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Base Oil Market Trends

Report ID: GMI11992
Published Date: Oct 2024
Report Format: PDF

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Base Oil Market Trends

The base oil industry is evolving, influenced by technological advancements and changing consumer preferences. A notable trend is the migration from group I base oils to group II and group III variants. This shift is due to the better performance of these oils, such as improved oxidation stability and fuel efficiency, which meet the needs of modern vehicles and machinery. Additionally, there's a growing focus on re-refined base oils, as industries seek more sustainable solutions. These re-refined oils offer a cost-effective and eco-friendly alternative to virgin base oils. Furthermore, the rise of electric vehicles (EVs) and hybrid technologies is changing lubricant formulations, leading to demand for base oils designed for EV components. The market is also seeing increased research and development in bio-based base oils, driven by global sustainability goals and eco-friendly innovations.

Authors: Kiran Pulidindi , Manish Verma

Frequently Asked Questions (FAQ) :

The global market size for base oil was valued at USD 34.8 billion in 2023 and is projected to reach USD 55.1 billion by 2032, driven by a CAGR of over 5.3% from 2024 to 2032.

Base oil industry from Group I base oils generated USD 12.5 billion in revenue in 2023 but are gradually losing market share due to their lower performance compared to more refined alternatives.

U.S. market generated USD 8.7 billion in revenue in 2023, driven by strong demand from the automotive and industrial sectors.

Major players in the industry include Abu Dhabi National Oil Company, Arabo Impex, Aramco, Chevron, Exxon Mobil, GS Caltex, Nynas, and Petro?Canada Lubricants.