Base Oil Market: Based on Type (Group I, II, III, IV, V), Application (Automotive Oil, Industrial Oil, Metalworking Fluids, Hydraulic Oil, Greases, and Others), Geography (North America, Europe, Asia-pacific, and Rest of World), size, key players, trend and opportunities- Forecast up to 2026

  • September, 2020
  • Domain: Chemicals, Materials & Food - Petrochemicals
Pages: 105
Tables: 60
Charts: 99
Regions/Countries: 4/9
Companies: 20
Enquiry Hours: 10
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The base oil is extracted from heating the crude oil, and the process is known as refining and is subject to a required set of specifications. The base oil is characteristically termed as lubricant base stock. The quality of a lubricant depends on the type of base oil used and the method of production used to produce the base oil. It is critical toward the grade of lubricant as base oils usually make up to 70-97% of the formulation of lubricants. Volatility in prices of crude oil restraints the base oil market with the potential disruption in the supply of oil and gas by events affecting the prices of crude oil. These include geopolitical and weather-related issues. For example, the Middle East, which has a prominent market share in the oil and gas industry but is highly volatile due to political issues. Since crude oil is a raw material directly used to produce base oil, price fluctuation is directly reflected in base oil prices. Global Base Oil Market was predicted to reach $44.3 billion by 2026 from $41.7 billion in 2020, recording a CAGR of 1.0% during the forecast period.

Base Oil Market

Base Oil Market Key Segments:

By Type

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

By Application

  • Automotive Oil
  • Industrial Oil
  • Metalworking Fluids
  • Hydraulic Oil
  • Greases
  • Others

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Rest of World

Research Methodology:

The base oil market has been analyzed by utilizing the optimum combination of secondary sources and in-house methodology, along with an irreplaceable blend of primary insights. The real-time assessment of the market is an integral part of our market sizing and forecasting methodology. Our industry experts and panel of primary participants have helped in compiling relevant aspects with realistic parametric estimations for a comprehensive study. The participation share of different categories of primary participants is given below:

Global Base Oil Market

Growth in Demand for Group II, and III Base Oils

  • In the last few years, demand for Group I base oils have been decreasing regularly, and the production volume for Group II, III, and IV oils has been proliferating.


  • The rise in Demand for high-solvency power-based oils is high in various industrial applications, where solvency is crucial. The lubricant industry needs high viscosity plus high solvency due to the requirement for high additive load in preparations. Group I paraffin has low solvency power; therefore, the demand for Group 1 base oil demand is decreasing.
  • In addition, Group II, III, and IV oils have higher solvency power than that of Group I oils. Thus, Group II and III base oils are preferable for use in the formulation of lubricants, specifically for passenger cars, heavy-duty vehicles, and automatic transmission engines. This, in turn, would uplift the global base oil market during the forecast period.

Automotive Fluids Consisted of a Significant Share

  • Based on the application, the global base oil market has been segmented into automotive fluids, industrial oils, metalworking fluids, hydraulic oils, greases, and others. The automotive fluids segment consisted of a significant share of the global base oil market in 2019. Base oils are widely used to manufacture lubricants in the automotive industry. Lubricants have a significant role in the automotive engine, transmission, and steering mechanisms by minimizing friction and heat generation.


  • Hydraulic oils are another significant segment of the global base oil market and are widely used in excavators, backhoes power steering systems, transmissions, garbage trucks, aircraft flight control systems, and brakes. These provide excellent thermal low pour points, high viscosity index, oxidation stability, and superior heat transfer.

The Asia Pacific Dominates Base Oil Market

  • In 2019the Asia Pacific was the dominant region in the global base oil market. The demand for base oil is likely to increase at a significant stride during the forecast period due to a rise in the disposable income of people, the rapid growth of the automotive industry, and a surge in demand for electric vehicles in the region.
  • The second-largest market oil market is Europe. Due to a rise in government spending and stringent government norms for CO2 emission. The development of making high performance lubricants using base oil is considered to surge the base oil demand in European countries.

The Key Players

Exxon Mobil Corporation, Chevron Corporation, Royal Dutch Shell plc, Calumet Specialty Products Partners, L.P., Neste Oil, AVISTA OIL AG, Nynas AB, Repsol S.A., Eegon, Inc., GS Caltex Corporation, and Hindustan Petroleum Corporation Limited, Saudi Aramco, PetroChina Company Limited, and Abu Dhabi National Oil Company are few leading players operating in the base oil market.


