Market Size of Base Oil Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 1.51 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Base Oil Market Analysis
The Base Oil Market size is estimated at 34.63 Million tons in 2024, and is expected to reach 37.31 Million tons by 2029, growing at a CAGR of 1.51% during the forecast period (2024-2029).
The demand for base oil decreased significantly in 2020 due to the outbreak of COVID-19. The virus caused production to decline in the automotive industry and various other industrial units (aviation, industrial, etc.). The reduction in the consumption of engine oil, gear oil, greases, and metalworking fluid affected the base oil market. However, in 2021 and 2022, the base oil market recovered as car manufacturing and production activities across other industries ramped up.
- Rapid industrialization in Asia-Pacific, considering the industrial application of base oil such as hydraulic fluid and industrial gear oil, and growing automotive production and sales are expected to drive the market's growth during the forecast period.
- On the flip side, the declining demand for group I base oils due to the preference for lighter viscosity base oils is likely to hamper the market's growth over the forecast period.
- Nevertheless, innovations in the field of renewable base oils and recycling of base oils are anticipated to provide opportunities for the market studied.
- Asia-Pacific is expected to dominate the market owing to significant demand from countries such as China, India, and Japan.
Base Oil Industry Segmentation
Base oils are one of the specialty products that a refinery can produce and are not considered as fuel. Base oils are categorized into five groups, i.e., group I-V. The first three groups are derived from downstream petroleum refinery plants. Group IV base oils are synthetic (polyalphaolefins) oils.
The base oil market is segmented by type, application, and geography. By type, the market is segmented into group I, group II, group III, group IV, and other types (group V and bio-based base oils). By application, the market is segmented into engine oils, transmission and gear oils, metalworking fluids, hydraulic fluids, greases, and other applications (process oils, turbine oil, compressor oil, circulating oils, etc.). The report also covers the market size and forecasts for the base oil market in 27 countries across major regions. For each segment, the market sizing and forecasts are done based on volume (tons).
| Type | |
| Group I | |
| Group II | |
| Group III | |
| Group IV | |
| Other Types (Group V and Bio-based Base Oils) |
| Application | |
| Engine Oils | |
| Transmission and Gear Oils | |
| Metalworking Fluids | |
| Hydraulic Fluids | |
| Greases | |
| Other Applications (Process Oils, Turbine Oil, Compressor Oil, Circulating Oils, etc.) |
| Geography | |||||||||||
| |||||||||||
| |||||||||||
| |||||||||||
| |||||||||||
|
Base Oil Market Size Summary
The base oil market is poised for moderate growth over the forecast period, driven by the recovery in automotive and industrial production following the disruptions caused by the COVID-19 pandemic. The market is experiencing a resurgence as demand for engine oils, gear oils, greases, and metalworking fluids increases. Rapid industrialization in the Asia-Pacific region, coupled with the growing automotive production and sales, is expected to be a significant growth driver. However, the market faces challenges due to the declining demand for group I base oils, as lighter viscosity options gain preference. Despite these challenges, innovations in renewable and recycled base oils present new opportunities for market expansion.
The engine oil segment remains the dominant force in the base oil market, fueled by its extensive use across various industries, including automotive, power, and heavy equipment. The demand for high-mileage engine oils, which offer benefits like reduced oil consumption and leak prevention, is on the rise. Investments and developments in the lubricants sector, such as new manufacturing plants and product launches, are further boosting the market. Asia-Pacific is expected to lead the global market, with significant consumption in countries like China, India, and Japan, driven by increasing vehicle populations and industrial activities. The fragmented nature of the market sees major players like Exxon Mobil, Saudi Arabian Oil Co., and PetroChina actively participating in regional developments and collaborations to meet the growing demand.
Base Oil Market Size - Table of Contents
-
1. MARKET DYNAMICS
-
1.1 Drivers
-
1.1.1 Rapid Industrialization in Asia-Pacific
-
1.1.2 Growing Automotive Production and Sales
-
-
1.2 Restraints
-
1.2.1 Declining Demand for Group I Base Oils
-
-
1.3 Industry Value Chain Analysis
-
1.4 Porter's Five Forces Analysis
-
1.4.1 Bargaining Power of Suppliers
-
1.4.2 Bargaining Power of Buyers
-
1.4.3 Threat of New Entrants
-
1.4.4 Threat of Substitute Products and Services
-
1.4.5 Degree of Competition
-
-
-
2. MARKET SEGMENTATION (Market Size in Volume)
-
2.1 Type
-
2.1.1 Group I
-
2.1.2 Group II
-
2.1.3 Group III
-
2.1.4 Group IV
-
2.1.5 Other Types (Group V and Bio-based Base Oils)
-
-
2.2 Application
-
2.2.1 Engine Oils
-
2.2.2 Transmission and Gear Oils
-
2.2.3 Metalworking Fluids
-
2.2.4 Hydraulic Fluids
-
2.2.5 Greases
-
2.2.6 Other Applications (Process Oils, Turbine Oil, Compressor Oil, Circulating Oils, etc.)
-
-
2.3 Geography
-
2.3.1 Asia-Pacific
-
2.3.1.1 China
-
2.3.1.2 India
-
2.3.1.3 Japan
-
2.3.1.4 South Korea
-
2.3.1.5 Malayisa
-
2.3.1.6 Indonesia
-
2.3.1.7 Vietnam
-
2.3.1.8 Thailand
-
2.3.1.9 Rest of Asia-Pacific
-
-
2.3.2 North America
-
2.3.2.1 United States
-
2.3.2.2 Canada
-
2.3.2.3 Mexico
-
-
2.3.3 Europe
-
2.3.3.1 Germany
-
2.3.3.2 United Kingdom
-
2.3.3.3 France
-
2.3.3.4 Italy
-
2.3.3.5 Spain
-
2.3.3.6 NORDIC Countries
-
2.3.3.7 Turkey
-
2.3.3.8 Russia
-
2.3.3.9 Rest of Europe
-
-
2.3.4 South America
-
2.3.4.1 Brazil
-
2.3.4.2 Argentina
-
2.3.4.3 Colombia
-
2.3.4.4 Rest of South America
-
-
2.3.5 Middle East and Africa
-
2.3.5.1 Saudi Arabia
-
2.3.5.2 South Africa
-
2.3.5.3 United Arab Emirates
-
2.3.5.4 Egypt
-
2.3.5.5 Qatar
-
2.3.5.6 Nigeria
-
2.3.5.7 Rest of Middle East and Africa
-
-
-
Base Oil Market Size FAQs
How big is the Base Oil Market?
The Base Oil Market size is expected to reach 34.63 million tons in 2024 and grow at a CAGR of 1.51% to reach 37.31 million tons by 2029.
What is the current Base Oil Market size?
In 2024, the Base Oil Market size is expected to reach 34.63 million tons.
