Base Oil Market Revenue, Top Companies, Report 2033

Published Date : 03 Jun 2024

Base Oil Market Revenue and Opportunity

The global base oil market revenue was valued at USD 21.54 billion in 2023 and is poised to grow from USD 22.78 billion in 2024 to USD 37.45 billion by 2033, at a CAGR of 5.68% during the forecast period 2024 - 2033. The increasing demand for high-grade oils in the automotive industry is attributed to driving the growth of the demand.

Base Oil Market Statistics

Market Overview

The base oil market offers the foundation for lubricant formulations. They have a necessary effect on the longevity and performance of numerous automotive and industrial engines. Base oils are typically made by refining raw extracts at different pressures and temperatures. Base oils are the major component of lubricants as they offer corrosion protection, lubrication, and heat dissipation. The increasing use of engine oils from industries such as power generation, heavy equipment, chemicals, and metallurgy, as well as the increasing presence of a large number of extremely innovative market players, are anticipated to enhance market growth. In addition, the increasing popularity of fragrance products for homes in developing countries and increasing rapid industrialization in the oil industry are expected to drive the growth of the base oil market during the forecast period.

Increasing demand for high-grade oils in the automotive industry to fuel the market.

Base oil offers compatibility and high temperatures to fast-moving parts. The significantly affects the overall performance of the completed lubricants. The overall performance of the completed lubricant is significantly impacted by the selection of the base oil. Engine oils are composed of 10-30% additives and 70-90% base oil. Hence, the rising demand for high-grade engine oil is anticipated to drive the market growth. High-performance engine oils are enabled to withstand rigorous and extreme conditions for stationary engines, light-duty trucks, passenger cars, and diesel trucks. Base oils are majorly used in engine oils. The push towards cleaner emissions needs lubricants with harmful chemicals and lower levels of sulfur. These are the major driving factors anticipated to drive the growth of the base oil market during the forecast period.

However, fluctuations in crude oil prices may hamper the growth of the market. The majority of base oil types are based on mineral oil and extracted from oil prices, because of the prevalence of global economic problems, as did the gas and oil industry.  in a result, crude oil costs have reached new policies and lows. Price fluctuations affect manufacturing industries' margins because base oil costs are heavily inspired by crude oil prices. The crude oil manufacturers benefit from the highest crude oil costs, but the cost change negatively affects the base oil market. These are the major restraining factors expected to hinder the growth of the base oil market.

Base Oil Market Highlights

Report Attribute Key Statistics
Market Revenue in 2024 USD 22.78 Billion
Market Revenue by 2033 USD 37.45 Billion
Market CAGR CAGR of 5.68%
Quantitative Units Revenue in USD million/billion, Volume in units
Largest Market Asia Pacific
Base Year 2023
Forecast Period 2022 to 2033
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Base Oil Top Companies Market

  • CNOOC Limited
  • PetroCanada Lubricants Inc.
  • Petroleum & Chemical Corp.
  • PT Pertamina
  • PetroChina
  • ExxonMobil Corporation
  • Abu Dhabi National Oil Company
  • Chevron Corporation
  • India Oil Corporation Ltd.
  • BP p.l.c
  • Saudi Arabian Oil Co.
  • Sepahan Oil
  • Bahrain Lube Base Oil Company
  • SK Lubricants Co., Ltd.
  • H&R OWS Chemie Gmbh & Co. KG
  • Bharat Petroleum Corporation Limited
  • GS Caltex Corporation
  • Neste
  • Repsol

Recent Innovation in the base oil market by Castrol

  • In April 2024, in the U.S., Castrol MoreCircular oil was launched by Castrol. This effective Castrol MoreCircular is specially designed to minimize the carbon footprint of business lubricants. In addition, Castrol MoreCircular encompasses the whole procedure of gathering used oil from business consumers. Integrating re-refined and re-refining base oil is also used in premium oils for supply to businesses.

Recent Innovation in Base Oil Market by Chevron Lummus Global LLC

  • In February 2024, in China, a white oil processing unit was launched by Chevron Lummus Global LLC. This was the largest white oil hydroprocessing unit in the World. The unit that used CLG’s Insofinishing and Isodewaxing technologies includes unit, a 5000,000 metric tons annum nameplate ability API Group III oiling base oil unit with the capability to manufacture industrial grade white oil.

Regional Insights

Asia Pacific dominated the base oil market in 2023. The rising disposable income and increasing presence of emerging countries are expected to drive the market in the Asia Pacific region. Asia Pacific is the largest product market in the world. China is anticipated to lead the market in Asia Pacific. The increasing use of the manufacturing and automobile industry, the increasing population, rapid industrialization, significant foreign investment, and the increasing use of raw materials are expected to enhance the growth of the base oil market in China. For instance, from January to May 2023, according to the ICIS Supply and Demand Database, China imported a total of 867,381 tonnes of base oils. China is the largest importer of base oils in the world.

India is also expected to grow at a higher rate in the base oil market in the Asia Pacific region due to the increasing rapid infrastructure development by the Indian government and the increasing presence of various base oil manufacturers. There are various base oil manufacturers in India, such as I.B. PETROLEUM, DESIRE CHEMICALS PVT LTD., UK Bio Fuels, Gayatri Enterprises, A J Lubricants, and Bhuvi Petroleum PVT. LTD., Bharat Petrochemical, Industrial Esters & Chemicals PVT. LTD. And many others. These leading manufacturers provide base oil to the engines for the efficiency of the vehicles. These are the major factors and market players that are expected to enhance the growth and demand for the base oil market in the Asia Pacific region.

Europe held the second largest share of the base oil market in 2023. The increasing high consumption of oils, rapidly growing industrial and transportation sectors, reduction in prices of Group I base oils, and increasing government in research and development of automotive technologies are expected to accelerate the market growth in Europe. In Germany, the market is experiencing unstoppable  production development. The increasing demand for base oil contributed to significant growth for the market players. These are the major factors driving the growth of the base oil market in Europe.

Market Potential and Growth Opportunity

Evolving technology in the base oil market

In recent years, lubrication technology has found various phases of evolution. The rising investments by numerous companies for the growth of the industrial market, a-scale transformation, and increasing levels of investment in the automotive industry well as high-scale transformation and increasing levels of investment in the automotive industry, create lucrative opportunities for the market players. In addition, the adoption of gas-to-liquid technology and rising preferences towards bio-based oil from vegetable sources will further grow the market growth. Base oil performance is making a higher contribution to finished lubricant performance. These are the major opportunities that will enhance the growth and demand for the base oil market in the coming years.

Base Oil Market News

  • In April 2024, a leading Indian supplier of petroleum and lubricants specialties, Savita Oil Technologies Ltd. Launched its new Ester 5 brand of lubricants. The new product delivered 33% lower friction and 28% fewer engine deposits to Group-III base oil lubricants. The aim behind this launch was to sharpen the focus on the construction and automotive sectors.
  • In April 2024, to build a lubricants plant at the Gaslub hub, the Petrobras of Brazil launched tenders in Rio de Janeiro. The tenders are for the contracting of construction, procurement, and engineering services. The aim of the lubricants plant tenders is to help Petrobras manufacture II quality lubricant base oils.

Market Segmentation

By Product

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

By Application

  • Industrial Oils
  • Metalworking Oils
  • Hydraulic Oils
  • Process Oils
  • Automotive Oils
  • Others

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