1. Executive Summary

2. Market Positioning

2.1. Industry Snapshot

2.1.1. Overview

2.1.2. Key Trends

2.2. Related Markets

3. Market Outlook

3.1. Overview

3.2. Value Chain

3.3. Pest Analysis

3.4. Porter Five Forces

3.5. Patent Analysis

3.6. Regulatory Framework

3.7. Pricing Analysis

4. Market Characteristics

4.1. Market Segmentation

4.2. Market Dynamics

4.2.1. Drivers

4.2.2. Restraints

4.2.3. Opportunities

4.3. DRO - Impact Analysis

5. Application: Market Size & Analysis

5.1. Overview

5.2. Automotive Oil

5.3. Industrial Oil

5.4. Hydraulic Oil

5.5. Grease

5.6. Metalworking Fluid

5.7. Others

6. Type: Market Size & Analysis

6.1. Overview

6.2. Group I

6.3. Group II

6.4. Group III

6.5. Group IV

6.6. Group V

7. Competitive Landscape

7.1. Competitor Comparison Analysis

7.2. Market Developments

7.2.1. Mergers and Acquisitions, Legal, Awards, Partnerships

7.2.2. Product Launches and execution

8. Company Profiles

8.1. Royal Dutch Shell PLC Overview Product Offerings Geographic Revenue Business Units Developments Business Strategy

8.2. Saudi Armaco Overview Product Offerings Geographic Revenue Business Units Developments Business Strategy

8.3. Neste Oil Overview Product Offerings Geographic Revenue Business Units Developments Business Strategy

8.4. Avista Oil AG Overview Product Offerings Geographic Revenue Business Units Developments Business Strategy

8.5. Nynas AB Overview Product Offerings Geographic Revenue Business Units Developments Business Strategy

8.6. Petronas Overview Product Offerings Geographic Revenue Business Units Developments Business Strategy

8.7. Repsol Overview Product Offerings Geographic Revenue Business Units Developments Business Strategy

8.8. Lotos Oil Sp. Z O.O Overview Product Offerings Geographic Revenue Business Units Developments Business Strategy

8.9. Ergon Inc. Overview Product Offerings Geographic Revenue Business Units Developments Business Strategy

8.10. Calumet Specialty Products Partners L.P. Overview Product Offerings Geographic Revenue Business Units Developments Business Strategy

9. Companies to watch

9.1. Exxon Mobil Corporation

9.1.1. Overview

9.1.2. Market

9.1.3. Business Strategy

9.2. Ergon, Inc

9.2.1. Overview

9.2.2. Market

9.2.3. Business Strategy

9.3.  Total S.A.

9.3.1. Overview

9.3.2. Market

9.3.3. Business Strategy

9.4.  H&R Ölwerke Schindler GmbH

9.4.1. Overview

9.4.2. Market

9.4.3. Business Strategy

9.5. Chevron Corporation

9.5.1. Overview

9.5.2. Market

9.5.3. Business Strategy

9.6.  G.S. Caltex Corporation

9.6.1. Overview

9.6.2. Market

9.6.3. Business Strategy

9.7. Hindustan Petroleum Corporation Limited

9.7.1. Overview

9.7.2. Market

9.7.3. Business Strategy

9.8. Petrochina Company Limited

9.8.1. Overview

9.8.2. Market

9.8.3. Business Strategy

9.9. Abu Dhabi National Oil

9.9.1. Overview

9.9.2. Market

9.9.3. Business Strategy

9.10.   SK-Pertamina

9.10.1. Overview

9.10.2. Market

9.10.3. Business Strategy

10. Analyst Opinion

11. Annexure

11.1. Report Scope

11.2. Market Definitions

11.3. Research Methodology

11.3.1. Data Collation and In-house Estimation

11.3.2. Market Triangulation

11.3.3. Forecasting

11.4. Report Assumptions

11.5. Declarations

11.6. Stakeholders

11.7. Abbreviations


Research Framework

Infoholic research works on a holistic 360° approach in order to deliver high quality, validated and reliable information in our market reports. The Market estimation and forecasting involves following steps:

  • Data Collation (Primary & Secondary)
  • In-house Estimation (Based on proprietary data bases and Models)
  • Market Triangulation
  • Forecasting

Market related information is congregated from both primary and secondary sources.

Primary sources

involved participants from all global stakeholders such as Solution providers, service providers, Industry associations, thought leaders etc. across levels such as CXOs, VPs and managers. Plus, our in-house industry experts having decades of industry experience contribute their consulting and advisory services.

Secondary sources

include public sources such as regulatory frameworks, government IT spending, government demographic indicators, industry association statistics, and company publications along with paid sources such as Factiva, OneSource, Bloomberg among others.

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