April 18, 2024
PAG Base Stock Market

Pag Base Stock Market Is Expected To Be Flourished By Growing Demand For Environmentally Sustainable Lubricants

Pag base stocks are one of the key components used in the manufacturing of automotive, industrial and marine lubricants. They are produced by refining mineral oil derived crude oil feedstock. Pag base stocks are typically used as base components in finished lubricants due to their thermal and oxidative stability properties. Some key product applications of pag base stocks include automotive engine oils, industrial gear oils, hydraulic fluids, greases and marine engine oils. With growing demand for environmentally sustainable and bio-degradable products, pag base stocks derived from Group I to III mineral oils are increasingly being replaced by Group IV pag base stocks manufactured using hydroprocessing technology.

The global Pag Base Stock Market was valued at US$ 13.49 billion in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.

Market Dynamics:

Growing demand for environmentally sustainable lubricants is a key driver propelling the pag base stock market growth. Stringent environmental regulations such as REACH have increased focus on producing cleaner and more sustainable base oils. Pag base stocks manufactured using hydroprocessing technology allow improved purification and reduced environmental impact compared to traditional Group I to III base oils. Additionally, pag base stocks derived from Group IV feedstock exhibit superior lubricity and thermal stability properties, enhancing equipment performance and reliability. Their ability to extend oil drain intervals also results in reduced maintenance costs for OEMs. These product performance advantages have increased preferences for Group IV pag base stocks among lubricant manufacturers.

Segment Analysis:

The global pag base stock market can be segmented into four categories based on kinematic viscosity: below 2 cSt, 2-5 cSt, 5-10 cSt, and above 10 cSt. The 5-10 cSt segment currently dominates the global market, accounting for over 35% value share in 2023. This segment comprises multigrade oils that provide better lubrication under high and low temperature conditions, thereby witnessing high demand from automotive and industrial machinery sectors where equipment works under varying temperature conditions. The above 10 cSt segment is expected to grow at a faster pace during the forecast period owing to the rising applications of monograde oils in industrial lubricants as well as process oils.

Pag Base Stock Market Segmentation:

 By Base Oil Type

  • Group I
  • Group II
  • Group III
  • Group IV
  • Group V

By Application

  • Automotive Oil
  • Industrial Oil
  • Hydraulic Oil
  • Grease
  • Metalworking Fluid
  • Others (Process Oil, Marine Oil etc.)

By End-Use Industry

  • Automotive
  • Industrial
  • Construction
  • Marine
  • Others (mining, textile etc.)

PEST Analysis:

Political: The pag base stock market is influenced by stringent environmental regulations imposed by governments across regions to curb emissions and promote use of bio-based/environment-friendly lubricants.

Economic: Fluctuations in crude oil prices and economic growth impact the demand from end-use industries. A rise in industrial activity and automotive sales fuel market growth. Social: Increasing consumer awareness about engine/machinery protection and rapid urbanization drive the use of advanced lubricants.

Technological: Developments in additive technology help manufacturers offering pag base stocks with improved properties to meet the demands of newer and complex engines/equipment.

Key Takeaways:

The global PAG Base Stock Market Size is expected to witness high growth during the forecast period supported by expanding automotive industry and recovery in industrial production post pandemic.

Regional Analysis: The Asia Pacific region currently dominates the global market and is expected to continue its lead supported by large volumes of automotive and industrial manufacturing in China and India.

Key Players operating in the pag base stock market are ExxonMobil, Shell, Chevron, Nynas, Calumet Specialty Products Partners, HollyFrontier, Petrobras, S-Oil, Repsol, Saudi Aramco, Gazpromneft, Lukoil, Total, SK Lubricants, Indian Oil Corporation, Bharat Petroleum, Idemitsu Kosan, Cosmo Oil Lubricants, CNOOC, Sinopec. Among these, ExxonMobil, Shell and Chevron capture major market share owing to their strong global presence and product portfolios across various kinematic viscosity ranges.

1. Source: CoherentMI Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it