Process Oils Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 2.85 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Process Oils Market Analysis
The Process Oils Market size is estimated at 5.07 Million tons in 2024, and is expected to reach 5.84 Million tons by 2029, growing at a CAGR of 2.85% during the forecast period (2024-2029).
The COVID-19 pandemic negatively impacted the market in 2020. The shutdown of refineries and production facilities, along with the restrictions on transportation, affected the supply of base oils, leading to supply shortages and price increases. Overall, the impact of COVID-19 on the base oil market is mixed, with a decline in demand and prices during the initial stages of the pandemic, followed by a recovery as the world began to recover.
- Over the short term, the primary factor driving the market's growth is the increasing demand for polymer production, and a surge in the use of rubber oils is likely to augment the demand for process oils in the coming years.
- However, declining usage of PAH and DAE due to stringent regulations is likely to hinder the market's growth during the studied period.
- Nevertheless, research in bio-based rubber process oils and the accelerating demand for process oils in electric vehicles can soon be the factors behind growth opportunities for the global market.
- The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.
Process Oils Market Trends
Rubber Applications to Dominate the Market
- Rubber process oil is manufactured using petroleum after the more volatile petrol, and heating oil fractions are separated using the distillation process.
- Both natural and synthetic process oils are commercially used in producing several rubber products, including rubber bands, toys, and tires. They are also used in the mixing process for rubber compounds as they increase the dispersion of fillers and enhance the flow characteristics of the mixture.
- The expansion of the global rubber industry is promoting the use of rubber process oils across various application industries. Some typical rubber applications include tires, construction materials, white goods, biomedical, and textiles.
- According to the Malaysian Rubber Council, in 2022, 24.5 million metric tons of rubber were imported worldwide. It registered growth when compared to 24 million metric tons in the previous year.
- According to data from the Bureau of Labor Statistics, the synthetic rubber price index in the United States achieved a level of 200.3, showing a growth rate of 12.3% in comparison to the previous year's figure of 178.3.
- Based on the factors above, the rubber oil application for process oils is expected to dominate the market.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific is an area of immense potential due to the extensive demand for textiles and personal care products in countries, including India and China.
- China continued to be the biggest textile and apparel exporter in the world since 1994. The country dominates the global low-to-medium-end market by mainly engaging in OEM manufacturing and processing.
- According to the National Bureau of Statistics of China, in 2022, approximately 859.2 million rubber tires were produced in China, increasing from around 807.5 million in the previous year.
- The market of personal care products in India is comparatively low compared to developed and other developing economies.
- Nevertheless, the anticipated enhancement in the economic landscape and the rising purchasing capacity of the Indian populace are likely to boost the usage of personal care items in the nation.
- According to NIPFA India, the Indian beauty and personal care industry is currently worth USD 26.8 billion and is expected to grow to USD 37.2 billion over the next three years. The growth of the Indian market is expected to boost the development of the process oil market during the studied period.
- According to the Korea International Trade Association, the number of rubber tires imported into South Korea in 2022 reached around 115.3 thousand metric tons. Automobile tire imports in the country have steadily increased in recent years. The main reasons behind this were the growing imported foreign car market and the increasing demand for affordable tires from China and Southeastern Asian countries.
- Due to the factors above, the market for process oils in the Asia-Pacific region is expected to dominate the global market during the forecast period.
Process Oils Industry Overview
The process oils market is partially consolidated in nature. Some of the major players in the market (not in any particular order) are Chevron Corporation, ExxonMobil Corporation, HP Lubricants, Shell Plc, and TotalEnergies.
Process Oils Market Leaders
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Chevron Corporation
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HP Lubricants
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Exxon Mobil Corporation
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Shell Plc
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TotalEnergies
*Disclaimer: Major Players sorted in no particular order
Process Oils Market News
- December 2022: Royal Dutch Shell plc acquired a 49% stake in Blue Tide Environmental LLC via its Pennzoil-Quaker State subsidiary. Blue Tide Environmental LLC is a company looking to establish a global network of lubricant recycling facilities.
