Global Base Oil Market By Overview
Base oil is produced by refining crude oil, meaning the crude oil is heated in such a way that the various distillates can be separated from each other, base oil is generally defined as oil with a boiling point range between 550 and 1050F, which contains hydrocarbons. 18 to 40 carbon atoms. Base oils are used to make products including lubricating greases, motor oils, and metal processing fluids. Different products require different composition and properties in oil. Base oils for industrial lubricants fall into two different categories - synthetics and mineral oils and are present in all lubricants. Synthetic oils such as PAOs are ideal for such applications over mineral oils. PAOs also exhibit better hydraulic stability and remissibility so they manage water contamination better than mineral oil. On the other hand, mineral oils are preferred due to their reasonable serviceability and relatively low cost. They are widely used in automotive products, including engine oils, transmission and gear lubricants, and other uses in the processing of greases and oils and general industrial lubricants; With more than 90% usage, mineral oil has consolidated its position in the market for most applications. Base oils from distillation, also referred to as mineral-based oils or mineral-oils, must be further refined due to the presence of volatile impurities, sulfur and waxy, semi-solid particles that affect lubrication performance. Demand for high-performance lubricants and process oils is increasing rapidly in the global tire and rubber industry, which is likely to drive profitable growth in the base oil market over the forecast period.
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Attributes |
Details |
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Base Oil Market Value (2022) |
US$ 33.1Bn |
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Base Oil Market Projected Value(2032) |
US$ 55.7 Bn |
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Base Oil Market CAGR (2022-2032) |
5.3% |
Global Base Oil Market By Dynamics
Custom-made oils are in high demand as advanced engine technology is in high demand. For such an engine to perform its functions, i.e., for high speed and harsh conditions, the choice of base oil plays an important role. Engine oils are made up of 70-90 percent base oil and 10-30 percent additives. Thus, increasing demand for high quality engine oils is expected to drive the base oil market. Group 1 is made using solvent-refining or solvent-extraction technology and contains high levels of impurities such as sulfur, nitrogen, olefins, and PCNA (poly-cyclic nuclear aromatics). The high sulfur content of Group I base oils makes it difficult to meet medium SAPS (sulfated ash, phosphorus and sulfur) specifications or match the high performance of light viscosity grade oils. Thus, demand for Group I base oils has declined significantly, especially in the European and North American regions. This is mainly due to the growing trend towards cleaner and better-quality base oils, which, in turn, curbs the market.
Technological advancement
Due to the new age technological advancement, manufacturers involved in the base oil market are developing advanced versions of their products. Advance engine technology is increasing the demand for high quality lubricants to provide compatibility with fast moving parts and high temperatures. Major base oil players are investing more in power systems and creating more modern, time-saving, cost-effective technologies that have a positive impact on the base oil market, Changes in regulations favoring base oil are expected to drive the market, especially in developed countries. In November 2022, Shell Lubricants introduced Shell Rotella T6 10 Full Synthetic Heavy Duty Diesel Engine Oil, a formulation designed to provide better wear performance and improved fuel economy compared to conventional and synthetic blended Shell Rotella 15W-40 and 10W-30 products, also provides the capacity. Advanced additive technology and synthetic base oil, dubbed Triple Protection, provide protection against wear, deposits and oil breakdown and strive to maintain improved equipment protection, longer engine life and viscosity control at high temperatures.
Global Base Oil Market By Segmentation
Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.
The Base Oil Market is segmented based on product type, application, and region.
Base Oil Market, By Product
On the basis of product, the Base Oil Market is segmented into Group I, Group II, Group III, and Others (Group IV and Group V). Groups I, II, and III are derived from crude oil (mineral oil), Group IV is a fully synthetic oil, and Group V is for all base oils not included in one of the other groups. Group I oils contain more than 10% (m/m) aromatics and more than 0.03% (m/m) sulfur, Group II oils contain less aromatics (10% m/m) and sulfur (0.03%). Both Group I and II oils have viscosity indices ranging from 80 to 120. A Group III base oil has more than 90 percent saturates, less than 0.03 percent sulfur, and a viscosity index greater than 120. These oils are more refined than Group II base oils and are typically severely hydrocracked (high pressure and heat) Group IV base oils are polyalphaolefins.
Base Oil Market, By Application
On the basis of application, the target market is classified into Automotive Oils, Process Oils, Hydraulic Oils, Metalworking Fluids, and Others (Industrial oil and Greases), other applications include agriculture, additives and detergents. The automotive oil application segment is projected to lead the market in terms of both value and volume during the forecast period. Process oils are special oils used as raw material components or as processing aids in a wide variety of chemical and technical industries.
Regional Insights:
Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.
On region the Base Oil Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The global base oil market is dominated by Asia Pacific and the main consumers are China and India. This is primarily due to rising GDP led by increasing industrial activity which has increased the demand for base oil. North America is expected to witness significant growth in base oil demand during the forecast period.
