The Global Base Oil Market is projected to reach a value of over USD 43.1 billion by 2027 at a CAGR of around 3.1%.
All lubricants contain base oil and it serves as the foundation of the lubricant before it is blended additives or a thickener in the case of grease. The base oil is most commonly used as lubricants in automotive vehicles to increase the efficiency of engines. They are produced by means of refining mineral oil, synthetic oil, and bio-based oil. Viscosity, viscosity index, pour point, and purity are the four physical properties that describe the base oil and state how they will perform when in service. Based on their ingredients and characteristics they are classified into five groups.
Market Driver:
According to the International Organization of Motor Vehicle Manufacturers (OICA), the total automotive sales of commercial vehicles and passenger cars in 2018 was 95 million units globally. Rise in luxury trucks by end-users associated with off-roading and rugged work, growing use electric vehicles, rising purchasing habits by millennials, and use factors influencing mobility vehicles are some of the factors driving the growth of the automotive industry. For instance, according to IEA, the global electric car deployment was 5 million in 2018, an increase of 63% from the previous year.
Thus, the growing automotive industry has anticipated boosting the growth of the base oil market during the forecasted period.
When properties are influenced by extreme temperatures, such as oxidation and thermal stability synthetic oil offers benefits that contribute towards the extended service life of the engine. Synthetic oil such as Polyalphaolefin (PAOs) performs better than that of mineral oil in situations where lubricants will encounter lower temperatures and high operating temperatures. It also exhibits improved characteristics in relation to demulsibility and hydrolytic stability, which influence the lubricant’s ability to handle water. Additionally, some advantages of synthetic oil than conventional oil such as greater engine wear protection helps keep engine cleaner and protecting critical turbocharger parts. Thus, owing to these factors the demand for synthetic oil has expected to surge the demand for product-market during the forecasted period.
Market Restraint:
Organization of Petroleum Exporting Countries (OPEC), is the main influencer of fluctuations in oil prices. Its production levels to meet global demand and can influence the price of oil and gas by increasing or decreasing production. Additionally, supply and demand impact, natural disaster and political weigh, and others are factors that implicated the fluctuation of crude oil prices. For instance, in March 2020, the outbreak of coronavirus outside China may take a heavy toll on global oil demand. According to IEA, the global oil demand has expected to fall 435 kb/d in the first quarter of 2020, the lowest since 2011. Thus, fluctuating crude oil prices is one of the major factors restraining market growth.
The report on the base oil market covers a deep dive analysis of historic, recent and current market trends. Furthermore, market share/ranking analysis of key players, market dynamics, competition landscape, country-wise analysis for each region covered and the entire supply chain dynamics are covered through the below segmentation.
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Report Features |
Specifics |
|---|---|
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Historical/Estimated/Forecasted Market Size Years |
2018-2027 |
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Base Year for Market Calculation |
2019 |
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Forecasted Period |
2020-2027 (2020 estimated year, forecasted up to 2027) |
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Measured Units |
Value (USD Million), Volume (Kiloton) |
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Segments Included |
Group, Type, Application, and Region |
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Regional Coverage |
North America, Asia-Pacific, Europe, Middle East & Africa, South America |
For the scope of the report, In-depth segmentation is offered by Forencis Research
Base Oil Market, by Group
Base Oil Market, by Type
Base Oil Market, by Application
Base Oil Market, by Region
60+ MARKET TABLES AND 30+ FIGURES WILL BE INCLUDED IN THE BASE OIL MARKET STUDY
Note1: Tentative table of contents, may get updated during the course of research.
Note2: Company financial information is subject to availability in public domain
60+ MARKET TABLES AND 30+ FIGURES WILL BE INCLUDED IN THE STUDY
