Base oil is referred to the purified petroleum mineral or artificial material manufactured by a refinery to an obligatory set of standards, usually lubricant base stock. The lubricant quality can rely on the base oil type utilized for the production and/or refining techniques utilized to manufacture the base oil. It’s vital to the lubricant’s grade as base oils usually make up to 70-97% of formulation of a lubricants.
The global base oil market is expected to witness substantial growth owing to growing demand for group I and group II base oils within the automotive sector. Further, the global market will also be driven by rising stipulation for industrial lubricants, hydraulic fluids, greases, metalworking fluids, and thermal oils manufactured from raw stock fluids like base oil. COVID-19 has affected the market negatively resulting in provisional halt of automotive manufacturing facilities & several other industrial facilities and dropped growth of automotive industry.
Global base oil market can be diversified on the basis of application, type, and region. The market, by type, is segregated into group V, IV, III, II, and I. The market, by application, is categorized into metalworking fluids, industrial oil, greases, hydraulic oil, and others.
Regionally, Asia Pacific region is projected dominate the global base oil market during the forecast period. This is attributed to factors such as the rising industrial sector, increasing spending by multinational firms, and huge demand for grease, gear oil, and others from industries like power, heavy equipment, and metalworking. Also, the progression in mining, power generation, transportation, and other sectors will also drive the Asia Pacific market. To cite, Indian Oil Corporation Ltd, in November 2019, had declared to capitalize around INR 1000 Crore to increase the Group III base-oil generation twice by 270 kiloton every year at the West Bengal-based Haldia refinery unit in India. Europe will also expected to witness growth in coming period owing to rising fuel-efficient vehicle demand because of the execution of strict rules like the European Union Automotive Fuel Policy in the region along with existence of improved R&D efforts and processing technologies in developed countries like Germany, the U.K., and France.
The major players active in the global base oil market comprise Chevron Corporation, BP PLC, Evonik Industries AG, Ergon Inc., H&R Ölwerke Schindler GmbH, Exxon Mobil Corporation, Petronas Pvt. Ltd., Nynas AB, SK Lubricants Co. Ltd., Royal Dutch Shell PLC, Avista Oil AG, Total S.A., GS Caltex Corporation, Calumet Specialty Products Partners Lp, MOGoil GmbH, Lotos Oil SP. Z O.O., PetroChina Company Limited, Neste Oil, Sinopec Group, Repsol, and S-Oil Corporation.
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