Base Oil Market Overview:
Global Base Oil Market was valued at $35,430 million in 2016, and is expected to reach $38,031 million by 2023, registering a CAGR of 1.0% from 2017 to 2023. Base oil is the refined petroleum mineral or synthetic material produced by a refinery to a required set of specifications, typically lubricant base stock. 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 a lubricants.
Demand for oils in the automotive industry, especially from emerging countries, and stringent environmental legislation leading to strict performance standards drive the global base oil market. However, the fluctuating costs of crude oil and regulations concerning emission norms are expected to hamper the market growth in the future. The global shift from Group I base oils to Group II & III present numerous growth opportunities to market players.
The report segments the global base oil market based on type, application, and geography. The type segment is classified into group I, II, III, IV, and V. Based on application, the market is divided into industrial oil, metalworking fluids, hydraulic oil, greases, and others. By geography, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Top Investment Pockets
In 2016, Group II and III segments collectively accounted for one-third market share. In terms of value, these types held approximately 36% share in the overall market. Group II is the top investment pocket in the base oil market, attributed to the replacement of Group I base oil owing to the increase in trend towards low and mid SAPS specifications (Sulfated Ash, Phosphorous, and Sulfur) and lighter viscosity grades. Thus, this segment is anticipated to provide high stability along with significant return on investment for the stakeholders, owing to its high growth rate and significant revenue contribution.
Asia-pacific Base Oil Market Analysis
Consumption of base oil in Asia-Pacific is expected to increase, owing to growth in industrial development, demand from the automotive industry, and stable economic growth. Emerging markets, such as China and India, are expected to witness the highest increase in demand for base oils during the forecast period. Substantial development in Group II and III base oils is anticipated to boost the market growth in this region.
Australia Base Oil Market, 2015-2023 ($Million)
Major companies adopted agreement, product launches, expansions, mergers, and agreements to sustain the intense market competition. Key players profiled in the report include, BP PLC, Chevron Corporation, Ergon Inc., Evonik Industries AG, Exxon Mobil Corporation, H&R Ölwerke Schindler GmbH, Nynas AB, Petronas Pvt. Ltd., Royal Dutch Shell PLC, SK Lubricants Co. Ltd., and Total S.A.
Other market players (not profiled in report) in the value chain include Avista Oil AG, Calumet Specialty Products Partners Lp, GS Caltex Corporation, Lotos Oil SP. Z O.O., MOGoil GmbH, Neste Oil, PetroChina Company Limited, Repsol, Sinopec Group, and S-Oil Corporation.
Key Benefits for Stakeholders
- This report provides an extensive analysis of the current trends and emerging estimations & dynamics in the base oil market.
- In-depth analysis of the market size is conducted, and estimations for key segments between 2014 and 2022 are provided.
- Competitive intelligence (of leading manufacturers and distributors) facilitates to understand the competitive scenario across the geographies.
- Factors that drive and restrain the growth of the market are provided in the report.
- Industry analysis is conducted by following key product positioning and monitoring the top competitors within the market framework.
- Market share for all segments with respect to each geography is detailed, which assists to understand the trends in the industry at the micro-level.
- Key market players are profiled and their strategies are analyzed thoroughly, which provides a competitive outlook of the industry trends.
Base Oil Market Key Segments:
- Group I
- Group II
- Group III
- Group IV
- Group V
- Automotive Oil
- Industrial Oil
- Metalworking Fluids
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Rest of LAMEA