Base Oil Market

Base Oil Market By Product (Group V, Group IV, Group III, Group II, Group I) By Application (Industrial Oils, Metalworking Oils, Hydraulic Oils, Process Oils, Automotive Oils, Others) - Global Industry Analysis, Market Size, Share, Growth, Trends, Regional Analysis, and Forecast 2023-2031

Chemical & Material | April 2023 | Report ID: EMR0068 | Pages: 215

The global base oil market size was reached at USD 20.38 billion in 2022 and is projected to hit around USD 34.95 billion by 2031, poised to grow at a CAGR of 5.75% during the forecast period 2023 to 2031.

Market Overview

Base oil is a crucial component in the production of lubricants and can significantly impact the performance and quality of the final product. Different types of base oils can be produced using various refining processes, and the selection of base oil depends on the intended application of the lubricant. Base oils can be mineral-based, synthetic, or a combination of both. Additionally, base oils are categorized based on their viscosity index, which is a measure of their ability to maintain viscosity under temperature changes. The higher the viscosity index, the better the base oil can maintain its viscosity under high-temperature conditions.

The automotive industry is indeed one of the largest consumers of base oil globally, and the demand for lubricants in this industry is expected to remain stable despite the increasing trend towards electric vehicles. However, the shift towards electric vehicles has resulted in reduced demand for certain lubricants, such as those used in internal combustion engines. As a result, lubricant manufacturers are investing in research and development to produce specialized lubricants for electric vehicles and other emerging technologies. This trend is also driven by consumers' growing demand for high-quality and specialized lubricants that can meet the specific needs of their vehicles. Consequently, lubricant manufacturers are developing new products, such as synthetic and semi-synthetic lubricants, that offer improved performance and longer service life, as well as environmentally friendly and biodegradable lubricants.

The global base oil market is indeed growing, driven by increasing demand from the automotive industry, particularly in developing country’s, as well as strictly environmental regulations that require higher performance standards for lubricants. Additionally, the demand for hydraulic oils in the automobile industry is also propelling the growth of the base oil market. However, market growth is affected by factors such as fluctuating crude oil prices and regulations governing emission standards.



Report Attribute


Estimated Market Value (2022)

20.38 Bn

Projected Market Value (2031)

34.95 Bn

Base Year


Forecast Years

2023 - 2031

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Product, By Application & By Region

Segments Covered

By Product, By Application & By Region

Forecast Units

Value (USD Billion), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2023 to 2031

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.


Market Growth Factors:

There are the following factors which are expected to grow the base oil market growth:-

  • Rising demand for high-quality oils from the automotive industry
  •  The automotive sector is increasing its use of lubricants.
  •  Emerging market industrialisation is accelerating.


Market Drivers:

The demand for high-quality lubricants is increasing in the automotive industry, driven by advanced engine technology that requires lubricants that can withstand high temperatures and fast-moving parts. The base oil used in lubricants has a significant impact on the overall performance of the finished product. Engine oils, which make up a significant portion of lubricant demand, typically contain 70-90% base oil and 10-30% additives. Thus, the rising demand for high-quality engine oils is expected to fuel the growth of the base oil market.

Lubricants are widely used in the automotive industry, and base oils are a critical component in the production of these lubricants. The automotive industry is a major end-user of lubricants, including engine oils, transmission oils, and greases. The global automotive industry has been expanding rapidly, especially in developing countries, with new vehicle sales increasing from 87.5 million units in 2013 to 95.05 million units in 2018, according to the International Organization of Motor Vehicle Manufacturers (OICA).Automobile manufacturers are continually striving to improve vehicle efficiency, and this is expected to increase the demand for base oils in the automotive industry in the coming years.

The demand for lubricants is growing rapidly in developing countries due to industrialization, particularly in industries such as automotive, industrial machinery, and energy. In addition, the depletion of crude oil and the focus on sustainable development are driving the adoption of eco-friendly hydraulic oils, which have a wide range of applications in various industries. Hydraulic fluids play a critical role in protecting machinery and transferring energy, making them essential in industries such as automotive, construction, manufacturing, and aviation.

As a result, there has been a significant shift in the base oil market towards Group II and Group III base oils, which have lower impurities and higher performance characteristics. Group II and III base oils are produced by refining crude oil through a process known as hydroprocessing, which involves removing impurities through catalytic cracking, hydrocracking, and/or hydrotreating. These processes result in base oils with better oxidative stability, viscosity index, and low-temperature fluidity, making them more suitable for use in modern engines and other applications with stringent performance requirements. As a result, many lubricant manufacturers are investing in upgrading their base oil production capabilities to meet the demand for higher-quality base oils.

fluctuations in crude oil prices have a direct impact on the profitability of base oil manufacturers. When crude oil prices are high, the cost of producing base oils increases, and this can result in higher prices for end-users. On the other hand, low crude oil prices can lead to decreased production costs for base oils, which can translate to lower prices for end-users. However, it is worth noting that the impact of crude oil prices on the base oil market can be delayed due to inventory cycles and contractual arrangements.


