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Global Base Oil Market Overview

Global Base Oil Market Size Was Valued at USD 32.82 Billion In 2023 And Is Projected to Reach USD 49.58 Billion By 2032, Growing at A CAGR of 4.69% From 2024-2032.

Base oils are essential components in the production of lubricants and greases, serving as the primary foundation for these products. They are categorized into different groups based on their chemical composition and refining processes, ranging from Group I to Group V. The global base oil market plays a crucial role in various industries, including automotive, industrial machinery, marine, and aviation, where lubricants are essential for smooth operation and maintenance of equipment.

The expanding automotive industry, particularly in emerging economies, drives the demand for lubricants and subsequently base oils. The increasing manufacturing activities across various sectors, coupled with stringent regulations mandating the use of high-quality lubricants to enhance fuel efficiency and reduce emissions, further boosts market growth. Moreover, the rising awareness about preventive maintenance and the need for longer equipment lifespan contribute to the demand for superior quality lubricants formulated with high-performance base oils.

The global base oil market is poised for steady growth driven by the increasing demand for high-performance lubricants across various industries. With advancements in refining technologies and expanding applications in automotive, industrial, and specialty sectors, the market continues to evolve. Manufacturers and stakeholders in the base oil industry are focusing on sustainability, product innovation, and strategic partnerships to capitalize on emerging opportunities and meet evolving customer demands worldwide.

Market Dynamics and Factors for the Base Oil Market:

Drivers:

Growing in Industrialization in Emerging Economies
The demand for lubricants has increased as a result of rapid industrialization. The need for lubricants and their derivatives, such as finished lubricants, is being driven by the growth of industries such as industrial machinery, automotive, and energy in rising economies such as China, India, Brazil, and South Africa. Because of the depletion of crude oil reserves and the increased focus on environmental preservation, demand for environmentally friendly synthetic hydraulic oils or hydraulic fluids has increased. These oils are used in a variety of applications, including aviation, manufacturing, building, and automobiles. Hydraulic fluids carry power, provide lubrication, protect equipment from corrosion and wear, and serve as a heat transfer medium. Hydraulic fluid consumption is increasing as a result of rapid industrialization and automation. As a result, the global base oil market is being driven.

Restraints:

Oscillating Prices of Crude Oil
The change in the crude oil market has a substantial impact on the base oil market. Between 2008 and 2014, the crude oil market was lucrative, with prices breaking over the USD 100 per barrel barrier and beyond. Brent crude was trading at USD 140 per barrel, while WTI was trading at USD 120. Crude oil prices hit all-time lows in 2015. The margins of manufacturing enterprises are impacted by price volatility. Mineral oil is the most common form of base oil, and it is derived from crude oil. As a result, the price of base oil is greatly influenced by the price of crude oil. Manufacturers benefit from increased margins when crude oil prices are high, but the price movement has a significant influence on the base oil market.

Opportunities:

Plus Base Oils Will Generate Opportunities
Plus base oils, according to the research study, not only meet a market need but also provide tangible value. This may be viewed from two different angles. Plus base oils in Group II provide up new potential for producers to enter the 5W market, where they previously had a lesser presence. Plus base oils are the solution for Group III manufacturers to meet the newest standards and anticipated needs for low volatility, 0W-xx OEM specifications. Standard Group III base oils, on the other hand, satisfy the bulk of the criteria for today's 5W and standard volatility 0W-20 standards. Plus base oils will play a bigger role in satisfying the new 0W-16/12 low volatility standards in the future years.

Suppliers must be able to accommodate blender demands for conventional and group III oils for the industry to achieve and generate value. This will provide possibilities for market actors to consolidate and cooperate. As the most effective means of going forward and developing slates that meet all of the standards while giving the most value to end-users, buyers, and the industry as a whole.

