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Base Oil Industry Trends and Future Market

Apr 16 • Market Analysis • 23 Views • No Comments on Base Oil Industry Trends and Future Market

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A discussion on overall trends, as a whole, the base oil industry is both growing and improving. While the demand for Group I base oils low, Group II and Group III demand grew at a high rate over the last ten years.

The majority believe that the base oil industry has grown in the past ten years, and most believe the industry will continue to grow in the next ten years.

APAC is particularly likely to believe the industry grew 73% and will grow 74% in the future.

A global survey has concluded that Group II and Group III usage will rise by 41% and 38% while Group I usage is expected to fall by 28% by 2030.

The ExxonMobil Basestocks 2018 Industry Pulse Report has surveyed 306 base oil decision makers from the industries: Additive manufacturers, lubricants manufacturers, industry association, and the equipment manufacturers.

The survey interviewed at least 100 respondents from APAC, The Americas, and EMEA to ensure results encompassed a global perspective.

The survey by ExxonMobil found that 65% of companies are already using Group I base stocks at lower levels than previous years.

Among the reasons given for the shift were, Group II and III oils are more likely to help meet regulations; that they are used more frequently across 77% of industries, and they are likely to save 73% of costs.

Additionally, the survey found that respondents expect Group III oils to become the most commonly used grade within 10 years.

Nearly 65% of respondents for the study believed that the decline of Group I will significantly impact the market.

50% of respondents say it has been difficult to adapt. In order to do so, companies have been changing work techniques, working with new manufacturers, and changing equipment.

However, the respondents still addressed the certain benefits of Group I base oils, emphasizing the viscosity, solvency, and most importantly the low cost.

The survey observed that while the global industries sector is clearly anticipating a decline in demand for Group I, it also recognizes that Group I base stocks will continue to be relevant and favoured for specific formulations well into 2030.

This survey also revealed that Group II base oils as the “heart” of the market.

Group II base oils are seen as the most important to all industries discussed, including the automotive, marine, industrial, and commercial vehicle industries.

Group III base oils are viewed as the second most important to these industries.

Along with EMEA, the Americas are more likely than the APAC to use Group III base oils in the next 10 years.

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