Naphthenic Base Oil Global Market Report 2024

The naphthenic base oil market has grown strongly in recent years. It will grow from $2.32 billion in 2023 to $2.44 billion in 2024 at a compound annual growth rate (CAGR) of 5.3%. Historical growth can be attributed to shifts in consumer lifestyles, emphasizing convenience and portability, continuous innovation in flavors and ingredients, the globalization of taste preferences, the expanding landscape of e-commerce, and increased focus on environmental sustainability.

The naphthenic base oil market is expected to see steady growth in the next few years. It will grow to $2.96 billion in 2028 at a compound annual growth rate (CAGR) of 4.9%. Anticipated growth in the upcoming period is linked to heightened health awareness among consumers, ongoing innovation in functional ingredients, the premiumization of products, the impact of regional and cultural preferences, the growing influence of e-commerce and direct-to-consumer channels, and the surge in functional hydration options.

The anticipated surge in vehicle sales is projected to drive the expansion of the naphthenic base oil market in the future. Naphthenic base oil, a key component in automotive lubricants such as motor oil and greases, finds essential use in vehicles. For instance, in August 2023, as reported by the Board of Governors of the Federal Reserve System, the United States witnessed a rise in total vehicle production, reaching 11.77 million units in July, up from 10.91 million units in June. This substantial increase in vehicle sales significantly fuels the growth of the naphthenic base oil market.

The burgeoning growth within the construction industry is poised to be a significant driver of the naphthenic base oil market. With applications extending across various construction machinery and equipment, naphthenic base oil plays a crucial role in lubricating and enhancing performance. Notably, in November 2022, projections by Rethinking The Future indicate an anticipated 8.5% compound annual growth rate (CAGR) for Canada's construction industry by 2024, reaching a value of $354.9 billion. Additionally, a report by Oxford Economics in October 2021 estimates a substantial increase in global construction output from $10.7 trillion in 2020 to an expected $15.2 trillion by 2030, signaling robust growth and thereby augmenting the naphthenic base oil market.

Technological advancements emerge as a pivotal trend driving growth in the naphthenic base oil market. Notably, major companies are actively investing in innovative technologies to solidify their market positions. For instance, in October 2022, Nynas AB launched NYTRO RR 900X, a specialized fluid for circular transformers, incorporating potent re-refining technology. This innovation not only enables participation in the circular economy but also aids in meeting greenhouse gas reduction goals. Nynas' optimized hydro-treating process ensures top-tier product quality, preserving the dielectric behavior of conventional naphthenic fluids.

Strategic partnerships are instrumental in expanding market presence for naphthenic base oils. Companies within the naphthenic base oil industry are leveraging strategic partnerships to maximize their market reach. For instance, in March 2022, Calumet Specialty Products Partners LP established a long-term distribution partnership with SIP Specialty Oils and Fluids, aimed at broadening Calumet's European market presence. SIP, a UK-based marketer, will handle marketing, sales, warehousing, and support for Calumet's range of naphthenic products in Europe, showcasing the strategic approach to market expansion.

In October 2021, Chevron, a prominent multinational energy corporation based in the US, completed the acquisition of Neste, a Finland-based producer of base oils, for an undisclosed sum. This strategic acquisition is geared toward addressing the evolving demands of Chevron's clientele, particularly in meeting increasingly rigorous lubricant standards due to shifting vehicle specifications. Moreover, it aims to bolster Chevron's technological prowess, maintaining their established leadership in base oil investments.

Major companies operating in the naphthenic base oil market report are Calumet Specialty Products Partners L.P., Apar Industries Ltd., Ergon International Inc., Nynas AB, PetroChina Company Limited, Lubline LLC, Eastern Petroleum Pvt. Ltd., Royal Dutch Shell plc, Lubricon Industries, Petroleo Brasileiro S.A. (Petrobras), Shell plc, Resolute Oil LLC, Argos International Marketing Pvt. Ltd., Saudi Arabian Oil Co. (Saudi Aramco), SAC Petrobras S.A., 3A Composites, Chevron Corporation, Kowa India Pvt.Ltd., LyondellBasell Industries, Saudi Basic Industries Corporation, Knightsbridge Plastics Inc., Paragon Medical Ltd., Rogers Corporation, GSH Industries Inc., Accumold LLC, MTD Micro Molding, Spectrum Plastics Group Inc., Isometric Micro Molding Inc., Precikam Inc., Microdyne Plastics Inc.

Asia-Pacific was the largest region in the naphthenic base oil market in 2023. It is expected to be the fastest-growing region in the global naphthenic base oil market during the forecast period. The regions covered in the naphthenic base oil market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the naphthenic base oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Available in various viscosity indices, ranging from 35-60 SUS, 80-130 SUS, 200-300 SUS, 400-800 SUS, and above 800 SUS, catering to diverse applications such as metalworking, process oil, electrical oil, industrial lubricants, greases, rubber oil, and more. The 35-60 SUS viscosity index denotes the oil's thickness within the 35-60 SUS range, suitable for 35- to 60-pound motors and V-twin engines. These products find application across multiple industries including automotive, aerospace, marine, energy, oil and gas, textiles, and others.

The naphthenic base oil market research report provides naphthenic base oil market statistics, including naphthenic base oil industry global market size, regional shares, competitors with a naphthenic base oil market share, detailed naphthenic base oil market segments, market trends and opportunities, and any further data you may need to thrive in the naphthenic base oil industry. This naphthenic base oil market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The naphthenic base oil market consists of sales of transformer oils, lubricating oils, and other Group V 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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