Global Naphthenic Base Oil Market – Analysis and Forecast (2023-2030)

Industry Insight by Type (35-60 SUS, 80-130 SUS, 200-300 SUS, 400-800 SUS, Above 1200 SUS), by Application (Process Oil, Electrical Oil, Metal Working, Industrial Lubes and Grease, Rubber Oil and Others), and by Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

The global naphthenic base oil market size is anticipated to grow from USD 2.5 billion in 2022 to USD 3.25 billion by 2030. It will witness a 3.85% CAGR during the forecast period 2022-2028. Base Oil manufactured by the hydrotreatment of crude oil resulting in the formation of hydrocarbons with low aromatic and paraffin content is commonly identified as Naphthenic Base Oil.

Some of the unique features of Naphthenic Base Oil are its superior solubility and lower viscosity. They are perfect to be used as gear oil, metalworking oil, electrical oil, industrial lube, and grease. They are also being used as hydraulic fluids and automatic transmission fluids. The increase in the awareness of naphthenic base oil in several industries has become a reason for its rising demand in the market. The electric and hybrid vehicle have also given a hike to the expansion of Naphthalene base oil.

Industry Trends

COVID-19 had a great impact on the market for base oil. COVID -19 had a pessimistic effect on business all over the world likewise Naphthalene Base Oil market also faced a failure. The economic crisis of 2019 declined the high rising market of crude oil. The crude oil business that was continuously rising for the last 5-10 years faced a downfall due to the economic crisis of 2019. This has caused a huge loss to the manufacturing companies. The lockdowns declared by the governments in the whole world to control the spread of COVID- 19 created a negative effect on the rising business of Naphthalene Base Oil. The ban on travel and transportation has put a pause on the rising business of Naphthalene Base Oil which was directly based on the transportation going on throughout the world.

With the passage of time, the planned methodology being used throughout the world has assisted businesses to recapture the market of Naphthalene Base Oil and regaining the losses caused due to COVID -19. Market contributors are emphasizing novel ideas to resume the business and regain the level achieved before the economic crisis. Since Naphthalene Base Oil is an automotive lubricant, there are better prospects for its expansion in the market. Soon it will regain its business as it is used in electric vehicles which are itself environment friendly. The use of Naphthalene Base Oil will bring a noticeable change to the whole world. Hence there are bright chances for its business to regain its position in the whole world.

Market Segmentation

Insight by Type

• 35-60 SUS
• 80-130 SUS
• 200-300 SUS
• 400-800 SUS
• Above 1200 SUS

The Naphthenic Base Oil with 35-60 SUS has the features of low pour point and low temperature which has become a reason for its increased demand in process oil and transformer oil, thereby gaining the largest share in the market.

There is an increased demand for Naphthenic Base Oil with 80-130 SUS, 400-800 SUS, and above 1200 SUS owing to its property of high solvency power, thereby used in several industries such as metal-working and automotive.

Insight by Application

• Process Oil
• Electrical Oil
• Metal Working
• Industrial Lubes and Grease
• Rubber Oil
• Others

Process Oil has the features of low rolling resistance, low fuel consumption and low carbon dioxide emissions that has become a reason for its rising demand in the market. Naphthenic Base Oil also enhances the tire grip of vehicles that leads to the rise in the safety of vehicles on the road.

Naphthenic Base Oil Market Report Coverage

Industry Dynamics

Growth Drivers

Increased demand for metalworking Fluids Will Propel the market growth for Naphthalene Base oil market

The increased adoption of metalworking fluids in cooling and lubrication sector owing to its unique properties like better solubility, low aromatic content, low temperature fluidity, and form stable emulsion will drive the growth of the naphthalene base oil market. This metalworking fluid has extensive application in aeronautics, general machining, medical, bearing, automotive industry, medical, etc.

Rise in the adoption of cooling and lubricating oils will expand the market growth of Naphthalene Base Oil market

Most businesses in manufacturing industries are adopting cooling and lubricating fluids based on Naphthalene Base Oil. There is a prominent shift from paraffin oil to Naphthalene Base Oil resulting in the rise of commercialization of new products of Naphthalene Base Oil.

Challenges

Huge Cost involved May stymie the growth of Naphthalene Base Oil Market

Naphthalene Base Oil is costlier compared to other low-cost substitutes that are available in the market. Higher Base Oil prices and more production costs may lower the growth of Naphthalene Base Oil. This negative factor of the high cost may act as an obstacle to the growth of Naphthenic Base Oil. Also, environmental concerns and unstable raw material prices may hinder the market growth.

