World Base Oil Market Forecast Report 2022-2027 - Growing Demand for Bio-Based Lubricants

DUBLIN, May 24, 2022 /PRNewswire/ -- The "Base Oil Market - Global Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.

The global base oil market is forecast to grow at a CAGR of 5.12%.

The report examines the present scenario of the base oil market and its market dynamics for the period 2022-2027. It includes a detailed overview of several market growth enablers, restraints, and trends.

The study covers both the demand and supply sides of the market. It also profiles and analyses leading companies and several other prominent companies operating in the market.

KEY HIGHLIGHTS

• One of the major changes happening in the global base oil market is the shift from group I base oils to group II & group III base oils. Factors such as the stringent regulatory standards, circular economy, and high demand for high-quality lubricants are driving this change
• Presently, the group II base oil segment dominates the market as group II base oils have low levels of sulfur and aromatics, which is effective to meet vehicle emission standards, high demand for lubricants with low volatility, and improve fuel economy
• The automotive oil segment is a dominating end-use segment as it consumes the major chunk of base oil
• The rise in demand for lightweight vehicles in the developing and developed regions presents lucrative market growth opportunities for vendors of automotive oil

MARKET OPPORTUNITIES AND TRENDS

• High Demand from Automotive Oil Segment
• Rising Demand for Group II& Group III Base Oils

MARKET GROWTH ENABLERS

• Growing Demand for Bio-Based Lubricants

MARKET RESTRAINTS

• High Demand for Electric Vehicles

GLOBAL BASE OIL MARKET SEGMENTATION

Group II base oils is expected to be the largest segment in the base oil market. Group II base oils are more refined base oil than group I. These oils have clear color and better antioxidant properties than group I base oil owing to the saturated nature of their hydrocarbon molecules. However, group II base oils are more expensive than Group I. These base oils are primarily used in the textile industry, cutting oils, in the formulation of lubricants for turbines, heat pumps, exchangers, and engines owing to their impressive properties of wear & tear resistance, low friction, and better load-bearing capacity.

Automotive or engine oil is the largest segment amongst others in the base oil market. The main function of automotive oil is to reduce friction and wear & tear of the automotive engine and to clean the engine from sludge, and detergents. Earlier, group 1 base oil was used in automotive oil. Presently, group II and group III base oil are being highly preferred for manufacturing base oil driven by the emission regulation standard, increasing demand for low viscosity, low volatility lubricants, and increasing demand for better fuel economy is fuelling the demand for premium base oil.

There is a growing demand for automotive oil in Europe, APAC, and North America which is driving the demand for base oil. At the same time, the APAC market is also experiencing an escalating demand.

Market Segmentation by Group

• Group I
• Group II
• Group III
• Group IV
• Group V

Market Segmentation by End-User

• Automotive Oil
• Industrial Oil
• Process Oil
• Metalworking Fluids
• Greases
• Others

GEOGRAPHICAL ANALYSIS

APAC is the largest market for base oil during the forecast period. Owing to the rapid urbanization, rising disposable income, and growing industrialization in the field of automotive, food processing, cosmetics, textile, and other manufacturing sectors are creating a demand for base oil in APAC. China is the leading base oil market in APAC during the forecast period. This can be attributed to the increasing demand from the automotive & transportation sector, increasing mining activities, manufacturing & machinery sector is also supporting the strong growth of the base oil market in the country Additionally, the availability of low-cost labor and the raw material is further fuelling the market.

Market Segmentation by Geography

• North America
• US
• Canada
• Europe
• Germany
• Russia
• France
• Spain
• UK
• APAC
• China
• Japan
• India
• Indonesia
• South Korea
• Latin America
• Mexico
• Brazil
• Middle East and Africa
• UAE
• Saudi Arabia
• Iran

COMPETITIVE LANDSCAPE

The demand for base oil products is highly dependent on the consumption of industrial lubricants in the market, including hydraulic oils, metalworking fluid, industrial gear oils, turbine oils, and compressor lubricants. These lubricants are used across various industries, such as construction, power, railways, metals and mining, iron and steel, chemicals, cement, oil and gas, and general manufacturing. During the COVID-19 outbreak, these industries were severely impacted due to the temporary halt in production, the slowdown in logistics, low labor force participation, and a decline in demand.

The base oil market is competitive with the presence of well-diversified global and regional manufacturers. Industry participants are continuously focusing on various operational strategies that are likely to gain them an edge in the competitive market space.

The key players have undertaken various strategies to grow in the base oil market. Strategies such as joint ventures, mergers & acquisitions, and others to expand in the market and further reach their customers to fulfill requirements.

PROMINENT VENDORS

• Exxon Mobil Corporation
• Chevron Corporation
• Petro-Canada Lubricants
• Saudi Arabian Oil Co.
• Philips 666

OTHER PROMINENT VENDORS

• Asian Oil Company
• Hindustan Petroleum Corporation (HPCL
• Neste
• Avista Oil Deutschland Gmbh
• Sepahan Oil Company
• GS Caltex Corporation
• PBF Energy
• HollyFrontier Corporation
• Abu Dhabi National Oil Company
• Ergon
• SBZ Corporation
• Petroyag
• Ishtar Company
• Yunitco
• San Joaquin Corporation, Co. Ltd
• Grupa Lotos S.A
• Mol Group
• Vertex Energy Inc

For more information about this report visit https://www.researchandmarkets.com/r/qcbxax

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