Base Oil Market

SKU: DMPC3535 | Last Updated On: Jul 08 2021 | No. of Pages: 180 | Available Formats

> Global Base Oil Market is Expected to reach a high CAGR By 2028: DataM Intelligence

Global Base Oil Market is segmented By Group (Group I, Group II, Group III, Group IV, Group V), By Application (Automotive Oil, Hydraulic Oil, Process Oil, Metalworking Oil, Industrial Oil, Others), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2021-2028

 

Market Overview

The global base oil market size was worth US$ XX billion in 2020 and is estimated to show notable growth by reaching up to US$ XX billion by 2028 within a CAGR of XX% during the forecast period (2021-2028).

Base Oil is a lubrication grade oil initially produced from refining crude oil (mineral base oil) or chemical synthesis (synthetic base oil). Base oil, consisting of hydrocarbons with 18 to 40 carbon atoms, is usually classified as oil with a boiling point ranging between 550 and 1050 F.  This oil can be either paraffinic or naphthenic depending on the molecule's chemical structure.

Before lubricant is blended with additives, it constitutes just the base oil; in grease, the base oil is blended with a thickener. Synthetics and mineral oil are two separate types of base oils for industrial lubricants, and they are present in all lubricants. Some important properties exhibited by base oil include thermal stability, viscosity index, viscosity limitation, volatility, pour point, oxidation, hydraulic stability and aniline point (the measure of solvency with other materials and additives).

Almost every lubricant used in plants in recent times started as just a base oil. As per the research, the American Petroleum Institute (API) has categorized base oils into five different categories (API 1509, Appendix E). The first three groups are refined from crude petroleum oil. Full synthetic (polyalphaolefin) oils are designated as Group IV-based oils, whereas Group V is for all other base oils not included in Groups I through IVGlobal Base Oil Market

Source: DataM Intelligence Analysis (2021)

Market Dynamics

The global base oil market is driven by Group I and Group II base oil in the automotive industry. Growing demand for industrial lubricants, hydraulic fluids, greases, and thermal oils made from the raw stock fluid is another factor fueling base oil growth in recent times.

Increasing demand for Group I and Group II base oil in the automotive industry is immensely driving the base oil market.

To provide consistency with fast-moving components and high temperatures, advanced engine technology propels the market for high-grade lubricants. The option of base oil influences the overall efficiency of the finished lubricants tremendously. 70–90 percent base oil and 10–30 percent additives are made of engine oils. Therefore, it is expected that the increasing demand for high-grade engine oils will also fuel the base oil market. For diesel vehicles, passenger cars, light-duty trucks, and stationary engines, high-performance engine oils may help withstand severe and rigorous conditions. Engine oils are majorly composed of base oil. Out of the mentioned types of base oil, Group I is readily available and typically is the cheapest among the rest of the base oils. Group I played a vital role in the automotive formulation and industrial lubricants with a low viscosity index for a long time. Therefore Group I is more likely to build the market of base oil in the automotive industry, particularly throughout Europe, whilst Group III has been used to deliver higher performance and lower viscosity.

Growing demand for industrial lubricants, hydraulic fluids, greases, and thermal oils made from the raw stock fluid is another factor fueling base oil growth in recent times.

The base oil is known to hold some excellent properties such as thermal stability, viscosity index, viscosity limitation, volatility, pour point, oxidation, hydraulic stability and aniline point (the measure of solvency with other materials and additives). These properties are more likely to accelerate base oil demand as industrial lubricants, greases, thermal oils, and hydraulic oils for among different end-users. Due to rising demand from different market sectors, companies started investing major chunks in R&D activities to bring the advanced and latest technology and expand their portfolio. For instance, Gas-To-Liquid technology has been successfully commercialized with a rise in existing and planned capacity expansion worldwide. With high industrial opportunities to formulate premium lubricating oils through isomerization and existing catalytic hydrocracking processes, the GTL technology is promising.

Declining demand of Group I and a sudden shift to another grade of base oil demand high investment leading to severely impacting the growing market of base oil in the forecast period

Group, I have been stealing a major chunk of the growing market, particularly in the automotive industry since 2000. However, in recent times, the Group I base oil is expected to record a significant drop in demand, especially in the European and North American regions. This downfall is majorly attributed to the growing inclination toward cleaner and better-quality base oil. Group, I base oil holds a high impurities content, such as nitrogen, sulfur, olefins, and PCNA (Poly-Cyclic Nuclear Aromatics). Also, some refineries converted Group l into Group ll, but many projects for refineries were too expensive. So began the decline of the base oils of Group I, which seemed a natural progression. However, sectors such as marine and process oils expressed concerns that the requirements for viscosity and solvency made them dependent on Group l products. A switch also involved higher investment costs along with the higher prices levied on Group II and Group III base oils. Thus this declining demand of Group I and a sudden shift to another grade of base oil demand high investment leading to severely impacting the growing market of base oil in the forecast period.