Rise in Crude Oil price directly effects the cost of Naphthalene Base oil

Since Naphthalene Base oil is made from crude oil, any rise in the cost of Crude oil by the country rises the price of Naphthalene Base oil. Hence it may become a hindrance in the growth of Naphthalene Base oil.

Opportunities

Significant growth in industrialization accompanied by novel manufacturing amenities is increasing the demand for lubricants that provide enhanced performance under high temperatures. This has given a rise in the opportunities for the growth of the Naphthalene Base oil market.

The growing demand for Naphthalene Base oil for automotive lubricants has brought a rise in the market revenue opportunities for industry players and are extensively adopted in process oil, adhesive, insulating oils, insoluble sulfur, sealants, greases, printing inks, battery separators, and tire industries. They are evidenced to be the best suited for hydraulic fluids and gear oils due to the requirement of fluctuated formulations.

Geographic Overview

There is a prominent decline in the use of vehicles that are based on other lubricants leading to the rise in the demand for Naphthalene Base Oil.  Furthermore, there is an increased consumption of naphthenic base oil, increased demand for high solvency formulations in the automotive sector, increased investment in the energy & power sector, and the presence of well-established players will proliferate the growth in the North American region. As a result of it, North America is a beneficial market for Naphthalene Base Oil.

China and India and other countries of Asia Pacific have also enhanced their automotive sector and increased the production of industrial lubricants leading to the prediction of having the fastest CAGR in the naphthenic base oil market during the forecast period. The enhancement in the implementation of hybrid vehicles due to environmental reasons has uplifted the requirement of Naphthenic Base Oil in Asia Pacific.

Competitive Insight

Most of the engine oils used in the current market are base oils. This has increased the demand of Naphthalene Base Oil and has brought a downfall in the market of other lubricants. Thus enhancing the requirement of Naphthalene Oil Base companies. Naphthalene base oil is used in engines of light-duty trucks, passenger cars, diesel trucks, stationary engines, fluids and motor oils. The industry players are entering into strategies like product launch, product expansion, M&A, collaboration, and agreements to sustain themselves in the market.

Naphthenic base and process oils produced at ERI are used by customers globally in several applications, including transformer oils, compound blending operations, rubber products, printing inks, metalworking fluids, refrigeration oils, coatings, sealants, adhesives, lubricants and greases. Furthermore, their HyBrand products will offer ultra-low sulfur diesel fuel, naphtha, heavy fuel oil, asphalt blending stocks and waxes. ERI has production capacity of up to 26,500 barrels per day of severely hydrotreated naphthenic specialty products. ERI is ISO 14001:2015, ISO 17025:2017 and ISO 9001:2015 certified.

Shell is one of the most well-known process oil producers, with more than 30 years of experience in the industry. Shell Catalysts & Technologies has a track record of successfully delivering naphthenic and paraffinic base oil catalysts. To obtain high yields and improved base oil quality, these solutions for pretreating, dewaxing, and hydrofinishing are carefully designed. High performance catalysts are essential for each stage in this process. As a result, their catalyst products are used in several naphthenic and paraffinic base oil plants across the world, as well as the world's largest GTL plant, Shell Pearl in Qatar.

Recent Development by Key Players

In May 2022, Ergon International has announced an increase in the price of Naphthalene Base Oil in North America by $0.30 per gallon. The increase will apply to all viscosities. 

In March 2021, Ergon's aim is to ensure a reliable supply of specialty oils for customers all over the world. Ergon's Antwerp facility was recently expanded, demonstrating the company's commitment to serve the international market in the future. The facility's total capacity was raised by 9,000 cbm (8,300 MT) with the addition of three storage tanks, giving it a total storage capacity of 39,000 cbm (35,600 MT). HyVolt dielectric fluids, HyPrene process oils, and HyGold base oils are all supplied from Antwerp to international customers, and are noted for their consistency and reliability. The company's refinery at Vicksburg, Mississippi, which is the world's top naphthenic manufacturer, produces these specialty oils. They're then shipped all around the world from Ergon's Gretna, Louisiana, terminal.

Key Players Covered in the Report

Some of the major key players in the market of Naphthalene Base Oil market are Ergon, Inc., Shell Plc, Nynas AB, Calumet Specialty Products Partners LP, Petrobras, Apar Industries, Petrochina Pvt limited, Argos International, Lubline and Eastern Petroleum Pvt ltd.

The Naphthenic Base Oil Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2023–2030.