Market Segmentation For Base Oil

Based on the Group, Group I segment is expected to register the maximum base oil market share over the forecast period. Despite the current market developments, Group I continue to dominate, with more than half of the world's base oil capacity. However, many of the factories that produce these oils are tiny and old and will be decommissioned within the next 20 years. Group II and Group III oils are expected to grow in popularity, as they are favored in most automobile compositions. Higher VI oils will have the advantage of being appropriate for manufacturing low-viscosity lubricants while preserving the required volatility qualities as demand for fuel-economy lubricants grows.

Based on the application, in terms of both value and volume, the automotive oil application segment is expected to lead the market throughout the forecast period. The expansion of the automobile sector in emerging countries is responsible for this segment's growth. Furthermore, the increase in population in the Asia Pacific is boosting demand for the automobile sector, fueling the market for the automotive oil application segment of the base oil market.

Players Covered in Base Oil market are :

  • Evonik Industries AG (Germany)
  • Hindustan Petroleum Corporation Limited or HPCL (India)
  • AVISTA OIL AG (Germany)
  • Chevron Corporation (US)
  • Total SA (France)
  • PT Pertamina (Persero) (Indonesia)
  • GRUPA LOTOS S.A. (Poland)
  • Abu Dhabi National Oil Company (ADNOC) (UAE)
  • Exxon Mobil Corporation (US)
  • Motiva Enterprises LLC (US)
  • SK Innovation Co. Ltd. (South Korea)
  • Royal Dutch Shell Plc (Netherlands)
  • Neste Oyj (Finland)
  • Nynas AB (Sweden)
  • Repsol S.A. (Spain)
  • Ergon Inc. (US)
  • Calumet Specialty Products Partners L.P. (US)
  • H&R Group (Germany)
  • Saudi Aramco (Saudi Arabia)
  • Phillips 66 (US)
  • Petroliam Nasional Berhad (PETRONAS) (Malaysia)
  • Sepahan Oil (Iran)
  • GS Caltex Corporation (South Korea)
  • Sinopec Corp. (China)
  • S-OIL CORPORATION (South Korea)
  • PetroChina Company Limited (China) and other major players.

Regional Analysis for the Base Oil Market:

North America is a significant market for base oils, driven by robust industrial and automotive sectors. The United States and Canada lead in terms of production and consumption, with a well-established network of refineries and lubricant manufacturers. The region's demand for base oils is supported by stringent environmental regulations that mandate the use of high-quality lubricants to enhance fuel efficiency and reduce emissions. Major oil companies and independent lubricant producers in North America focus on producing Group II and Group III base oils, which are preferred for their superior performance in automotive and industrial applications. Technological advancements in refining processes and a strong emphasis on sustainability contribute to the region's leadership in the base oil industry.

The global base oil industry is characterized by regional diversity in production, consumption, and technological advancements. North America and Europe lead in technological innovation and stringent regulatory compliance, while Asia-Pacific dominates in terms of market size and growth potential. Latin America and the Middle East & Africa regions are emerging markets with opportunities for expansion, driven by industrialization and infrastructure development.

Key Industry Developments in the Base Oil Market:

  • In September 2023, Petronas Lubricants International (PLI) and PT Kilang Pertamina Internasional (PT KPI) recently signed a Joint Study Agreement (JSA) to explore the possibility of developing a new greenfield lube base oil plant in Refinery Unit (RU) IV Cilacap, Central Java.
  • In April 2022, Chevron Global Energy, Inc., a wholly-owned subsidiary of Chevron Corporation, acquired Neste Corporation’s NEXBASE brand, associated qualifications and approvals, and related sales and marketing business.
  • In June 2024 - Clean Harbors' Safety-Kleen division has unveiled a strategic partnership with Castrol to introduce 'MoreCircular', a sustainable recycled lubricant. This initiative aims to reduce carbon footprints by re-refining used oil collected through Safety-Kleen's expanded operations, including the recent acquisition of Noble Oil Recycling. The move underscores a proactive approach to meet the rising demand for eco-friendly base oils amidst evolving market dynamics.

Global Base Oil Market

Base Year:

2023

Forecast Period:

2024-2032

Historical Data:

2017 to 2023

Market Size in 2023:

USD 32.82 Bn.