COVID-19 Impact Analysis

The global base oil has shown a slight decline due to the COVID-19 pandemic as several manufacturing plants were shut for months. The major impact of lockdown due to the COVID-19 outbreak leads to a sudden shut down of base oil-related end-users, estimated to impact the market in the forecast period. COVID-19 had a major impact in 2020 and 2021, particularly in demand for cars and commercial vehicles.

Due to the COVID-19 pandemic, over 80 percent of car production in North America has come to a halt. There is a similar situation in Europe and the Asia Pacific. Furthermore, halthing logistics and supply chain disruption remained the prime factor responsible to hurdle the growth of base oil dur to covid-19 outbreak. Companies such as General Motors, Ford, Honda, Fiat Chrysler Vehicles, and Tesla have temporarily stopped production units. Even if these companies restart production after the pandemic subsidies, the automotive industry will be adversely affected by economic uncertainty and a decline in consumer buying power. Other end-users such as metalworking fluid, industrial oil, and hydraulic oil have seen a similar decline due to pandemic arrival.

Segment Analysis

The global Base oil market is segmented based on group, application and region.

High demand for the Group I product from an array of industries across the globe owing to their characteristics as well as price is building the market of the segment in recent times.

In terms of group the global base oil market is bifurcated into group I, group II, group III, group IV, group V. Out of the different types mentioned for base oil group I is more likely to build a larger market in recent times and expected to maintain the momentum in the forecast period as compared to the other group types. The reason behind the group I's significant market growth is its high demand for the product from an array of industries across the globe owing to its characteristics and price. As per American Petroleum Institute (API), Group I base oils are listed as those containing less than 90.0% saturates, along with sulfur content of more than 0.03% providing a viscosity index between the 80 and 120 ranges. Usually, Group I product is typically 90.0% base oil and 10.0% additive composition. It typically consists of normal petro-based products. Since these oils are produced through solvent refining, which is a relatively simple process, the oils are available on the market at a very low cost. On the other side, Group II is projected to show the fastest market in the forecast period due to its wide spectrum of applications, such as in marine and gas engines, trunk piston engine oils, and others. Growth in this market is mainly attributable to the high performance and affordability of base oil Group II compared to other base oil segments (Group).

Global Base Oil Market

Source: DataM Intelligence Analysis (2021)

Geographical Analysis

Consumer adoption in emerging economies such as China, India, and South East Asia in the automotive and industrial manufacturing sectors is more likely to proliferate Asia-Pacific's growing market in recent times.

Asia-Pacific region is building the highest market value of base oil in the forecast period. This is due to consumer adoption in emerging economies such as China, India, and South East Asia in the automotive and industrial manufacturing sectors. Furthermore, it is expected that favorable regulations aimed at promoting the fuel efficiency of automobiles and industrial machinery would fuel the base oil market's growth over the next few years.  Furthermore, the growth of transportation, power generation, mining, and other sectors is responsible for the growth of the base oil market. Furthermore, the construction industry has seen strong growth in India, China, the Philippines, Vietnam, and Indonesia. Residential and commercial construction investments in these countries have been growing at a robust pace. This is further projected to increase the demand for base oil in construction applications in the coming years.

Global Base Oil Market

Source: DataM Intelligence Analysis (2021)

Competitive Landscape

The base oil market is highly competitive with the presence of local as well as global companies. Some of the key players contributing to the market's growth include Chevron Corporation, S-OIL CORPORATION, Exxon Mobil Corporation, Royal Dutch Shell Plc, Evonik Industries AG, Neste Oyj, Sinopec Corp, Petroleum Nasional Berhad, GRUPA LOTOS S.A, Hindustan Petroleum Corporation Limited or HPCL and among others.

The major players are adopting several growth strategies such as product launches, acquisitions and collaborations, contributing to the growth of the base oil market globally. Key players prefer expansion as the growth strategy for building their business.

  • For instance, in August 2019, ExxonMobil Chemical Company, a subsidiary of Exxon Mobil Corporation, announced Synergy Additives Company S.A. de C.V. (Mexico) the distributor of its Group IV/V base stocks in the regions including Mexico, Central America, and the Caribbean. The development helped the company to improve its geographic presence.

