Dublin, Jan. 21, 2025 (GLOBE NEWSWIRE) — The “Base Oil Market Report 2025” has been added to ResearchAndMarkets.com’s offering.
The base oil market size is expected to see strong growth in the next few years. It will grow to $43.77 billion in 2029 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to renewable and bio-based lubricants, Asia-pacific dominance, research and development, globalization of supply chains.
Major trends in the forecast period include shift towards group ii and group iii base oils, focus on specialty and high-performance lubricants, digitalization and industry 4 impact, collaborations and partnerships.
The expanding automotive industry is anticipated to drive the growth of the base oil market in the upcoming years. Advanced engine technologies are increasing the demand for motor oils and lubricating greases that ensure compatibility with fast-moving components and high temperatures. Additionally, high-quality base oils combined with superior additive technology produce engine oils that maintain viscosity, minimize engine wear, and enhance reliability. Automotive base oil serves as a fluid for internal combustion engines powering automobiles, motorcycles, lawnmowers, generators, and various other equipment. For example, in August 2024, the European Automobile Manufacturers’ Association, based in Belgium, reported that new car registrations rose by 3.9% in the first seven months of 2024, surpassing 6.5 million units. The largest markets in the European Union showed positive yet modest growth, with increases in Spain (+5.6%), Italy (+5.2%), Germany (+4.3%), and France (+2.2%). Thus, the growth of the automotive industry is expected to boost the base oil market in the future.
Rapid industrialization is anticipated to drive the growth of the base oil market in the coming years. Industrialization is the transition of an economy from being primarily agrarian and reliant on manual labor to one characterized by mechanized, large-scale manufacturing and production processes. As industrialization advances, the demand for lubricants rises significantly across various sectors, including manufacturing, construction, and transportation. Base oils are essential in formulating lubricants, and their demand increases alongside the need for lubrication solutions. For instance, a report published in July 2023 by Statistics Canada, a government agency, indicated that approximately 19.5% of businesses in the manufacturing sector intended to expand their operations or locations within the next 12 months. This figure is more than double the percentage observed in the arts, entertainment, and recreation sector (8.2%) and nearly triple the overall business average (6.7%).
Furthermore, nearly 9% of manufacturing businesses planned to expand to other locations within the same province, a figure comparable to those in administrative and support, waste management, and remediation services (9.1%). Additionally, over 5.5% of manufacturing businesses expressed plans for international expansion, with similar aspirations noted by 5.3% of businesses in arts, entertainment, and recreation, and 4.5% in wholesale trade. Thus, rapid industrialization is propelling the growth of the base oil market.
Major companies operating in the base oil market are focused on developing new technologies, such as a new product family of lubricants called Neste ReNew, to increase their profitability in the market. Neste ReNew is a new family of lubricants introduced by Neste as a renewable and circular solution. Neste’s commitment to sustainability and reducing carbon emissions has led to the development of innovative products such as Neste ReNew Base Oil, which aims to provide a more environmentally friendly alternative to traditional base oils used in lubricant production. These renewable base oils contribute to a more sustainable and eco-friendly approach in the lubricants industry by offering high-quality performance while reducing environmental impact. For instance, in February 2023, Neste, a Finland-based oil refining and marketing company, introduced new and more sustainable lubricants produced with renewable or re-refined base oils. These lubricants are designed to be environmentally sustainable and contribute to reducing carbon emissions. They are produced from renewable and sustainable feedstocks, such as vegetable oils and animal fats, as opposed to conventional petroleum-based feedstocks.
Major companies operating in the base oil market are focused on innovating new technologies, such as Oxlube L7-NPG ester base oil for EV (Electric vehicle) fluids, to increase their profitability in the market. Oxlube L7-NPG is a type of ester-based oil specifically designed for use in electric vehicle (EV) fluids. It is designed to improve the performance and efficiency of EVs by providing efficient heat transfer, conductivity, and lubrication. For instance, in September 2022, OQ Chemicals, a Germany-based chemical company that specializes in producing a wide range of chemicals used in various industries, launched Oxlube L7-NPG ester base oil for EV fluids. It has excellent thermal stability, meaning it can withstand high temperatures without degrading.