- February 2022: In alignment with Chevron's strategic goals, Bunge will finalize a USD 600 million joint venture to strategically process soybean oil to enhance Chevron's operations. The collaborative effort targets a doubling of the current daily production, reaching 14,000 tons by the end of 2024. The refined oil will serve as a sustainable feedstock, aligning seamlessly with Chevron's overarching strategy to manufacture low-carbon diesel or jet fuel.
Process Oils Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Rising Polymer Production
- 4.1.2 Surge in the Use of Rubber Oils
- 4.1.3 Other Drivers
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4.2 Restraints
- 4.2.1 Declining Usage of PAH and DAE due to Stringent Regulations
- 4.2.2 Other Restraints
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
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5.1 Type
- 5.1.1 Aromatic
- 5.1.2 Paraffinic
- 5.1.3 Naphthenic
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5.2 Application
- 5.2.1 Polymers
- 5.2.2 Personal Care
- 5.2.3 Other Applications
- 5.2.4
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5.3 Geography
- 5.3.1 Asia-Pacific
- 5.3.1.1 China
- 5.3.1.2 India
- 5.3.1.3 Japan
- 5.3.1.4 South Korea
- 5.3.1.5 Rest of Asia-Pacific
- 5.3.2 North America
- 5.3.2.1 United States
- 5.3.2.2 Canada
- 5.3.2.3 Mexico
- 5.3.3 Europe
- 5.3.3.1 Germany
- 5.3.3.2 United Kingdom
- 5.3.3.3 Italy
- 5.3.3.4 France
- 5.3.3.5 Rest of Europe
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 Chevron Corporation
- 6.4.2 ENEOS Corporation
- 6.4.3 Ergon Inc.
- 6.4.4 Exxon Mobil Corporation
- 6.4.5 HollyFrontier Refining & Marketing LLC
- 6.4.6 HP Lubricants
- 6.4.7 Idemitsu Kosan Co. Ltd
- 6.4.8 LUKOIL
- 6.4.9 Nynas AB
- 6.4.10 ORGKHIM Biochemical Holding
- 6.4.11 Panama Petrochem Ltd
- 6.4.12 PetroChina
- 6.4.13 PETRONAS Lubricants International
- 6.4.14 Phillips 66 Company
- 6.4.15 Repsol
- 6.4.16 Shell PLC
- 6.4.17 TotalEnergies
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Research in Bio-based Rubber Process Oils
- 7.2 Rising Demand for Process Oils in Electric Vehicles
Process Oils Industry Segmentation
Process oil is a type of petroleum oil used in various industries, such as tire manufacturing, rubber processing, and polymer processing. The primary function of process oil is to act as a lubricant and improve the processing efficiency of the end products.
The process oils market is segmented by type, application, and geography. By type, the market is segmented into aromatic, paraffinic, and naphthenic oils. By application, the market is segmented into rubber, polymers, personal care, and other applications. The report also covers the market sizes and forecasts for the process oils market in 15 countries across major regions. For each segment, the market sizing and forecasts are done based on volume (tons).
| Type | Aromatic | |
| Paraffinic | ||
| Naphthenic | ||
| Application | Polymers | |
| Personal Care | ||
| Other Applications | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| Italy | ||
| France | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | Saudi Arabia |
| South Africa | ||
| Rest of Middle-East and Africa |
Process Oils Market Research FAQs
How big is the Process Oils Market?
The Process Oils Market size is expected to reach 5.07 million tons in 2024 and grow at a CAGR of 2.85% to reach 5.84 million tons by 2029.
What is the current Process Oils Market size?
In 2024, the Process Oils Market size is expected to reach 5.07 million tons.
Who are the key players in Process Oils Market?
Chevron Corporation, HP Lubricants, Exxon Mobil Corporation, Shell Plc and TotalEnergies are the major companies operating in the Process Oils Market.
Which is the fastest growing region in Process Oils Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Process Oils Market?
In 2024, the Asia Pacific accounts for the largest market share in Process Oils Market.
What years does this Process Oils Market cover, and what was the market size in 2023?
In 2023, the Process Oils Market size was estimated at 4.93 million tons. The report covers the Process Oils Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Process Oils Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Process Oil Industry Report
Statistics for the 2024 Process Oil market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Process Oil analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
