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Base Oil Market

Base Oil Market Size and Segmentation By Group (Group I, Group II, Group III, Group IV, Group V) By Application (Engine Oils,Gear Oils, Metalworking Fluids, General Industrial Oils, Greases, Process Oils, Others), by Regions and Global Forecast 2023-2030

Report Id: SNS/C&M/2559 | July 2022 | Region: Global | 126 Pages

Report Scope & Overview:

Base Oil Market Size was valued at USD 32.16 billion in 2022, and is expected to reach USD 47.87 billion by 2030, and grow at a CAGR of  5.1% over the forecast period 2023-2030.

Base oil is one of the specialised products that a refinery can create. Base oil, commonly used as lubricant base stock, is the refined petroleum mineral or synthetic material created by a refinery to a particular set of requirements. High-viscosity material from vacuum gasoil or vacuum reside distillation cuttings is extracted and processed to create base oils. This calls for specialised processing through several lubes plant units. The kind of base oil used for refining and/or the process of base oil manufacture might affect the quality of a lubricant. As base oils typically make up between 70 and 97 percent of lubricant formulations, it is crucial for the grade of the lubricant.

Base Oil Market Revenue Graph

Market Dynamics:


  • Automotive industry is expanding quickly.

  • Demand for high-performance Base Oils is rising.

  • Rising marine industry demand for base oils


  • Decreasing group I base oil demand.


  • BRIC countries offer lucrative market opportunities

  • Analysis of the Business Environment


  • Fluctuating crude oil prices

Impact of Covid-19:

The primary raw material used in the manufacturing of base oil is crude oil. The COVID-19 pandemic outbreak and the consequent deployment of lockdown measures caused a sharp decline in demand for crude oil and petroleum products worldwide. In March 2020, the demand for crude oil decreased by almost 27 million barrels per day, according to Rystad Energy. Major oil-producing nations worldwide were compelled to drastically reduce their output. Additionally, the global shipping line interruption reduced the supply of crude oil to base manufacturers, forcing them to reduce their capacity for manufacturing and refining.

All around the world, there was a sharp fall in the demand for both passenger and commercial vehicles. Additionally, the deployment of lockdown measures led to a sharp decline in the need for vehicle lubricants, which had a negative effect on the demand for base oil around the world. The usage of industrial lubricants and base oil was further restricted by the limitations placed on the operation of industrial manufacturing facilities.

Key Players:

Petroliam Nasional Berhad (PETRONAS) (Malaysia), Repsol S.A. (Spain), Hindustan Petroleum Corporation Limited (India), Rosneft (Russia), China National Offshore Oil Corporation  (China),Royal Dutch Shell plc (The Netherlands), Saudi Aramco (Saudi Arabia), GS Caltex Corporation (U.S.), Chevron Corporation (U.S.), Exxon Mobil Corporation (U.S.), Abu Dhabi National Oil Company (ADNOC) (UAE), Petrochina Company Limited China), Sinopec Corp (China),

The Group I, Group II, Group III, Group IV, and Group V segments make up the worldwide base oil market. The segment of Group II base oil among them held the biggest market share for base oil worldwide in 2020. Additionally, during the course of the forecast period, the Group II base oil segment is anticipated to develop at the quickest rate. More adaptable lubricating systems are required due to modifications in vehicle engine architecture. The adoption of severe emission control standards like China 6 and Bharat Stage IV (BS-IV) in China and India, respectively, is also anticipated to increase demand for Group II base oils because of their adaptability and better performance characteristics. It is anticipated that the Group IV base oil market will expand significantly.

The market for base oils has been divided into various categories based on their applications, including engine oils, gear oils, metalworking fluids, general industrial oils, greases, process oils, and others. Other uses for base oils include detergents and dispersants, additives, and agriculture. Due to the extensive usage of engine oils in automotive, power generation, and industrial machinery applications, the engine oil segment became the most important application category in 2020.

Market Segment:

By Group

  • Group I

  • Group II

  • Group III

  • Group IV

  • Group V

By Application

  • Engine Oils

  • Gear Oils

  • Metalworking Fluids

  • General Industrial Oils

  • Greases

  • Process Oils

  • Others

Base Oil Market Segment Pie Chart

Regional Analysis:

In 2020, Asia-Pacific overtook the U.S. as the world's largest base oil market, and it is predicted to expand at the quickest rate during the forecast period. The primary driver of the local base oil market is currently the automotive industry. The world's markets for passenger automobiles and commercial vehicles are expanding at the quickest rates in several important nations in the region, including China, Indonesia, and India. In the upcoming years, it is anticipated that these nations would significantly increase demand for automotive lubricants, which will expand the Asia-Pacific base oil market. The existence of large-scale metalworking industries and the capital goods production sector is also driving up demand for base oil and metalworking fluids.

The largest producer and exporter of base oil worldwide is North America. The region's base oil output is primarily driven by the discovery of large-scale shale oil sources and major investments in expanding refining capacity. A recovery of the North American manufacturing industry is caused by growing incentives for domestic production of industrial and automotive goods in the US. Over the projected period, it is anticipated that the manufacturing sector's continuous recovery would result in a sizable increase in demand for base oil as well as for automotive and industrial lubricants.