Forecast Period 2024-32 CAGR:

49.58%

Market Size in 2032:

USD 49.58 Bn.

Segments Covered:

By Group

  • Group I
  • Group II
  • Group III
  • Group IV
  • Group V

By Application

  • Process Oils
  • Industrial Oil
  • Automotive Oil
  • Hydraulic Oil
  • Others

By Region

  • North America (U.S., Canada, Mexico)
  • Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, and the Rest of Eastern Europe)
  • Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)
  • Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New- Zealand, and the Rest of APAC)
  • Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, and South Africa)
  • South America (Brazil, Argentina, and the Rest of SA)

Key Market Drivers:

  • Growing in Industrialization in Emerging Economies

Key Market Restraints:

  • Oscillating Prices of Crude Oil

Key Opportunities:

  • Plus Base Oils Will Generate Opportunities

Companies Covered in the report:

  • Evonik Industries AG (Germany), Hindustan Petroleum Corporation Limited or HPCL (India), AVISTA OIL AG (Germany), Chevron Corporation (US), and Other major players.

Chapter 1: Introduction
 1.1 Research Objectives
 1.2 Research Methodology
 1.3 Research Process
 1.4 Scope and Coverage
  1.4.1 Market Definition
  1.4.2 Key Questions Answered
 1.5 Market Segmentation

Chapter 2:Executive Summary

Chapter 3:Growth Opportunities By Segment
 3.1 By Group
 3.2 By Application

Chapter 4: Market Landscape
 4.1 Porter's Five Forces Analysis
  4.1.1 Bargaining Power of Supplier
  4.1.2 Threat of New Entrants
  4.1.3 Threat of Substitutes
  4.1.4 Competitive Rivalry
  4.1.5 Bargaining Power Among Buyers
 4.2 Industry Value Chain Analysis
 4.3 Market Dynamics
  4.3.1 Drivers
  4.3.2 Restraints
  4.3.3 Opportunities
  4.5.4 Challenges
 4.4 Pestle Analysis
 4.5 Technological Roadmap
 4.6 Regulatory Landscape
 4.7 SWOT Analysis
 4.8 Price Trend Analysis
 4.9 Patent Analysis
 4.10 Analysis of the Impact of Covid-19
  4.10.1 Impact on the Overall Market
  4.10.2 Impact on the Supply Chain
  4.10.3 Impact on the Key Manufacturers
  4.10.4 Impact on the Pricing

Chapter 5: Base Oil Market by Group
 5.1 Base Oil Market Overview Snapshot and Growth Engine
 5.2 Base Oil Market Overview
 5.3 Group I
  5.3.1 Introduction and Market Overview
  5.3.2 Historic and Forecasted Market Size (2017-2032F)
  5.3.3 Key Market Trends, Growth Factors and Opportunities
  5.3.4 Group I: Grographic Segmentation
 5.4 Group II
  5.4.1 Introduction and Market Overview
  5.4.2 Historic and Forecasted Market Size (2017-2032F)
  5.4.3 Key Market Trends, Growth Factors and Opportunities
  5.4.4 Group II: Grographic Segmentation
 5.5 Group III
  5.5.1 Introduction and Market Overview
  5.5.2 Historic and Forecasted Market Size (2017-2032F)
  5.5.3 Key Market Trends, Growth Factors and Opportunities
  5.5.4 Group III: Grographic Segmentation
 5.6 Group IV
  5.6.1 Introduction and Market Overview
  5.6.2 Historic and Forecasted Market Size (2017-2032F)
  5.6.3 Key Market Trends, Growth Factors and Opportunities
  5.6.4 Group IV: Grographic Segmentation
 5.7 Group V
  5.7.1 Introduction and Market Overview
  5.7.2 Historic and Forecasted Market Size (2017-2032F)
  5.7.3 Key Market Trends, Growth Factors and Opportunities
  5.7.4 Group V: Grographic Segmentation

