Base Oil Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Global Base Oil Market Trends is Segmented by Type (Group I, Group II, Group III, Group IV, and Other Types), Application (Engine Oils, Transmission and Gear Oils, Metalworking Fluids, Hydraulic Fluids, Greases, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Base Oil Market Size

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Base Oil Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR > 2.00 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific
Market Concentration Low

Major Players

Base Oil Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Base Oil Market Analysis

The base oil market size is projected to register a CAGR of more than 2% during the forecast period.

Due to the Covid-19 pandemic, the declining automotive industry and the temporary shutdown of automotive manufacturing and various industrial units have resulted in lower consumption of engine oil, gear oil, greases, and metalworking fluid, putting downward pressure on base oil demand. However, In 2021 and 2022, the market grew back as car manufacturing increased. According to OICA, global automobile manufacturing climbed by 3% in 2021 compared to 2020.

  • Over the short term, the primary factor driving the market's growth is rapid industrialization in developing nations considering the industrial application of base oil such as hydraulic fluid and industrial gear oil.
  • On the flip side, fluctuations in crude oil prices and declining demand for Group I Base oils will likely hamper the market's growth over the forecast period.
  • Nevertheless, Innovation in recycling base oils will likely provide opportunities for the market studied during the forecast period.
  • The Asia-Pacific region is expected to dominate the market and will also witness the highest CAGR during the forecast period owing to significant demand from countries such as China, India, and Japan. They are among the largest automobile producer and consumer countries.

Base Oil Market Trends

This section covers the major market trends shaping the Base Oil Market according to our research experts:

Engine Oil Segment to Dominate the Market Demand

  • The engine oil segment dominates the demand for base oil due to the growing demand for engine oil from automotive, power, heavy equipment, metalworking, chemicals, and others.
  • Engine oils are widely used to lubricate internal combustion engines and comprise 75-90% base oils and 10-25% additives.
  • They are typically used for wear reduction, corrosion protection, and smooth operation of the engine internals. They create a thin film between the moving parts to enhance heat transfer and reduce tension during the contact of parts.
  • According to OICA data, the global production of automotive vehicles in 2021 recorded 80,145,988 units registering an increase of around 3% compared to total automotive vehicle production in 2020.
  • Global automobile sales increased in the world's most significant regions in 2021. With sales increased by 6.6% to more than 21 million cars, China remained the world's largest and best-performing primary single-country auto market.
  • Car sales in India expanded at a fast rate of 27%, although the entire vehicle market remained relatively small. In 2021, new passenger car registrations in Japan and Europe were lower, while the demand for light vehicles in Russia, the United States, and Brazil grew marginally.
  • As a result, the above factors are anticipated to substantially influence the engine oil market in the future years.
Base Oil Market : Motor Vehicle Production, In million units, Global, 2017-2021

Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region controlled most of the worldwide market share, with rising investments in the automobile sector in Malaysia, India, and Thailand. For instance, MG, a British brand owned by China's SAIC Motors and created in partnership with Thailand's Charoen Pokphand Group, is targeting Thailand with its first-ever pickup truck, the "Extender." It is expected to boost engine oil consumption in the area over the projection period.
  • According to the German Association of the Automotive Industry, China's annual automobile sales reached 21,090,200 units in 2021, making it the world's largest market.
  • In 2021, India's new automobile sales grew by 26.7 % to 3,082,400 vehicles, up from 2,435,100 in 2020, making it one of the extensive worldwide markets that grew faster.
  • As per the Japan Automobile Manufacturers Association (JAMA), in the half-yearly period in 2022, Japanese automotive manufacturers manufactured 4,917,289 vehicles, an increase of 35% compared to the same period in the year 2021.
  • In 2021, new automobile sales in Indonesia, Thailand, Malaysia, Vietnam, the Philippines, and Singapore reached 2.79 million cars, up 14% from 2020, with Indonesia leading the way with a 67 % increase.
  • As a result, the factors above are projected to substantially influence the base oil market in the upcoming years in the region.
Base Oil Market : Growth Rate by Region 2022-2027

Base Oil Industry Overview

The base oil market is fragmented, where numerous players hold insignificant shares to affect the market dynamics individually. Some of the major players in the market (not in any particular order) include Exxon Mobil Corporation, Shell plc, China Petrochemical Corporation, Evonik Industries AG, and Chevron Corporation, among others.

