Naphthenic Base Oil Market
Naphthenic Base Oil Market Analysis By Viscosity Index (35-60 SUS, 80-130 SUS, 400-800 SUS & Above 800 SUS Naphthenic Base Oil) By Application (Process Oils, Electrical Oils & Lubricants & Greases) By Region – Global Market Insights 2022 to 2031
Naphthenic Base Oil Market Outlook (2022-2031)
Consumption of naphthenic base oils is projected to increase at a CAGR of 3.9% from 2022 to 2031. At present, the global naphthenic base oil market stands at US$ 2.55 billion, and is slated to reach a market valuation of US$ 3.6 billion by the end of 2031.
Naphthenic Base Oil Market Size (2022)
US$ 2.55 Billion
Projected Year Value (2031F)
US$ 3.6 Billion
Global Market Growth Rate (2022-2031)
Key Companies Profiled
Process oils are anticipated to account for a major market share across the forecast period. Increasing demand for automotive lubricants from the growing automotive industry is expected to boost shipments of naphthenic base oils over the years to come.
Naphthenic Base Oil Consumption Analysis (2017-2021) in Comparison to Market Growth Forecasts (2022-2031)
Industrialization has been a prominent trend across the world and this has led to a substantial increase in demand for lubricating fluids that ensure the smooth operation of multiple industrial components and activities.
Increasing awareness about benefits of naphthenic base oil and the rising scope of application in multiple end-use industries will drive the naphthenic base oil market growth through 2031.
Naphthenic oil properties such as high solubility, low aromatic content, and low-temperature pour points are also expected to favor the naphthenic base oil market potential over the coming years. Increasing metalworking operations will propel the consumption of metalworking fluids. Naphthenic oil is classified as a group V base oil because it doesn’t satisfy API’s qualification for other groups.
Rising demand for synthetic fluids in multiple end-use industries, increasing demand for automotive lubricants, rising use of electrical oils due to the increasing number of electric vehicles, and increasing use of pale oil in the formulation of gear oils are other factors that influence naphthenic base oil market potential.
However, the availability of low-cost alternatives is anticipated to have a hampering effect on the global naphthenic base oil industry. From 2022 to 2031, naphthenic base oil shipments are projected to rise at a CAGR of 3.9%.
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Which Industry is Driving High Demand for Naphthenic Base Oils?
“Increasing Demand for Automotive Lubricants to Drive Market Growth”
The automotive industry is undergoing major changes as demand for electric vehicles increases and conventional automotive manufacturing is being revolutionized. Rising demand for automotive lubricants such as lubricating fluids, gear oils, process oils are expected to drive demand for pale oils as they are majorly used to formulate the aforementioned products.
Increasing metalworking operations in the automotive industry is also expected to propel the consumption of metalworking fluids across the forecast period. Increasing sales of electric and hybrid vehicles are also expected to favor naphthenic base oil market potential through 2031.
Which Regional Market Leads the Naphthenic Base Oil Market?
“Asian Region Exhibits Highly Lucrative Revenue Opportunities”
Presence of high industrial activity in East Asia and South Asia regions is expected to majorly propel naphthenic base oil demand across the forecast period. Growing automotive industry, increasing investments in the industrial manufacturing sector, rising disposable income, and rising support from the government to bolster the industrial sector are major factors that influence naphthenic base oil consumption in these regions.
China, India, and Japan are anticipated to be the most rewarding markets for naphthenic base oils throughout the forecast period of 2022 – 2031.
Rising industrial activity in the European region is also expected to boost naphthenic base oil market potential over the coming years. The presence of a developed automotive industry in this region will drive demand for automotive lubricants.
Increasing popularity of electric vehicles and hybrid vehicles in this region will also drive the consumption of process oils, gear oils, and electrical oils. Germany is projected to emerge as a lucrative market in Europe for naphthenic base oils.
The market for pale oils in Latin America and the Middle East & Africa is also anticipated to account for a notable market share and is expected to provide a lucrative setting for naphthenic base oil manufacturers.
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Why Should Naphthenic Base Oil Suppliers Keep an Eye Out for China?
“Presence of Robust Automotive Manufacturing Sector to Boost Naphthenic Base Oil Consumption”
China is the leading nation in automotive manufacturing and is known across the world for its robust industrial sector. Naphthenic-base oils are especially good lubricants for multiple industrial applications and hence they are expected to see high demand in China across the forecast period.
Increasing demand for vehicles will drive automotive manufacturing and subsequently also increase consumption of automotive lubricants such as gear oils, process oils, etc. This will in turn create new opportunities for naphthenic base oil suppliers in China through 2031.
Supportive government initiatives and rising investments in the industrial manufacturing sector will also further boost shipments of naphthenic base oils in China in the coming years.
Will Demand for Electrical Oils Increase Over the Decade?
“Rising Popularity of Electric Vehicles to Boost Demand for Electric Oil Variants”
The automotive industry has been revolutionized as it shifted from creating IC engine-powered vehicles to electric vehicles. This led to some major changes in demand for multiple raw materials used in automotive manufacturing.
Electrical oils have been seeing an increase in demand in recent years as sales of electric vehicles rise. This segment is anticipated to see faster growth than other segments as the adoption of electric vehicles increases on a global scale.
Why is Consumption of Process Oils So High?
“Increasing Use of Process Oils in Tire Formulations”
Process oils account for a dominant market share and are anticipated to maintain this stance over the entire forecast period as well.
Increasing use of process oils to create greener tire compounds that offer properties like low rolling resistance and help in reducing carbon emissions is expected to majorly boost growth via this segment in the global naphthenic base oil industry landscape.
Did Demand for Naphthenic Base Oils See a Drop in 2020?
The pandemic of 2020 led to a downfall in the global naphthenic base oil market potential as multiple industry verticals ceased operations during the pandemic owing to the imposition of strict lockdowns. The lack of skilled workforce and raw materials further led to disruptions in the production of naphthenic base oils and hence the market experienced a negative growth trend.
Demand for pale oils is projected to expand at a steady pace in the post-pandemic era owing to the lifting of lockdown restrictions and resumption of industrial activities.
Rising demand from the automotive industry will be a major trend to watch out for in this post-pandemic world as naphthenic base oil suppliers deploy strategies to recover losses that were incurred in 2020 under restrictions.
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Competitive Landscape :
Naphthenic base oil suppliers are investing in research and development activities to create an effective product portfolios to maximize and optimize industrial processes where these oils are used.
Naphthenic base oil companies are also focusing on launching new products to maximize revenue.
- In 2020, Nynas AB, a renowned manufacturer of specialty naphthenic oils based in Sweden, announced the launch of NYTEX 8022, which will maximize performance in several process oil uses.
Key Segments Covered in Naphthenic Base Oil Industry Research
Naphthenic Base Oil Market by Viscosity Index :
- 35-60 SUS Naphthenic Base Oil
- 80-130 SUS Naphthenic Base Oil
- 200-300 SUS Naphthenic Base Oil
- 400-800 SUS Naphthenic Base Oil
- Above 800 SUS Naphthenic Base Oil
Naphthenic Base Oil Market by Application :
- Process Oils
- Electrical Oils
- Lubricants & Greases
- Metalworking Fluids
Naphthenic Base Oil Market by Region :
- North America Naphthenic Base Oil Market
- Latin America Naphthenic Base Oil Market
- Europe Naphthenic Base Oil Market
- East Asia Naphthenic Base Oil Market
- South Asia & Oceania Naphthenic Base Oil Market
- MEA Naphthenic Base Oil Market
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