Global Process Oil Market - 2022-2029
The global process oil market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period 2022-2029.
Process oils are special oils utilized as a raw material component or as a processing aid in a wide range of chemical and technical industries. Process oils are used as lubricants, components of another substance, or carriers. Paraffinic and naphthenic oils are the most famous process oils currently available in the market.
Naphthenic oils have a high solubility, are nonstaining and have a light hue. The flashpoints of these oils are less than paraffinic oils, yet they perform well at high temperatures. In comparison, naphthenic oils have low pour points and are often simpler to work with when the ambient temperature is lower. On the other hand, paraffinic oils are very stable process oils with high flash points and great color stability, are extensively employed in saturated polymers and have strong high-temperature characteristics. However, as these oils are less soluble than naphthenic oils, they are more difficult to integrate into specific molecules.
Process oils are used in a range of applications in the polymer sector, which is one of the most important applications markets. Process oils are employed in the respective industry as extenders, reducing content and compound costs while maintaining performance. Further, a good process oil can also act as a catalyst carrier, depending on the chemical.
The extensive growth of the polymer industry and widespread application of process oils in the respective market is a major market driver for the growth of the global process oil market. However, stringent environmental laws and the availability of alternatives stun the growth of the respective market.
The burgeon of polymer industry in modernity
Process oils find applications in a range of polymer compounding applications. These chemicals generally act as extenders, plasticizers and modifiers. As extenders, these chemicals reduce content and compound costs while maintaining performance. As plasticizers, process oils conserve energy by minimizing mix work and speed up manufacturing by making extrusion, calendering and blow molding easier. Finally, as modifiers, process oils increase extrudate surface smoothness, aid controlled modulation of TPE stiffness and improve tensile strength and cold crack resistance. A good process oil can also act as a catalyst carrier depending on the chemical.
Due to the aforementioned properties of process oils, they are widely employed in the polymer industry and could be considered a vital compound in the polymer market. As per the data, the global polymer market is one of the fastest-growing markets globally. For instance, synthetic rubber which one of the examples of polymers whose production and demand are growing colossally. As per OEC, synthetic rubber was the 158th most traded product globally in 2019, with a total trade value of US$24.4 million and its trade commerce accounts for 0.13 percent of total global trade.
Since polymer industries such as synthetic rubber are growing exponentially in terms of production and demand, the demand for process oil is expected to rise substantially, along with production to meet the growing needs in the respective market. As a result, the growth of the polymer market could be considered a major market driver for the global process oil market.
Stringent government regulations and the presence of alternatives
The impact of growing environmental concern has made governments and regulatory authorities implement stringent regulations to protect nature. Although these regulations are socially viable, they tend to have a negative impact on market prospects of various markets and the process oil market is one of them.
For instance, Since January 1, 2010, the European Union has prohibited using polycyclic aromatic hydrocarbons (PAHs). PAHs are compounds with harmful qualities found in processing oils used in tire manufacturing.
Similarly, several regulations exist that hamper the production and demand of the process oils.
Further, the availability of alternatives for process oil, such as vegetable-oil-based plasticizers, decreases the demand for process oils as these vegetable-oil-based oils are known to increase the product performance of any process than process oils, that too in an eco-friendly way.
As a result, the stringent regulations implemented by the governments to protect nature and the presence of eco-friendly alternatives could be considered a market restraint for the process oil market.
COVID-19 Impact Analysis
The impact of the COVID-19 pandemic on the global process oil industry was negative owing to three key factors:
The first and most significant impact of the pandemic on the market is its impact on the supply chain, which has tainted the availability of raw materials and the sales of the finished product.
Second, the manufacture of process oil involves numerous manufacturing and purification processes, which have been severely hampered by lockdowns and government regulations imposed in response to the COVID-19 pandemic.
Another pandemic's substantial impact on the global process oil business is the interruption in important end-user industries such as construction, automotive, and manufacturing.
The overall decrease in activity in end-user sectors lowered market demand for process oil, influencing demand-supply dynamics. Nonetheless, when the global economy and industries return to their old splendor and even show hints of improvement above earlier case scenarios, the market for process oil is likely to return to, if not exceed its former glory. Growing urbanization, industrialization, and automation are additional important drivers predicted to enhance process oil's global market.
The global process oil market is classified based on type, component, application and region.
The tire and rubber sector dominates the application segment due to the growing demand in the automotive market, which fuels extensive manufacturing
The global process oil market is segmented into tire & rubber, polymer, textile, personal care, automotive, others based on end-user.
Growth in important OEM sectors, notably motor vehicles and aftermarket demand owing to strong growth in developing nations, is said to be driving global demand for rubber manufacturing, which would boost the global process oil demand. Items like body seals, vibration control devices and wiper blades are predicted to further boost the demand for rubber in the global market. The respective items are widely used in automobiles and category development will be aided by the positive forecast for global automotive production.
Rubber belts and hoses will grow at the quickest rate of any product sector during that time, aided by a more favorable price forecast for mechanical items. Global demand for rubber gloves has risen due to the pandemic, which could also drive the production in the rubber market.
Asia-Pacific dominates the process oil market due to the extensive growth of the construction sector in the region.
Due to rising demand in the automotive industry, Asia-Pacific is expected to lead the process oil market in terms of both value and volume. Many corporations have been relocating their manufacturing divisions to the Asia-Pacific in recent years because of the easy availability of workforce, labor at reasonable prices and raw materials. The region's oil production is expected to increase due to that and as a result, Asia-Pacific leads the process oil market.
In terms of the number and strength of global and local manufacturers, the global process oil market is active and dynamic. The market is classed as fragmented due to a large number of manufacturers. Shell, ExxonMobil, Total S.A., Indian Oil Corporation Limited, Petronas Group, Repsol S.A., Panama Petrochem Ltd, H&R Group, Avista Oil AG and LUKOIL Oil Company are some of the industry's major rivals.
To gain competitive advantages and recognition in their respective markets, significant market stakeholders employ market tactics, including mergers, acquisitions, product launches, contributions and partnerships.
Overview: Nynas is devoted to studying, producing and delivering naphthenic specialty chemicals and bitumen for a growing global market with over 1000 workers, production sites in Europe and South America and offices in over 30 countries.
Nynas manufactures naphthenic specialized goods in four different categories. Insulating oil is mostly used to insulate and cool transformers. In contrast, process oils are primarily used in rubber, adhesives and printing ink and base oils are used in metalworking fluids, other industrial lubricants and tire oils.
NYTEX 846: NYTEX 846 is a new process oil for the rubber and tire industry that is the newest in the company's high-performance grade products, developed to satisfy market expectations and address difficulties such as lowering rolling resistance, increasing fuel efficiency and securing consistent supply.
On May 27, 2020, NYNAS Introduced NYTEX 8022, a versatile process oil. NYTEX 8022 is the appropriate solution for highly concentrated chemical additives, such as mineral oil-based antifoam, that require active component solubilization while being label-free. Furthermore, NYTEX 8022's high flash point enables the safe solubilization of additives at high temperatures.
Why Purchase the Report?
To visualize the global process oil market segmentation based on type, component, application and region, as well as understand key commercial assets and players.
Identify commercial opportunities in the global process oil market by analyzing trends and co-development.
Excel data sheet with numerous data points of process oil market-level with four segments.
PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
Product mapping available as excel consisting of key products of all the major market players
The global process oil market report would provide approximately 61 tables, 63 figures and almost 180 pages.
Target Audience 2023
Industry Investors/Investment Bankers
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook