According
to this report, the global demand for base oil stood nearly at
36,614.3 kilo tons in 2014 and is projected to reach 39,614.7 kilo
tons by 2020, expanding at a CAGR of 1.4% between 2015 and 2020.
The
report also takes into account the effect of slump in the crude oil
prices since July 2014 on base oil prices. According to this study,
the global base oil market was valued at USD 34,514.1 million in 2014
and is anticipated to reach USD 30,973.1 million by 2020, expanding
at a CAGR of 0.3% between 2015 and 2020.
Browse
Base Oil Market Report with Full TOC at
http://www.transparencymarketresearch.com/base-oils-lubes-market.html
The
automotive industry is one of the key-end users of lubricants. With
the rapidly growing global automobile sector, the demand for
lubricants and base oils is likely to increase significantly in the
near future. Stringent norms related to emissions are currently being
implemented worldwide. These norms generally emphasize on stricter
carbon dioxide emission standards and enhancements in fuel economy.
The shift towards stricter emission norms and better fuel economy
would entail the use of better quality lubricants. This demand for
high quality environment-friendly lubricants is bringing about a
change in the base oil industry. The increased demand for highly
efficient base oils along with the constantly evolving lubricants
formulation process are important drivers for the growth of the base
oils market. However, dwindling supply of sweet crude, particularly
in regions such as North America and Europe, coupled with less
impurity and lower prices of sour crude is forcing refiners to change
their preference from crude oil to sour crude.
Plummeting
crude oil prices negatively affect the base oil revenues. With the
fundamentals remaining fairly weak, it is difficult to assess whether
base oil prices would stabilize at current level or further encounter
obstructions on the way to recovery. According to our current
estimates, oil prices and as a result, base oil prices would remain
volatile and unpredictable than ever before over the next few years
(particularly till 2017). The base oil demand is unlikely to improve
substantially till 2016. However, rapid industrialization in emerging
economies, especially in BRIC, is expected to augment the demand for
lubricants across various end-user industries. Moreover,
technological advances such as gas-to-liquid (GTL) technology would
be one of the key opportunity areas for registering growth in the
market. The lubricant base stocks produced from the GTL refining
process are commonly referred to as ISO Paraffin. These have
currently emerged as viable alternatives for the conventional Group
III and Group IV lubricants used in the manufacture of high
efficiency lubricants.
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Group
I base oils currently account for the largest market share globally,
both in terms of production and consumption. However, Group I base
oils are rapidly losing out on the global market share owing to their
brisk substitution by Group II and Group III base oils. Both Group II
and Group III base oils are of a higher quality and thus are capable
of meeting emission norms in vehicles and conforming to the
performance standards of new machineries. This shift in the
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 the 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 is likely to be
added for Group II base oils by 2020, followed closely by Group III.
No investments have been planned for the Group I base oil sector, and
none are expected in the future as well.
The
base oils market has been segmented on the basis of application into
automotive oils, process oils, industrial oils, metalworking fluids,
hydraulic oils, and others. The automotive oils segment accounted for
the major market share in terms of the base oil consumption globally
in 2014. 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 could 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 of adoption of Group
II base oils during the forecast period is likely to be significantly
high.
Browse
Press Release Of Base Oil Market
http://www.transparencymarketresearch.com/pressrelease/base-oil-demand-market.htm
Global
Base Oil Market: Product Analysis
Group
I
SN150
BS150
SN500
Others
Group
II
150N
500N
600N
Others
Group
III
2cSt
4cSt
6cSt
8cSt
Others
Global
Base Oil Market: Application Analysis
- Automotive Oils
- Industrial Oils
- Process Oils
- Metalworking Fluids
- Hydraulic Oils
- Others
Global
Base Oil Market: Regional Analysis
- North America
- Europe
- Asia Pacific
- Central & South America
- Middle East & Africa
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