Rubber Process Oil Market Report 2026

The rubber process oil market size has grown strongly in recent years. It will grow from $2.18 billion in 2025 to $2.3 billion in 2026 at a compound annual growth rate (CAGR) of 5.6%. The growth in the historic period can be attributed to growth of automotive tire production, expansion of rubber goods manufacturing, demand for cost effective rubber compounds, availability of petroleum based oils, industrialization of emerging economies.

The rubber process oil market size is expected to see strong growth in the next few years. It will grow to $2.8 billion in 2030 at a compound annual growth rate (CAGR) of 5%. The growth in the forecast period can be attributed to growth in electric vehicle tire demand, rising adoption of sustainable rubber additives, expansion of construction and infrastructure projects, advancements in rubber compounding technologies, increasing regulatory focus on aromatic content. Major trends in the forecast period include rising demand for low aromatic process oils, increasing use in automotive tire manufacturing, growing preference for eco friendly tdae oils, expansion of process oils in consumer rubber products, focus on enhanced rubber compound performance.

The increasing construction activities are expected to drive the growth of the rubber process oil market going forward. Construction activities refer to the processes involved in planning, designing, executing, and completing building structures, infrastructure, or engineering projects. These activities are rising due to expanding urbanization, which increases the demand for housing, infrastructure, and commercial spaces. Rubber process oils are used in construction to improve the flexibility, durability, and workability of rubber-based materials such as sealants, waterproofing membranes, and insulation products. For instance, in July 2023, according to the Australian Bureau of Statistics, an Australian-based government administration, the number of dwellings under construction in the March quarter of 2023 increased to 240,813, up from 240,065 in 2022. Among these, new houses totaled 103,778, compared to 101,240 in the previous year. Therefore, the rising construction activities are driving the rubber process oil market.

The growing automotive industry significantly contributes to the expansion of the rubber process oil market. The automotive industry is a vast ecosystem encompassing all the activities and companies involved in the design, development, manufacturing, marketing, selling, servicing, and repair of motor vehicles. Rubber process oil is used in automotive sector for providing essential lubrication and performance-enhancing properties to rubber compounds, ensuring the production of high-quality tires and crucial rubber components for vehicle manufacturing. For instance, in May 2024, according to the data published by the International Energy Agency (IEA), a France-based intergovernmental organization, accounting for 48% of global car sales, SUVs reached a new record in 2023, further solidifying their popularity in the automotive market. Sales of SUVs in advanced economies surpassed 20 million in 2022, achieving a 50% market share for the first time, while over 360 million SUVs were on the roads worldwide. Therefore, the growing automotive industry is expected to propel the growth of the rubber process oils market going forward.

In March 2023, Saudi Arabian Oil Company (Aramco), a Saudi Arabia-based oil and gas company, acquired Valvoline Global Operations for $2.65 billion. Through this acquisition, Aramco aims to expand and vertically integrate its base-oils and lubricants business, strengthening its position in the global rubber process oil and lubricants market by combining base-oil production with branded product distribution. Valvoline Global Operations is a US-based company specializing in process oils formulated as polymer softeners for manufacturing tires, technical rubber products, and other polymer-based items.

Major companies operating in the rubber process oil market are Exxon Mobil Corporation, Royal Dutch Shell plc, TotalEnergies SE, Chevron Corporation, Eni S.p.A., Repsol S.A., BP plc, Sasol Limited, Reliance Industries Limited, Indian Oil Corporation Limited, Gazprom Neft PJSC, Lukoil PJSC, Petróleo Brasileiro S.A. (Petrobras), CPC Corporation, Taiwan, Nynas AB, Ergon Inc., Calumet Specialty Products Partners, L.P., H&R Group GmbH, ORGKHIM Biochemical Holding, Apar Industries Ltd., Gandhar Oil Refinery (India) Limited, Panama Petrochem Ltd., Behran Oil Company.

Asia-Pacific was the largest region in the rubber process oil market in 2025 and is expected to be the fastest-growing region in the forecast period. The regions covered in the rubber process 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 rubber process oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The rubber processing oil market consists of sales of distillate aromatic extract and paraffin oil. 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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