Base Oils Fortified with New Additive Combinations for Excellent Anti-wear Performance
There is a growing demand for ultra-high viscosity lubricants that are extensively used in heavily loaded, low speed open gears. This is evident since industrial oils are estimated to account for the second-highest revenue among all applications in the base oil market, where the global value is anticipated to reach ~US$ 42 Bn by the end of 2030. Hence, companies in the base oil market are increasing their production capabilities in supreme performance gear oils. For instance, global leader in bike and car engine oils is increasing its portfolio in lubricants and gear oils with Mobil SHC Gear 22M and 46M that are produced using proprietary additive combinations.
Base oils are being fortified with new additive combinations to deploy anti-wear performance and excellent gear scuffing protection in shock load situations. Such base oils are gaining increased acceptance by OEMs for customer field tests and other commercial end-use cases.
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Non-food Biomass Products Reduce Costs Associated with Making Renewable Lubricants
Lubricants are virtually used in most machines such as refrigerator compressors, engine gears, wind turbines, and the likes. Companies in the base oil market are increasing the availability of lubricants in crucial agricultural equipment, industrial machinery as well as home appliances to ensure proper functioning of machines. However, several base oils and lubricants are made from petroleum, which is a nonrenewable feedstock, resulting in increased greenhouse gas emissions. This explains why the base oil market is expected to progress at a sluggish CAGR of ~2% during the forecast period. Hence, researchers are tapping opportunities in renewable lubricants that are made from products such as wood, switchgrass, and sustainable organic wastes.
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Scientists at the Catalysis Center for Energy Innovation (CCEI) in the University of Delaware are innovating with non-food biomass products to reduce costs associated with the process of making renewable base oils and lubricants. Thus, companies should collaborate with scientists to explore new processes using fatty acids found in vegetable oils and animals.
Shipments Arrive While Plants Function at Low Operating Costs Due to Coronavirus Outbreak
The base oil market in China is bearing the brunt of coronavirus (COVID-19) restrictions, while companies in other countries are taking cautious steps. Base oils editors in Independent Commodity Intelligence Services (ICIS) opine that manufacturing plants in China have been temporarily shut as a direct consequence of the coronavirus outbreak. As such, trade activities in the Middle East have been limited, while local oil refiners of the base oil market in China have been forced to lower their operating costs. This has been carried out to reduce the pressure on inventories due to transportation restrictions in certain provinces of China.
On the other hand, some refiners in China are functioning in full capacities to capitalizing on the downtick in crude oil prices. Lowered prices of crude oil are generating increased sales, thus helping to revive economic growth. As such, there have been no delays in shipments to China from Asian suppliers. Analysts at Transparency Market Research (TMR) anticipate that companies in the Middle East will not face major setback due to coronavirus however, with a slight increase in Group I prices due to tight supply chain restrictions out of Iran.
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Analysts’ Viewpoint
European Group 1 exporters are widening their price range, while some exporters are offering base oils at discounted rates in order to encourage sales amidst the coronavirus pandemic. On the other hand, scientists are increasing efforts to lower processing costs associated with renewable lubricants by developing efficient catalytic reaction channels for the creation of lubricants with tunable characteristics.
Apart from automotive and industrial oils, manufacturers in the base oil market are tapping into opportunities in the bio-lubricant industry of the food sector. However, manufacturers need to meet stringent safety and purity specifications to introduce food grade lubricants in direct consumer-use products. Hence, manufacturers should increase the availability of H1, H2, and H3 food grade lubricants that are gaining acceptance in food processing environments.
Base Oil Market - Overview
The report analyzes the global base oil market for the period from 2017 to 2026, wherein 2017 is considered the base year and the period from 2018 to 2026 the forecast period. Data for 2017 has been included as historical information. The report covers all trends prevalent in the global base oil market. It also highlights various drivers, restraints, and opportunities expected to influence the market during the forecast period. The study provides a holistic perspective of the market in terms of revenue estimates (in US$ Mn) across different geographies including North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. The report provides cross-sectional analysis of the global base oil market, in terms of market estimates and forecasts, for all segments across different regions. The research report provides in-depth analysis of the global base oil market based on group, application, and geography. The report also includes competitive profiling of major players engaged in providing base oil. Major business strategies adopted by these players, their market position, and various recent developments have also been mentioned in this research report. The report offers market positioning analysis of key players operating in the global base oil market.
The research study on the global base oil market provides detailed analysis of various groups and applications. These factors enable the analysis of various trends that would impact the market from 2018 to 2026. The report comprises a comprehensive coverage of the underlying economic and technological factors impacting the base oil market. The market positioning analysis of key players throws light on the competition prevalent in the market.
Different factors that affect the base oil market positively as well as negatively have been identified in this report. The report aims to provide comprehensive cross-sectional analysis of the base oil market across geographies including North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Additionally, it highlights competition landscape of the base oil market and identifies business strategies adopted by leading players. Under the company profiles section, the report provides an overview of companies operating in the market, strategies deployed by them to gain a competitive advantage, SWOT analysis, annual revenue generated by them in the last five years, and recent developments.
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.
Key Takeaways
- Extensive analysis of the base oil market trends and shares from 2018 to 2026 to identify growth opportunities and analyze market developments
- List of key developments made by major players in the base oil market
- List of key factors useful for building the roadmap of upcoming opportunities for the base oil market at the global, regional, and country levels
- Comprehensive analysis of investments and price trends that would impact the outlook for the global base oil market between 2018 and 2026
- Insights into growth opportunities for various stakeholders in the value chain and a detailed competition landscape of key players operating in the market to understand competition level
- Porters’ Five Forces analysis that highlights the potency of buyers and suppliers and enables stakeholders to make profit-oriented business decisions