Global Rubber Process Oil Market - 2023-2030

Market Overview

The global rubber process oil market reached US$ XX million in 2022 and is projected to record significant growth by reaching up to US$ XX million by 2030, growing at a CAGR of XX% during the forecast period (2023-2030).

Rubber process oil is a by-product of the rubber industry. Rubber, fuel oil and raw materials for other industries can all be obtained from it. It is a thickening and softening agent when creating different rubber compounds. In pharmaceuticals and cosmetics, it serves as a carrier oil. RPO is available in synthetic and non-synthetic varieties (also known as natural rubber process oil). Process oils are blends of paraffin, naphtha and other aromatic compounds with a range of molecular weight distributions that are used as a processing aid in the production of rubber goods. Rubber process oils serve as an extender or a plasticizer, enhancing the process's ability to incorporate filters. The lube oil fraction is extracted with a solvent that has a selective affinity for aromatics to create the rubber process oil. Naphthenic oils have exceptional thermal stability, color stability and solubility. These characteristics make them perfect for molding items such as LPG tubes, slippers and floor tiles. Ethylene propylene rubbers make extensive use of paraffinic oils. They are the most stable for a given viscosity and have the highest flashpoint. The market is segmented into type (naphthenic, paraffinic and aromatic) and application (rubber processing, lubrication, adhesive & sealants, pharmaceuticals and others).

Market Dynamics

The global market for rubber process oils is expected to be significantly boosted by the rising demand for low-viscosity oils for use in automobiles. In addition, the market growth will be assisted by the rapidly growing tire industry and rising automotive demand. Additionally, increasing technological developments in the rubber process oil production process, increasing global demand for green rubber process oils and increasing R&D activities will lead to the new growth prospect for the manufacturers in the rubber process oil market. Owing to the color, thermal stability and better solubility, naphthenic oils are more favorable for producing hot-water bags, LPG tubes, footwear and molded and extruded goods.

Rubber process oil improves the physical properties of vulcanization to reduce the cost of end products of rubber compounds which is one of the major factors driving the market growth. Moreover, compatibility with most of the elastomer types makes its usage broader.

However, the fluctuation of crude oil prices and the implementation of strict regulations by the European Union Directive regarding the prohibition of polycyclic aromatic hydrocarbons for the manufacturing and production of tires may pose a significant challenge to manufacturers in the rubber process oil market during the forecast period.

Rising demand for bio-based rubber processing oils will provide lucrative future growth prospects

Bio-based oil is a new type of oil that can be used as a plasticizer in elastomers in place of petroleum-based products. Compared to traditional petroleum plasticizers, it is cheap, renewable and has many benefits. Bio-based oil typically has several functional groups and can be processed, altered or polymerized for various applications. The use of bio-based oils has changed and this is illustrated by an example of modified soybean oil used in carbon black-filled SBR compounds. Similar mechanical properties and performance predictors support using bio-based materials to replace traditional rubber and oil matrices.

Rubbers can also employ plasticizers made from bio-based oil instead of petroleum because they are environmentally friendly and renewable. Tires, automotive components and other industrial rubber products have all adopted various bio-based oils into their manufacturing processes. Therefore, the demand for bio-based processing oils supports market growth.

The ability to offer a variety of functions in applications such as lubrication and automobile tires allows the rubber process oil market to gore globally

Rubber process oils (RPO) serve as internal lubricants, enhance rubber formulation blending, make it easier to incorporate fillers and other additives, enhance some physical properties and serve as inexpensive extenders. These oils are also widely used in producing footwear, sealants, flooring materials, adhesives and tires. Due to its applicability, rubber process oil is expected to grow quickly.

COVID-19 Impact Analysis

One of the industries that the COVID-19 outbreak has severely impacted is the rubber industry. Rubber is used in countless products besides those made for the tire industry. Non-tire products like footwear, belts and hoses, latex foam and many others account for the majority of the demand for rubber. Due to its shock resistance, rubber is one of the most sought-after products, particularly in the electronics and consumer goods industries. Due to transportation limitations, a labor shortage and other governmental restrictions, the supply chain for rubber has been disrupted globally. The supply chain has been severely disrupted by the closure of factories and production in China, which has caused a sharp rise in the cost of various rubber products.