Major companies operating in the base oil market include Chevron Corporation, Exxon Mobil Corporation, Shell PLC, Ergon Inc., Neste Oyj, Nynas AB, S-OIL CORPORATION, Sepahan Oil, Repsol S. A., China Petroleum & Chemical Corporation (SINPOEC), BP, Evonik Industries, H&R Group, Saudi Aramco, SK Lubricants Co. Ltd., Dodge, DYM Resources GmbH, Gazprom Neft PJSC, Gulf Petrochem Group, GS Caltex Corporation, Indian Oil Corporation Ltd., The PJSC Lukoil Oil Company, PETRONAS Lubricants International, The Philips 66 Company, Petro-Canada Corporation, Infinity Galaxy, Abu Dhabi National Oil Company, CNOOC and Eni SpA.
This report focuses on base oil market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
Markets Covered:
- By Type: Mineral; Synthetic; Bio-Based
- By Group: Group I; Group II; Group III; Group IV; Group V
- By Application: Automotive Oil; Industrial Oil; Metalworking Fluid; Greases; Hydraulic Oil; Other Applications
Subsegments:
- By Mineral Base: Paraffinic; Naphthenic; Aromatic
- By Synthetic Base: Polyalphaolefins (PAO); Esters; Group III Oils
- By Bio-Based Base: Vegetable Oils; Animal Fats; Bio-Synthetic Oils
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 200 |
| Forecast Period | 2025 – 2029 |
| Estimated Market Value (USD) in 2025 | $35.89 Billion |
| Forecasted Market Value (USD) by 2029 | $43.77 Billion |
| Compound Annual Growth Rate | 5.1% |
| Regions Covered | Global |
Key Topics Covered:
1. Executive Summary
2. Base Oil Market Characteristics
3. Base Oil Market Trends and Strategies
4. Base Oil Market – Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics and Covid and Recovery on the Market
5. Global Base Oil Growth Analysis and Strategic Analysis Framework
5.1. Global Base Oil PESTEL Analysis (Political, Social, Technological, Environmental and Legal Factors, Drivers and Restraints)
5.2. Analysis of End Use Industries
5.3. Global Base Oil Market Growth Rate Analysis
5.4. Global Base Oil Historic Market Size and Growth, 2019-2024, Value ($ Billion)
5.5. Global Base Oil Forecast Market Size and Growth, 2024-2029, 2034F, Value ($ Billion)
5.6. Global Base Oil Total Addressable Market (TAM)
6. Base Oil Market Segmentation
6.1. Global Base Oil Market, Segmentation by Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Mineral
- Synthetic
- Bio-Based
6.2. Global Base Oil Market, Segmentation by Group, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Group I
- Group II
- Group III
- Group IV
- Group V
6.3. Global Base Oil Market, Segmentation by Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Automotive Oil
- Industrial Oil
- Metalworking Fluid
- Greases
- Hydraulic Oil
- Other Applications
6.4. Global Base Oil Market, Sub-Segmentation of Mineral Base, by Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Paraffinic
- Naphthenic
- Aromatic
6.5. Global Base Oil Market, Sub-Segmentation of Synthetic Base, by Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Polyalphaolefins (PAO)
- Esters
- Group III Oils
6.6. Global Base Oil Market, Sub-Segmentation of Bio-Based Base, by Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Vegetable Oils
- Animal Fats
- Bio-Synthetic Oils
7. Base Oil Market Regional and Country Analysis
7.1. Global Base Oil Market, Split by Region, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
7.2. Global Base Oil Market, Split by Country, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
8-29. Country Specific Base Oil Market Analysis
30. Base Oil Market Competitive Landscape and Company Profiles
30.1. Base Oil Market Competitive Landscape
30.2. Base Oil Market Company Profiles
30.2.1. Chevron
30.2.2. Exxon Mobil
30.2.3. Shell
30.2.4. Ergon
30.2.5. Neste
31. Base Oil Market Other Major and Innovative Companies
31.1. Nynas
31.2. S-OIL Corporation
31.3. Sepahan Oil
31.4. Repsol
31.5. China Petroleum & Chemical Corporation (SINOPEC)
31.6. BP
31.7. Evonik Industries
31.8. H&R Group
31.9. Saudi Aramco
31.10. SK Lubricants Co.
31.11. Dodge
31.12. DYM Resources
31.13. Gazprom Neft PJSC
31.14. Gulf Petrochem Group
31.15. GS Caltex Corporation
32. Global Base Oil Market Competitive Benchmarking and Dashboard
33. Key Mergers and Acquisitions in the Base Oil Market
34. Recent Developments in the Base Oil Market
35. Base Oil Market High Potential Countries, Segments and Strategies
35.1 Countries Offering Most New Opportunities
35.2 Segments Offering Most New Opportunities
35.3 Growth Strategies
For more information about this report visit https://www.researchandmarkets.com/r/u6pu24
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