The global Base Oils market reached a value of about 31.2 million litres in 2021. The industry is projected to grow at a CAGR of around 2.4% in the forecast period of 2022-2027 to reach a value of about 36.7 million litres by 2027.
The global Base Oils industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The application of the product in the automotive and industrial sectors is driving the industry. The Asia Pacific is the highest category spender by region, driving the demand for the Base Oils industry.
An oil that is devoid of impurities or additives and to which other substances can be added for a specific use is referred to as base oil. A refinery may create a variety of speciality products, including base oils. The oils are made by extracting and processing high-viscosity material from vacuum gas oil or vacuum resid distillation cuttings. They are used to make lubricating greases, motor oil, and metal processing fluids, among other things. The Base Oils industry report comprises segments by type (Mineral, Synthetic, and Bio-Based Based), group (Group I, Group II, Group III, Group IV, and Group V), application (Automotive oil, Industrial oil, Metalworking Fluids, Hydraulic Oil, Grease, and Others) and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).
The Asia Pacific holds the largest share in the industry as China, Japan, and India are the significant users of base oil. The demand has grown owing to the growing G.D.P. and increased industrial activity. Furthermore, the rise of the base oil market is due to the expansion of transportation, power generating, mining, and other sectors and the increasing rate of motorisation in underdeveloped nations. As a result, demand for lubricants increases, raising the need for base oil. The region's growing disposable income and the presence of rising economies make it an attractive market for lubricant makers.
The industry is being aided due to the rising demand for high-grade oils in the automobile industry. They're often employed for engine internal wear reduction, corrosion prevention, and smooth operation. They operate by creating a thin coating between the moving parts to improve heat transmission and lower tension during part contact driving the market's expansion. Advanced engine technology is driving demand for high-grade lubricants that can withstand high temperatures and fast-moving components. As a result, the market is developing due to the rising demand for high-grade oils in the automobile sector. Furthermore, the expansion of the oil base market is fueled by a rise in demand for hydraulic oil in the vehicle sector.
Despite that, factors like fluctuating crude oil prices and pollution standards, the market is likely to witness a negative impact.
The global Base Oils industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Base Oils regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.
Base oils are created by extracting and processing high-viscosity material from vacuum gas oil or vacuum resid distillation cuttings. This necessitates unique processing through a variety of various lubes plant units. During the heating procedure, lightweight and heavy hydrocarbons are; the lighter ones can be treated to create petrol and other fuels, though the heavier ones can be utilised to produce bitumen and base oils. The extraction or conversion procedure is involved. A set of subtractive techniques eliminates unwanted components from the final output. Separation of lighter boiling materials, distillation into base oil viscosity categories, selective impurity removal, de-waxing to increase low-temperature fluidity, and a finishing process to achieve high-quality base oils are among these stages.
The market is aided by the extensive application of the commodity in the industrial sector. The rapid industrialisation in emerging countries, which considers industrial applications of base oil such as hydraulic fluid and industrial gear oil, is propelling the industry forward. The rising demand for greases, industrial lubricants, thermal oils, and hydraulic fluids generated from raw stock fluids like base oil furthers the market demand. Also, the rising production capacities of base oils in emerging nations are anticipated to create new market opportunities.
The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
The base oil industry is highly fragmented, with many firms holding tiny shares and hence having little influence on market dynamics. The major industry players have identified the global market's future development opportunities and continually acquired small and medium-sized businesses. They are combining with other firms to produce significant quantities of essential oils. These industry leaders are also launching innovative items to preserve their market supremacy. These companies have used agreements, expansions, new product launches, acquisitions, partnerships, contracts, investments, and divestments to improve their market position.
1. Executive Summary
2. Base Oil Market Snapshot
2.1. Base Oil Market Outlook
2.2. Base Oil Industry Analysis by Type
2.2.3. Bio-Based Based
2.3. Base Oil Industry Analysis by Group
2.3.1. Group I
2.3.2. Group II
2.3.3. Group III
2.3.4. Group IV
2.3.5. Group V
2.4. Base Oil Industry Analysis by Application
2.4.1. Automotive oil
2.4.2. Industrial oil
2.4.3. Metalworking Fluids
2.4.4. Hydraulic Oil
2.5. Region Overview
2.5.1. North America
2.5.2. Asia Pacific
2.5.4. Latin America
2.5.5. Middle East and Africa
3. Impact of Recent Events
4. Base Oil Value Chain Analysis
5. Base Oil Production Process
6. Trade Analysis
7. Major Risk Factors in Sourcing
8. Base Oil Cost Structure
9. Base Oil Price Analysis
10. Key Demand Indicator Analysis
11. Key Price Indicator Analysis
12. Base Oil Market Dynamics
12.1. Drivers & Constraints
12.2. Industry Events
12.3. Innovations & Trends
12.4. Swot Analysis
12.5. Porter’s Five Forces
12.5.1. Buyer Power
12.5.2. Supplier Power
12.5.3. Threat of New Entrants
12.5.4. Threat of Substitutes
12.5.5. Industry Rivalry
13. Industry Best Practices
13.1. Sourcing Strategy
13.2. Procurement Model
13.3. Contract Structure
13.4. Negotiation Levers
13.5. Pricing Model
13.6. Key Factors Influencing the Quotation
14. Key Supplier Analysis
14.1. Chevron Corporation
14.2. Exxon Mobil Corporation
14.3. China Petroleum & Chemical Corporation
14.4. Shell Plc
14.5. Evonik Industries AG
The global Base Oils market size was valued at 31.2 million litres in 2021.
As per the application provided, the automotive segment is anticipated to lead the market between the period 2022 – 2027.
The significant demand for the commodity in the industrial sector is one of the essential drivers of the Base Oils market growth.
Chevron Corporation, Exxon Mobil Corporation, China Petroleum & Chemical Corporation, Shell Plc, and Evonik Industries AG are some of the major companies in the market.
The Asia Pacific region of the Base Oils industry holds a significant share in the market.
The global Base Oils market attained a value of 31.2 million litres in 2021 due to rising demand for high-grade oils in the automobile industry. Aided by the extensive application of the commodity in the industrial sector, the market is expected to witness further growth in the forecast period of 2022-2027, growing at a CAGR of 2.4%. The market is projected to reach 36.7 million litres by 2027. Some of the leading players in the industry are Chevron Corporation, Exxon Mobil Corporation, China Petroleum & Chemical Corporation, Shell Plc, and Evonik Industries AG.
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