Asia Pacific to dominate global base oil market

An industry report has highlighted that Asia Pacific is well positioned to dominate the base oil sector by 2030.

Analysts assessed that the market is showing steady growth caused by high demand in multiple applications, including industrial and marine. They said growing industrial activities, emerging economies and a move towards high-performance lubrication products were important factors supporting expansion.

Base oil is the main component (usually 70 to 99 per cent) of lubricants, serving as the foundation for products like heat transfer fluid (HTF), refrigeration compressor oil, grease, hydraulic fluid, turbine oil and mould release oil. Either derived from chemical synthesis or refined crude oil, base oil supplies critical lubrication, cuts down friction between moving components and assists in managing excess heat.

The base oil market is forecast to grow from $40.29 billion (2025) to $46.59 billion in 2030 at a compound annual growth rate of 2.9 per cent. Throughout the projected period, analysts see the Asia Pacific region (which includes nations like China, Japan, India, Indonesia, Australia, South Korea, Thailand, Singapore and Vietnam) leading the market due to expansion in manufacturing and industrial sectors.

The continuing demand for lubricants is majorly supported by strong vehicle production and rising numbers of vehicle owners in countries like China, Japan, India and South Korea. Other factors driving growth include stricter emission regulations and expansion in infrastructure and construction activities, creating a need for high performance lubricants.

Major companies supplying base oils and lubricants were mentioned in the study, including China Petrochemical Corporation Exxon Mobil, Saudi Aramco (Valvoline) SK Enmove, Chevron (Texaco), Nynas, Shell and Fuchs.

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