Base Oil Market Leaders

  1. Exxon Mobil Corporation

  2. Shell plc

  3. China Petrochemical Corporation

  4. Evonik Industries AG

  5. Chevron Corporation

*Disclaimer: Major Players sorted in no particular order

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Base Oil Market News

  • September 2022: Indian Oil Corporation Limited (IOCL) granted an engineering, procurement, and construction contract to ThyssenKrupp Industrial Solutions India Private Ltd. for USD 75 million with a capacity of 270 kilotons per annum (KTPA) Catalytic Dewaxing Unit (CDWU) used for the production of lube base oils at its refinery located in Gujarat, India.
  • April 2022: Chevron Global Energy Inc., a subsidiary of Chevron Corporation, acquired the NEXBASE brand of Neste Corporation. This acquisition will strengthen the company's position as a leading supplier of base oils worldwide.

Base Oil Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Drivers

      1. 4.1.1 Rapid Industrialization in Developing Nations

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Fluctuations in Crude Oil Prices

      2. 4.2.2 Declining Demand for Group I Base Oils

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION (Market Size in Volume)

    1. 5.1 Type

      1. 5.1.1 Group I

      2. 5.1.2 Group II

      3. 5.1.3 Group III

      4. 5.1.4 Group IV

      5. 5.1.5 Other Types

    2. 5.2 Application

      1. 5.2.1 Engine Oils

      2. 5.2.2 Transmission and Gear Oils

      3. 5.2.3 Metalworking Fluids

      4. 5.2.4 Hydraulic Fluids

      5. 5.2.5 Greases

      6. 5.2.6 Other Applications

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      2. 5.3.2 North America

        1. United States

        2. Canada

        3. Mexico

      3. 5.3.3 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Italy

        5. Rest of Europe

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. Saudi Arabia

        2. South Africa

        3. Rest of Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis** /Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Abu Dhabi National Oil Company

      2. 6.4.2 Chevron Corporation

      3. 6.4.3 China Petrochemical Corporation

      4. 6.4.4 CNOOC Limited

      5. 6.4.5 Eni SpA

      6. 6.4.6 Evonik Industries AG

      7. 6.4.7 Exxon Mobil Corporation

      8. 6.4.8 Formosa Petrochemical Corporation

      9. 6.4.9 Gazprom Neft PJSC

      10. 6.4.10 GP Global

      11. 6.4.11 GS Caltex Corporation

      12. 6.4.12 Indian Oil Corporation Ltd

      13. 6.4.13 LUKOIL

      14. 6.4.14 NESTE

      15. 6.4.15 Nynas AB

      16. 6.4.16 Petrobras

      17. 6.4.17 PETRONAS Lubricants International

      18. 6.4.18 Philips 66 Company

      19. 6.4.19 Repsol

      20. 6.4.20 Saudi Arabian Oil Co.

      21. 6.4.21 Sepahan Oil

      22. 6.4.22 Shell Plc

      23. 6.4.23 SK Lubricants Co. Ltd

      24. 6.4.24 S-OIL CORPORATION

      25. 6.4.25 Total Energies

    5. *List Not Exhaustive

    1. 7.1 Innovation in the Field of Renewable Base Oils

**Subject to Availability
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Base Oil Industry Segmentation

Base oils are categorized into five groups, i.e., Group I-V. The first three groups are derived from downstream petroleum refinery plants. Group IV base oils are synthetic (polyalphaolefins) oils. The base oil market is segmented by type, application, and geography. The market is segmented by Group I, Group II, Group III, Group IV, and other types. By application, the market is segmented into engine oils, transmission and gear oils, metalworking fluids, hydraulic fluids, greases, and other applications. The report also covers the market size and forecasts for the base oil market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (metric ton).

Group I
Group II
Group III
Group IV
Other Types
Engine Oils
Transmission and Gear Oils
Metalworking Fluids
Hydraulic Fluids
Other Applications
South Korea
Rest of Asia-Pacific
North America
United States
United Kingdom
Rest of Europe
South America
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa
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Base Oil Market Research FAQs

The Base Oil Market is projected to register a CAGR of greater than 2% during the forecast period (2024-2029)

Exxon Mobil Corporation, Shell plc, China Petrochemical Corporation, Evonik Industries AG and Chevron Corporation are the major companies operating in the Base Oil Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia Pacific accounts for the largest market share in Base Oil Market.

The report covers the Base Oil Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Base Oil Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Base Oil Industry Report

Statistics for the 2024 Base Oil market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Base Oil analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Base Oil Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)