Dublin, July 29, 2022 (GLOBE NEWSWIRE) -- The "US Group II & III Base Oil Market - Industry Outlook and Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.
The U.S. is emerging as a major supplier in the group II base oil Market
The U.S. is a crucial group II and III base oil market globally. 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 the strong demand by OEMs manufacturers for high-quality lubricants.
In addition, stringent regulations with respect to the emission standard, better fuel economy, and the growing trend of sustainability aspect is also the major factor driving the demand for group II and III base oil in the U.S. Chevron Corporation, Exxon Mobil Corporation, Phillips 66, HollyFrontier Corporation, Pure Performance, Neste, and Vertex Energy among others are the key players in the group II and III base oil market in the U.S.
U.S. GROUP II AND III BASE OIL MARKET TRENDS AND DRIVERS
Demand for Premium Base Oil is Gaining Momentum:
The demand for group II and group III base oil market is gaining momentum in the U.S. due to the rise in consumer preference for better fuel economy and engine oil durability and the need to minimize pollution levels. In addition, increasing stringency of automotive regulations to minimize carbon emissions in the environment has motivated automotive manufacturers to switch to high-quality lubricants based on group II and group III base oils. Therefore, U.S. manufacturers switch from group I base oil to group II and III base oil, i.e., premium base oil.
Rising demand from Bio-based Lubricant:
Bio-based lubricants are the replacement for petroleum-based lubricants. Increasing awareness regarding the ill effects of the chemical on the environment coupled with stringent government regulation boosts the demand for bio-based lubricants. Moreover, bio-based lubricants are renewable and benefit from being adjusted several times before they have an environmental impact. Thus, bio-based lubricants are favored, resulting in significant growth in the market for bio-based lubricants throughout the projection period.
SEGMENTATION ANALYSIS
Hydrotreating Is The Largest Segment Amongst Others In The U.S. Group II And III Oil Market
Hydrotreating is the largest segment and is projected to witness similar growth during the forecast period due to its ability to deliver quality base oil products more than other processes. It improves base stock quality, color, and color stability and reduces the level of sulfur, nitrogen, halogen, oxygen, and metals compounds. It is primarily used to produce group II base oil. HollyFrontier Corporation and Vertex Energy are some of the U.S. companies that use hydrotreating technology for producing group II and III base oil.
Automotive Oil Is The Fastest Growing Segment In The United States Group II And III Base Oil Market.
Since demand for efficient and high-performance vehicles is increasing, automotive lubricants' demand 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, as almost every vehicle needs lubricants for the smooth functioning of the vehicle. Moreover, it also protects the engine metal surface from corrosion, reducing friction on moving parts and cleaning the engine from sludge. The increasing production and demand for vehicles in the U.S. supports market growth.
The Southern United States Is Dominating The Market
The Southern US is the largest group II and III base oil market in the U.S. The demand for premium base oil majorly comes from the automotive and construction industry in Southern US. BMW, Ford Motor, General Motors, Nissan Motor Company, Kia Motors, and Toyota Motor Corporation are some automotive players operating in the Southern region of the U.S. and consume a major chunk of base oil.
For instance, BMW prefers group III base oil for all its automotive brands produced and supplied by Shell. In terms of vehicle production, in 2021, BMW produced 433,810 BMW X series vehicles in its South Carolina plant, an increase of 20% as compared to 2020. Exxon Mobil Corporation, Vertex Energy, Motiva, and HollyFrontier Corporation are producing group II and III base oil in the Southern US.
Company and Strategies:
The U.S. group II and III base oil market is consolidated in nature as well as intensifying due to the changing landscape of the base oil market. The rapidly changing technological environment and sustainability scenario can adversely affect vendors as customers expect continual innovations and upgrades. The parameters on which vendors are competing in the U.S. group II and III base oil market are product portfolio, product quality, geographical presence, brand image, and cost differentiation.
The major companies operating in the market are Chevron Corporation (California, U.S.), ExxonMobil (Texas, U.S.), Phillips 66 Company (Texas, U.S.), Dodge (California, U.S.), and HollyFrontier Corporation (Texas, U.S.), and Puraglobe (Florida). These companies compete among themselves for the leading position in the market, with steady competition from local vendors.
The U.S. group II and III base oil market is provided for the forecast years 2022 to 2027 and the base year of 2021. The market is segmented as per Technology, Application, and Geography for the years considered. The report provides a holistic approach to the U.S. group II and III base oil industry to enable customers to analyze the market efficiently.
Recent Developments
- In October 2021, Chevron Global Energy Inc, a wholly-owned subsidiary of US-based Chevron Corporation, announced to acquire Neste base oil business.
- In August 2020, Chevron Corporation announced to produce group oil from renewable.
Key Vendors
- Chevron Corporation
- Exxon Mobil Corporation
- Philips 666 Company
Other Prominent Vendors
- Dodge
- HollyFrontier Corporation
- Pure Performance
- Resolute Oil
- Neste
- Puraglobe
- AGC Refining and Filtration
- Heritage-Crystal Clean
- Safety-Kleen systems
- Vertex Energy
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the Study
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Introduction
7.1 Overview
7.2 Supply Chain Analysis
7.3 Criteria to Select Base Stocks
7.4 Automotive Insights
7.5 Us Economic & Demographical Analysis
8 Market Opportunities & Trends
8.1 Increasing 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 Enablers
9.1 Rising Significance of Group Ii+ Base Oil
9.2 Growing Disposable Income
9.3 Increasing Urbanization Trends
10 Market Growth Restraints
10.1 Increasing Crude Oil Prices
10.2 Changing Climate Landscape
11 Market Landscape
11.1 Market Overview
11.2 Market Size & Forecast
11.3 Penetration of Group Ii & Iii Base Oil by Region
11.4 Five Forces Analysis
12 Technology
12.1 Market Snapshot & Growth Engine (Value)
12.2 Market Snapshot & Growth Engine (Volume)
12.3 Market Overview
12.4 Hydrotreating
12.5 Hydrocracking
12.6 Catalytic Dewaxing
12.7 Others
13 Application
13.1 Market Snapshot & Growth Engine (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 Snapshot & Growth Engine
14.2 Region Overview
15 West
15.1 Market Overview
15.2 Market Size & Forecast
15.3 Technology
15.4 Application
16 South
16.1 Market Overview
16.2 Market Size & Forecast
16.3 Technology
16.4 Application
17 Midwest
17.1 Market Overview
17.2 Market Size & Forecast
17.3 Technology
17.4 Application
18 Northeast
18.1 Market Overview
18.2 Market Size & Forecast
18.3 Technology
18.4 Application
19 Competitive Landscape
19.1 Competition Overview
For more information about this report visit https://www.researchandmarkets.com/r/c0lsvb
