Base Oil Market to Witness Exponential Growth by 2026
The
global base oil market was valued at US$ 33.2 Bn in 2017 and is
projected to expand at a CAGR of 1.7% from 2018 to 2026, according to
a new report titled ‘Base Oil Market – Global Industry Analysis,
Size, Share, Growth, Trends, and Forecast, 2018–2026,’ published
by Transparency Market Research (TMR) Growth in the global automotive
sector and increase in number of manufacturing plants are key factors
driving the global base oil market.
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Report Overview @
In
terms of grade, the global base oil market has been classified into
group I, group II, group III, group IV (PAO), group V (excluding
naphthenic), naphthenic, and re-refined. The group I segment has been
further sub-segmented into SN150, BS150, SN250, SN500, and others.
Similarly, the group II segment has been sub-segmented into N150,
N250, N500, N600, and others. The group III segment has been
sub-segmented into 2cSt, 4cSt, 6cSt, and 8cSt. The naphthenic segment
has been further divided into 35-60 SUS, 80-130 SUS, 200-300 SUS,
400-800 SUS, and above 1200 SUS. The group I segment held dominant
share of 37.1% of the global base oil market in terms of volume in
2017. However, the demand and supply for group I has been declining.
It is being replaced by group II and group III base oils. In terms of
volume, the group II and group III base oil segments are anticipated
to expand at CAGRs of 1.8% and 2.5%, respectively, between 2018 and
2026.
base
oils lubes industry
Based
on application, the base oil market has been segregated into
automotive fluids, process oils, industrial oils, metalworking
fluids, hydraulic oils, and others. Automotive fluids is the dominant
segment of the market. Automotive fluids essentially consist of
engine oils, transmission oils, brake fluids, suspension oils &
fluids, bearing lubricants, and friction-reducing greases. These
fluids and oils are essential in smooth functioning of an automotive.
Industrial oil is also a prominent application of base oils.
Industrial machinery requires substantial amount of lubricants for
friction reduction and cooling. Base oils are also used in the
manufacture of hydraulic oils, which are employed in various
machineries and equipment. Construction equipment, heavy duty
presses, aircraft flight control systems, and hydraulic lifts are
among key application areas of hydraulic oils.
Geopolitical
events and volatility in crude oil prices adversely affect the supply
of crude oil. This creates disruptions in the base oil market.
Economic recession and stagnating automotive sales are the factors
that hamper the demand for base oil. However, demand for base oil is
expected to rise steadily during the forecast period, led by the
recovery in the global economy. However, rise in popularity of
electric vehicles is anticipated to hamper the demand for base oil
during the latter half of the forecast period. Furthermore,
fluctuation in prices of crude oil has been negatively impacting the
global base oil market since the last few years.
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Key
market players profiled in the research study include Royal Dutch
Shell Plc, Nynas AB, China Petrochemical Corporation, ExxonMobil
Corporation, PetroChina Company Limited, GS Caltex Corporation, The
Phillips 66 Company, SK Lubricants Co. Ltd, British Petroleum, and
Chevron Corporation.
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