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Published Date: 2015-06-09Number of Pages: 207

Base Oil Market by Product (Group I, Group II, Group III, and Others) and by Application (Automotive Oils, Process Oils, Industrial Oils, Metalworking Fluids, Hydraulic Oils, and Others) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2020

Global Base Oil Market: Snapshot

Stringent norms emphasizing on carbon footprints reduction and fuel economy enhancements are fuelling the demand for high-quality environment-friendly lubricants. This trend is bringing about a change in the global base oils market and is leading to constantly evolving lubricants formulation processes, thus acting as an important driver for the market. Moreover, with the continuous increasing in the vehicle production volumes worldwide, the demand for finished lubricants and base oils is rising at a tremendous pace.

However, the plummeting prices of crude oil and the industry-wide shift towards heavy and sour crude oils are adversely affecting the market. According to a report by Transparency Market Research (TMR), the global base oils market stood at 37,003.7 kilotons and is anticipated to rise at a CAGR of 1.4% from 2015 to 2020, reaching 39,614.7 kilotons by 2020.

Failure to Meet Emission Norms to Negatively Impact Demand for Group I Base Oils

Automotive oils will continue to be the leading application segment until 2020, accounting for 45% of the overall market volume. Demand for base oils in the automotive lubricants sector is highly influenced by the growth pace of the global automotive industry. While North America and Central and South America are expected to rise at a sluggish rate, Asia Pacific and Europe are highly attractive markets for automotive oils. These regions have witnessed tremendous sales of vehicles over the past few years and are likely to aggressively adopt the usage of high-quality base oils for lubricant formulation in the near future. The industrial oils segment is estimated to expand at a moderate CAGR of 1.5% in terms of volume during the forecast period owing to the increasing industrial activities worldwide.

On the basis of product, the global base oils market will be led by group I throughout the forecast period, representing 58.3% of the overall market volume in 2014. However, the group 1 segment is likely to witness a decline in the market shares owing to the fact that these oils are incapable of meeting stringent performance standards and emission norms. This is leading to a brisk substitution of these base oils by higher purity groups. Nevertheless, developing regions such as Asia Pacific, Central and South America, and the Middle East and Africa will continue to be large consumers of group I base oils throughout the forecast period.

Asia Pacific to Account for Lion’s Share Owing to Robust Growth of Industrial and Automotive Sector

Asia Pacific is anticipated to hold the leading share of the volume pie until 2020, accounting for 41.4% of the overall market. The booming automotive and industrial sector is leading to greater uptake of finished lubricants. While group I base oils are still predominantly used, large capacity additions of both Group II and Group III have been planned, which is likely to speed up the consumption of high-quality base oils in the region.

North America has a mature market for furnished lubricants and is poised to experience moderate growth during the forecast period. The emergence of the region as one of the leading producers of Group II base oils and the flourishing growth of the industrial and automotive sector in Mexico are augmenting the North America market for base oils. Central and South America is expected to represent 7.5% of the overall volume market by 2020. With sales of automobiles falling in the region, growth in consumption of finished lubricants is likely to be diminutive in the region.

Some of the key players operating in the market are Royal Dutch Shell plc, Exxon Mobile Corporation, Chevron Corporation, and SK Lubricants Co. Ltd. Other market players profiled in this research report are Sinopec Group, British Petroleum plc, MOGoil GmbH, GS Caltex Corporation, Phillips 66 Company, PetroChina Company Limited, and S-Oil Corporation.

Even though there are several factors working in favor of the global base oil market, analysts predict that the value of this market is estimated to drop during the course of the forecast period. The recent slump in prices of crude oil is mainly responsible for the negative performance of the base oil market, especially in terms of revenue.

The research report segments the global base oil market on the basis of product, application, and region in order to provide a detailed understanding of the structure and elements of the overall market. By product, the base oil market is categorized into Group I, Group II, Group III, and others. By application, the market is broken down into industrial oils, hydraulic oils, automotive oils, process oils, metalworking fluids, and others. Geographically, the base oil market comprises Europe, North America, South and Central America, Asia Pacific, and the Middle East and Africa. An in-depth evaluation of these segments and sub-segments gives readers a clear picture of the leading, profitable, and lucrative segments of the base oil market and those that have scope for improvement. 

Overview of the Base Oil Market

The research report indicates that the demand for base oil is estimated to reach 39,614.7 kilo tons in 2020, developing at a 1.40% CAGR from 2015 to 2020. In terms of value, the global base oil market was pegged at US$34,514.1 Mn and it is projected to drop to US$30,973.1 Mn by 2020.

The rapid growth in the automotive industry has resulted in the rising demand for finished lubricants, which in turn has boosted the demand for base oil. Large-scale industrialization in emerging economies has led to the demand for lubricants in several end users. This, too, has propelled the base oil market in recent years. Another factor responsible for the development of the base oil market is rigid emission standards that have brought about a change in lubricant formulation methods. In contrast, plunging prices of crude oil and gradual shift by refiners from light, sweet crude to the heavy, sour version is likely to hamper the base oil market. 

The automotive industry is one of the most significant consumers of lubricants, making it a major end-use segment of the base oil market. A strong presence of leading auto manufacturers makes Europe a crucial market for base oil. Among the major product categories of base oil, the demand for Group I is estimated to drop by 2020, owing to growing preference for Group II and III base oils. 

Companies Mentioned in the Report

The most notable companies featured in the research report are S-Oil Corporation, Chevron Corporation, MOGoil GmbH, GS Caltex Corporation, Philips 66 Company, Royal Dutch Shell Plc, Exxon Mobil Corporation, PetroChina Company Limited, British Petroleum p.l.c, China Petroleum Corporation (Sinopec Group), and SK Lubricants. Each of the players are evaluated in the report based on company overview, financial conditions, product portfolio, business strategy, and recent developments. 

  • Global Base Oil Market: Product Analysis

    • Group I

      • SN150
      • BS150
      • SN500
      • Others
    • Group II

      • 150N
      • 500N
      • 600N
      • Others
    • Group III

      • 2cSt
      • 4cSt
      • 6cSt
      • 8cSt
    • Others
  • Global Base Oil Market: Application Analysis

    • Automotive Oils
    • Industrial Oils
    • Process Oils
    • Metalworking Fluids
    • Hydraulic Oils
    • Others
  • Global Base Oil Market: Regional Analysis

    • North America
    • Europe
    • Asia Pacific
    • Central & South America
    • Middle East & Africa

This report gives you access to decisive data such as:

  • Market growth drivers 
  • Factors limiting market growth
  • Current market trends 
  • Market structure
  • Market projections for the coming years 

Key highlights of this report

  • Overview of key market forces propelling and restraining market growth 
  • Up-to-date analyses of market trends and technological improvements 
  • Pin-point analyses of market competition dynamics to offer you a competitive edge
  • An analysis of strategies of major competitors 
  • An array of graphics and SWOT analysis of major industry segments 
  • Detailed analyses of industry trends
  • A well-defined technological growth map with an impact-analysis 
  • Offers a clear understanding of the competitive landscape and key product segments


 
 
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