Global base oil market is expected to foresee significant growth due to growing automotive industry and industrial production in developing economies

The global Base Oil Market was stood around $30 billion in 2020 and is expected to demonstrate the growth of ~4% during the forecast period (2021-2027). Developing economies like Brazil, China, India, and Mexico are focusing on industrialization so the demand of machineries is increasing as a result thus fueling the demand of lubricants in order to reduce the friction and wear and tear of equipment’s. With industrialization, income of people in these countries are growing which is improving consumer disposable power as a result demand of products like automobiles are increasing.

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Global demand of base oil is growing at a moderate rate owing to saturated industrial sector and slow growth in automotive sector. However, during the past couple of decades automotive and industrial sectors were the key factors for the growth of the base oil market owing to the increasing industrialization across the globe and growing consumer purchasing power thus resulted in higher sales of automobiles. For instance, production of automobiles increased to 91.7 million in 2019 compared to 89.7 million in 2014. However, in 2020 production decreased to 77.6 million due to manufacturing shutdown in order to curtail the spread of COVID-19. However, rapid adoption of electric vehicles has opened the door for the lubricant manufacturers to focus on electric vehicles lubricants. Countries are focusing on electric vehicles to meet their net zero emission, for instance, according to IEA, for 2030, the Net Zero Emissions by 2050 Scenario projects 300 million electric cars on the road and they account for over 60% of new car sales, compared with only 4.6% in 2020

In the light of COVID-19, production and sale of automobile declined which directly affected the consumption of lubricants. Thus, affecting the market of base oil. In 2020 production decreased to 77.6 million due to manufacturing shutdown in order to curtail the spread of COVID-19. Further, halted industrial production activity due to the stringent measures taken by governments of several nation has also affected the market of base oil.

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• Based on group, the market is categorized into group I, group II, group III, group IV, and group V. Group II base oil held the dominating position in the market in 2020 and is likely to retain its position during the forecast period as well owing to shifting focus on industries from group I base oil to group II base oil. This is mainly attributed to the changing environment emission regulation and increasing industries focus on better quality base oil compared to group I base oil. Group II base oil has higher efficiency and lower emission relative to group I base oil. Further, industries are finding it affordable as well
• Based on application, the market is categorized into automotive oil, industrial oil, metalworking fluid, greases, hydraulic oil, and others. Among these, the market of base oil in automotive oil held the prominent market share in 2020 and is likely to showcase robust growth during the forecast period. This can be mainly ascribed to the increasing demand of automobiles in developing countries like China and India. In such countries, automobile considered as a status of luxury rather than utility therefore with increasing per capita income, the sale of automobiles is increasing, thus propelling the demand of lubricants which eventually improves the market of the base oil. Further, governmental incentives program to promote the adoption of the electric vehicles has provided opportunity to lubricant manufacturer to launch lubricants for electric vehicle sector.

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For a better understanding of the market adoption of Aerospace Material, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, UK, France, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. Asia-Pacific held the dominating position in the global base oil market and is expected to showcase fastest growth rate during the forecast period. This can be mainly attributed to the large and growing demand of automobiles and increasing industrial activities in countries like China, India, and ASEAN region.

Global Base oil Market Segmentation

Market Insight, by Group

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

Market Insight, by Application

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

Market Insight, by Region

• North America Base Oil Market
  • United States
  • Canada
  • Rest of North America
• Europe Base Oil Market
  • Germany
  • United Kingdom
  • France
  • Spain
  • Rest of Europe
• Asia-Pacific Base Oil Market
  • China
  • Japan
  • India
  • Australia
  • Rest of Asia-Pacific
• Rest of World Base Oil Market

Top Company Profiles

• Chevron Corporation
• Exxon Mobil Corporation
• S-Oil Corporation
• Motiva Enterprises LLC
• SK Innovation Co. Ltd.
• Saudi Aramco
• Hindustan Petroleum Corporation Limited
• Royal Dutch Shell Plc
• Neste Oyj
• Avista Oil AG