Process Oil Market

Process Oil Market Size (2023-2028):

The process oil market is expected to extend from USD 5.8 billion in 2022 to USD 6.7 billion by 2028, developing at a compound annual growth rate (CAGR) of 4.8% over the forecast period.

Processing oil is widely used in a variety of cosmetic industries, both as a processing aid and as a component of raw material. Auxiliary textile formulations are hazardous in the yarn manufacturing process for nonwovens and all major fibrous products. During production, there is an increase in temperature and speed during the spinning phase, which leads to low temperature and speed for the cone and winding process. In other applications, such as adhesives and elastomers, both industries produce a variety of products which include toys to toothbrushes, glue to diapers and white oil plays a very important role in these industries. Additionally, in oil-based defoamer creations, oil can include up to 90% of the creations. It acts primarily as a carrier fluid, both for the passage of the hydrophobic elements of the defoamer to the double coatings of surfactant particles which stabilize the foam bubbles to destroy them and to spread over the surface of the aqueous system to neutralize the molecules of surfactant.

Rubber processing oils function as internal lubricants, improve the mixing of rubber formulations, facilitate the incorporation of fillers and other additives, improve certain physical characteristics, and function as low-cost diluents. Rubber processing oils are widely used in the manufacture of automotive tires and tubes, bicycle tires, tire retreading materials, belts, hoses, bottles, battery containers, extrusions, and molded technical products. The aromatics segment is followed by the naphthenic and paraffinic rubber processing oils segment, with nearly 30% and 16% of total demand, respectively. Aromatics are the most compatible rubber processing oils with rubber and rubber products, mainly pneumatic, so their share in consumption is high. Due to all these factors, the processing oils market is expected to grow worldwide during the forecast period.

PROCESS OIL MARKET REPORT COVERAGE:

Recent Developments:

• In May 2020, NYNAS introduced its Nytex 8022, a highly versatile process oil. NYTEX® 8022 is the latest addition to Nynas' line of process oils. Due to its properties, this grade can maximize performance in a variety of process oil applications. NYTEX 8022 is the ideal product to meet the formulation requirements of highly concentrated chemical additives, such as mineral oil-based defoamer, which require solubilization of active components while remaining label-free. In addition, the high flash point NYTEX 8022 allows the safe solubilization of additives at high temperatures.

• In January 2020, DPIIT launched a paperless authorization process for petroleum service stations. The Department for the Promotion of Industry and Domestic Trade (DPIIT) sa had initiated a paperless authorization process for petroleum filling stations, such as retail outlets that store and distribute gasoline/diesel for motor vehicles.

• In December 2020, ONGC started producing oil and gas in West Bengal after 60 years of efforts.

Process Oil Market Drivers: 

The main driver of the global process oil market is the growth of the process oil market in the automotive industry. Rubber processing oils are used during the mixing process of rubber compounds. It helps to improve compound flow characteristics and charge dispersion during processing. In addition, the main purpose of processing oil is to improve and improve the processing of rubber and rubber compounds at the same time also increasing the volume of rubber to reduce the cost. Processing oil is utilized in an extensive range of automotive products, such as rubber parts for trucks, cars, and motorcycles.

Process Oil Market Restraints:

The limitations related to the polycyclic aromatic hydrocarbons convention and the instability of feedstock are the major factors hampering the global process oils market. The limitations on the use of polycyclic aromatic hydrocarbons are negatively affecting the growth of the process oils market. Toxicity is a major concern with the use of process oil because it contains polycyclic hydrocarbons, which are toxic. The other limitation affecting the growth of the process oils market is the volatility of raw material prices. It represents a significant risk for the performance of the company and its long-term growth, especially in the petrochemical industry.

