Market Size of Asia Pacific Base Oil Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 16.88 Million tons |
| Market Volume (2029) | 21.10 Million tons |
| CAGR (2024 - 2029) | 4.56 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Asia-Pacific Base Oil Market Analysis
The Asia Pacific Base Oil Market size is estimated at 16.88 Million tons in 2024, and is expected to reach 21.10 Million tons by 2029, growing at a CAGR of 4.56% during the forecast period (2024-2029).
The market was negatively impacted by the COVID-19 pandemic in 2020, as due to containment measures, refineries witnessed limited production and disrupted supply chains to materialize the underlying demand in import-dependent countries. Currently, the market has recovered from the pandemic and is growing steadily.
The increasing demand for high-grade oils from the automotive sector, and increasing demand for lubricants from various industries are major factors driving the growth of the market studied.
However, the volatility in raw material (i.e., crude oil) prices stands to be a restraint in the growth of the studied market.
Nevertheless, the introduction of renewable base oil is likely to create lucrative growth opportunities for the global market.
China represents the largest market in the Asia-Pacific region and is expected to lead the studied market over the forecast period due to the high production and sales of vehicles in the region.
Asia-Pacific Base Oil Industry Segmentation
Base oils are the raw materials used to make lubricants, and their properties greatly influence the performance and characteristics of the finished lubricant. It is produced by extracting and treating high-viscosity material from narrow distillation cuts of vacuum gasoil or vacuum resid.
The Asia-Pacific base oil market is segmented by type, application, and geography. By type, the market is segmented into group I, group II, group III, group IV, and other types (group V and naphthenic). By application, the market is segmented into engine oils, transmission and gear oils, metalworking fluids, hydraulic fluids, greases, and other applications (food-grade lubricants, process oil, etc.). The report also covers the market size and forecasts for base oil in 5 countries across the Asia-Pacific region.
For each segment, the market sizing and forecasts have been done based on volume (tons).
| Type | |
| Group I | |
| Group II | |
| Group III | |
| Group IV | |
| Other Types (Group V and Naphthenic) |
| Application | |
| Engine Oils | |
| Transmission and Gear Oils | |
| Metalworking Fluids | |
| Hydraulic Fluids | |
| Greases | |
| Other Applications (Food-grade Lubricants, Process Oil, etc.) |
| Geography | |
| China | |
| India | |
| Japan | |
| South Korea | |
| ASEAN Countries | |
| Rest of Asia-Pacific |
Asia Pacific Base Oil Market Size Summary
The Asia-Pacific base oil market is experiencing a steady recovery and growth trajectory following the disruptions caused by the COVID-19 pandemic. The market is driven by the increasing demand for high-grade oils, particularly from the automotive sector, and the rising need for lubricants across various industries. China stands out as the largest market in the region, largely due to its robust automotive production and sales, which significantly contribute to the demand for base oils. The market's expansion is further supported by the growing number of vehicles and the subsequent rise in lubricant demand, prompting companies to enhance their production capacities. However, the market faces challenges such as the volatility in crude oil prices, which could hinder growth. Despite these challenges, the introduction of renewable base oils presents promising opportunities for market expansion.
In China, the demand for base oils is bolstered by increased automotive production, infrastructure projects, and the burgeoning wind power sector. The country's position as the world's largest vehicle market, coupled with its accelerated infrastructure investments, has led to a significant rise in lubricant demand. This, in turn, drives the need for base oils, as seen in the expansion of production facilities by major players like Exxon Mobil Corporation and CNOOC. The market is characterized by a high level of consolidation, with key players such as Chevron Corporation, GS Caltex Corporation, and Neste playing pivotal roles in shaping the market dynamics. These companies are actively expanding their production capacities to meet the growing demand, ensuring a competitive landscape in the Asia-Pacific base oil market.
Asia Pacific Base Oil Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Drivers
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1.1.1 Increasing Demand for High-Grade Lubricants from Automotive Sector
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1.1.2 Increasing Demand for Industrial Lubricants
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1.1.2.1 Other Drivers
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1.2 Restraints
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1.2.1 Volatility in Raw Material Prices
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1.2.2 Other Restraints
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1.3 Industry Value Chain Analysis
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products and Services
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1.4.5 Degree of Competition
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2. MARKET SEGMENTATION (Market Size in Volume)
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2.1 Type
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2.1.1 Group I
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2.1.2 Group II
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2.1.3 Group III
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2.1.4 Group IV
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2.1.5 Other Types (Group V and Naphthenic)
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2.2 Application
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2.2.1 Engine Oils
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2.2.2 Transmission and Gear Oils
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2.2.3 Metalworking Fluids
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2.2.4 Hydraulic Fluids
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2.2.5 Greases
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2.2.6 Other Applications (Food-grade Lubricants, Process Oil, etc.)
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2.3 Geography
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2.3.1 China
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2.3.2 India
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2.3.3 Japan
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2.3.4 South Korea
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2.3.5 ASEAN Countries
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2.3.6 Rest of Asia-Pacific
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Asia Pacific Base Oil Market Size FAQs
How big is the Asia Pacific Base Oil Market?
The Asia Pacific Base Oil Market size is expected to reach 16.88 million tons in 2024 and grow at a CAGR of 4.56% to reach 21.10 million tons by 2029.
What is the current Asia Pacific Base Oil Market size?
In 2024, the Asia Pacific Base Oil Market size is expected to reach 16.88 million tons.
