Naphthenic base oils are refined petroleum products finding extensive applications in automotive and industrial machinery lubricants owing to their excellent lubricating properties. Naphthenic base oils provide outstanding protection against rust and corrosion and effectively dissipate heat. The global Naphthenic Base Oil Market is estimated to be valued at US$ 1.26 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The global Naphthenic Base Oil market is primarily driven by growing consumption of industrial machinery across various end-use industries such as construction, mining, and manufacturing. Naphthenic base oils are primarily used as lubricants in gears, bearings and hydraulic systems of machinery employed in these industries. During the manufacturing process, various parts of industrial machinery face tremendous pressures and heat which can reduce the efficiency and lifespan of the machinery if proper lubrication is not provided. Naphthenic base oils effectively lubricate moving parts under extreme conditions and protect against wear and tear. Thus, the rise in demand for industrial machinery from growing industries is fueling consumption of naphthenic base oils over the forecast period.
SWOT Analysis
Strength: Global Naphthenic Base Oil Market has good lubrication properties at low temperatures and high viscosity index. It is stable at high temperatures and compatible with sealed units and bearing.
Weakness: Strict environmental regulations on using base oil may hamper the demand. Limited availability of raw materials also hampers the production.
Opportunity: Increasing demand for industrial and manufacturing sector will boost the demand for motor and other industrial oils. Growing automotive industry in emerging markets create new opportunities.
Threats: Availability of substitute like polyalphaolefins base oils pose threat. Fluctuations in crude oil prices directly impact the prices of naphthenic base oils.
Key Takeaways
The global Naphthenic Base Oil market is expected to witness high growth. The market size for 2023 is projected to be US$ 1.26 billion, growing at a CAGR of 4.6% during the forecast period of 2023 to 2030.
Regional analysis: North America holds the major share of over 40% of the global market due to growing automotive and industrial sectors. Asia Pacific is fastest growing region owing to large automotive production base and growing manufacturing industry in China and India.
Key players: Key players operating in the Naphthenic Base Oil market are Nynas AB, Royal Dutch Shell, Calumet Specialty Products Partners, Ergon Inc., Chevron Corporation, Repsol S.A., ExxonMobil Corporation, H&R Group, Avista Oil, Petrobras, Lubricon Industries, Eastern Petroleum, Indo Petro Chemicals, Panama Petrochem Ltd., Gandhar Oil Refinery India Limited, Apar Industries Limited, HollyFrontier Corporation, Pentagon Lubricants, Witmans Industries Pvt. Ltd. Nynas AB dominates the market with largest market share due to its wide geographical presence and product offerings.
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