The global base oil market increased in value from USD 34.47 billion in fiscal year 2021 to USD 35.26 billion in fiscal year 2022. Over the previous year, the industry increased by 2% year on year. Base oil sales are expected to grow at a 2.3% CAGR from 2022 to 2032, reaching US$ 44 billion by the end of that year. Base oil is a type of mineral oil that is used as a primary lubricant in a wide range of applications such as automotive, industrial, and marine machinery. The growing demand for lubricants in various industries, as well as the growing demand for high-performance lubricants with better fuel economy and lower emissions, are driving the base oil market.
The market is divided into groups based on the type of base oil used, such as Group I, Group II, Group III, and others. Because of their superior performance characteristics, such as higher viscosity index and better oxidation stability, Group II base oils are currently the most widely used. The market is also divided into end-use industries, such as automotive, industrial, and marine. Because base oil is used in engine oils, gearbox fluids and other lubricants, the automotive industry is the largest end-user. Base oil is also important in the industrial and marine industries, which require high-performance lubricants for heavy machinery and equipment.
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Key Takeaways from the Market Study
- Global base oil market to flourish 0.7x from 2022-2032
- Grade V base oil to be a top-selling category, capturing more than 2/5th market and flourishing at a 2.4% CAGR until 2032
- By application, base oil for the automotive industry to expand at a CAGR of 2.5%
- U.S to emerge as the fastest-growing Base Oil market, documenting a 2.4% CAGR
- China to be the 2nd most opportunistic market, expected to be valued at US$ 16.2 Billion in 2032
Numerous vendors competing to provide clients with comprehensive consulting and integration services define the global base oil market. Businesses are also looking for specialised service providers who can provide them with solutions that are specifically tailored to their needs. Additionally, the vendors are probably going to use product differentiation and upgrade to their advantage over other market competitors.
- Seneca Resources Company, LLC and NFG Midstream Covington, LLC, both of which are subsidiaries of National Fuel Gas Company, purchased the Appalachia shale gas position from SWEPI LP, a subsidiary of Royal Dutch Shell, in July 2020. Each received USD 541 million to invest as an asset for the production of high-quality base oil.
- Indian Oil Corporation and the Indian Institute of Science (IISc) agreed to work together to develop biomass gasification-based hydrogen generation technology in October 2020.
Key Companies Profiled
- Chevron Corporation
- Exxon Mobil Corporation
- Royal Dutch Shell Plc.
- Ergon Inc.
- Neste Oyj
- Nynas AB
- S-OIL CORPORATION,
- Sepahan Oil
- Repsol S. A.
- Sinopec Limited,
- BP PLC
- Evonik Industries AG
- H&R Group,
- Saudi Aramco
- SK Lubricants Co. Ltd.
The growth prospects for the entire U.S. market are how opportunistic?
The U.S. market for base oil is expected to see significant growth in the coming years, driven by the increasing demand for high-performance lubricants in various industries, including automotive, industrial, and marine. The country is one of the largest consumers of base oil globally, and is home to many major players in the market. One of the key drivers of growth in the U.S. market is the growing demand for synthetic and bio-based lubricants, which offer improved performance characteristics and better environmental sustainability. This trend is expected to accelerate in the coming years, as companies seek to meet the evolving needs of customers and comply with stricter environmental regulations
Overall, the U.S. market for base oil is highly competitive, with numerous global and regional players vying for market share. Some of the major players in the market include ExxonMobil, Chevron, Shell, Valvoline, and Phillips 66. The market is expected to see strong growth in the coming years, driven by a combination of increasing demand for high-performance lubricants, growing environmental awareness, and technological innovations in the industry