Chevron Corporation

Overview: Chevron Corporation is an American international energy firm based in countries around the world with operations. Chevron also refines, markets, distributes fuels and is involved in chemical and mining operations, power generation, and energy services. The company is headquartered in San Ramon, California, and active in more than 180 countries.

Product Portfolio: The company has a product portfolio of base oil that includes:

  • ISODEWAXING: The company’s catalyst has revolutionized base oil quality owing to its purity and oxidation stability; Chevron's premium base oils enable blenders to cut formulating costs while meeting stringent specifications for cleaner-burning engines.

Key Development:

  • In August, Chevron Corporation announced the first production of 100% renewable base oil from Novvi’s Deer Park, Houston Facility. This recent development is the latest in a series of Chevron announcements signaling its commitment to the energy transition and climate change focused on areas including lowering carbon intensity cost-efficiently, increasing renewables in support of its business, and investing in the future targeting breakthrough technologies.

Why Purchase the Report?

  • Visualize the base oil market segmentation by group, application and highlight key commercial assets and players.
  • Identify commercial opportunities in the base oil market by analyzing trends and co-development deals.
  • Excel data sheet with thousands of data points of base oil market-level 4/5 segmentation.
  • PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
  • Product mapping in excel for the key product of all major market players

The global base oil market report would provide access to an approx: 53 market data table, 47 figures and 212 pages.

Target Audience 2022

  • Service Providers/ Buyers
  • Industry Investors/Investment Bankers
  • Education & Research Institutes
  • Research Professionals
  • Emerging Companies
  • Manufacturers
  • Distributors
  • Supply chain companies

Table of Contents

  1. Global Base Oil Market Methodology and Scope

    1. Research Methodology
    2. Research Objective and Scope of the Report
  2. Global Base Oil Market – Market Definition and Overview

  3. Global Base Oil Market – Executive Summary

    1. Market Snippet by Group
    2. Market Snippet by Application
    3. Market Snippet by Region
  4. Global Base Oil Market-Market Dynamics

    1. Market Impacting Factors
      1. Drivers
        1. Increasing demand of Group I and Group II base oil in the automotive industry.
        2. Growing demand for industrial lubricants, hydraulic fluids, greases, and thermal oils made from the raw stock fluid is another factor fueling base oil growth in recent times.
      2. Restraints:
        1. Declining demand of Group I and a sudden shift to another grade of base oil demand high investment leading to severely impacting the growing market of base oil in the forecast period
      3. Opportunity
      4. Impact Analysis
  5. Global Base Oil Market – Industry Analysis

    1. Porter's Five Forces Analysis
    2. Supply Chain Analysis
    3. Pricing Analysis
    4. Regulatory Analysis
  6. Global Base Oil Market – COVID-19 Analysis

    1. Analysis of COVID-19 on the Market
      1. Before COVID-19 Market Scenario
      2. Present COVID-19 Market Scenario
      3. After COVID-19 or Future Scenario
    2. Pricing Dynamics Amid COVID-19
    3. Demand-Supply Spectrum
    4. Government Initiatives Related to the Market During Pandemic
    5. Manufacturers Strategic Initiatives
    6. Conclusion 
  7. Global Base Oil Market – By Group

    1. Introduction
      1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Group
      2. Market Attractiveness Index, By Group
    2. Group I*
      1. Introduction
      2. Market Size Analysis and Y-o-Y Growth Analysis (%)
    3. Group II
    4. Group III
    5. Group IV
    6. Group V
  8. Global Base Oil Market – By Application

    1. Introduction
      1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
      2. Market Attractiveness Index, By Application
    2. Automotive Oil*
      1. Introduction
      2. Market Size Analysis and Y-o-Y Growth Analysis (%)
    3. Hydraulic Oil
    4. Process Oil
    5. Metalworking Oil
    6. Industrial Oil
    7. Others
  9. Global Base Oil Market – By Region

    1. Introduction
      1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Region
      2. Market Attractiveness Index, By Region
    2. North America
      1. Introduction
      2. Key Region-Specific Dynamics
      3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Group
      4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
      5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
        1. U.S.
        2. Canada
        3. Mexico
    3. Europe
      1. Introduction
      2. Key Region-Specific Dynamics
      3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Group
      4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
      5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
        1. Germany
        2. U.K.
        3. France
        4. Italy
        5. Russia
        6. Rest of Europe
    4. South America
      1. Introduction
      2. Key Region-Specific Dynamics
      3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Group
      4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
      5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
        1. Brazil
        2. Argentina
        3. Rest of South America
    5. Asia-Pacific
      1. Introduction
      2. Key Region-Specific Dynamics
      3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Group
      4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
      5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
        1. China
        2. India
        3. Japan
        4. Australia
        5. Rest of Asia Pacific
    6. Middle East and Africa
      1. Introduction
      2. Key Region-Specific Dynamics
      3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Group
      4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
  10. Global Base Oil Market – Competitive Landscape

