Base Oil Market

Global Base Oil Market Size & Trends (2024 to 2029)

The Global Base Oil Market size was estimated at $ 39.89 billion in 2024 and is predicted to expand up to $ 52.63 billion by 2029, at a CAGR of 5.7% in the timeline of 2024 to 2029.

MARKET OVERVIEW

Base oil is the refined petroleum mineral or artificial component obtained by a refinery according to a set of needed specifications, usually a base stock of lubricants. The quality of a lubricant may be depending on the kind of base oil employed for refining and the production method employed to obtain the base oil. It is essential for the quality of the lubricant since base oils normally represent up to 70-97% of a lubricant's formulation.

MARKET DRIVERS & RESTRAINTS

The rising call for high-quality oils in the automotive industry and the escalation of GDP in Asia-Pacific led by the increase in industrial activities are driving the growth of the market worldwide.

The increasing adoption of Group II and III base oils as a result of increased ground transportation, aviation, and commercial road transport is expected to support growth in the next eight years. The increase in this market can be attributed to growing concerns about environmental degradation and the consequent increase in demand for alternative and sustainable products with a lower carbon footprint. Consumers are increasingly demanding better performance and high mileage vehicles due to the growing awareness among them about vehicle use that should not be replaced any time soon.

The call for oils in the automotive industry, mainly in growing nations, and strict environmental legislation leading to strict performance standards are driving the worldwide base oil industry. However, volatility in the prices of crude oil and stringent government standards is predicted to limit the expansion of this industry in the future. The worldwide change from Group I base oils to Groups II and III shows several development opportunities for industry players. The demand for synthetic hydraulic oils or environmentally friendly hydraulic fluids has increased due to depleting crude oil levels and an emphasis on protecting the environment. These oils are used in various end-use industries, such as aviation, manufacturing, construction, and the automotive industry. Hydraulic fluids transfer power; lubricate; prevent corrosion and wear of machines; and act as a means of heat transfer. The rapid industrialization and mechanization of industries are stimulating the demand for hydraulic fluids, which stimulates the global base oil market.

REPORT COVERAGE

DETAILED SEGMENTATION OF THE GLOBAL OIL MARKET INCLUDED IN THIS REPORT

This research report on the global oil market has been segmented and sub-segmented based on group, application, and region.

Global Base Oil Market By Group

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

On the basis of the group, the Group II sector held the biggest base oil industry share in 2020. This sector is also predicted to continue its dominion in the coming years.

Global Base Oil Market By Application

• Automotive Oil
• Industrial Oil
• Hydraulic Oil
• Grease
• Metalworking Fluid
• Others

The application sector of the base oil market is segmented into automotive oil and is predicted to dominate the industry during the foreseen period. 

REGIONAL ANALYSIS

• North America 
• Europe 
• Asia Pacific
• Latin America 
• The Middle East & Africa 

The Asia-Pacific region is predicted to be the biggest base oil industry in 2023. The Asian nations are the significant customers of base oil in this area.

The escalation in GDP driven by the escalation in industrial works has escalated the call for basic oil in this region. The expansion of transportation, power releases, and other segments is also in charge of the expansion of the base oil industry in the region of Asia-Pacific. Europe is one more significant region in the worldwide industry for base oil. The region's industry is predicted to rise at a significant pace throughout the determined period. The rising call for hybrid electric vehicles (VEH) and electric vehicles (VE) to follow government rules on CO2 releases is also having a good effect on the base oil market in Europe.

KEY PLAYERS IN THE GLOBAL BASE OIL MARKET

Chevron Corporation (US), Exxon Mobil Corporation (US), S-OIL Corporation (South Korea), Motiva Enterprises LLC (US), AVISTA OIL AG (Germany), Nynas AB (Sweden) , Repsol S.A. (Spain), Ergon, Inc. (United States), Calumet Specialty Products Partners, L.P, H&R Group (Germany), Sinopec Corp. (China), SK innovation Co., Ltd. (South Korea), Royal Dutch Shell plc (Netherlands), Neste Oyj (Finland), PetroChina Company Limited (China) are some of the notable companies in the global base oil market.