Report Scope:
|
Attribute |
Details |
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Base year for estimation |
2022 |
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Forecast period |
2022 – 2032 |
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Market representation |
Revenue in USD Billion & CAGR from 2022 to 2032 |
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Market Segmentation |
By Product Type - Group I, Group II, Group III, and Others (Group IV and Group V) By Application - Automotive Oils, Process Oils, Hydraulic Oils, Metalworking Fluids, and Others (Industrial oil and Greases) |
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Regional scope |
North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa |
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Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
Recent Developments:
- In October 2022, Saudi Arabia Oil Company's base oil firm Luberef is opening a new specialized production facility in Yanbu that will produce transformer oil and use the oil in the power generation, pharmaceutical and food businesses, called the Lube Hub. It will enable localization of these specialty products in the state. This initiative will attract producers of crude oil related products.
- In August 2022, ICIS announced the return of its first in-person Middle East Base Oils and Lubricants Conference from 2019, the 17th in the series to be held in Shangri-La Jeddah, Saudi Arabia in 2022. There is an industry-wide shift from Group I base oils to higher quality base oils coupled with technological advancements and an increased focus on sustainability.
- In September 2021, Lukoil Group and Diamler AG expanded their engine oil offering for first-fill applications for Daimler's premium passenger cars manufactured in Europe.
Segments Covered in the Report:
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2022 to 2032. For the purpose of this study, has segmented the Base Oil Market report based on type, application, and region:
Base Oil Market, By Product Type:
- Group I
- Group II
- Group III
- Others (Group IV and Group V)
Base Oil Market, By Application:
- Automotive Oils
- Process Oils
- Hydraulic Oils
- Metalworking Fluids
- Others (Industrial oil and Greases)
Base Oil Market, By Region:
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- North America
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- U.S.
- Canada
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- Europe
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- Germany
- UK
- France
- Russia
- Italy
- Rest of Europe
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- Asia Pacific
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- China
- India
- Japan
- South Korea
- Rest of Asia Pacific
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- Latin America
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- Brazil
- Mexico
- Rest of Latin America
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- Middle East & Africa
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- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
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- North America
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Global Base Oil Market By Key Players
The key players operating the Base Oil Market includes
- ExxonMobil Corporation They have selected Synergy Additives Company (Mexico) as the distributor for 4/5 of the base stock in the Central America and Caribbean region. The development helped in expanding the geographical presence of the company.
- British Petroleum, commonly known as British Petroleum, is one of the world's largest integrated oil and gas companies. The company is involved in almost every phase of the oil and natural gas supply chain, from exploration to sales and marketing of energy products. BP is involved in generating renewable energy through its own wind farms and also manufactures various petrochemical products.
- Royal Dutch Shell is a global group of energy and petrochemicals companies, using advanced technologies and taking an innovative approach to help create a sustainable energy future.
- Chevron Corporation US is one of the largest oil companies in the world, Chevron has completed the acquisition of Akshaya Energy Group. Chevron has played a major role in tapping into North America's energy needs and helping to produce crude oil and natural gas from under the waters of the Gulf of Mexico, from the tight rocks of Texas, Colorado and Alberta, and from the Central California region.
- Saudi Aramco is the world's leading supplier of high-quality base oil and a producer of virgin base oil in the Kingdom of Saudi Arabia. Founded in 1976 in Jeddah, Luberef was originally established as a joint venture between Petromin and Mobil which today stands as a leader in the base oil sector.
- Total SA is a multinational energy company operating in more than 130 countries. Total SA produces and sells fuel, natural gas and low-carbon electricity. It is engaged in exploration and production of oil and gas, refining, petrochemicals and distribution of energy in various forms to end consumers.
- Sepahan Oil Company, established in 2002, is an independent oil refining company based in Tehran with its refinery in Isfahan.
- Bahrain Lube Base Oil Company Co. Chevron Lumus Global operates an oil plant for the production of Group III base oils from the hydrocracker bottoms stream at the Bapco refinery using associated export facilities with ISO dewaxing technology
- Lukoil is one of the leading producers of oil, grease and other technical fluids. It produces lubricants at 8 plants and 2 joint ventures in Russia and abroad, as well as at 25 third-party plants worldwide.
- Indian Oil Corporation is currently transforming from a purely regional company dominating India's downstream to a vertically integrated, conventional behemoth.
Global Base Oil Market By Company Profile
- ExxonMobil Corporation*
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Performance
- Business Strategies
- British Petroleum
- Royal Dutch Shell
- Chevron Corporation
- Saudi Aramco
- Total SA
- Sepahan Oil Company
- Bahrain Lube Base Oil Co.
- Lukoil
- Indian Oil Corporation.
