Base Oil Global Market Report 2026

Base oil is classified as hydrocarbons with 18 to 40 carbon atoms that have a boiling point between 550 and 1050 F. The various products such as lubricating oils, motor oil, metal processing fluids, and others are manufactured with the help of base oils.

The main types of base oil are mineral, synthetic, and biobased. The mineral oil is produced from a highly refined variant of ground-based oil. Mineral oils are widely utilized by classic and vintage automobile owners, in part as synthetic oils have a lower viscosity, which enhances the risk of leaks in older engines. The different groups include Group I, Group II, Group III, Group IV, and Group V and is used in automotive oil, industrial oil, metalworking fluid, greases, hydraulic oil, and others.

Tariffs have impacted the base oil market by increasing import costs for mineral and synthetic base oils traded across regions. Higher duties on group i and group ii base oils have raised raw material costs for lubricant manufacturers, particularly in asia pacific and europe. These measures have disrupted traditional supply chains and encouraged sourcing diversification and regional procurement. At the same time, tariffs have supported domestic refining investments and capacity expansions, strengthening local base oil production capabilities.

The base oil market research report is one of a series of new reports from The Business Research Company that provides base oil market statistics, including base oil industry global market size, regional shares, competitors with a base oil market share, detailed base oil market segments, market trends and opportunities, and any further data you may need to thrive in the base oil industry. This 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 base oil market size has grown strongly in recent years. It will grow from $35.59 billion in 2025 to $37.38 billion in 2026 at a compound annual growth rate (CAGR) of 5.0%. The growth in the historic period can be attributed to growth of automotive production volumes, expansion of industrial machinery usage, increasing demand for mineral based lubricants, rising metalworking and manufacturing activities, steady investments in refining and base oil production.

The base oil market size is expected to see steady growth in the next few years. It will grow to $45.32 billion in 2030 at a compound annual growth rate (CAGR) of 4.9%. The growth in the forecast period can be attributed to rising demand for synthetic and bio based lubricants, tightening emission and fuel efficiency regulations, growth of electric and hybrid vehicles, increasing industrial automation, focus on high performance and specialty lubricants. Major trends in the forecast period include rising demand for high purity group ii and group iii base oils, shift toward low viscosity lubricants, increasing adoption of bio based base oils, refinery upgradation and capacity optimization, growing focus on extended drain intervals.

The expanding automotive industry is anticipated to drive the growth of the base oil market in the upcoming years. Advanced engine technologies are increasing the demand for motor oils and lubricating greases that ensure compatibility with fast-moving components and high temperatures. Additionally, high-quality base oils combined with superior additive technology produce engine oils that maintain viscosity, minimize engine wear, and enhance reliability. Automotive base oil serves as a fluid for internal combustion engines powering automobiles, motorcycles, lawnmowers, generators, and various other equipment. For example, in August 2024, the European Automobile Manufacturers' Association, based in Belgium, reported that new car registrations rose by 3.9% in the first seven months of 2024, surpassing 6.5 million units. The largest markets in the European Union showed positive yet modest growth, with increases in Spain (+5.6%), Italy (+5.2%), Germany (+4.3%), and France (+2.2%). Thus, the growth of the automotive industry is expected to boost the base oil market in the future.

Major companies operating in the base oil market are focused on developing new technologies, such as a new product family of lubricants called Neste ReNew, to increase their profitability in the market. Neste ReNew is a new family of lubricants introduced by Neste as a renewable and circular solution. Neste's commitment to sustainability and reducing carbon emissions has led to the development of innovative products such as Neste ReNew Base Oil, which aims to provide a more environmentally friendly alternative to traditional base oils used in lubricant production. These renewable base oils contribute to a more sustainable and eco-friendly approach in the lubricants industry by offering high-quality performance while reducing environmental impact. For instance, in February 2023, Neste, a Finland-based oil refining and marketing company, introduced new and more sustainable lubricants produced with renewable or re-refined base oils. These lubricants are designed to be environmentally sustainable and contribute to reducing carbon emissions. They are produced from renewable and sustainable feedstocks, such as vegetable oils and animal fats, as opposed to conventional petroleum-based feedstocks.

In July 2024, TotalEnergies SE, a France-based integrated energy company and leading producer of base oils and lubricants, acquired STR Tecoil Oy for an undisclosed amount. Through this acquisition, TotalEnergies sought to advance its base oil circular economy strategy by incorporating Tecoil's efficient used-oil re-refining capabilities into its supply chain, increasing sustainable base oil output and addressing rising demand for high-performance, environmentally friendly lubricant feedstocks. STR Tecoil Oy is a Finland-based company specializing in the production of re-refined base oils by converting used lubricants into premium, high-performance base oils.

Major companies operating in the base oil market are Chevron Corporation, Exxon Mobil Corporation, Shell PLC, Ergon Inc., Neste Oyj, Nynas AB, S-OIL CORPORATION, Sepahan Oil, Repsol S. A., China Petroleum & Chemical Corporation (SINPOEC), BP PLC, Evonik Industries AG, H&R Group, Saudi Aramco, SK Lubricants Co. Ltd., Dodge, DYM Resources GmbH, Gazprom Neft PJSC, Gulf Petrochem Group, GS Caltex Corporation, Indian Oil Corporation Ltd., The PJSC Lukoil Oil Company, PETRONAS Lubricants International Sdn Bhd, The Philips 66 Company, Petro-Canada Corporation, Infinity Galaxy, Abu Dhabi National Oil Company, CNOOC Limited, Eni SpA

Asia-Pacific was the largest region in the base oil market in 2025. North America was the second-largest region in the base oil market. The regions covered in the base 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 base oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The base oil market consists of sales of mineral base oils, vegetable base oils, and synthetic base 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.

Base Oil Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses base oil market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for base oil ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The base oil market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Mineral; Synthetic; Bio-Based
• 2) By Group: Group I; Group II; Group III; Group IV; Group V
• 3) By Application: Automotive Oil; Industrial Oil; Metalworking Fluid; Greases; Hydraulic Oil; Other Applications
• Subsegments:
• 1) By Mineral Base: Paraffinic; Naphthenic; Aromatic
• 2) By Synthetic Base: Polyalphaolefins (PAO); Esters; Group III Oils
• 3) By Bio-Based Base: Vegetable Oils; Animal Fats; Bio-Synthetic Oils
• Companies Mentioned: Chevron Corporation; Exxon Mobil Corporation; Shell PLC; Ergon Inc.; Neste Oyj; Nynas AB; S-OIL CORPORATION; Sepahan Oil; Repsol S. A.; China Petroleum & Chemical Corporation (SINPOEC); BP PLC; Evonik Industries AG; H&R Group; Saudi Aramco; SK Lubricants Co. Ltd.; Dodge; DYM Resources GmbH; Gazprom Neft PJSC; Gulf Petrochem Group; GS Caltex Corporation; Indian Oil Corporation Ltd.; The PJSC Lukoil Oil Company; PETRONAS Lubricants International Sdn Bhd; The Philips 66 Company; Petro-Canada Corporation; Infinity Galaxy; Abu Dhabi National Oil Company; CNOOC Limited; Eni SpA
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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