Base Oil Market Report 2026

The base oil market size has grown strongly in recent years. It will grow from $35.59 billion in 2025 to $37.38 billion in 2026 at a compound annual growth rate (CAGR) of 5%. The growth in the historic period can be attributed to growth of automotive production volumes, expansion of industrial machinery usage, increasing demand for mineral based lubricants, rising metalworking and manufacturing activities, steady investments in refining and base oil production.

The base oil market size is expected to see steady growth in the next few years. It will grow to $45.32 billion in 2030 at a compound annual growth rate (CAGR) of 4.9%. The growth in the forecast period can be attributed to rising demand for synthetic and bio based lubricants, tightening emission and fuel efficiency regulations, growth of electric and hybrid vehicles, increasing industrial automation, focus on high performance and specialty lubricants. Major trends in the forecast period include rising demand for high purity group ii and group iii base oils, shift toward low viscosity lubricants, increasing adoption of bio based base oils, refinery upgradation and capacity optimization, growing focus on extended drain intervals.

The expanding automotive industry is anticipated to drive the growth of the base oil market in the upcoming years. Advanced engine technologies are increasing the demand for motor oils and lubricating greases that ensure compatibility with fast-moving components and high temperatures. Additionally, high-quality base oils combined with superior additive technology produce engine oils that maintain viscosity, minimize engine wear, and enhance reliability. Automotive base oil serves as a fluid for internal combustion engines powering automobiles, motorcycles, lawnmowers, generators, and various other equipment. For example, in August 2024, the European Automobile Manufacturers' Association, based in Belgium, reported that new car registrations rose by 3.9% in the first seven months of 2024, surpassing 6.5 million units. The largest markets in the European Union showed positive yet modest growth, with increases in Spain (+5.6%), Italy (+5.2%), Germany (+4.3%), and France (+2.2%). Thus, the growth of the automotive industry is expected to boost the base oil market in the future.

Major companies operating in the base oil market are focused on developing new technologies, such as a new product family of lubricants called Neste ReNew, to increase their profitability in the market. Neste ReNew is a new family of lubricants introduced by Neste as a renewable and circular solution. Neste's commitment to sustainability and reducing carbon emissions has led to the development of innovative products such as Neste ReNew Base Oil, which aims to provide a more environmentally friendly alternative to traditional base oils used in lubricant production. These renewable base oils contribute to a more sustainable and eco-friendly approach in the lubricants industry by offering high-quality performance while reducing environmental impact. For instance, in February 2023, Neste, a Finland-based oil refining and marketing company, introduced new and more sustainable lubricants produced with renewable or re-refined base oils. These lubricants are designed to be environmentally sustainable and contribute to reducing carbon emissions. They are produced from renewable and sustainable feedstocks, such as vegetable oils and animal fats, as opposed to conventional petroleum-based feedstocks.

In July 2024, TotalEnergies SE, a France-based integrated energy company and leading producer of base oils and lubricants, acquired STR Tecoil Oy for an undisclosed amount. Through this acquisition, TotalEnergies sought to advance its base oil circular economy strategy by incorporating Tecoil’s efficient used-oil re-refining capabilities into its supply chain, increasing sustainable base oil output and addressing rising demand for high-performance, environmentally friendly lubricant feedstocks. STR Tecoil Oy is a Finland-based company specializing in the production of re-refined base oils by converting used lubricants into premium, high-performance base oils.

Major companies operating in the base oil market are Chevron Corporation, Exxon Mobil Corporation, Shell PLC, Ergon Inc., Neste Oyj, Nynas AB, S-OIL CORPORATION, Sepahan Oil, Repsol S. A., China Petroleum & Chemical Corporation (SINPOEC), BP PLC, Evonik Industries AG, H&R Group, Saudi Aramco, SK Lubricants Co. Ltd., Dodge, DYM Resources GmbH, Gazprom Neft PJSC, Gulf Petrochem Group, GS Caltex Corporation, Indian Oil Corporation Ltd., The PJSC Lukoil Oil Company, PETRONAS Lubricants International Sdn Bhd, The Philips 66 Company, Petro-Canada Corporation, Infinity Galaxy, Abu Dhabi National Oil Company, CNOOC Limited, Eni SpA.

Asia-Pacific was the largest region in the base oil market in 2025. North America was the second-largest region in the base oil market. The regions covered in the base oil market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the base oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The base oil market consists of sales of mineral base oils, vegetable base oils, and synthetic base oils. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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