This recently published research study by Fact.MR, a market research and competitive intelligence provider, on the naphthenic base oil market predicts market expansion at a CAGR of 3.9% from 2022 to 2031. In 2022, the naphthenic base oil market stands at a value of US$ 2.55 billion.
Increasing demand for automotive lubricants, process oils, electrical oils, etc., which utilize naphthenic base oil as a base for their formulation, is anticipated to majorly influence market growth over the coming years. Advancements in automotive manufacturing and rising popularity of electric vehicles will further boost consumption of naphthenic base oils. Increasing use of naphthenic base oils as a base for the formulation of multiple industrial oils will also favor market potential through 2031.
Naphthenic base oil suppliers have been focusing on mergers and acquisitions to gain a competitive edge in the global landscape and expand their business scope.
- In September 2020, during the reorganization process of Nynas AB, a leading specialty naphthenic oil manufacturer, a major market share of 50% was bought by Bitumina Industries Ltd., making it the largest shareholder in Nynas AB.
Key Takeaways from Market Study
- At present, the naphthenic base oil market accounts for US$ 2.55 billion.
- From 2022 to 2031, demand for naphthenic base oil is anticipated to increase at a CAGR of 3.9%.
- By 2031, the naphthenic base oil market is expected to rake in revenue worth US$ 3.6 billion.
- Increasing demand for naphthenic base oil in the automotive industry and rising use across other end-use industries are expected to significantly drive market growth.
- The process oils segment is anticipated to hold a dominant market share over the forecast period.
- India, Japan, and China are predicted to emerge as highly lucrative markets for naphthenic base oil manufacturers.
“Rising popularity of electric vehicles and increasing sales of overall vehicles will majorly drive demand for naphthenic base oil over the coming years,” says a Fact.MR analyst
Naphthenic base oil suppliers are focusing on adopting multiple strategies to boost their revenue generation potential. Market players are also focusing on collaborations, mergers, and acquisitions to increase their market presence across regions.
Naphthenic base oil market players are also expected to increase investments in research and development activities to further boost their sales revenue potential and gain a competitive edge in the industry.
More Valuable Insights on Offer
Fact.MR, in its new offering, presents an unbiased analysis of the global naphthenic base oil market, presenting historical demand data (2017-2021) and forecast statistics for the period of 2022-2031.
The study divulges essential insights on the market on the basis of viscosity index (35-60 SUS, 80-130 SUS, 200-300 SUS, 400-800 SUS, above 800 SUS) and application (process oils, electrical oils, lubricants & greases), across six major regions of the world (North America, Latin America, Europe, East Asia, South Asia & Oceania, and the Middle East & Africa).
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