Global Base Oil Market: Growing Demand for Efficient and Pure Base Oils from Automotive Sector to Encourage Growth
The global base oil market is highly competitive in nature and is characterized by the presence of a large number of players operating in it, states a research report by Transparency Market Research. Some of the leading players in the global base oil market are Royal Dutch Shell plc, SK Lubricants Co. Ltd., Chevron Corporation, and Exxon Mobile Corporation are anticipated to collectively account for a massive share of the global market in the next few years. In order to maintain their leading position, these players are focusing on the expansion of the product portfolio and providing enhanced products to consumers. In addition, the rising number of mergers and acquisitions in the global market is predicted to strengthen the competitive scenario throughout the forecast period.
According to the research study by Transparency Market Research, the global market for base oils is predicted to reach a value of US$30,973.1 mn by the end of 2020. The market is likely to register a steady growth rate in the next few years.
Asia Pacific to Remain Dominant in Global Base Oil Market
From a geographical perspective, Asia Pacific is projected to lead the global base oil market with a massive share in the forecast period. As per the study, this region is projected to account for a 41.4% share of the global base oil market, thanks to the robust development of the industrial sector. In addition, the rapidly developing automotive sector is expected to boost the demand for base oil resulting in a greater uptake of finished lubricants. This is projected to fuel the growth of the Asia Pacific market in the coming years. Furthermore, North America is anticipated to register a moderate growth rate in the forecast period, with a significant fall in the sales of automobiles in the last few years.
On the basis of product type, the group I segment is expected to lead the global base oil market throughout the forecast period. However, a slight downward trend is expected in the growth of this segment, due to the fact that these oils are considered as incapable of meeting most of the stringent performance standards and emission norms imposed by governments across the globe. Several emerging economies, across the globe, such as the Middle East and Africa, Asia Pacific, and Central and South America are anticipated to remain the key consumers of the group I segment of the base oils market.
Development of Automotive Industry to Bolster Global Base oil Market
The significant growth of the global automotive market is expected to create a high demand for finished lubricants. This is anticipated to encourage the growth of the global base oil market in the coming years. In addition, the stringent rules and regulations imposed by governments related to emissions are anticipated to result in a substantial change in the lubricant formulation methods. The robust rate of industrialization, especially in developing economies is predicted to encourage the growth of the global base oil market in the next few years.
Fluctuating Crude Oil Prices to Inhibit Market Growth
The global base oil market, on the flip side, is estimated to face several challenges in the coming years, which is projected to restrict the growth of the overall market in the coming years. The gradual shift by refiners to heavy, sour crude oil is predicted to hamper the growth of the global base oil market. In addition, the plummeting crude oil prices are anticipated to affect the base oil revenue in a negative manner in the next few years. Nevertheless, the introduction of the gas-to-liquid technology is projected to enhance the supply of extremely efficient and pure base oils in the next few years. This is projected to generate promising opportunities for the key players operating in the global base oil market in the near future.
This information is based on the findings of a research report published by Transparency Market Research (TMR), titled “Base Oil Market by Product - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2020.”
The global base oil market has been segmented as below:
Global Base Oil Market, by Product
- Group I
- Group II
- Group III
Global Base Oil Market, by Application
- Automotive Oils
- Industrial Oils
- Process Oils
- Metalworking Fluids
- Hydraulic Oils
Global Base Oil Market, by Geography
- North America
- Asia Pacific
- Central & South America
- Middle East & Africa
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