Reflection on the Global Trends of the Base Oil Market

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Reflection on the Global Trends of the Base Oil
Market
By Shreya Jadhav Base oils, which are obtained
by refining crude oil, serve as the foundation
for manufacturing different lubricating products.
They are necessary for ensuring the smooth
functioning of a range of equipment, witnessing
demand from the manufacturing sector. Increased
industrialization worldwide is expected to
increase the adoption of high-grade industrial
lubricants across a range of industries.
As per our experts at Triton Market Research, the
global base oil market is projected to perform at
CAGRs of 3.42 (by revenue) and 3.95 (by volume)
over the forecasted period of 2022-2028. The
growth of the automotive industry is a key
contributor to the markets growth. Lubricants
help reduce heat generation and friction in a
vehicles engine and steering components. They
also facilitate the cooling of several components
in specific circumstances. Widening Applications
of different Groups Base oils are classified into
different groups, namely Group I, Group II, Group
III, Group IV, and Group V. They find multiple
applications across a range of end-users to
formulate lubricants like automotive oil,
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• hydraulic oil, industrial oil, greases,
  metalworking fluids, and others, owing to their
  high performance and distinct characteristics.
• Among all, automotive oil leads the application
  segment, with 13832.95 million and 15286.77
  kilotons
• in 2021.
• High-performing engines demand the use of
  high-grade lubricants. The use of automotive oils
  facilitate passenger cars, diesel trucks, and
  light-duty trucks to withstand rigorous and
  extreme conditions.
• Increased vehicle production and sales worldwide,
  coupled with stringent government standards
  concerning vehicular emission and fuel
  efficiency, have enhanced the adoption of these
  oils. Group I
• base oils are largely used in this application.
• Notable Trend Stringent Regulations aid
  Lubricant Adoption
• Environmental degradation due to greenhouse gas
  emissions is a serious issue. To counter this,
  governments across the world are implementing
  regulations that promote fuel efficiency for
  vehicles. According to the regulations set under
  the European Union Automotive Fuel Policy, the
  average CO2 emission levels for new passenger
  vehicles must not exceed 130 grams per kilometer.
  Such stringent environmental legislation has led
  car manufacturers to adhere to strict performance
  standards. This is expected to raise the adoption
  of high-performing engine oils, which ensure fuel
  efficiency by reducing friction, thus requiring
  less fuel consumption.
• Regional Market Dominator Asia-Pacific
• The Asia-Pacific region accounted for the largest
  share in the global market at 12258.46 million
  and
• 13575.10 kilotons in 2021. It is also expected to
  witness the fastest growth with CAGRs of 3.85
• (revenue) and 4.38 (volume) during 2022-2028.
• Factors such as surging investments in the
  automobile industry and enhanced production
  sales of automobiles have primarily increased the
  demand for base oils in this region. For
  instance, new automobile sales in India grew from
  2,435,100 units in 2020 to 3,082,400 units in
  2021, with a rise of 26.7. Further, the presence
  of leading market players and the expansion of
  production capabilities by China, South Korea,
  India, and others, have also driven the growth of
  the studied market.
• Manufacturers steer Growth with Strategic
  Developments
• The market witnesses a high level of competition
  due to the presence of established names like
  Shell Plc, Chevron Corporation, S-Oil
  Corporation, Neste Oyj, GS Caltex Corporation,
  and others, who account for a major market share.
  These players are increasingly launching
  innovative products, striking MA deals, and
  increasing investments in RD activities, as a
  part of their growth strategy to consolidate
  their brand and expand their consumer base as
  well as geographical footprint.
• In February 2020, Abu Dhabi National Oil Company
  (ADNOC) signed an agreement with Xiamen Sinolook
  Oil, making it the exclusive distributor of its
  high-quality product, ADbase, across China.
• In May 2021, ExxonMobil Chemical launched
  SpectraSyn MaX, a next-generation Group IV base
  oil, designed specifically to offer low viscosity
  volatility, while enabling improved fuel and
  energy efficiency.

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Emergence of Renewable Base Oil enhances Market
Scope The need to shift towards a sustainable and
low-carbon future has increased the demand for
using renewable base oils across multiple
applications. Several leading market players are
innovating using advanced chemical conversion
processes. For instance, Chevron Products Company
and Novvi LLC announced producing a 100
renewable base oil, from the latters facility in
Houston, Texas, in August 2020.
Environment-friendly oils like these are designed
specifically to facilitate lower carbon
footprints, meet next-generation OEM
specifications, and enable cost-effective
formulations, which is expected to create
lucrative growth opportunities for the global
base oil market. FAQs Q 1) What are the
revenue estimations for the base oil market? The
global base oil market was valued at 29.70
billion in 2021 in terms of revenue, and is
expected to reach 37.51 billion by 2028. Q 2)
What are the volume estimations for the
market? The global base oil market was valued at
32697.08 kilotons in 2021 in terms of volume, and
is likely to gain 42798.74 kilotons by 2028.