    1. Competitive Scenario
    2. Market Positioning/Share Analysis
    3. Mergers and Acquisitions Analysis
  11. Global Base Oil Market- Company Profiles

    1. Chevron Corporation*
      1. Company Overview
      2. Type Portfolio and Description
      3. Key Highlights
      4. Financial Overview
    2. S-OIL CORPORATION
    3. Exxon Mobil Corporation
    4. Royal Dutch Shell Plc
    5. Evonik Industries AG
    6. Neste Oyj
    7. Sinopec Corp
    8. Petroliam Nasional Berhad
    9. GRUPA LOTOS S.A
    10. Hindustan Petroleum Corporation Limited or HPCL(*LIST NOT EXHAUSTIVE)
  12. Global Base Oil Market – Premium Insights

  13. Global Base Oil Market – DataM

    1. Appendix
    2. About Us and Services
    3. Contact Us

List of Tables & Figures

List of Tables

Table 1 Global Base Oil Market Value, By Group, 2020, 2024 & 2028 (US$ Million)

Table 2 Global Base Oil Market Value, By Application, 2020, 2024 & 2028 (US$ Million)

Table 3 Global Base Oil Market Value, By Region, 2020, 2024 & 2028 (US$ Million)

Table 4 Global Base Oil Market Value, By Group, 2020, 2024 & 2028 (US$ Million)

Table 5 Global Base Oil Market Value, By Group, 2020-2028 (US$ Million)

Table 6 Global Base Oil Market Value, By Application, 2020, 2024 & 2028 (US$ Million)

Table 7 Global Base Oil Market Value, By Application, 2020-2028 (US$ Million)

Table 8     Global Base Oil Market Value, By Region, 2020, 2024 & 2028 (US$ Million)

Table 9 Global Base Oil Market Value, By Region, 2020-2028 (US$ Million)

Table 10   North America Base Oil Market Value, By Group, 2020-2028 (US$ Million)

Table 11    North America Base Oil Market Value, By Application, 2020-2028 (US$ Million)

Table 12   North America Base Oil Market Value, By Country, 2020-2028 (US$ Million)

Table 13   South America Base Oil Market Value, By Group, 2020-2028 (US$ Million)

Table 14   South America Base Oil Market Value, By Application, 2020-2028 (US$ Million)

Table 15   South America Base Oil Market Value, By Country, 2020-2028 (US$ Million)

Table 16   Europe Base Oil Market Value, By Group, 2020-2028 (US$ Million)

Table 17    Europe Base Oil Market Value, By Application, 2020-2028 (US$ Million)

Table 18   Europe Base Oil Market Value, By Country, 2020-2028 (US$ Million)

Table 19   Asia-Pacific Base Oil Market Value, By Group, 2020-2028 (US$ Million)

Table 20   Asia-Pacific Base Oil Market Value, By Application, 2020-2028 (US$ Million)

Table 21   Asia-Pacific Base Oil Market Value, By Country, 2020-2028 (US$ Million)

Table 22   Middle East & Africa Base Oil Market Value, By Group, 2020-2028 (US$ Million)

Table 23   Middle East & Africa Base Oil Market Value, By Application, 2020-2028 (US$ Million)

Table 24   Chevron Corporation: Overview

Table 25   Chevron Corporation: Product Portfolio

Table 26   Chevron Corporation: Key Developments

Table 27   S-OIL CORPORATION: Overview

Table 28   S-OIL CORPORATION: Product Portfolio

Table 29   S-OIL CORPORATION: Key Developments

Table 30   Exxon Mobil Corporation: Overview

Table 31   Exxon Mobil Corporation: Product Portfolio

Table 32   Exxon Mobil Corporation: Key Developments

Table 33   Royal Dutch Shell Plc: Overview

Table 34   Royal Dutch Shell Plc: Product Portfolio

Table 35   Royal Dutch Shell Plc: Key Developments

Table 36   Evonik Industries AG: Overview

Table 37   Evonik Industries AG: Product Portfolio

Table 38   Evonik Industries AG: Key Developments

Table 39   Neste Oyj: Overview

Table 40   Neste Oyj: Product Portfolio

Table 41   Neste Oyj: Key Developments

Table 42   Sinopec Corp: Overview

Table 43   Sinopec Corp: Product Portfolio

Table 44   Sinopec Corp: Key Developments

Table 45   Petroleum Nasional Berhad: Overview

Table 46   Petroleum Nasional Berhad: Product Portfolio

Table 47   Petroleum Nasional Berhad: Key Developments

Table 48   GRUPA LOTOS S.A: Overview

Table 49   GRUPA LOTOS S.A: Product Portfolio

Table 50   GRUPA LOTOS S.A: Key Developments

Table 51   Hindustan Petroleum Corporation Limited or HPCL: Overview

Table 52   Hindustan Petroleum Corporation Limited or HPCL: Product Portfolio

Table 53   Hindustan Petroleum Corporation Limited or HPCL: Key Developments

List of Figures

Figure 01 Global Base Oil Market Share, By Group, 2020 & 2028 (%)