Chapter 6: Base Oil Market by Application
 6.1 Base Oil Market Overview Snapshot and Growth Engine
 6.2 Base Oil Market Overview
 6.3 Process Oils
  6.3.1 Introduction and Market Overview
  6.3.2 Historic and Forecasted Market Size (2017-2032F)
  6.3.3 Key Market Trends, Growth Factors and Opportunities
  6.3.4 Process Oils: Grographic Segmentation
 6.4 Industrial Oil
  6.4.1 Introduction and Market Overview
  6.4.2 Historic and Forecasted Market Size (2017-2032F)
  6.4.3 Key Market Trends, Growth Factors and Opportunities
  6.4.4 Industrial Oil: Grographic Segmentation
 6.5 Automotive Oil
  6.5.1 Introduction and Market Overview
  6.5.2 Historic and Forecasted Market Size (2017-2032F)
  6.5.3 Key Market Trends, Growth Factors and Opportunities
  6.5.4 Automotive Oil: Grographic Segmentation
 6.6 Hydraulic Oil
  6.6.1 Introduction and Market Overview
  6.6.2 Historic and Forecasted Market Size (2017-2032F)
  6.6.3 Key Market Trends, Growth Factors and Opportunities
  6.6.4 Hydraulic Oil: Grographic Segmentation
 6.7 Others
  6.7.1 Introduction and Market Overview
  6.7.2 Historic and Forecasted Market Size (2017-2032F)
  6.7.3 Key Market Trends, Growth Factors and Opportunities
  6.7.4 Others: Grographic Segmentation

Chapter 7: Company Profiles and Competitive Analysis
 7.1 Competitive Landscape
  7.1.1 Competitive Positioning
  7.1.2 Base Oil Sales and Market Share By Players
  7.1.3 Industry BCG Matrix
  7.1.4 Ansoff Matrix
  7.1.5 Base Oil Industry Concentration Ratio (CR5 and HHI)
  7.1.6 Top 5 Base Oil Players Market Share
  7.1.7 Mergers and Acquisitions
  7.1.8 Business Strategies By Top Players
 7.2 EVONIK INDUSTRIES AG
  7.2.1 Company Overview
  7.2.2 Key Executives
  7.2.3 Company Snapshot
  7.2.4 Operating Business Segments
  7.2.5 Product Portfolio
  7.2.6 Business Performance
  7.2.7 Key Strategic Moves and Recent Developments
  7.2.8 SWOT Analysis
 7.3 HINDUSTAN PETROLEUM CORPORATION LIMITED OR HPCL
 7.4 AVISTA OIL AG
 7.5 CHEVRON CORPORATION
 7.6 TOTAL SA
 7.7 PT PERTAMINA (PERSERO)
 7.8 GRUPA LOTOS S.A.
 7.9 ABU DHABI NATIONAL OIL COMPANY (ADNOC)
 7.10 EXXON MOBIL CORPORATION
 7.11 MOTIVA ENTERPRISES LLC
 7.12 SK INNOVATION CO. LTD.
 7.13 ROYAL DUTCH SHELL PLC
 7.14 NESTE OYJ
 7.15 NYNAS AB
 7.16 REPSOL S.A.
 7.17 ERGON INC.
 7.18 CALUMET SPECIALTY PRODUCTS PARTNERS L.P.
 7.19 H&R GROUP
 7.20 SAUDI ARAMCO
 7.21 PHILLIPS 66
 7.22 PETROLIAM NASIONAL BERHAD (PETRONAS)
 7.23 SEPAHAN OIL
 7.24 GS CALTEX CORPORATION
 7.25 SINOPEC CORP.
 7.26 S-OIL CORPORATION
 7.27 PETROCHINA COMPANY LIMITED
 7.28 OTHER MAJOR PLAYERS
Chapter 8: Global Base Oil Market Analysis, Insights and Forecast, 2017-2032
 8.1 Market Overview
 8.2 Historic and Forecasted Market Size By Group
  8.2.1 Group I
  8.2.2 Group II
  8.2.3 Group III
  8.2.4 Group IV
  8.2.5 Group V
 8.3 Historic and Forecasted Market Size By Application
  8.3.1 Process Oils
  8.3.2 Industrial Oil
  8.3.3 Automotive Oil
  8.3.4 Hydraulic Oil
  8.3.5 Others
Chapter 9: North America Base Oil Market Analysis, Insights and Forecast,2017-2032
 9.1 Key Market Trends, Growth Factors and Opportunities
 9.2 Impact of Covid-19
 9.3 Key Players
 9.4 Key Market Trends, Growth Factors and Opportunities
 9.4 Historic and Forecasted Market Size By Group
  9.4.1 Group I
  9.4.2 Group II
  9.4.3 Group III
  9.4.4 Group IV
  9.4.5 Group V
 9.5 Historic and Forecasted Market Size By Application
  9.5.1 Process Oils
  9.5.2 Industrial Oil
  9.5.3 Automotive Oil
  9.5.4 Hydraulic Oil
  9.5.5 Others
 9.6 Historic and Forecast Market Size by Country
  9.6.1 U.S.
  9.6.2 Canada
  9.6.3 Mexico

