According to a new study by Fact.MR, the global base oil market is expected to grow at nearly 2% CAGR during the forecast period 2020 to 2030. V base oil will continue to account for the highest demand, with market players readying themselves for a possible recovery in late 2021 or early 2022.
Base oils are widely used in the automotive sector. While 2020 continued to be recessionary year for automotive industry in many markets, Fact.MR analysts expect a recovery in the next couple of years.
Increasing Demand for Industrial Oil
Base oils are used to manufacture industrial oils including lubricating greases, metal processing fluids, and motor oil.
By adding certain chemical substances such as additives, base oils can be prepared to meet the broad range of requirements by industrial oils such as specific degree of frictional property, cleaning property, and others.
According to Fact.MR, the surge in demand for various types of industrial oils will continue to create sustained opportunities for market players in the long run.
COVID-19 Impact on Base Oil Market
The outbreak of novel coronavirus has put the base oil market to a standstill. Several factors such as non-operational manufacturing units during lock down, scarcity of raw materials, unavailability of labors, financial constraints, job recession, decrease in demand from end users, and others have negatively impacted the market growth.
Base Oil Market Insights by Grade
According to Fact.MR, grade-wise group V base oils (except naphthenic) followed by naphthenic base oils will exhibit highest growth in market volume throughout the forecast period.
Naphthenic base oil has low pour point, low wax, low aromatic content, and high solvency, making it widely required for broad ranges of applications such as producing adhesive & sealants, gear oils, printing inks, oil extender polymers, and others.
Due to its diverse range of applications as well as the expanding end users such as process oil manufacturer, metal working fluid manufacturer, and others, the group V base oils are gaining rapid traction all over the world.
According to Fact.MR, group V base oils will witness highest growth in revenue followed by naphthenic, group IV, and other base oils such as group I, group II, re-refined, and other base oils.
Base Oil Market Insights by Application
Application-wise, automotive fluids such as lubricant, gear oil, transmission fluid, power steering fluid, brake fluid continue to be the prominent segments.
With the growing automotive industry, automotive fluids are experiencing substantial surge in demand from various automotive systems such as engine oil system, automatic transmission system, power steering system, automated cooling system, and brake system.
The rising demand for electric vehicles is further catering to the market growth. According to Fact.MR, automotive fluids are expected to lead other application-wise segments during the forecast period.
Region-wise Outlook
Region-wise, Asia Pacific continues to be the largest market, followed by North America.
The automotive industry coupled with the advancement in industrial machinery manufacturing sector is spurring the Asia Pacific base oil market growth.
Rapidly evolving end users such as power generation, logistics units, and others in the leading Asia Pacific countries such as China, Japan, India, and others are propelling the base oil market growth.
Being highly advanced in industrial and automotive sectors, North America base oil market is forecast to steady growth in the coming years.
Automotive oils being highly preferred due to their physical and chemical properties will maintain the lead in North America base oil market throughout the forecast period.
According to Fact.MR, metalworking fluids are expected to exhibit highest growth in revenue in the North America base oil market in near future.
The rising demand for fuel-efficient vehicles coupled with the various stringent regulations regarding automotive fuel policy is bolstering the Europe base oil market growth.
For instance, according to the regulations by European Union Automotive Fuel Policy, the average CO2 emission level for new passenger cars must not exceed 130 grams per kilometer.
As a result, the increasing demand for development of highly efficient lubricants manufactured from base oils is rising the base oil market value rapidly. According to Fact.MR, Europe will continue to be a lucrative market throughout the assessment period.
Base Oil Market Competitive Landscape
Some of the key players in the base oil market include,
- British Petroleum
- Royal Dutch Shell
- Bahrain Lube Base Oil Co.
- Lukoil
- Indian Oil Corporation
- Saudi Aramco
- Abu Dhabi National Oil Company
- Sepahan Oil
- Motiva Enterprises LLC
- GS Caltex Corporation
- Hindustan Petroleum Corporation Limited
In July, 2020, SWEPI LP, a subsidiary of Royal Dutch Shell has completed the sale of its Appalachaia shale gas position to Seneca Resources Company, LLC and NFG Midstream Covington, LLC, each of which are subsidiaries of National Fuel Gas Company in order to acquire USD 541 million to invest as an asset for quality base oil production.
In October, 2020 Indian Oil Corporation has signed pact with Indian Institute of Science (IISc) in order to develop hydrogen generation technology based on biomass gasification.
According to Fact.MR, the key market players in base oil market are expected to experience tougher competition during the forecast period.
Analyst’s Viewpoint
The recovery in the automotive industry will determine, to a large extent, the future course of growth for base oil industry,” says an Fact.MR analyst.
Base Oil Market – Scope of the Report
Fact.MR has published an exclusive forecast report on the base oil market from 2020 to 2030. The foremost objective of this report is to pitch insights on the market scenario, demand generators, and technological advancements in base oil market. Also, the study addresses key dynamics expected to diversify the sales and future prominence of the market.
The report begins with an executive overview, in which, product definition has been provided. The report further proceeds with the taxonomy of the base oil market, elaborating on key segments. Also, the report outlines visionary insights on the dynamics of the base oil market, including the drivers, restraints, opportunities, trends, and pricing analysis, along with the key buying factors for base oil.
A recent study by Fact.MR on the base oil market offers a 10-year forecast from 2020 to 2030. The study analyzes crucial trends that are currently determining market growth. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders and emerging players associated with the manufacturing of base oil. The study also provides the dynamics that are responsible for influencing future status of the base oil market over the forecast period.
A detailed assessment of the base oil value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report. A list of prominent companies operating in the base oil market, along with their product portfolios, enhances the reliability of this comprehensive research study.
Base Oil Market: Report Summary
The study offers a comprehensive analysis on diverse features, including demand, product developments, revenue generation, and sales in the base oil market across the globe.
A comprehensive estimate on the base oil market has been provided through an optimistic as well as a conservative scenario, taking into account the sales during the forecast period. Price point comparison by region with global average price is also considered in the study.
Base Oil Market – Segmentation
Fact.MR’s research study assesses the global base oil market in terms of grade, application, and region. This report presents extensive market dynamics and trends associated with different segments of the market and their influence on the growth prospects of the global base oil market.
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Key Questions Answered in Fact.MR’s Base oil Market Report
- Which are the most lucrative markets for base oils?
- Which factors will impact base oil market growth?
- How will changing trends impact the strategy of market players?
- How can market players capture the low-hanging opportunities?
- Which companies are leading the base oil market?
- What are the winning strategies of stakeholders in base oil market?
Base Oil Market: Inspected Assessment on Regional Segments
Key sections have been elaborated in the base oil market report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic and business environment outlook), which are expected to have a momentous influence on the growth of the base oil market during the forecast period.
Country-specific valuation on demand for base oil market has been offered for each regional market, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.
Detailed breakup in terms of value for emerging countries has also been included in the report.
Base Oil Market: Research Methodology
In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the base oil market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the drawn conclusions.
Secondary resources referred to by analysts during the preparation of the base oil market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of the base oil market report as a primary resource.
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Base Oil Market Forecast, Trend, Analysis & Competition Tracking - Global Market Insights 2020 to 2030