Segments Covered in the Report

• By Type
  • 35-60 SUS
  • 80-130 SUS
  • 200-300 SUS
  • 400-800 SUS
  • Above 1200 SUS
• By Application
  • Process Oil
  • Electrical Oil
  • Metal Working
  • Industrial Lubes and Grease
  • Rubber Oil
  • Others

Region Covered in the Report

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Rest of the World (RoW)
  • Brazil
  • Saudi Arabia
  • South Africa
  • U.A.E.
  • Other Countries

 1.    Research Overview 

        1.1.    The Report Offers
        1.2.    Market Coverage
                1.2.1.    By Type
                1.2.2.    By Application
                1.2.3.    By Region
        1.3.    Research Phases
        1.4.    Limitations
        1.5.    Research Methodology
                1.5.1.    Data Sources
                        1.5.1.1. Primary Research
                        1.5.1.2. Secondary Research
                1.5.2.    Methodology
                        1.5.2.1. Data Exploration
                        1.5.2.2. Forecast Parameters
                        1.5.2.3. Data Validation
                        1.5.2.4. Assumptions
                1.5.3.    Study Period & Data Reporting Unit

2.    Executive Summary

3.    Industry Overview

        3.1.    Industry Dynamics
                3.1.1.    Market Growth Drivers
                3.1.2.    Market Restraints
                3.1.3.    Key Market Trends
                3.1.4.    Major Opportunities
        3.2.    Industry Ecosystem
                3.2.1.    Porter’s Five Forces Analysis
                3.2.2.    Recent Development Analysis
                3.2.3.    Value Chain Analysis
        3.3.    Competitive Insight
                3.3.1.    Competitive Position of Industry Players
                3.3.2.    Market Attractive Analysis

4.    Global Market Estimate and Forecast

        4.1.    Global Market Overview
        4.2.    Global Market Estimate and Forecast to 2030

5.    Market Segmentation Estimate and Forecast

        5.1.    By Type
                5.1.1.    35-60 SUS
                            5.1.1.1. Market Definition
                            5.1.1.2. Market Estimation and Forecast to 2030
                5.1.2.    80-130 SUS
                            5.1.2.1. Market Definition
                            5.1.2.2. Market Estimation and Forecast to 2030
                5.1.3.    200-300 SUS
                            5.1.3.1. Market Definition
                            5.1.3.2. Market Estimation and Forecast to 2030
                5.1.4.    400-800 SUS
                            5.1.4.1. Market Definition
                            5.1.4.2. Market Estimation and Forecast to 2030
                5.1.5.    Above 1200 SUS
                            5.1.5.1. Market Definition
                            5.1.5.2. Market Estimation and Forecast to 2030
              5.2.    By Application
                5.2.1.    Process Oil
                            5.2.1.1. Market Definition
                            5.2.1.2. Market Estimation and Forecast to 2030
                5.2.2.    Electrical Oil
                            5.2.2.1. Market Definition
                            5.2.2.2. Market Estimation and Forecast to 2030
                5.2.3.    Metal Working
                            5.2.3.1. Market Definition
                            5.2.3.2. Market Estimation and Forecast to 2030
            5.2.4.    Industrial Lubes and Grease
                            5.2.4.1. Market Definition
                            5.2.4.2. Market Estimation and Forecast to 2030
            5.2.5.    Rubber Oil
                            5.2.5.1. Market Definition
                            5.2.5.2. Market Estimation and Forecast to 2030
            5.2.6.    Others
                            5.2.6.1. Market Definition
                            5.2.6.2. Market Estimation and Forecast to 2030

6.    North America Market Estimate and Forecast

        6.1.    By Type
        6.2.    By Application
        6.3.    By Country
                6.3.1.    U.S. Market Estimate and Forecast
                6.3.2.    Canada Market Estimate and Forecast
                6.3.3.    Mexico Market Estimate and Forecast

7.    Europe Market Estimate and Forecast

        7.1.    By Type
        7.2.    By Application
        7.3.    By Country
                7.3.1.    Germany Market Estimate and Forecast
                7.3.2.    France Market Estimate and Forecast
                7.3.3.    U.K. Market Estimate and Forecast
                7.3.4.    Italy Market Estimate and Forecast
                7.3.5.    Spain Market Estimate and Forecast
                7.3.6.    Russia Market Estimate and Forecast
                7.3.7.    Rest of Europe Market Estimate and Forecast

8.    Asia-Pacific Market Estimate and Forecast

        8.1.    By Type
        8.2.    By Application
        8.3.    By Country 
                8.3.1.    China Market Estimate and Forecast
                8.3.2.    Japan Market Estimate and Forecast
                8.3.3.    India Market Estimate and Forecast
                8.3.4.    South Korea Market Estimate and Forecast
                8.3.5.    Rest of Asia-Pacific Market Estimate and Forecast

