The Global Base Oil Market size was valued at USD 28.70 billion in 2020 and is expected to reach USD 39.90 billion growing at a compound annual growth rate (CAGR) of 3.6% from 2020 to 2027.
Base oil is the refined petroleum mineral or synthetic material produced by a refinery with a boiling point range between 550 and 1050 F, consisting of hydrocarbons with 18 to 40 carbon atoms. This oil can be either naphthenic or paraffinic in nature depending on the chemical structure of the molecules.
Growing demand for base oil from end-use industries such as automotive and manufacturing in developing and developed economies is a major factor expected to drive revenue growth of global base oil market over the forecast period. Moreover, increasing use of group II and group III oils in the automotive industry is expected to drive revenue growth of target market.
However, the high manufacturing cost of base oils is a major factor expected to restrain revenue growth of base oil market over the forecast period.
On the basis of product type, the group I segment is expected to account for major revenue share in the global base oil market. Group I base oil is the least refined oil used in automotive and industrial applications owing to its cost-effectiveness as compared to other base oils. However, the group I segment is expected to lose its revenue share in the future to group II and group III owing to their performance-enhancing ability.
On the basis of end-use, the automotive oil segment is expected to account major revenue share in the global market and is expected to maintain its dominance over the forecast period. Growing awareness among consumers regarding solution that improves the overall performance of the vehicle is a major factor expected to drive revenue growth of this segment. Moreover, stringent regulations regarding vehicle emissions are expected to support revenue growth of this segment.
Asia Pacific market is expected to account for major revenue share in the global base oil market and is expected to maintain its dominance over the forecast period. Growing automotive industry in the region is expected drive revenue growth of Asia Pacific base oil market over the forecast period. Moreover, rapid industrialization in the countries such as India and China are expected to support revenue growth of base oil market in the region. The Asia Pacific accounts for the major revenue share contribution of the global base oil market, followed by markets in Europe, Middle East & Africa, North America, and Latin America respectively. The base oil market in Middle East & Africa is expected to grow at a higher growth rate over the forecast period owing to increasing crude oil production and growing industrial sector in the region.
The base oil market is a highly fragmented market, where numerous players hold insignificant share to affect the market dynamics individually. Some of the noticeable players in the market include Exxon Mobil Corporation, Royal Dutch Shell plc, China Petrochemical Corporation, Evonik Industries AG and Chevron Corporation, among others.
Base oil is the refined petroleum mineral or synthetic material produced by a refinery with a boiling point range between 550 and 1050 F, consisting of hydrocarbons with 18 to 40 carbon atoms. This oil can be either naphthenic or paraffinic in nature depending on the chemical structure of the molecules.
Growing demand for base oil from end-use industries such as automotive and manufacturing in developing and developed economies is a major factor expected to drive revenue growth of global base oil market over the forecast period. Moreover, increasing use of group II and group III oils in the automotive industry is expected to drive revenue growth of target market.
However, the high manufacturing cost of base oils is a major factor expected to restrain revenue growth of base oil market over the forecast period.
On the basis of product type, the group I segment is expected to account for major revenue share in the global base oil market. Group I base oil is the least refined oil used in automotive and industrial applications owing to its cost-effectiveness as compared to other base oils. However, the group I segment is expected to lose its revenue share in the future to group II and group III owing to their performance-enhancing ability.
On the basis of end-use, the automotive oil segment is expected to account major revenue share in the global market and is expected to maintain its dominance over the forecast period. Growing awareness among consumers regarding solution that improves the overall performance of the vehicle is a major factor expected to drive revenue growth of this segment. Moreover, stringent regulations regarding vehicle emissions are expected to support revenue growth of this segment.
Asia Pacific market is expected to account for major revenue share in the global base oil market and is expected to maintain its dominance over the forecast period. Growing automotive industry in the region is expected drive revenue growth of Asia Pacific base oil market over the forecast period. Moreover, rapid industrialization in the countries such as India and China are expected to support revenue growth of base oil market in the region. The Asia Pacific accounts for the major revenue share contribution of the global base oil market, followed by markets in Europe, Middle East & Africa, North America, and Latin America respectively. The base oil market in Middle East & Africa is expected to grow at a higher growth rate over the forecast period owing to increasing crude oil production and growing industrial sector in the region.
The base oil market is a highly fragmented market, where numerous players hold insignificant share to affect the market dynamics individually. Some of the noticeable players in the market include Exxon Mobil Corporation, Royal Dutch Shell plc, China Petrochemical Corporation, Evonik Industries AG and Chevron Corporation, among others.
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