Chapter 10: Europe Base Oil Market Analysis, Insights and Forecast, 2017-2032
 10.1 Key Market Trends, Growth Factors and Opportunities
 10.2 Impact of Covid-19
 10.3 Key Players
 10.4 Key Market Trends, Growth Factors and Opportunities
 10.4 Historic and Forecasted Market Size By Group
  10.4.1 Group I
  10.4.2 Group II
  10.4.3 Group III
  10.4.4 Group IV
  10.4.5 Group V
 10.5 Historic and Forecasted Market Size By Application
  10.5.1 Process Oils
  10.5.2 Industrial Oil
  10.5.3 Automotive Oil
  10.5.4 Hydraulic Oil
  10.5.5 Others
 10.6 Historic and Forecast Market Size by Country
  10.6.1 Germany
  10.6.2 U.K.
  10.6.3 France
  10.6.4 Italy
  10.6.5 Russia
  10.6.6 Spain
  10.6.7 Rest of Europe

Chapter 11: Asia-Pacific Base Oil Market Analysis, Insights and Forecast, 2017-2032
 11.1 Key Market Trends, Growth Factors and Opportunities
 11.2 Impact of Covid-19
 11.3 Key Players
 11.4 Key Market Trends, Growth Factors and Opportunities
 11.4 Historic and Forecasted Market Size By Group
  11.4.1 Group I
  11.4.2 Group II
  11.4.3 Group III
  11.4.4 Group IV
  11.4.5 Group V
 11.5 Historic and Forecasted Market Size By Application
  11.5.1 Process Oils
  11.5.2 Industrial Oil
  11.5.3 Automotive Oil
  11.5.4 Hydraulic Oil
  11.5.5 Others
 11.6 Historic and Forecast Market Size by Country
  11.6.1 China
  11.6.2 India
  11.6.3 Japan
  11.6.4 Singapore
  11.6.5 Australia
  11.6.6 New Zealand
  11.6.7 Rest of APAC

Chapter 12: Middle East & Africa Base Oil Market Analysis, Insights and Forecast,2017-2032
 12.1 Key Market Trends, Growth Factors and Opportunities
 12.2 Impact of Covid-19
 12.3 Key Players
 12.4 Key Market Trends, Growth Factors and Opportunities
 12.4 Historic and Forecasted Market Size By Group
  12.4.1 Group I
  12.4.2 Group II
  12.4.3 Group III
  12.4.4 Group IV
  12.4.5 Group V
 12.5 Historic and Forecasted Market Size By Application
  12.5.1 Process Oils
  12.5.2 Industrial Oil
  12.5.3 Automotive Oil
  12.5.4 Hydraulic Oil
  12.5.5 Others
 12.6 Historic and Forecast Market Size by Country
  12.6.1 Turkey
  12.6.2 Saudi Arabia
  12.6.3 Iran
  12.6.4 UAE
  12.6.5 Africa
  12.6.6 Rest of MEA

