Global PAG Base Oil Market: Snapshot
The global polyalkylene glycol (PAG) base oil market has been thriving in the recent years with the rise of the automotive and other industries. This oil was initially used by the U.S. Navy to tackle hydraulic fluid fires on vessels that were a result of strikes during wars. This became the tipping point of the PAG base oil to be used by the Navy in the coming years as it was known to fire-resistant and thus could be used across a wide temperature range. Ever since, the growing applications of PAG base oil has widened by leaps and bounds. PAG has been predominantly used by several industries. However, research suggests that this substance is also making its way into the food processing industry.
According to the research report, the global PAG base oil market is likely to be worth US$1,343.8 mn by the end of 2017 and US$1,623.0 mn by the end of 2022. Between the forecast period of 2017 and 2022, the global market is slated to exhibit a CAGR of 3.8%.
Demand for PAG base oil is estimated to improve in the coming years due to its excellent properties and the benefits it renders. Some of the well-known properties of PAG base oils are excellent water solubility, high viscosity index, and shear stable. Furthermore, their low volatility under high temperatures and resistance to formation of deposits or residue have also won it a multitude of application.
Compressor Lubricants to Remain Key Application Segment in Global Market
On the basis of application, the global PAG base oil market is segmented into compressor lubricants, worm gear lubricants, anhydrous fire resistant hydraulic fluid, metal working fluid, and others. Out of these, the compression lubricants application segment is likely to lead the pack. Their usage as a lubricant in high-pressure natural gas and ethylene compression due to their ability to maintain a stable viscosity is expected to augment the growth of this application segment. The report suggests that adoption of PAG base oil in refrigeration compression is also expected to remain high as the production of environment-friendly HFC refrigerants goes up.
The end users of PAG base oil are industrial tooling and equipment sector, HVAC and refrigeration sector, the automotive industry, and others. The reports suggest that the industrial sector is likely to be the leading end user of PAG base oil in the coming years. The demand for this oil is anticipated to remain this end-use segment due to their indispensable usage in industrial tooling and equipment all year round to ensure smooth functioning despite seasonal changes. Demand for PAGs is also expected to make remain in the automotive industry as production picks up pace in the developing economies. Demand for newer vehicles, which means higher consumption of plastics, elastomers, fabricated parts, and threads, has been identified as an essential element of market growth.
Emerging Economies Slated to Make Major Difference to Global Earnings
In terms of geography, the global PAG base oil market is segmented into North America, Latin America, Europe, Japan, and Asia Pacific excluding Japan. Emerging economies of Asia Pacific excluding Japan and Japan are expected to lead the global market. Both these geographies are expected to stay ahead in terms of production and consumption. Rise of industries and improving production and manufacturing plans are anticipated to be the major driving force of this progress.
Some of the key players operating in the global PAG base oil market are Idemitsu Kosan Co., Ltd, Denso Corporation, Exxon Mobil Corporation, Royal Dutch Shell plc., Morris Lubricants, Hornett Bros & Co Ltd, Philips 66 Company, Petronas Lubricants International, Fuchs Group, I.L.C. S.r.l, and TSI Supercool.
Global PAG Base Oil Market: Overview
The global polyalkylene glycol (PAG) base oil market is projected to exhibit its dominance and rise in the synthetic industry owing to outshining properties such as excellent temperature stability, high natural viscosity index, and top-quality lubricity. Moreover, the excelling performance standards of PAG base oil in industrial and automotive sectors could evidently improve the demand in the market.
The report offered here includes a study of some of the most important factors influencing the rise of the global PAG base oil market. Key segments of the market are critically analyzed to help readers foresee any challenges or opportunities about to show face in future.
Global PAG Base Oil Market: Dynamics
The PAG base oil market is envisaged to gain a whole lot of significance in the foreseeable future due to the rise of industrialization in lucrative regions such as Asia Pacific. Base oils such as PAG could find a mounting demand in industries such as power and automotive. Aggressive infrastructure development in India and China’s growing construction activities in the residential sector are forecast to be key for the growth of the market in the region. The consumption of PAG base oil could be augmented with the region’s tremendous increase in trade activities and industrial production.
Global PAG Base Oil Market: Segmentation
The international PAG base oil market is anticipated to be classified according to product, end-use sector, application, and sales channel. In terms of product, the market could be segmented into water soluble PAG oils and water insoluble PAG oils, where the latter is predicted to secure a larger share of 51.7% by the end of 2022. Annually, it could grow at a US$0.02 bn between 2017 and 2022.
On the basis of end-use sector, the international PAG base oil market is predicted to see a classification into industrial tooling and equipment, heating, ventilation, and air conditioning (HVAC) and refrigeration equipment, automotive, and other end-use sectors. By application, the market could be segmented into compressor lubricants, worm gear lubricants, anhydrous fire resistant hydraulic fluid, metal working fluid, and other applications. As per sales channel, the market is expected to be divided into original equipment manufacturer (OEM) and aftermarket.
Regionally, the international PAG base oil market is foreseen to be cataloged into Asia Pacific Excluding Japan (APEJ) which could be counted as a leading segment for years to come. It could rise at a CAGR of 4.6% during the forecast period. North America and Europe are foretold to be among the improving regions of the market. However, the Middle East and Africa (MEA) and Japan could showcase a dwindling growth in the near future. The report also studies Latin America as a noteworthy region of the market.
Global PAG Base Oil Market: Competition
Some of the prominent players of the worldwide PAG base oil market could be Idemitsu Kosan Co., Ltd., Denso Corporation, Exxon Mobil Corporation, Royal Dutch Shell plc, Morris Lubricants, Petronas Lubricants International, Hornett Bros & Co. Ltd., Phillips 66 Company, Fuchs Group, I.L.C. S.r.l., and TSI Supercool.