The demand for lubricants has peaked globally in response to the expansion and diversification objectives across diverse industries. At a time when initiatives are taken to curb harmful emissions, industries are gradually ebbing from conventional lubricants and gradually inclining in favor of polyalkylene glycol (PAG) base oil. Unlike conventional lubricants, PAG base oils offer extended lubricant performance and have environmental acceptability. On the back of these factors, PAG base oils have forayed across major industries.
Overall the PAG base oil market will continue exhibiting growth at a moderate pace between 2017 and 2022. Because of their low volatility, PAG base oils are valued in high temperature applications. Besides this, PAG base oils are biodegradable and has therefore emerged as an ideal option for environmentally sensitive application. As a cumulative impact of the aforementioned factors, the global PAG base oil market’s trajectory is expected to remain positive through the forecast period.
In addition, the impressive growth of the industrial sector in Asia Pacific and the Middle East and Africa will prove a boon for the market, enabling it sustain its growth pace in the near future. As per Transparency Market Research, the global PAG base oil market will exhibit a CAGR of 4.6% between 2017 and 2022.
Global PAG Base Oil Market: Key Insights
The pace of growth for the global PAG base oil market is likely to remain moderate through the forecast period from 2017 to 2022. PAG lubricants have various properties, which are uniquely suited for diverse manufacturing and industrial applications. Also they are water soluble, which makes clean-up of equipment easier. Besides this, PAG base oil are shear stable and offer high viscosity indexes. These, coupled with the fire resistance and energy efficiency of PAG base oils have bolstered their application across industries.
The rising popularity of PAG base oils is due to various benefits they offer such as wear and tear protection, excellent thermal stability, besides other properties such as low friction and good load carrying capacity. Also research and development initiatives aimed at innovation of cutting edge technologies such as fire-resistant ester-based oils are incorporated across diverse industries and are often used with hydraulic battery packs to sustain high temperature and pressure.
Despite exhibiting positive trajectory over the last few years, the high cost of synthetic fibers compared to their mineral counterparts could threaten the global PAG base oil market. Furthermore, the rising consumption of mineral oils in emerging nations of Asia Pacific especially among the mushrooming small-scale manufacturers is also likely to have an adverse impact on the overall market.
Among various products available in the global PAG base oil market, the water insoluble PAG oils segment will represent nearly 53% of the market by the end of 2017. Before 2022 ends, the segment is expected to 839.4 mn, exhibiting a CAGR of 3.3% during the time.
Regionally, the report forecasts the PAG base oil market in North America to reach US$342.4 mn by the end of 2017, reaching US$412.3 mn by 2022. If these figures hold true, the North America market will exhibit a CAGR of 3.8% between 2017 and 2022. However, it is Asia Pacific except Japan, which is expected to showcase a more prolific growth during the forecast period. According to the report the market in APEJ will exhibit a CAGR of 4.6% between 2017 and 2022.
Global PAG Base Oil Market: Competitive Dynamics
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, and I.L.C. S.r.l. are some of the prominent names operating in the global PAG base oil market.
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