Base Oil Market Size, Share, Trends, Industry Analysis Report: By Type (Mineral Oil, Synthetic Oil, and Bio-Based Oil), Grade, Application, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Forecast, 2025–

The global base oil market size is expected to reach USD 36.51 billion by 2034, according to a new study by Polaris Market Research. The report “Base Oil Market Size, Share, Trends, Industry Analysis Report: By Type (Mineral Oil, Synthetic Oil, and Bio-Based Oil), Grade, Application, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Base oils are refined petroleum or synthetic liquids used as the primary component in lubricants, greases, and industrial oils, providing essential lubrication and stability. Mineral oils, synthetic oils, and bio-based oils are some commonly used base oils.

The focus on eco-friendly production processes is a major trend in the base oil market, driven by the rising emphasis on sustainability and stricter environmental regulations. Refiners are adopting advanced technologies such as hydrocracking and gas-to-liquid (GTL) processes to produce cleaner and more efficient base oils with reduced sulfur content and lower emissions. These processes align with global initiatives to minimize environmental impact and comply with emission standards such as Euro VI. Additionally, end-users across industries are increasingly prioritizing base oils that contribute to a smaller carbon footprint, accelerating the adoption of greener production methods. This shift not only addresses environmental concerns but also enhances the competitive positioning of companies in a sustainability-focused market landscape.

Advancements in Group II and Group III base oils are transforming the base oil market as demand for higher-performance lubricants continues to grow. These base oils offer superior oxidation stability, viscosity control, and lower volatility compared to Group I oils, making them ideal for meeting stringent engine performance and fuel efficiency standards. Innovations in refining technologies, such as advanced hydrocracking and catalytic dewaxing, have significantly improved the quality and availability of these base oils. The automotive and industrial sectors, in particular, are driving demand due to their requirements for low-emission and high-efficiency lubricants. Group II and Group III oils are emerging as the new industry benchmarks as regulatory frameworks and consumer preferences shift towards sustainable and performance-driven solutions.

Base Oil Market Report Highlights

In terms of grade, the Group II segment led the market in 2024, attributed to its optimal balance of cost-effectiveness and performance.

Based on type, the synthetic oil segment is projected to witness the fastest growth during the forecast period, driven by the increasing demand for superior lubrication in modern high-performance engines operating under extreme conditions.

Asia Pacific led the base oil market revenue in 2024, fueled by rapid industrial growth, increasing automotive production, and large-scale infrastructure development.

The Middle East & Africa is anticipated to record the fastest growth in the base oil market, supported by rising oil production capacities and significant investments in refining infrastructure.

A few global key market players include BP plc; Calumet, Inc.; Chevron Corporation; ExxonMobil; FUCHS; H&R Group; Lukoil; Motiva Enterprises LLC; Neste; Petro-Canada Lubricants Inc.; Phillips 66 Company; Shell; Sinopec; SK Enmove Co., Ltd.; and TotalEnergies.

Polaris Market Research has segmented the base oil market report on the basis of type, grade, application, and region:

By Type Outlook (Revenue – USD Billion, 2020–2034)

Mineral Oil

Synthetic Oil

Bio-Based Oil

By Grade Outlook (Revenue – USD Billion, 2020–2034)

Group I

Group II

Group III

Group IV

Others

By Application Outlook (Revenue – USD Billion, 2020–2034)

Automotive Oil

Industrial Oil

Metalworking Fluids

Hydraulic Oil

Greases

Others

By Regional Outlook (Revenue – USD Billion, 2020–2034)

North America

• US
• Canada

• Germany
• UK
• France
• Italy
• Spain
• Russia
• Netherlands
• Rest of Europe

• China
• India
• Japan
• South Korea
• Indonesia
• Malaysia
• Vietnam
• Australia
• Rest of Asia Pacific

• Argentina
• Brazil
• Mexico
• Rest of Latin America

• UAE
• Saudi Arabia
• Israel
• South Africa
• Rest of Middle East & Africa