Segments Analysis:

Product Insights:

It's worth noting that while Group I products may have dominated the base oil market in 2022, as mentioned earlier, demand for Group I base oil is expected to fall significantly in the coming years due to a growing preference for cleaner and higher-quality base oil. This may lead to a shift in the market share towards other groups such as Group II and III, which are known for their higher purity and better performance characteristics.

Group II base oils are becoming increasingly popular due to their better quality and availability at competitive prices. They have a higher viscosity index and a lower sulfur content compared to Group I base oils, making them suitable for use in more demanding applications. Additionally, Group II base oils can be used in a wide range of applications, including automotive, industrial, and marine lubricants. This versatility has helped to increase their demand in the market.

Application Insights:

The automotive industry is a major consumer of lubricants, particularly engine oils, transmission oils, and greases, which are used to protect and lubricate various components of automobiles. As the global automotive industry continues to expand, particularly in developing countries, the demand for these lubricants is expected to increase in the coming years. Moreover, with the growing focus on sustainable development, there is a rising demand for eco-friendly lubricants, including base oils, which are used in the production of lubricants for the automotive industry.


Regional Analysis:

Asia Pacific is currently the largest market for base oil, accounting for over 40% of global demand in 2022. China is the largest consumer of base oil in the region and is expected to continue leading the market in the coming years. The growing demand for automobiles and the expansion of the manufacturing industry in China are major drivers of the market. In addition, the region's large population, increasing disposable income, and access to raw materials and foreign investment make it an attractive market for lubricant manufacturers.

The European market for base oil is also expected to benefit from the increasing demand for environment-friendly and sustainable products, which is driving the adoption of higher-quality and lower-sulfur base oils. Additionally, the European Union has set strict regulations regarding emissions and fuel efficiency, which are also driving the demand for advanced lubricants and base oils. Overall,


Key Market Players:

  • •           Repsol
  • •           Neste
  • •           GS Caltex Corporation
  • •           Bharat Petroleum Corporation Limited
  • •           H&R OWS Chemie GmbH & Co. KG
  • •           SK Lubricants Co., Ltd.
  • •           LUKOIL
  • •           Bahrain Lube Base Oil Company
  • •           Sepahan Oil
  • •           Saudi Arabian Oil Co.
  • •           BP p.l.c
  • •           Indian Oil Corporation Ltd.
  • •           Shell plc.
  • •           Chevron Corporation
  • •           Abu Dhabi National Oil Company
  • •           ExxonMobil Corporation
  • •           PetroChina Co., Ltd.
  • •           PT Pertamina (Persero)
  • •           Petroleum & Chemical Corp. (SINOPEC)
  • •           PetroCanada Lubricants Inc.
  • •           CNOOC Limited.


Base Oil Market Report Segmentation



By Product

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

By Application

  • Industrial Oils
  • Metalworking Oils
  • Hydraulic Oils
  • Process Oils
  • Automotive Oils
  • Others

By Geography

  • North America (USA and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request


  • Available upon request


Key Benefits of the Report:

  • This study presents an analytical depiction of the Base Oil industry along with current trends and future estimations to determine the imminent investment pockets.
  • The report presents information related to market key drivers, restraints, and opportunities, along with detailed analysis of the Base Oil Market share.
  • The current market is quantitatively analyzed to highlight the Base Oil Market's growth scenario.
  • Porter's five forces research demonstrates the market power of suppliers and buyers.
  • The report provides a detailed Base Oil market analysis based on competitive intensity and how the competition will take shape in the coming years.

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

The global base oil market size is expected to increase USD 34.95 billion by 2031 from USD 20.38 billion in 2022 with a CAGR 5.75%.
The leading market key players operating in the base oil market are Repsol, Neste, GS Caltex Corporation, Bharat Petroleum Corporation Limited, H&R OWS Chemie GmbH & Co. KG, SK Lubricants Co., Ltd., LUKOIL, Bahrain Lube Base Oil Company, Sepahan Oil, Saudi Arabian Oil Co., BP p.l.c, Indian Oil Corporation Ltd., Shell plc., Chevron Corporation, Abu Dhabi National Oil Company, ExxonMobil Corporation, PetroChina Co., Ltd., PT Pertamina (Persero), Petroleum & Chemical Corp. (SINOPEC), PetroCanada Lubricants Inc., CNOOC Limited. and Others.
The increased need for high-quality lubricants in the automotive industry, rising lubricant use in the automotive industry, and fast industrialization in emerging economies are driving forces in the base oil market.
North America region will lead the global base oil market during the forecast period 2023 to 2031.
It's worth noting that while Group I products may have dominated the base oil market in 2023.

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