Growing demand for bio-based lubricants / premium base oil is gaining momentum / growing demand for IMO compliant marine fuel

Dublin, 29 July 2022 (GLOBE NEWSWIRE) — The report “US Group II & III Base Oil Market – Industry Outlook and Forecast 2022-2027” has been added to from ResearchAndMarkets.com offer.

The United States is emerging as a major supplier to the Group II base oil market

The United States is a critical global market for Group II and III base oils. The penetration of premium base oil products is high. The country is a major hub for production as well as consumption of Group II and III base oil due to high demand from OEM manufacturers for high quality lubricants.

In addition, stringent regulations regarding the emission standard, better fuel economy and the increasing trend towards the aspect of durability are also the major factor driving the demand for groupset base oil. II and III in the United States. Chevron Corporation, Exxon Mobil Corporation, Phillips 66, HollyFrontier Corporation, Pure Performance, Neste, and Vertex Energy, among others, are the major players in the Group II and III base oil market in the United States.

US GROUP II & III BASE OILS MARKET TRENDS AND DRIVERS

Demand for premium base oil is growing:

Demand for the Group II and III base oil market is growing in the United States due to growing consumer preference for improved fuel economy and engine oil durability and the need for minimize pollution levels. In addition, the increasing stringency of automotive regulations aimed at minimizing carbon emissions to the environment has prompted automakers to adopt high-quality lubricants based on Group II and III base oils. Therefore, American manufacturers are switching from Group I base oil to Group II and III base oil, that is, a higher quality base oil.

Growing demand for bio-based lubricants:

Bio-based lubricants replace petroleum-based lubricants. Growing awareness of the chemical’s adverse effects on the environment, coupled with stringent government regulations, is driving the demand for bio-based lubricants. In addition, bio-based lubricants are renewable and deserve to be adjusted several times before having an environmental impact. Thus, bio-based lubricants are favored leading to significant growth in the bio-based lubricants market throughout the projection period.

SEGMENTATION ANALYSIS

The story continues

Hydrotreating is the largest segment among others in the U.S. Group II and III petroleum market

Hydrotreating is the largest segment and is expected to experience similar growth over the forecast period due to its ability to deliver quality base oil products more than other processes. It improves base oil quality, color and color stability and reduces the level of sulfur, nitrogen, halogen, oxygen and metal compounds. It is mainly used to produce Group II base oil. HollyFrontier Corporation and Vertex Energy are some of the US companies using hydrotreating technology to produce Group II and III base oil.

Automotive oil is the fastest growing segment in the US Group II and III base oil market.

As the demand for efficient and high performance vehicles is increasing, the demand for automotive lubricants is increasing rapidly as these lubricants play a vital role in vehicle performance and efficiency. Automotive lubricants are the most important part of any vehicle because almost all vehicles need lubricants for the proper functioning of the vehicle. In addition, it also protects the metal surface of the engine from corrosion, reducing friction on moving parts and cleaning the engine of sludge. Growing production and demand for vehicles in the United States is supporting the growth of the market.

The southern United States dominates the market

The US South is the largest market for Group II and III base oil in the United States. Demand for premium base oil comes primarily from the automotive and construction industries in the southern United States. BMW, Ford Motor, General Motors, Nissan Motor Company, Kia Motors, and Toyota Motor Corporation are automotive players operating in the southern region of the United States and consume a large portion of the base oil.

For example, BMW prefers Group III base oil for all of its automotive brands produced and supplied by Shell. In terms of vehicle production, in 2021, BMW produced 433,810 BMW X-series vehicles at its South Carolina plant, a 20% increase over 2020. Exxon Mobil Corporation, Vertex Energy, Motiva and HollyFrontier Corporation produce Group II and III base oil in the southern United States.

Company and Strategies:

The U.S. Group II and III base oil market is consolidated in nature and escalating due to the changing landscape of the base oil market. The rapidly changing technological environment and sustainability scenario can negatively impact vendors as customers expect continuous innovations and upgrades. The parameters on which vendors compete in the US Group II and III base oil market are product portfolio, product quality, geographic presence, brand image, and cost differentiation.

The major companies operating in the market are Chevron Corporation (California, USA), ExxonMobil (Texas, USA), Phillips 66 Company (Texas, USA), Dodge (California, USA) and HollyFrontier Corporation ( Texas, USA) and Puraglobe (Florida). These companies compete for the leading position in the market, with constant competition from local suppliers.

The US Group II & III base oil market is provided for the forecast years 2022 to 2027 and the base year 2021. The market is segmented on technology, application and geography for the years considered. The report offers a holistic approach to the US Group II and III base oil industry to enable clients to effectively analyze the market.

RECENT DEVELOPMENTS

• In October 2021, Chevron Global Energy Inc, a wholly owned subsidiary of US-based Chevron Corporation, announced the acquisition of Neste’s base oil business.

• In August 2020, Chevron Corporation announced to produce cluster oil from renewable sources.

Main suppliers

• Chevron Corporation

• ExxonMobil Corporation

• Philips Company 666

Other Important Suppliers

Main topics covered:

1 Research methodology

2 research objectives

3 Research process

4 Scope and coverage
4.1 Market Definition
4.2 Base year
4.3 Scope of the study

5 Report assumptions and caveats
5.1 Main caveats
5.2 Currency conversion
5.3 Market Derivation

6 The market at a glance

7 Presentation
7.1 Overview
7.2 Supply Chain Analysis
7.3 Base Stock Selection Criteria
7.4 Automotive overviews
7.5 United States Economic and Demographic Analysis

8 Market Opportunities and Trends
8.1 Increase in demand for premium base oil
8.2 Growing Demand for IMO Compliant Marine Fuel
8.3 Growing Demand for Bio-based Base Oil Products

9 Market Growth Catalysts
9.1 Growing Importance of Group Ii+ Base Oil
9.2 Increase in disposable income
9.3 Increasing trends in urbanization

10 Market Growth Constraints
10.1 Increase in Crude Oil Prices
10.2 Changing climate landscape

11 Market landscape
11.1 Market Overview
11.2 Market Size and Forecast
11.3 Group Ii & Iii Base Oil Penetration by Regions
11.4 Five forces analysis

12 Technology
12.1 Market Overview and Growth Driver (Value)
12.2 Market Overview and Growth Driver (Volume)
12.3 Market Overview
12.4 Hydrotreating
12.5 Hydrocracking
12.6 Catalytic dewaxing
12.7 Others

13 Application
13.1 Market Overview and Growth Driver (Value)
13.2 Market Overview
13.3 Automotive oil
13.4 Industrial oil
13.5 Process oil
13.6 Others

14 Region
14.1 Market Overview and Growth Driver
14.2 Region overview

15 West
15.1 Market Overview
15.2 Market Size and Forecast
15.3 Technology
15.4 Application

16 South
16.1 Market Overview
16.2 Market Size and Forecast
16.3 Technology
16.4 Application

17 Midwest
17.1 Market Overview
17.2 Market Size and Forecast
17.3 Technology
17.4 Application

18 Northeast
18.1 Market Overview
18.2 Market Size and Forecast
18.3 Technology
18.4 Application

19 Competitive Landscape
19.1 Competition Overview

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