Base Oil Market Size

Base Oil Market size was valued at USD 21.49 billion in 2023 and is anticipated to cross USD 42.05 billion by the end of 2036, expanding at more than 5.3% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of base oil is estimated at USD 22.4 billion.

The growth of the market can be attributed to the increasing demand for automobiles across the world, along with the improvement in engine technology of vehicles. The growing demand for high-grade lubricants and engine oils, along with the rising need for optimal fuel for extreme cold and hot conditions, is estimated to promote the market growth. Base oils are used to manufacture lubricants and motor oils, in which 70 to 90 percent base oils are mixed with 30 to 10 percent chemical additives. Growth of the end-user industries, such as, automotive and construction industries, is estimated to positively impact the growth of the market.