Base Oil Market was recorded 25.5 billion USD in 2020 and is projected to expand at a steady CAGR of approximate 1.7% during the forecast period. The base oil is the raw material for the production of lubricants. The composition of base oil and its additives differ depending upon the application. Automotive fluids are anticipated to lead the base oil market due to the increase in the number of vehicles across the globe. The group II segment reported for the largest base oil market share in 2018. This segment is projected to boom the market in terms of both value and volume during the forecast period. Group II base oil can be occupied in a multitude of applications such as marine and gas engines, in trunk piston engine oils, and other applications in the base oil industry. The high consumption of group II base oil is mainly credited to its higher presentation and affordability in comparison to the other groups of base oil.

Market Segmentation:

On the basis of the market is segmented into group I (SN 150, BS 150, SN 250, SN 500), GROUP II (N 150, N 500, N 600), GROUP III (2 CST, 4 CST, 6 CST, 8 CST), GROUP IV (PAO), AND GROUP V (excluding naphthenic). On the basis of application, the market is classified into automotive fluids, process oils, industrial oils, metalworking fluids, and hydraulic oils. Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising North America, Europe, Asia-Pacific, and RoW.  

Market Dynamics and Factors:

The major factor attributed to the growth of the base oil market is rapid industrialization. Additionally, a rise in sales of vehicles and an increase in logistics and trade play a vital role in raising the base oil market. Growth in the global automotive sector and rise in the number of manufacturing plants is anticipated to propel the global base oil market. The major restraining factor of the market is stringent regulations by the government to reduce vehicle emission. Group II and group III consist of an excessive level of base oil composition. Thus reaction lesser vehicle emissions. 

Geographic Analysis:

The Asia Pacific is expected to continue to dominate the market in terms of value during the forecast period due to the increasing number of end-use industries in the region, the growth of power generation, mining, transportation, and other sectors. Asia pacific held higher than 40% share of the global base oil market in 2017. The region is likely to show impressive growth in the near future as well. North America is the second dominating region for the market with CAGR of 0.9% from 2018 to 2026. Moreover, the growing automotive sector in Europe is likely to have a positive impact on the growth of the base oil market. BRIC nations (Brazil, Russia, India, and China) are expected to boost the market's growth due to the rising demand for renewable energy.

Competitive Scenario:

The major key players operating in the market are Nynas Ab, Petrochina Company Limited, ExxonMobil Corporation, Gs Caltex Corporation, The Phillips 66 Company, Sk Lubricants Co. Ltd, And British Petroleum.

Base Oil Market Report Scope