Chapter 13: South America Base Oil Market Analysis, Insights and Forecast, 2017-2032
 13.1 Key Market Trends, Growth Factors and Opportunities
 13.2 Impact of Covid-19
 13.3 Key Players
 13.4 Key Market Trends, Growth Factors and Opportunities
 13.4 Historic and Forecasted Market Size By Group
  13.4.1 Group I
  13.4.2 Group II
  13.4.3 Group III
  13.4.4 Group IV
  13.4.5 Group V
 13.5 Historic and Forecasted Market Size By Application
  13.5.1 Process Oils
  13.5.2 Industrial Oil
  13.5.3 Automotive Oil
  13.5.4 Hydraulic Oil
  13.5.5 Others
 13.6 Historic and Forecast Market Size by Country
  13.6.1 Brazil
  13.6.2 Argentina
  13.6.3 Rest of SA

Chapter 14 Investment Analysis

Chapter 15 Analyst Viewpoint and Conclusion

Global Base Oil Market

Base Year:

2023

Forecast Period:

2024-2032

Historical Data:

2017 to 2023

Market Size in 2023:

USD 32.82 Bn.

Forecast Period 2024-32 CAGR:

49.58%

Market Size in 2032:

USD 49.58 Bn.

Segments Covered:

By Group

  • Group I
  • Group II
  • Group III
  • Group IV
  • Group V

By Application

  • Process Oils
  • Industrial Oil
  • Automotive Oil
  • Hydraulic Oil
  • Others

By Region

  • North America (U.S., Canada, Mexico)
  • Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, and the Rest of Eastern Europe)
  • Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)
  • Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New- Zealand, and the Rest of APAC)
  • Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, and South Africa)
  • South America (Brazil, Argentina, and the Rest of SA)

Key Market Drivers:

  • Growing in Industrialization in Emerging Economies

Key Market Restraints:

  • Oscillating Prices of Crude Oil

Key Opportunities:

  • Plus Base Oils Will Generate Opportunities

Companies Covered in the report:

  • Evonik Industries AG (Germany), Hindustan Petroleum Corporation Limited or HPCL (India), AVISTA OIL AG (Germany), Chevron Corporation (US), and Other major players.
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Frequently Asked Questions :

What would be the forecast period in the Base Oil Market research report?

The forecast period in the Base Oil Market research report is 2024-2032.

Who are the key players in Base Oil Market?

Evonik Industries AG (Germany), Hindustan Petroleum Corporation Limited or HPCL (India), AVISTA OIL AG (Germany), Chevron Corporation (US), Total SA (France), PT Pertamina (Persero) (Indonesia), GRUPA LOTOS S.A. (Poland), Abu Dhabi National Oil Company (ADNOC) (UAE), Exxon Mobil Corporation (US), Motiva Enterprises LLC (US), SK Innovation Co. Ltd. (South Korea), Royal Dutch Shell Plc (Netherlands), Neste Oyj (Finland), Nynas AB (Sweden), Repsol S.A. (Spain), Ergon Inc. (US), Calumet Specialty Products Partners L.P. (US), H&R Group (Germany), Saudi Aramco (Saudi Arabia), Phillips 66 (US), Petroliam Nasional Berhad (PETRONAS) (Malaysia), Sepahan Oil (Iran), GS Caltex Corporation (South Korea), Sinopec Corp. (China), S-OIL CORPORATION (South Korea), PetroChina Company Limited (China), and other major players.

What are the segments of the Base Oil Market?

The Base Oil Market is segmented into Group, Application, and region. By Group, the market is categorized into Group I, Group II, Group III, Group IV, and Group V. By Application, the market is categorized into Process Oils, Industrial Oil, Automotive Oil, Hydraulic Oil, and Others. By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).

What is the Base Oil Market?

Base oil are used to make lubricating greases, motor oil, and metal processing fluids, among other things. Varied products required different oil compositions and qualities. The viscosity of the liquid at different temperatures is one of the most essential aspects.

How big is the Base Oil Market?

Global Base Oil Market Size Was Valued at USD 32.82 Billion In 2023 And Is Projected to Reach USD 49.58 Billion By 2032, Growing at A CAGR of 4.69% From 2024-2032.