Figure 02 Global Base Oil Market Share, By Application, 2020 & 2028 (%)

Figure 03 Global Base Oil Market Share, By Region, 2020 & 2028 (%)

Figure 04 Global Base Oil Market Value, 2020-2028 (US$ Million)

Figure 05 Global Base Oil Market Y-o-Y Growth, By Group, 2020-2028 (%)

Figure 06 Group I: Global Base Oil Market Value, 2020-2028 (US$ Million)

Figure 07 Group II: Global Base Oil Market Value, 2020-2028 (US$ Million)

Figure 08          Group III: Global Base Oil Market Value, 2020-2028 (US$ Million)

Figure 09 Group IV: Global Base Oil Market Value, 2020-2028 (US$ Million)

Figure 10 Group V: Global Base Oil Market Value, 2020-2028 (US$ Million)

Figure 11  Global Base Oil Market Y-o-Y Growth, By Application, 2020-2028 (%)

Figure 12 Automotive Oil: Global Base Oil Market Value, 2020-2028 (US$ Million)

Figure 13 Hydraulic Oil: Global Base Oil Market Value, 2020-2028 (US$ Million)

Figure 14 Process Oil: Global Base Oil Market Value, 2020-2028 (US$ Million)

Figure 15 Metalworking Oil: Global Base Oil Market Value, 2020-2028 (US$ Million)

Figure 16 Industrial Oil: Global Base Oil Market Value, 2020-2028 (US$ Million)

Figure 17  Others: Global Base Oil Market Value, 2020-2028 (US$ Million)

Figure 18 Global Base Oil Market Y-o-Y Growth, By Region, 2020-2028 (%)

Figure 19 North America Base Oil Market Value, 2020-2028 (US$ Million)

Figure 20 North America Base Oil Market Share, By Group, 2020 & 2028 (%)

Figure 21 North America Base Oil Market Share, By Application, 2020 & 2028 (%)

Figure 22 North America Base Oil Market Share, By Country, 2020 & 2028 (%)

Figure 23 South America Base Oil Market Value, 2020-2028 (US$ Million)

Figure 24 South America Base Oil Market Share, By Group, 2020 & 2028 (%)

Figure 25 South America Base Oil Market Share, By Application, 2020 & 2028 (%)

Figure 26 South America Base Oil Market Share, By Country, 2020 & 2028 (%)

Figure 27 Europe Base Oil Market Value, 2020-2028 (US$ Million)

Figure 28 Europe Base Oil Market Share, By Group, 2020 & 2028 (%)

Figure 29 Europe Base Oil Market Share, By Application, 2020 & 2028 (%)

Figure 30 Europe Base Oil Market Share, By Country, 2020 & 2028 (%)

Figure 31 Asia-Pacific Base Oil Market Value, 2020-2028 (US$ Million)

Figure 32 Asia-Pacific Base Oil Market Share, By Group, 2020 & 2028 (%)

Figure 33 Asia-Pacific Base Oil Market Share, By Application, 2020 & 2028 (%)

Figure 34 Asia-Pacific Base Oil Market Share, By Country, 2020 & 2028 (%)

Figure 35 Middle East & Africa Base Oil Market Value, 2020-2028 (US$ Million)

Figure 36 Middle East & Africa Base Oil Market Share, By Group, 2020 & 2028 (%)

Figure 37 Middle East & Africa Base Oil Market Share, By Application, 2020 & 2028 (%)

Figure 38 Chevron Corporation: Financials

Figure 39 S-OIL CORPORATION: Financials

Figure 40 Exxon Mobil Corporation: Financials

Figure 41 Royal Dutch Shell Plc: Financials

Figure 42 Evonik Industries AG: Financials

Figure 43 Neste Oyj: Financials

Figure 44 Sinopec Corp: Financials

Figure 45 Petroleum Nasional Berhad: Financials

Figure 46 GRUPA LOTOS S.A: Financials

Figure 47 Hindustan Petroleum Corporation Limited or HPCL: Financials

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