Base Oil Industry Overview

The global base oil market size was valued at USD 19.46 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 5.5% from 2023 to 2030.

The growth is attributed to increasing utilization of engine oils from industries such as metallurgy, automotive, chemicals, heavy equipment, and power generation. The market is highly fragmented with presence of a large number of highly innovative players. The competition is intense as the participants engage in maintaining their customers to have a competitive edge over each other. Companies are adopting collaborative business strategy to increase their productivity, provide highly regarded products to consumers, and expand their regional presence.

Gather more insights about the market drivers, restrains and growth of the Base Oil Market

Base Oil is critically utilized in the lubricant oil formulation globally with widespread application across a multitude of industries. Group I base oils are majorly utilized in marine lubricants which are widely utilized in the shipping industry to protect and enhance the efficiency of engines and equipment. These are high-performance marine lubricants that require high viscosity base oils, specially designed to enable optimal performance in operations.

Currently, the automotive sector is one of the major contributors to base oils globally. The demand for lubricants in manufacturing vehicles is expected to show continuity in its growth, however, the trend of electric vehicles has reduced the after sales growth for certain lubricants. Consumers are looking for standard and specialized products to satisfy specific requirements and thus lubricant manufacturers are investing in new product developments especially for the automotive industry. The growing consumption of lubricant manufacturers is anticipated to propel the demand for base oils over the forecast period.

Developing economies such as China, India, and Indonesia etc. are driving the manufacturing sector across the globe. According to World Bank, the value added of the manufacturing sector towards GDP was around 14% in 2021, an increased from the previous year. The growth is supported by the availability of raw material, reduced infrastructure cost, and labor cost. Owing to these factors base oil manufacturers are also shifting and expanding their production units in developing nations.

Browse through Grand View Research's Petrochemicals Industry Research Reports.

• The global diesel exhaust fluid market size was valued at USD 36.66 billion in 2023 and is projected to grow at a CAGR of 7.9% from 2024 to 2030
• The global cold flow improvers market size was estimated at USD 811.05 million in 2023 and is expected to grow at a CAGR of 5.6% from 2024 to 2030. 

Base Oil Market Segmentation

Grand View Research has segmented the global base oil market on the basis of product, application, and region:

Base Oil Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Group I
• Group II
• Group III
• Group IV
• Group V

Base Oil Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Automotive Oils
• Process Oils
• Hydraulic Oils
• Metalworking Fluids
• Industrial Oils
• Others

Base Oil Regional Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Thailand
  • Malaysia
• Central South America
  • Brazil
  • Argentina
• Middle East Africa
  • Saudi Arabia
  • South Africa

Key Companies profiled:

• CNOOC Limited
• PetroCanada Lubricants Inc.
• Pertoleum Chemical Corp. (SINOPEC)
• PETRONAS Lubricants International
• PT Pertamina (Persero)
• PetroChina Co., Ltd
• Exxon Mobil Corporation
• Abu Dhabi National Oil Company
• Chevron Corporation
• Shell plc
• Indian Oil Corporation Ltd
• BP p.l.c
• Saudi Arabian Oil Co.
• Sepahan Oil

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