The global base oil market is on an upward trajectory. However, the growth rate would be low. As per Transparency Market Research, the compound annual growth rate or CAGR of the global base oil market will be 1.7% from 2018 to 2026. And, the market worth would see a higher valuation of USD 38.5 bn by the year 2026 – the end of the forecast period - from USD 33.2 bn. in the year 2017.
Key factors of growth in the global base oil market are growth in the automotive and manufacturing sectors worldwide. Another significant factor, helping the global base oil market to chart a notable growth curve is the recovery noted in world economy. Besides, Rapid industrialization in the developing regions of the world is also helping the market chart a significant growth curve over the forecast period. Additionally, it is worth noting that increasing investments from multinational companies would also help the base oil market witness numerous gainful opportunities emerge over the stated assessment period.
Asia Pacific Region to Be a Large and Fast Growing Market over the Forecast Period
High demand for gear oil and grease, and an increase in investment made by numerous multinational companies will help the Asia Pacific (APAC) region dominate the global base oil market over the forecast period. Industries that will contribute massively to the growth of this region in the period are power, metalworking, and heavy and equipment.
It is also important to note here that China will play a significant role in pushing the regional market towards growth owing to being a major automotive producer. Additionally, there are other countries in the region which are witnessing increase in demand for vehicles. These nations include Thailand, Malaysia, and Indonesia.
Also, construction and increase in its volume is set to lead the regional market at the forefront of growth over the forecast period. Worldwide, 3 nations will dominate this sector till 2030. And, two of the three nations are from Asia Pacific region - India, and China. In fact, from the overall growth that the market is set to witness - 85% - 57% would be helped by these two countries and the United States of America. Other countries that will see significant growth in construction are Indonesia, Philippines, and Vietnam.
Fragmented Vendor Landscape of the Global Base Oil Market to As Remain Such over the Forecast Period
It is pertinent to note here that the global base oil market has a decent number of players operating in the vendor landscape, making it fragmented in nature. Top players that have earned much fame over the years are 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.
It is important to point out here that players are highly focused on increasing production capacity. And, to many players that are operating this particular playfield, developing regions of the world would look highly lucrative for this purpose.
Geopolitical Events and Electric Vehicles to Restrain Growth in the Global Base Oil Market over the Forecast Period
The global base oil market is set to chart an upward facing growth curve over the forecast period, as per Transparency Market Research’s study analysis. However, factors such as volatility in crude oil prices and certain geopolitical events often bring in uncertainty and limit growth in the global base oil market. Another factor that is set to hamper growth in the market is increase in demand for electric vehicles.
Global Base Oil Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- Latin America
- Rest of South America
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