What is Base Oil Market?
Base Oils are fluids that are used to manufacture Motor oils, lubricating greases, and metal processing fluids. Few of the base oil components are produced by refining crude oil. Different base oils have a different set of properties and objectives or use. Some of the properties which base oil have are thermal stability, viscosity limitation, viscosity index, volatility, oxidation, pour point, hydraulic stability, and aniline point. With the expansion of industrialization, and commercialization naturally the base oil market is expected to expand.
Highlights from Base Oil Market Study
Attributes | Details |
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Study Period | 2018-2028 |
Base Year | 2022 |
Unit | Value (USD Million) |
Key Companies Profiled | Royal Dutch Shell Plc (Netherlands), ExxonMobil Corporation (United States), Chevron Corporation (United States), Avista Oil AG (Germany), Repsol S.A. (Spain), Saudi Aramco (Saudi Arabia), PETRONAS (Malaysia), ADNOC (UAE), PetroChina Company Limited (China) and S-Oil Corporation (South Korea) |
The base oil market is very fragmented. The major industry players are continually acquiring small- or medium-sized businesses as a result of their recognition of the base oil market's potential for future expansion on a global scale. To produce base oils in huge quantities, they are joining up with other businesses. These market leaders are also launching cutting-edge items.
Royal Dutch Shell Plc (Netherlands), ExxonMobil Corporation (United States), Chevron Corporation (United States), Avista Oil AG (Germany), Repsol S.A. (Spain), Saudi Aramco (Saudi Arabia), PETRONAS (Malaysia), ADNOC (UAE), PetroChina Company Limited (China) and S-Oil Corporation (South Korea) are some of the key players profiled in the study. Additionally, the Vendors which are also part of the research are SK Innovation Co., Ltd. (South Korea), Hindustan Petroleum Corporation Limited (India) and PJSC Rosneft Oil Company (Russia). Base Oil Market Segmentation:
Scope | Sub-Segments |
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Application / End User | Automotive Oil, Industrial Oil, Metalworking Fluids, Hydraulic Oil, Greases and Others |
Type | Group I, Group II, Group III, Group IV and Group V |
Distribution Channel | Direct Channel,Indirect Channel |
Sources | Synthetic,Mineral,Vegetable |
On the basis of geography, the market of Base Oil has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Group, I Base Oil’s Sale are Dropping Year on Year Because of Inclination of North American and EU Governments Towards More Cleaner and Sustainable Base Oils.
Market Growth Drivers:
With an Overall Increase in Population and the Rise of Middle Income Households in Asia, the Number of Automobile Sold will Also Go Up, which will Eventually Benefit the Base Oil Industry Because of its Broad Application in Automotive Industry. and Asia and Africa are Witnessing Rapid Expansion of Industrialisation which Again will Lead to Rising in Demand for Base Oils
Challenges:
Production of Base Oil Using Sustainable Components, as Rising of Stringent Environment Protection and Climate Change Policies will Draw in Producers of Base Oils in Limelight, Educate the Industries and Consumers about Proper Way of Disposing of the Used Oil and Innovation and Increased Investment in Vegetable Oil will be Required
Restraints:
Highly Polluting and Toxic Substance if Not Properly Disposed and Volatility in Oil Markets Especially the Rising Differences Between OPEC and Non-OPEC Allies
Opportunities:
Rapid Industrialisation and Promising Auto Industry and Group II Oils will Serve as a Growing Opportunity as Industry Shifts to Group II Oils as Default Because of Relative Lower Costs and Cleaner Fluid than Group I
Key Target Audience
Base Oil Manufacturers, Suppliers, and Others, Crude Oil Suppliers, New Entrants/ Investors, Venture Capitalists and Private Equity Firms, Government Regulatory Bodies, End-User Industries and Others
Market Leaders & Development Strategies
In 2020, Nayara Energy (a subsidiary of Rosftnet) has signed an agreement with Shell to sell Shell’s lubricants and base oils through its vast network of around 5,900 fuel Stations in India. With this Shell plans to penetrate deep into Indian markets which are mostly captured by local Indian players.