In a new report titled “Process Oil Market: Global Industry Analysis (2012–2016) and Forecast (2017–2025),” our analysts have noted that the potential of significant growth exists in the Asia Pacific region. The demand for process oil has increased in APAC countries such as India, China and South Korea. As the market for process oil is consolidated, investments in product development by key manufacturers can create a significant opportunity for end-use industries. As a remarkable growth is observed in automotive demand, the demand for consumer products and other rubber processed products will also increase. We have also noticed that the APAC region especially China, India, Korea and Japan will contribute the largest volume in the global process oil market and this is expected to grow over the forecast period. Europe holds a good market share and provides good growth potential followed by North America. MEA and Latin America will collectively exhibit moderate growth. Besides the regional growth of the market, leading market players are increasing their manufacturing facilities and strengthening their R&D portfolio to fulfill the increasing market demand.
Forecast assumptions and market sizing
When developing the market forecast, we have started by sizing the current market, which forms the basis for forecasting how the market is anticipated to perform in future. We have considered the product-wise Weighted Average Selling Price (ASP) to deduce market values at a regional level. We have used the top-down approach to obtain market numbers, while bottom-up approach has been used to counter-validate the market estimations. Macroeconomic indicators such as GDP, manufacturing sector growth, global trade statistics and household final expenditure have been considered. All values for market size are in US$ Mn (US Dollar Million) and volume data is in units.
We have taken a detailed overview of the global process oil market. The changing market dynamics of processed oil production has been taken into consideration to get a crystal clear picture of the overall market. The report also highlights key recent industry trends and developments, market strategies of key players and product offerings, market segmentation and market size in terms of volume and value. This report also consists of historical demand trends, oil market growth rate, the financial performance of top companies across the five regions, macro-economic indicators such as GDP and population growth, raw material production trends, raw material trade, the influence of increasing disposable income and raw material price trends. Besides, market definition, types and applications of process oil, demand and supply side drivers, restraints, opportunities, trends and other market influencing factors have been included in our exclusive report on the global process oil market.
By Product Type
We have adopted a systematic research approach while studying the global process oil market. In-depth secondary research is used to arrive at the overall market size, top industry players, top products and industry associations. Our analysts have formulated a detailed discussion guide in order to conduct expert and industry interviews. We have conducted extensive interviews with industry experts, industry players, distributors and retailers. Data is validated using the triangulation method, wherein primary and secondary research data along with Persistence Market Research’s analysis contribute to the final data. We have also analyzed the various companies’ annual reports, investor presentations, SEC filings, and press releases to fetch substantial information about the market size, trends, opportunities, drivers, restraints and other factors impacting the global process oil market.
Paraffinic and Naphthenic segments are anticipated to incline towards high growth and high value during the period of forecast
The naphthenic segment by product type is expected to expand at a CAGR of 3.2% in terms of value over the forecast period. In terms of market attractiveness, the aromatic process oil segment has an attractiveness index of 1.0, which indicates an incline towards high growth – high value between 2017 and 2025. Developed economies such as North America account for nearly 70% of naphthenic oil production. These economies are likely to play a vital role in the process oil market in the naphthenic segment over the forecast period. The paraffinic segment is expected to expand at a CAGR of 4.3% in terms of value over the forecast period. In terms of market attractiveness analysis, this segment is expected to record a market attractiveness index of 0.5 over the forecast period, which indicates an incline toward medium value – high growth between 2017 and 2025.
Rising demand for naphthenic oil and adoption of new technologies are the new trends in the global process oil market
A majority of process oil manufacturers are adopting naphthenic base oil as a prime ingredient for the processing of oil. In North America alone, approximately 60% of naphthenic oil is consumed. It is expected that the adoption of processed oil by manufacturers will increase in the coming years. The main reason behind the usage of naphthenic oil in North America is the abundant supply of naphthenic base process oil in the region. This factor will boost the growth of the naphthenic segment in the global process oil market. The process oil industry has changed considerably in the recent past. Putting into practice new and advanced technologies to increase the throughput of process oil as well as the strategy of growing partnerships are some of the key trends identified across the value chain of the global process oil market.
The Latin America rubber processing and paint and coating industry are not significant in terms of volume as well as value. But, nowadays there is a rising demand for naphthenic process oil products by end users to be utilized in the manufacturing of rubber, polymers and various consumer durable goods. One of the key trends identified in the Latin America process oil market includes the demand for high quality process oil that shows better thermal and mechanical properties when formulated in different applications.
Europe accounts for the highest consumption of aromatic process oil. Regardless of the decrease in demand for distillate aromatic extract in the Eastern Europe process oil market, it captures more than 23% of the market share. This is attributed to the demand from Eastern European countries such as Russia. With relatively higher API group I reserves, the production of mild aromatic extract process oil is increased in Europe, and this further reduces the supply demand gap for process oil in the region.
Global Process Oil Market: Estimated Worldwide Cumulative Consumption
The market volume of process oil is expected to grow 1.3X over the forecast period. In terms of volume, the global process oil market is estimated to reach 1,058,598 Metric Tons by 2017 end and is expected to increase to 1,314,570 Metric Tons by 2025, exhibiting a CAGR of 3.7% over the forecast period.