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The automotive industry is increasingly utilizing Group II, Group III, and Group IV to replace conventional base oil.
The automotive segment accounts for largest share of around 57.0% of the total Asia-Pacific base oil market in terms of volume. The automotive industry is increasingly utilizing Group II, Group III, and Group IV to replace conventional base oil. The shift is primarily attributed to the higher performance characteristics of Group II, Group III and Group IV and stringent vehicle emission regulations.
The Group III and Group IV base oils helps in manufacturing of synthetic and semi-synthetic lubricants which significantly increase the drain interval that helps reduce the frequent change of lubricants. The high viscosity index and thermal stability of the synthetic lubricants make them suitable for extreme condition in industries. This lubricant type has huge demand from high-end vehicle users as well. The synthetic lubricants demand is gradually eating into the market share of mineral oil lubricants. The synthetic oil lubricants market is the second largest lubricants market. However, the high price of synthetic lubricants is hindering its market growth.
The growth of the end-user industries in key countries such as China, India, South Korea, Japan, and Malaysia is driving the growth of the Asia-Pacific base oil market. The Asia-Pacific base oil market is estimated to reach 25,226.5 KT by 2020, witnessing a CAGR of 3.5% between 2015 and 2020.
Asia-Pacific Base Oil Market by Type (Group I, Group II, Group III, Group IV, & Group V), by Application (Automotive, Industrial Application, & Others) - Trends & Forecast to 2020
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