COVID–19 Impact on Process Oil Market:

While it is not clear to what extent coronavirus will affect public health and the global economy, the disease is a source of uncertainty and concern globally. Although this type of pandemic usually only has a very short-term economic impact, it can have serious effects in particular areas of the economy. One of those areas is the petroleum sector. The COVID-19 outbreak comes at a time when the oil market is already weak and prices are under pressure. When you look at China and you see a lot less construction, less tourism, fewer people going to the movies and restaurants, and so many factories closing, you see problems. If the epidemic is soon contained, we should be optimistic about the reaction of oil prices. For now, the industry is likely to be under further downward pressure as news continues to erupt and more infections ensue, but this would likely lead to production cuts from OPEC and firm prices. For the petroleum industry, this means a drop-in jet fuel prices much larger than any drop in gasoline prices. China uses about one million barrels of kerosene per day, which is about 13% of global kerosene demand. Much of this fuel is used for international travel, which has already been affected, but a large part is used for domestic flights and it is unclear what proportion is off.

Process Oil Market Segmentation:

Process Oil Market By Type

• Naphthenic

• Paraffinic

• Non-carcinogenic

• Aromatic

The naphthenic segment by product type is expected to grow at a CAGR of 3.4% in value during the forecast period. In terms of market attractiveness, the aromatic process oils segment has an attractiveness index of 1.2, indicating a strong growth trend - a high value between 2021 and 2026. Developed economies such as North America North represents nearly 72% of the production of naphthenic oil. The paraffin segment is supposed to grow at a CAGR of 4.4% in value during the outlook period.

Process Oil Market By Application

• Tire & Rubber
• Polymer
• Personal Care
• Textile
• Others

The tire and rubber applications segment dominated the global process oils market during the review period and is expected to grow at the highest CAGR between 2021 and 2026. Growing concerns about fuel efficiency and reduction in energy fuel consumption in the automotive sector are the growth engine of this segment. The expansion in this segment is also supported by the growing demand for automobiles in emerging countries such as China, India, Indonesia, and Mexico, among others.

Process Oil Market By Region

• North America

• Latin America

• Europe

• Asia Pacific

• Middle East & Africa

Asia-Pacific has become a region of immense potential and opportunity, due to the high demand for textiles and personal care products in countries like India and China. China has been the world's largest exporter of textiles and clothing since 1995. The country dominates the global low- and mid-range market by engaging primarily in OEM manufacturing and processing, while the EU continues to dominate the global market for high-quality and luxury textiles. At present, the penetration of personal care products in India is comparatively lower than that of developed economies or even other developing economies. However, improving the economic environment and increasing purchasing power of the Indian population is expected to increase the adoption of personal care products in the country. The cosmetics and personal care industry in India is expected to record continued growth, with increasing space on the shelves of Indian retail stores and boutiques. Due to all these factors, the processing oils market in the region is likely to grow steadily during the projection period.

The Latin American rubber processing and paints and coatings industry is not significant in terms of volume and value. However, today there is an increasing demand for naphthenic petroleum products from end users for use in the manufacture of rubber, polymers, and various consumer durables. One of the main trends identified in the Latin American process oil market includes the demand for high-quality process oil which exhibits better thermal and mechanical properties when formulated in different applications.

Europe represents the largest consumption of aromatic process oil. Regardless of the declining demand for distilled aromatic extract in the process oils market in Eastern Europe, it captures more than 24% of the market share. This is attributed to the demand of Eastern European countries such as Russia. With relatively higher reserves of Group I APIs, the production of sweet aroma extract processing oil is increasing in Europe, further reducing the demand for process oil and the supply gap in the region.

Key Players in Process Oil Market:

Key Players in the process oil market include

1. Royal Dutch Shell (Netherlands)

2. ExxonMobil (US)

3. Total S.A. (France)

4. Indian Oil Corporation Limited (India)

5. Petronas Group (Malaysia)

6. Repsol S.A. (Spain)

7. Hindustan Petroleum Corporation Limited (India)

8. Idemitsu Kosan Co., Ltd (Japan)

9. Unipetrol Group (Czech Republic)

10. Panama Petrochem Ltd (India)

11. Nynas AB (Sweden)

12. H&R Group (Germany)

13. Apar Industries (India)

14. Gandhar Oil Refinery Limited (India)

15. Hollyfrontier Refining & Marketing LLC (US)