9.    Rest of the World (RoW) Market Estimate and Forecast

        9.1.    By Type
        9.2.    By Application 
        9.3.    By Country
                9.3.1.    Brazil Market Estimate and Forecast
                9.3.2.    Saudi Arabia Market Estimate and Forecast
                9.3.3.    South Africa Market Estimate and Forecast
                9.3.4.    U.A.E. Market Estimate and Forecast
                9.3.5.    Other Countries Market Estimate and Forecast

10.    Company Profiles

        10.1.    Ergon, Inc.
                10.1.1.    Snapshot
                10.1.2.    Overview
                10.1.3.    Offerings
                10.1.4.    Financial Insight
                10.1.5.    Recent Developments
        10.2.    Shell Plc
                10.2.1.    Snapshot
                10.2.2.    Overview
                10.2.3.    Offerings
                10.2.4.    Financial Insight
                10.2.5.    Recent Developments
        10.3.    Nynas AB
                10.3.1.    Snapshot
                10.3.2.    Overview
                10.3.3.    Offerings
                10.3.4.    Financial Insight
                10.3.5.    Recent Developments
        10.4.    Calumet Specialty Products Partners LP
                10.4.1.    Snapshot
                10.4.2.    Overview
                10.4.3.    Offerings
                10.4.4.    Financial Insight
                10.4.5.    Recent Developments
        10.5.    Petrobras
                10.5.1.    Snapshot
                10.5.2.    Overview
                10.5.3.    Offerings
                10.5.4.    Financial Insight
                10.5.5.    Recent Developments
        10.6.    Young Living Essentials Oils, LC.
                10.6.1.    Snapshot
                10.6.2.    Overview
                10.6.3.    Offerings
                10.6.4.    Financial Insight
                10.6.5.    Recent Developments
        10.7.    Apar Industries
                10.7.1.    Snapshot
                10.7.2.    Overview
                10.7.3.    Offerings
                10.7.4.    Financial Insight
                10.7.5.    Recent Developments
        10.8.    Petrochina Pvt limited
                10.8.1.    Snapshot
                10.8.2.    Overview
                10.8.3.    Offerings
                10.8.4.    Financial Insight
                10.8.5.    Recent Developments
        10.9.    Argos International
                10.9.1.    Snapshot
                10.9.2.    Overview
                10.9.3.    Offerings
                10.9.4.    Financial Insight
                10.9.5.    Recent Developments
        10.10.    Lubline
                10.9.1.    Snapshot
                10.9.2.    Overview
                10.9.3.    Offerings
                10.9.4.    Financial Insight
                10.9.5.    Recent Developments
        10.11.    Eastern Petroleum Pvt Ltd.
                10.9.1.    Snapshot
                10.9.2.    Overview
                10.9.3.    Offerings
                10.9.4.    Financial Insight
                10.9.5.    Recent Developments     
11.    Appendix

        11.1.    Exchange Rates
        11.2.    Abbreviations

Note: Financial insight and recent developments of different companies are subject to the availability of information in the secondary domain.

