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Base Oil Market - Growth, Trends, and Forecast (2019 - 2024)

  • ID: 4787508
  • Report
  • 130 pages
  • Mordor Intelligence
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  • Chevron Corporation
  • Exxon Mobil Corporation
  • HP Lubricants
  • Philips 66 Company
  • SK Lubricants Co. Ltd
  • MORE
Market Overview

The base oil market is expected to grow at a CAGR of around 2% during the forecast period of 2019-2024. The major factors driving the growth of the market studied are the growing demand from the automotive industry and rapid industrialization in developing nations. On the flipside, the automobile manufacturers focusing on engine downsizing and extended oil change intervals is likely to hamper the growth of the studied market.
  • Group I segment dominated the market in 2018 and but is likely to reduce during the forecast period, owing to its replacement by Group II and Group III base oil.
  • The expanding production capabilities in developing countries are likely to provide opportunities for the studied market during the forecast period.
  • Asia-Pacific dominated the market across the globe, owing to the growing automotive production & sales, and growing industrial sector due to increasing investments from multi-national companies in the region, which has been further driving the demand for base oil.
Key Market Trends

Engine Oil Segment to Dominate the Market Demand
  • Engine oil segment dominates the demand for base oil, owing to the growing demand for engine oil from industries, such as automotive, power, heavy equipment, metalworking, chemicals, and others.
  • Engine oils are widely used to lubricate internal combustion engines and are composed of 75-90% base oils and 10-25% additives.
  • They are typically used for applications, such as wear reduction, corrosion protection, and smooth operation of the engine internals. They function by creating a thin film between the moving parts, for enhancing heat transfer and reducing tension during the contact of parts.
  • Automotive industry stands to be the largest consumer of engine oil. Currently, high-mileage engine oils are in demand in the automotive industry, owing to the properties that help in oil leak prevention and reduction in oil-burn offs.
  • Most light and heavy vehicle diesel and gasoline engines use 10W40 and 15W40 viscosity grade oils, globally.
  • Thus, with an increase in automotive production, the demand for engine oil is expected to increase significantly in the coming years, which is further expected to drive the growth of base oil market.
Asia-Pacific Region to Dominate the Market
  • Asia-Pacific region dominated the global market share in 2018. The robust growth in automotive production, growing industrial sector due to rising investments in the region by multi-national companies, and high demand for gear oil, grease, etc. from industries, such as heavy equipment, power, and metalworking, are some of the key drivers for the base oil market in the region.
  • China, the world’s largest automotive producer, is majorly focusing on increasing the production and sale of electric vehicles in the country. For this purpose, the country has planned to increase the production of electric vehicles (EVs) to 2 million a year by 2020, and 7 million a year by 2025.
  • India is witnessing investments in the automotive industry, which is further expected to increase production in the country. For instance, in 2018, Hyundai planned investment of USD 1 billion in India by 2020. Similarly, SAIC Motor has also announced to invest USD 500 million in India by 2020.
  • Besides, countries such as Indonesia, Malaysia, and Thailand have also been witnessing strong growth in the production of vehicles in the region. Hence, all such trends in the automotive industry in the region is expected to add to the demand for base oil in the region during the forecast period.
  • In addition, growing investments in the construction sector are anticipated to boost the demand for lubricants used in construction activities and in heavy equipment.
  • Countries, such as India, China, Philippines, Vietnam, and Indonesia, have been witnessing strong growth in the construction industry. Investments into the residential and commercial construction in such countries have been increasing at a robust rate, which is further expected to increase the demand for a base oil for construction application in the coming years.
  • Hence, all such favorable market trends are expected to drive the demand for engine oil, greases, gear oil, etc., which is further projected to drive the growth of base oil market in the region during the forecast period.
Competitive Landscape

The base oil market is a highly fragmented market, where numerous players hold insignificant share to affect the market dynamics individually. Some of the noticeable players in the market include Exxon Mobil Corporation, Royal Dutch Shell plc, China Petrochemical Corporation, Evonik Industries AG and Chevron Corporation, amongst others.

As part of this package, any purchases made up to 30th June will receive the following:

1) Free update of the report in 6 months on request
2) Free Market Estimate sheet excel data sheet
Note: Product cover images may vary from those shown
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  • Chevron Corporation
  • Exxon Mobil Corporation
  • HP Lubricants
  • Philips 66 Company
  • SK Lubricants Co. Ltd
  • MORE
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study



4.1 Drivers
4.1.1 Growing Demand from Automotive Industry
4.1.2 Rapid Industrialization in Developing Nations
4.2 Restraints
4.2.1 Automobile Manufacturers Focusing on Engine Downsizing and Extended Oil Change Intervals
4.2.2 Declining Demand for Group I
4.3 Industry Value-Chain Analysis
4.4 Porters 5 Force Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Supply-Demand Scenario

5.1 Type
5.1.1 Group I
5.1.2 Group II
5.1.3 Group III
5.1.4 Group IV
5.1.5 Group V
5.2 Application
5.2.1 Engine Oil
5.2.2 Gear Oils
5.2.3 Metalworking Fluids
5.2.4 General Industrial Oils
5.2.5 Greases
5.2.6 Process Oils
5.2.7 Other Applications
5.3 Geography
5.3.1 Asia-Pacific China India Japan South Korea Rest of Asia-Pacific
5.3.2 North America United States Canada Mexico
5.3.3 Europe Germany United Kingdom France Italy Rest of Europe
5.3.4 South America Brazil Argentina Rest of South America
5.3.5 Middle East & Africa Saudi Arabia South Africa Rest of Middle East & Africa

6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis**
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Abu Dhabi National Oil Company
6.4.2 Chevron Corporation
6.4.3 China Petrochemical Corporation (Sinopec)
6.4.4 CNOOC Limited
6.4.5 Eni S.p.A.
6.4.6 Exxon Mobil Corporation
6.4.7 Formosa Petrochemical Co.
6.4.8 GS Caltex Corporation
6.4.9 Hainan handi Sunshine Petrochemical Co. Ltd
6.4.10 HP Lubricants
6.4.11 Idemitsu Kosan Co. Ltd
6.4.12 Indian Oil Corporation Ltd
6.4.13 LUKOIL
6.4.14 NESTE
6.4.15 Nynas AB
6.4.16 Petrobras
6.4.17 Petroliam Nasional Berhad (PETRONAS)
6.4.18 Philips 66 Company
6.4.19 Saudi Aramco Base Oil Company
6.4.20 Sepahan Oil Company
6.4.21 Shell
6.4.22 SK Lubricants Co. Ltd
6.4.24 Total S.A.

7.1 Expanding Production Capabilities in Developing Countries
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  • Abu Dhabi National Oil Company
  • Chevron Corporation
  • China Petrochemical Corporation (Sinopec)
  • CNOOC Limited
  • Eni S.p.A.
  • Exxon Mobil Corporation
  • Formosa Petrochemical Co.
  • GS Caltex Corporation
  • Hainan handi Sunshine Petrochemical Co. Ltd
  • HP Lubricants
  • Idemitsu Kosan Co. Ltd
  • Indian Oil Corporation Ltd
  • Nynas AB
  • Petrobras
  • Petroliam Nasional Berhad (PETRONAS)
  • Philips 66 Company
  • Saudi Aramco Base Oil Company
  • Sepahan Oil Company
  • Shell
  • SK Lubricants Co. Ltd
  • Total S.A.
Note: Product cover images may vary from those shown
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