“*” marked represents similar segmentation in other categories in the respective section
Global Base Oil Market By Table of Contents
- Research Objective and Assumption
- Preface
- Research Objectives
- Study Scope
- Years Considered for the study
- Assumptions
- Abbreviations
- Research Methodology
- Research data
- Primary Data
- Primary Interviews
- Primary Breakdown
- Key data from Primary Sources
- Key Thickness Insights
- Secondary Data
- Major Secondary Sources
- Secondary Sources
- Market Estimation
- Top-Down Approach
- Approach for estimating Market Share by Top-Down Analysis (Supply Side)
- Bottom-Up Approach
- Approach for estimating market share by Bottom-up Analysis (Demand Side)
- Market Breakdown and Data Triangulation
- Research Assumptions
- Market Purview
- Executive Summary
- Key Findings—Global Outlook for Global Base Oil Strategies
- Key Questions this Study will Answer
- Market Snippet, By Group
- Market Snippet, By Application
- Market Snippet, By Region
- Opportunity Map Analysis
- Executive Summary—3 Big Predictions
- Market Dynamics, Regulations, and Trends Analysis
- Market Dynamics
- Drivers
- Restraints
- Market Opportunities
- Market Trends
- DR Impact Analysis
- PEST Analysis
- Porter’s Five Forces Analysis
- Opportunity Orbit
- Market Investment Feasibility Index
- Macroeconomic Factor Analysis
- Market Dynamics
- Global Base Oil Market, By Group, 2022-2032, (US$ Mn)
- Overview
- Market Value and Forecast (US$ Mn), and Share Analysis (%), 2022-2032
- Y-o-Y Growth Analysis (%), 2022-2032
- Segment Trends
- Group I
- Overview
- Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2022-2032
- Group II
- Overview
- Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2022-2032
- Group III
- Overview
- Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2022-2032
- Group IV
- Overview
- Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2022-2032
- Group V
- Overview
- Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2022-2032
- Overview
- Global Base Oil Market, By Application, 2022-2032, (US$ Mn)
- Overview
- Market Value and Forecast (US$ Mn), and Share Analysis (%), 2022-2032
- Y-o-Y Growth Analysis (%), 2022-2032
- Segment Trends
- Automotive Oil
- Overview
- Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2022-2032
- Industrial Oil
- Overview
- Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2022-2032
- Hydraulic Oil
- Overview
- Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2022-2032
- Grease
- Overview
- Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2022-2032
- Air Purification
- Overview
- Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2022-2032
- Metalworking Fluid
- Overview
- Market Size and Forecast (US$ Mn), and Y-o-Y Growth (%), 2022-2032
- Overview
- Global Base Oil Market, By Region, 2022-2032, (US$ Mn)
- Overview
- Market Value and Forecast (US$ Mn), and Share Analysis (%), 2022-2032
- Y-o-Y Growth Analysis (%), 2022-2032
- Regional Trends
- North America
- Market Size and Forecast (US$ Mn), By Group, 2022-2032
- Market Size and Forecast (US$ Mn), By Application, 2022-2032
- Market Size and Forecast (US$ Mn), By Country, 2022-2032
- U.S.
- Canada
- Europe
- Market Size and Forecast (US$ Mn), By Group, 2022-2032
- Market Size and Forecast (US$ Mn), By Application, 2022-2032
- Market Size and Forecast (US$ Mn), By Country, 2022-2032
- Germany
- UK
- France
- Russia
- Italy
- Rest of Europe
- Asia Pacific
- Market Size and Forecast (US$ Mn), By Group, 2022-2032
- Market Size and Forecast (US$ Mn), By Application, 2022-2032
- Market Size and Forecast (US$ Mn), By Country, 2022-2032
- China
- India
- Japan
- South Korea
- Rest of Asia Pacific
- Latin America
- Market Size and Forecast (US$ Mn), By Group, 2022-2032
- Market Size and Forecast (US$ Mn), By Application, 2022-2032
- Market Size and Forecast (US$ Mn), By Country, 2022-2032
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- Market Size and Forecast (US$ Mn), By Group, 2022-2032
- Market Size and Forecast (US$ Mn), By Application, 2022-2032
- Market Size and Forecast (US$ Mn), By Country, 2022-2032
- GCC
- Israel
- South Africa
- Rest of Middle East
- Overview
- Competitive Landscape
- Heat Map Analysis
- Market Presence and Specificity Analysis
- Company Profiles
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- ExxonMobil Corporation
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Overview
- Business Strategies
- British Petroleum
- Royal Dutch Shell
- Chevron Corporation
- Saudi Aramco
- Total SA
- Sepahan Oil Company
- Bahrain Lube Base Oil Co.
- Lukoil
- Indian Oil Corporation
- ExxonMobil Corporation
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- The Last Word
- Future Impact
- About Us
- Contact
Global Base Oil Market By Highlights
FAQs
The Global Base Oil Market is segmented into product type, application, and region.
Engine oils are composed of 70–90 percent base oil and 10–30 percent additives. Thus, the growing demand for high-grade engine oils is expected to boost the base oil market.
Asia Pacific dominates the global base oil market and the main consumer are China and India.
The Key players operating in the global Base Oil Market include ExxonMobil Corporation British Petroleum, Royal Dutch Shell, Chevron Corporation, Saudi Aramco, Total SA, Sepahan Oil Company, Bahrain Lube Base Oil Co., Lukoil, Indian Oil Corporation. Companies are increasing their investments in R&D to develop better technology for better quality product.