Pale Oil Market: Overview and Dynamics
Pale Oil is also known as a naphthenic base oil, which is mainly extracted from sweet crude oil distillates by the process of hydro-treating at a pressure above 2500 psi. The group V base oil possess high solvency, low wax, low pour point and low aromatic content. Pale oil is known for its versatile applications like adhesive & sealants, process oil, printing ink, metalworking, gear oil battery separators.
Additionally, pale oil possesses extraordinary low-temperature properties, which helps to improve the low-temperature properties of the lubricant formulation. Pale oil also provides low-temperature performance better than paraffinic oils, which makes pale oil more ideal for formulating automatic transmission fluids and hydraulic fluids. Pale oil has high solvency power because of this it can respond well to additives and antioxidants.
The global Pale Oil market is expected to grow moderately during the forecast period 2021-2031. With the rising adoption of electric and hybrid vehicles to reduce carbon emissions, the demand for process oil and electrical oil indirectly increasing demand for the global pale oil market. Furthermore, because of its better solubility and ability to form stable emulsions, pale oil held a strong position in the metalworking fluid market. The global pale oil market is anticipated to expand at a CAGR of 5.2% over the forecast period 2021-2031.
Additionally, the rise of R&D investment initiatives by various country’s government can accelerate the growth of pale oil market. However, the availability of cheaper substitute may hamper the market growth up to a certain extent.
COVID-19 Impact Insights
Almost every markets and sector were broken down due to the COVID-19 pandemic, Oil and Gas sector is one among them which directly impact the pale oil market. COVID-19 pandemic has enforced countries throughout the globe to impose lockdowns and strict social distancing measure, this result in severe disruption in all economic activities. The pandemic witnessed harsh financial condition and economic disruption throughout the globe, which broke down the demand and supply equilibrium in the global market. The sudden fall of Crude Oil price during the first of 2020, heavily affect the global oil and gas market. With the nonstop production and less demand in the market many more national oil companies and private companies across the globe experienced a severe loss. If the demand for crude oil is gone down simultaneously the production and demand for products made from crude oil gone down, pale oil is one among them. During the second quarter of 2020, a great financial loss has been counted by the industries and market. Shut down of manufacturing plants, production facilities in leading oil-producing countries like the US, Saudi Arabia, Russia, Canada etc. led to more disruption into the global market. Consistently upgrading safety measure in the workplace and maintaining COVID-19 guidelines, the import and export have been expected to start efficiently in the first quarter of 2021. As the oil market mostly depends upon import and export so the global market again expected to bounce back to its original position. The pale oil market can also expect a good demand from the global as well as the domestic market as the availability of crude oil getting better than previous.
Major Brands Traded in the Market
There are two major brands of pale oil channelled in the market, CALTRAN and HYNAS T9
CALTRAN is a type of pale oil used as transformer oil, available in six grades in the market. It is known for its properties like Rapid heat transfer, miscible with all hydrocarbon-based transformer oil.
HYNAS T9 is a type of pale oil having excellent solvent power used in conventional water-based fluid for cold steel rolling, drawing, copper rolling, drilling, threading, tapping, gear cutting etc.
Pale Oil Market: Regional Outlook
In terms of geographical area, the global pale oil market is divided into six major regions including North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Currently, North America possess more consumption of pale oil because of its leading growth in the automotive industry. The rising demand for high solvency formulation in the automotive sector increasing demand for pale oil in North America. Also, the government in North America is increasing investment in the power and energy sector which makes the region demanded pale oil market.
After North America, Asia Pacific is also growing at a faster rate and expected to hold good market potential during the forecast period of 2021-2031. With the expansion of the automotive sector in India, China and other South East Asian countries the demand for hybrid and electric vehicle is boosting simultaneously the demand for pale oil market is increasing in Asia Pacific with the growing demand for electric and hybrid vehicle in the region.
Europe is closely following North America in terms of pale oil uses and applications, as the region is known for the active presence of renounced automakers and is also known as a petrochemical industry hub. Moreover, the pale oil market in Middle East and Africa expected to grow with moderate CAGR during the forecast period.
Pale Oil Market: Key Players
Being a moderately consolidated market the market competition is always high, the companies with advanced R&D facilities can improve their product faster than others and with the improvement, the market presence of their respective product will be high which leads to more revenue generation for those companies.
- Royal Dutch Shell Plc
- RESOLUTE OIL
- Ergon LLC etc. are among the leading players in pale oil market accounting for over 55% of the market revenue.
The common growth strategies followed by pale oil market players is to improve quality so that the product makes a unique image in the pail oil global market. Companies already started investing in their advancement of pale oil and pale oil market expansion so that they can capture the upcoming market demand. For instance, in the year 2020 NYNAS developed and launched a new type of pale oil in the market named NYNAS-BT22, which made a great impact in metalworking and lubricant application.
Additionally, recent key developments like acquisition, the establishment of the long term supply contract between companies and the country’s governments helps to grow the pale oil market at a fast pace. However, regions like Asia & Africa encouraging and supporting the local manufacturers somehow hamper the pale oil for a global player in the region. As the global players offer the product at a higher price due to tax and tariff but the local player gets benefitted from that and able to offer less price than the global players.
The research report presents a comprehensive assessment of the pale oil market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. It also contains projections using a suitable set of assumptions and methodologies. The pale oil market report provides analysis and information, according to market segments such as geographies, product type, material type and end-use.
Segmentation Analysis of Pale Oil Market
The global pale oil market is bifurcated into four major segments: characteristics, end-use, and region.
On the basis of Characteristics, the pale oil market has been segmented as follows:
- Kinematic Viscosity
- Flash Point
- Pour Point
- Aniline Point
On the basis of end-use, the pale oil market has been segmented as follows:
- Metal cutting & removal fluids
- Lubricating greases
- Industrial Lubricants
- Refrigeration oil
- LPG tubes
- Nylon tyre cord
On the basis of geographic regions, the pale oil market is segmented as
- North America
- Latin America
- East Asia
- South Asia and Oceania
- Middle East & Africa
The Pale Oil Market Report Covers Exhaustive Analysis On:
- Market Segments
- Market Dynamics
- Market Size & Demand
- Current Trends/Issues/Challenges
- Competition & Companies involved
- Value Chain
The Pail Oil Market Regional Analysis Includes:
- North America (U.S., Canada)
- Latin America (Mexico, Brazil, Argentina, Chile, Peru)
- Europe (UK, Germany, Spain, France, BENELUX, Italy, Rest of Europe)
- East Asia (China, Japan, South Korea)
- South Asia & Oceania (India, ASEAN, Australia and New Zealand , Rest of South Asia & Oceania)
- Middle East and Africa (GCC Countries, South Africa, Northern Africa, Turkey, Rest of MEA)
The pale oil market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts, and industry participants across the value chain. The pail oil market report provides an in-depth analysis of parent market trends, macroeconomic indicators, and governing factors along with market attractiveness as per segments. The pale oil market report also maps the qualitative impact of various market factors on market segments and geographies.
The Pale Oil Market Report Highlights:
- A detailed overview of the parent market
- Changing market dynamics in the industry
- In-depth market segmentation
- Historical, current and projected market size in terms of volume and value
- Recent industry trends and developments
- Competitive landscape
- Strategies of key players and products offered
- Potential and niche segments, geographical regions exhibiting promising growth
- A neutral perspective on market performance
- Must-have information for market players to sustain and enhance their market footprint
NOTE - All statements of fact, opinion, or analysis expressed in reports are those of the respective analysts. They do not necessarily reflect formal positions or views of the company.
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