industrial production and disrupted supply chains, which affected global economic growth by a substantial proportion, severely impacting market growth due to COVID-19 pandemic.
• The COVID-19 outbreak had a rapid and devastating impact on the global automotive sector. Chinese parts shipments are being disrupted, large-scale manufacturing disruptions are occurring across Europe, and assembly plants in the U. S. are collapsing. This puts a lot of pressure on an automotive sector that is already dealing with a downturn in global demand, and it will almost certainly lead to additional merger and acquisition activity.
• Furthermore, due to social distancing norms during COVID-19, the manufacturing companies worked with limited workforce, thus, negatively impacting the production and automotive sector.

 Key Market Segments & Key Market Players