List of Tables

Table 1 Sources
Table 2 Study Periods
Table 3 Data Reporting Unit
Table 4 Global Naphthenic Base Oil  Market, By Type, 2018-2022 (USD Billion)
Table 5 Global Naphthenic Base Oil  Market, By Type, 2023-2030 (USD Billion)
Table 6 Global Naphthenic Base Oil  Market, By Application, 2018-2022 (USD Billion)
Table 7 Global Naphthenic Base Oil  Market, By Application, 2023-2030 (USD Billion)
Table 8 Global Naphthenic Base Oil  Market, By Region, 2018-2022 (USD Billion)
Table 9 Global Naphthenic Base Oil  Market, By Region, 2023-2030 (USD Billion)
Table 10 North America Naphthenic Base Oil  Market, By Type, 2018-2022 (USD Billion)
Table 11 North America Naphthenic Base Oil  Market, By Type, 2023-2030 (USD Billion)
Table 12 North America Naphthenic Base Oil  Market, By Application, 2018-2022 (USD Billion)
Table 13 North America Naphthenic Base Oil  Market, By Application, 2023-2030 (USD Billion)
Table 14 North America Naphthenic Base Oil  Market, By Region, 2018-2022 (USD Billion)
Table 15 North America Naphthenic Base Oil  Market, By Region, 2023-2030 (USD Billion)
Table 16 Europe Naphthenic Base Oil  Market, By Type, 2018-2022 (USD Billion)
Table 17 Europe Naphthenic Base Oil  Market, By Type, 2023-2030 (USD Billion)
Table 18 Europe Naphthenic Base Oil  Market, By Application, 2018-2022 (USD Billion)
Table 19 Europe Naphthenic Base Oil  Market, By Application, 2023-2030 (USD Billion)
Table 20 Europe Naphthenic Base Oil  Market, By Region, 2018-2022 (USD Billion)
Table 21 Europe Naphthenic Base Oil  Market, By Region, 2023-2030 (USD Billion)
Table 22 Asia-Pacific Naphthenic Base Oil  Market, By Type, 2018-2022 (USD Billion)
Table 23 Asia-Pacific Naphthenic Base Oil  Market, By Type, 2023-2030 (USD Billion)
Table 24 Asia-Pacific Naphthenic Base Oil  Market, By Application, 2018-2022 (USD Billion)
Table 25 Asia-Pacific Naphthenic Base Oil  Market, By Application, 2023-2030 (USD Billion)
Table 26 Asia-Pacific Naphthenic Base Oil  Market, By Region, 2018-2022 (USD Billion)
Table 27 Asia-Pacific Naphthenic Base Oil  Market, By Region, 2023-2030 (USD Billion)
Table 28 RoW Naphthenic Base Oil  Market, By Type, 2018-2022 (USD Billion)
Table 29 RoW Naphthenic Base Oil  Market, By Type, 2023-2030 (USD Billion)
Table 30 RoW Naphthenic Base Oil  Market, By Application, 2018-2022 (USD Billion)
Table 31 RoW Naphthenic Base Oil  Market, By Application, 2023-2030 (USD Billion)
Table 32 RoW Naphthenic Base Oil  Market, By Region, 2018-2022 (USD Billion)
Table 33 RoW Naphthenic Base Oil  Market, By Region, 2023-2030 (USD Billion)
Table 34 Snapshot – Ergon, Inc.
Table 35 Snapshot – Shell Plc
Table 36 Snapshot – Nynas AB
Table 37 Snapshot – Calumet Specialty Products Partners LP
Table 38 Snapshot – Petrobras
Table 39 Snapshot – Apar Industries.
Table 40 Snapshot – PetroChina Pvt Limited
Table 41 Snapshot – Argos International
Table 42 Snapshot – Lublin
Table 43 Snapshot – Eastern Petroleum Pvt Ltd.

List of Figures

Figure 1 Market Coverage
Figure 2 Research Phases
Figure 3 Secondary Sources for Different Parameters
Figure 4 Methodology
Figure 5 Data Mining & Exploration
Figure 6 Data Triangulation
Figure 7 Assumptions for Market Estimation and Forecast
Figure 8 Market Synopsis
Figure 9 Global Naphthenic Base Oil  Market - Growth Drivers and Restraints
Figure 10 Competitive Benchmark
Figure 11 Global Naphthenic Base Oil  Market Highlight
Figure 12 Global Naphthenic Base Oil  Market, By Type, 2018-2030 (USD Billion)
Figure 13 Global Naphthenic Base Oil  Market, By Application, 2018-2030 (USD Billion)
Figure 14 Global Naphthenic Base Oil  Market, By Region, 2018-2030 (USD Billion)
Figure 15 North America Naphthenic Base Oil  Market Highlight
Figure 16 North America Naphthenic Base Oil  Market, By Type, 2018-2030 (USD Billion)
Figure 17 North America Naphthenic Base Oil  Market, By Application, 2018-2030 (USD Billion)
Figure 18 North America Naphthenic Base Oil  Market, By Region, 2018-2030 (USD Billion)
Figure 19 Europe Naphthenic Base Oil  Market Highlight
Figure 20 Europe Naphthenic Base Oil  Market, By Type, 2018-2030 (USD Billion)
Figure 21 Europe Naphthenic Base Oil  Market, By Application, 2018-2030 (USD Billion)
Figure 22 Europe Naphthenic Base Oil  Market, By Region, 2018-2030 (USD Billion)
Figure 23 Asia-Pacific Naphthenic Base Oil  Market Highlight
Figure 24 Asia-Pacific Naphthenic Base Oil  Market, By Type, 2018-2030 (USD Billion)
Figure 25 Asia-Pacific Naphthenic Base Oil  Market, By Application, 2018-2030 (USD Billion)
Figure 26 Asia-Pacific Naphthenic Base Oil  Market, By Region, 2018-2030 (USD Billion)
Figure 27 RoW Naphthenic Base Oil  Market Highlight
Figure 28 RoW Naphthenic Base Oil  Market, By Type, 2018-2030 (USD Billion)
Figure 29 RoW Naphthenic Base Oil  Market, By Application, 2018-2030 (USD Billion)
Figure 30 RoW Naphthenic Base Oil  Market, By Region, 2018-2030 (USD Billion)