Base Oil Demand and Market Revenue is Estimated to Reach 41,441.3 Kilo Tons and USD 46,724.3 Million by 2020

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Transparency Market Research published a new report "Base Oil Market- Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020" to its report store.

Transparency Market Research

Transparency Market Research

Base Oil Market- Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020

Transparency Market Research has released a new market report titled Base Oil Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 - 2020. According to this report, the global demand for base oil stood at 36,168.4 kilo tons in 2013 and is projected to reach 41,441.3 kilo tons by 2020. In terms of market revenue, the global base oil market was valued at USD 40,599.6 million in 2013 and is anticipated to reach USD 46,724.3 million by 2020 at a CAGR of 2.1% from 2014 to 2020.

Base oils are primarily utilized for the manufacture of lubricants. Depending upon their chemical composition, base oils are classified as either paraffinic or naphthenic. Base oils are generally obtained from secondary processing units in refineries. Post-production, these base oils are sent to blending plants where they are used for manufacturing finished lubricants. This report segments the global base oils market into its respective API groups as Group I, Group II, Group III, and others. The others segments comprises Group IV and Group V base oils. Each of these API groups has been sub-segmented into its respective grades in this report. The Group I base oils have been sub-segmented into SN150, BS150 (Bright Stock), SN500, and others. Group II base oils were sub-segmented as 150N, 500N, 600N, and others. The Group III base oils were further sub-segmented as 4cSt, 6cSt, and others.

For more information about Base Oil Market, visit: http://www.transparencymarketresearch.com/base-oils-lubes-market.html

Group I base oils currently account for the largest share globally, both in terms of production and consumption. However, Group I base oils are rapidly losing out on market share owing to brisk substitution by Group II and Group III base oils. Both Group II and Group III base oils are of a higher quality, which are capable of meeting emission norms in vehicles and conforming to the performance standards of new machinery. This shift in consumption from Group I base oils to other high purity base oils has been observed acutely in certain regions and moderately in others. As Group I consumption gradually declines in numerous regions across the world, there is a downward pressure on prices. This significantly hampers the profit margins of Group I producers, owing to which numerous plants have resorted to shutdowns in the recent past. On the contrary, owing to rapidly rising consumption of both Group II and Group III base oils, new production capacities for the same are being added globally. The maximum production capacity that will be added by 2020 is likely to be for Group II base oils, followed closely by Group III. No investments have been planned for the Group I base oil sector, and none can be expected in the future as well.

A sample of the report in PDF obtained by visiting: http://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=288

The base oils market has been segmented on the basis of application into industrial oils, process oils, industrial oils, metalworking fluids, hydraulic oils, and others. The automotive oils segment accounted for the major share of base oil consumption globally at 45.0% in 2013. Increasingly stringent emission control legislations and rapidly evolving performance standards for vehicles have led to a shift in base oils being used for automotive lubricant formulation. The automotive industry currently prefers using high quality Group II and Group III base oils for lubricant formulation, rather than Group I. A similar trend may be observed in the industrial oils segment, which increasingly prefers Group II base oils instead of Group I. It has been observed that certain grades of Group I such as SN500 can be perfectly substituted by 500N grade of Group II base oils. Owing to the numerous performance advantages offered by high quality base oils to a production line, the rate adoption of Group II base oils is likely to be significantly high during the forecast period.

Browse the full Press Release of this report, here: http://www.transparencymarketresearch.com/pressrelease/base-oil-demand-market.htm

In terms of geography, the global base oils market was segmented as North America, Asia Pacific, Europe, Central & South America, and the Middle East & Africa. Asia Pacific was the largest consumer of base oils globally, accounting for 39.7% of the global market share in 2013. The Asia Pacific is likely to remain the dominant consumer of base oils globally in 2020 as well, mainly on account of numerous fast developing economies such as India and China in the region. Group I consumption is likely to remain prominent in Asia Pacific, MEA, and South America during the forecast period. Lack of stringent emission standards in these regions is likely to offset rapid substitution of Group I base oils with higher grades during the forecast period. On the contrary, both North America and Europe are likely to emerge as highly attractive markets for Group II and Group III base oils during the forecast period.

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