  • North America

    • USA

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • The Netherlands

    • Rest of Europe

  • Asia-Pacific

    • Japan

    • south Korea

    • China

    • India

    • Australia

    • Rest of Asia-Pacific

  • The Middle East & Africa

    • Israel

    • UAE

    • South Africa

    • Rest of Middle East & Africa

  • Latin America

    • Brazil

    • Argentina

    • Rest of Latin America


Base Oil Market Report Scope:
Report Attributes Details
Market Size in 2022 US$ 32.16 Billion
Market Size by 2030 US$ 47.87 Billion
CAGR CAGR of 5.1% From 2023 to 2030
Base Year 2022
Forecast Period 2023-2030
Historical Data 2020-2021
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments • By Group (Group I, Group II, Group III, Group IV, Group V)
• By Application (Engine Oils,Gear Oils, Metalworking Fluids, General Industrial Oils, Greases, Process Oils, Others)
Regional Analysis/Coverage North America (USA, Canada, Mexico), Europe
(Germany, UK, France, Italy, Spain, Netherlands,
Rest of Europe), Asia-Pacific (Japan, South Korea,
China, India, Australia, Rest of Asia-Pacific), The
Middle East & Africa (Israel, UAE, South Africa,
Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America)
Company Profiles Sumitomo Heavy Industries, Ltd. (Japan), Veolia Water Technologies (France), Saltworks Technologies Inc. (Canada), JEOL Ltd. (Japan), Colmac Coil Manufacturing, Inc. (US), GEA Group AG (Germany), De Dietrich Process Systems (France), Coilmaster Corporation (US), SPX Flow Inc. (US), Belmar Technologies Ltd. (England), SUEZ Water Technologies & Solutions (France)
Key Drivers • Automotive industry is expanding quickly.
• Demand for high-performance Base Oils is rising.
RESTRAINTS • Decreasing group I base oil demand.

Frequently Asked Questions (FAQ) :

Ans: Manufacturers, Consultant, aftermarket players, association, Research institute, private and universities libraries, suppliers and distributors of the product.

Ans: Petroliam Nasional Berhad (PETRONAS) (Malaysia), Repsol S.A. (Spain), Hindustan Petroleum Corporation Limited (India), Rosneft (Russia), China National Offshore Oil Corporation  (China),Royal Dutch Shell plc (The Netherlands), Saudi Aramco (Saudi Arabia), GS Caltex Corporation (U.S.), Chevron Corporation (U.S.), Exxon Mobil Corporation (U.S.), Abu Dhabi National Oil Company (ADNOC) (UAE), Petrochina Company Limited China), Sinopec Corp (China) are the major key players of  antimicrobial plastics market.


Ans: BRIC countries offer lucrative market opportunities and Analysis of the Business Environment are the opportunity for Base Oil Market.

Ans: Automotive industry is expanding quickly, Demand for high-performance Base Oils is rising and Rising marine industry demand for base oils are the drivers for Base Oil Market.


Ans: Base Oil Market Size was valued at USD 30.16 billion in 2021, and expected to reach USD 42.72 billion by 2028, and grow at a CAGR of  5.1 % over the forecast period 2022-2028.

Table of Contents


1. Introduction

1.1 Market Definition

1.2 Scope

1.3 Research Assumptions


2. Research Methodology


3. Market Dynamics

3.1 Drivers

3.2 Restraints

3.3 Opportunities

3.4 Challenges


4. Impact Analysis

4.1 COVID-19 Impact Analysis

4.2 Impact of Ukraine- Russia war

4.3 Impact of ongoing Recession

4.3.1 Introduction

4.3.2 Impact on major economies US Canada Germany France United Kingdom China Japan South Korea Rest of the World


5. Value Chain Analysis


6. Porter’s 5 forces model


7.  PEST Analysis


8.Base Oil Market Segment, By Group

8.1 Group I

8.2 Group II

8.3 Group III

8.4 Group IV

8.5 Group V


9.Base Oil Market Segment, By Application

9.1 Engine Oils

9.2 Gear Oils

9.3 Metalworking Fluids

9.4 General Industrial Oils

9.5 Greases

9.6 Process Oils

9.7 Others


10. Regional Analysis

10.1 Introduction

10.2 North America

10.2.1 USA

10.2.2 Canada

10.2.3 Mexico

10.3 Europe

10.3.1 Germany

10.3.2 UK

10.3.3 France

10.3.4 Italy

10.3.5 Spain

10.3.6 The Netherlands

10.3.7 Rest of Europe

10.4 Asia-Pacific

10.4.1 Japan

10.4.2 South Korea

10.4.3 China

10.4.4 India

10.4.5 Australia

10.4.6 Rest of Asia-Pacific

10.5 The Middle East & Africa

10.5.1 Israel

10.5.2 UAE

10.5.3 South Africa

10.5.4 Rest

10.6 Latin America

10.6.1 Brazil

10.6.2 Argentina

10.6.3 Rest of Latin America


11. Company Profile

11.1 Petroliam Nasional Berhad (PETRONAS) (Malaysia)

11.1.1 Financial

11.1.2 Products/ Services Offered

11.1.3 SWOT Analysis

11.1.4 The SNS view

11.2 Repsol S.A. (Spain), 

11.3 Hindustan Petroleum Corporation Limited (India)

11.4 Rosneft (Russia)

11.5 China National Offshore Oil Corporation  (China)

11.6 Royal Dutch Shell plc (The Netherlands)

11.7 Saudi Aramco (Saudi Arabia)

11.8 GS Caltex Corporation (U.S.)

11.9 Chevron Corporation (U.S.)

11.10 Exxon Mobil Corporation (U.S.)

11.11 Abu Dhabi National Oil Company (ADNOC) (UAE)

11.12 Petrochina Company Limited China)

11.13 Sinopec Corp (China)


12.Competitive Landscape

12.1 Competitive Benchmark

12.2 Market Share analysis

12.3 Recent Developments


13. Conclusion


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Secondary Research

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