Based Oil

The base oil market size is projected to grow from USD 33.7 billion in 2019 to USD 39.6 billion by 2024, at a CAGR of 3.3% from 2019 to 2024. Surging demand for high-grade oils in the automotive industry and increasing GDP in Asia Pacific led by the increasing industrial activities are fueling the growth of the market across the globe. Lucrative market opportunities from BRIC nations (Brazil, Russia, India, and China) and rising demand for renewable energy are expected to boost the market’s growth.

Group II segment to register the highest CAGR from 2019 to 2024

Based on group, the Group II segment accounted for the largest base oil market share in 2018. This segment is projected to lead the market in terms of both value and volume during the forecast period. Group II base oil can be employed in a multitude of applications, such as marine and gas engines, in trunk piston engine oils, and other applications in the base oil industry. The high consumption of Group II base oil is mainly attributed to its higher performance and affordability in comparison to the other groups of base oil.

Automotive oil segment to dominate the base oil market from 2019 to 2024 from 2019 to 2024

Based on application, the base oil industry has been segmented into automotive oil, industrial oil, hydraulic oil, grease, metalworking fluid, and others. The other applications include agriculture, additives, and detergents/dispersants. The automotive oil application segment is projected to lead the market during the forecast period in terms of both value and volume. The growth of this segment can be attributed to the growth of the automotive sector in developing countries, such as India and China. In Asia Pacific, the population growth is increasing the demand for automobiles, thus propelling the market for base oil in the automotive oil application segment.