Additionally, manufacturers have had to reduce their production capacities due to the decreased demand for goods across various industries. It has also impacted the cost of rubber as a raw material in the international market. The price of rubber has not changed significantly despite a slowdown in demand and a shortage of supply. Therefore, COVID-19 had a decent impact on the rubber industry.

Segment Analysis

The global rubber process oil market is segmented based on type, application and region.

To enhance the features of chemical compounds, rubber processing application is gaining attraction among all applications, bolstering the market growth

Rubber process oils are used when combining rubber compounds; they enhance the fillers' dispersion and the compound's flow properties during further processing. Rubber Process Oils are designed to meet various rubber products' specific viscosity and aniline point requirements. To create rubber goods like tires, rubber bands, hoses, toys and other rubber products, they are commercially used as a component in a mixture of rubber compounds. The demand for rubber process oil in rubber processing is likely to increase as more industrial and automotive products made with rubber are used in developing nations. As a result of the factors above, the rubber processing application segment is projected to dominate the global rubber process oil market during the forecast period.

Geographical Analysis

The global rubber process oil market is segmented based on type, application and region.

The rapid infrastructure developments across emerging nations in Asia-Pacific support the market's growth. However, the Asia-Pacific is projected to grow at the highest CAGR during the forecast period

India is the largest manufacturer of natural rubber and ranked third in terms of consumption of natural rubbers. India imports crude oil from countries like Iraq, Russia and Saudi Arabia and transforms it into a variety of petroleum products. Rubber processing oil is one of the by-products. India is the second largest exporter of petroleum-derived products in Asia. Consumption in this region is anticipated to increase due to the growing demand for rubber process oil from the rubber industry and its increasing use in the automotive industry in nations like China, Japan and India.

China has been both the largest consumer and importer of rubber in the world, consuming about 40% of the total production. With one of the highest levels of productivity, India is currently the sixth-largest rubber producer in the world. Additionally, the higher production of petroleum products in this region leads to the growth of the rubber industry, which in turn will boost market growth.

Competitive Landscape

Key rubber process oil players are focusing on the development of new technologies to enhance the quality of the production of petroleum products. The primary focus areas include product launches, collaborations, strategic mergers and acquisitions. The major players in the market are Royal Dutch Shell, Chevron Corporation, Nynas, Apar Industries Ltd, Panama Petrochem Ltd, Repsol, Indian Oil Corporation Ltd orGKHIM Biochemical Holding, HollyFrontier Corporation and CPC Corporation.

Royal Dutch Shell

Overview: Royal Dutch Shell is a group of petrochemical and energy companies with more than 82,000 employees. It serves more than 70 countries. The company uses innovative technologies and adopts a creative strategy to support the development of a sustainable energy future. The company operates in three segments: upstream, downstream, integrated gas & renewables, and energy solutions (formally known as new energies). The company serves the market of Europe, the Americas, MEA, Asia-Pacific and Africa. The company produces 3.2 equivalent barrels of oil per day.

Product Portfolio:

• Shell Ondina X: This product is a high-quality Next, generation process oil equipped with gas-to-liquids (GTL) technology. Because they are produced using hydrocarbons derived from natural gas rather than crude oil, Shell's GTL-based process oils have a consistent chemical structure. A new generation of white medical oils with a unique molecular structure is called Shell Ondina X. This enables them to have low viscosity while displaying a carbon chain distribution and evaporation loss properties similar to a higher viscosity traditional medicinal white oil. The product application includes adhesives, rubber, pharmaceuticals & cosmetics, defoamers and thermoplastic elastomers.

Key Development: On November 15, 2022, A subsidiary of Shell plc named Shell Chemical Appalachia LLC announced that Shell Polymers Monaca, a Pennsylvania Chemical project, has begun its operations. The Pennsylvania facility, which has a designed output of 1.6 million tonnes annually, is the first significant polyethylene manufacturing complex in the Northeastern U.S.

Why Purchase the Report?

• To visualize the global rubber process oil market segmentation based on type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global rubber process oil market by analyzing trends and co-development.
• Excel data sheet with numerous data points of rubber process oil market-level with two segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players.

The global rubber process oil market report would provide approximately 53 tables, 50 figures and 235 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies