Automotive Segment to Account for 33.34% Global Polyalkylene Glycol (PAG) Base Oil Market Share

 

 With the rise of the automotive and other industries, the global polyalkylene glycol (PAG) base oil market has been booming in recent years. The United States Navy first deployed this oil to combat hydraulic fluid fires on ships caused by strikes during wars. This was the tipping point for the Navy to adopt PAG base oil in the ensuing years because it was known to be fire-resistant and hence could be used across a wide temperature range. Since then, the range of applications for PAG base oil has expanded dramatically. Several sectors have relied heavily on PAG.

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Data Bridge Market Research analyses that the polyalkylene glycol (PAG) base oil market is expected to grow at a CAGR of 3.7% in the forecast period of 2022 to 2029 and is expected to reach USD 7,870,702.96 thousand by 2029. During the forecast period, the polyalkylene glycol (PAG) base oil market will be driven by the growing demand for lubricants in various industries such as automotive, metallurgy, textile, and food and beverage. Lubricants based on polyalkylene glycol provide greater performance and safety. They can resist high rpms, high temperatures, and standard stress loading, to name a few things. Growing industrialization in rising economies including India, China, Indonesia, and South Korea is boosting need for synthetic lubricants, which is driving demand for polyalkylene glycols.  

Polyalkylene Glycol (PAG) Base Oil Market

Rising use of polyalkylene glycol (PAG) in lubricants application is expected to drive the market's growth rate during the forecast period.

Polyalkylene glycol is used as a base oil for lubricants such as metalworking lubricants, refrigeration oil, gear lubricants, and hydraulic fluids. They're also used in high-temperature applications where elastomeric compatibility and thermal stability are essential. Global lubricants producers are using synthetic base oils to develop high-performance lubricants for a variety of end-use industries, including automotive, food and beverage, textile and others, which is boosting the market for polyalkylene glycol. PAG-based hydraulic and gear lubricants are being developed by prominent lubricants companies such as Shell, Castrol, Exxon and Cargill, among others. Shell Plc added some polyalkylene glycol (PAG)-based fire-resistant fluids to its product portfolio in October 2020, expanding its lubricants business. These items are developed for end-use industries to give a great performance under hazardous working situations.

Report Scope and Market Segmentation

Report Metric

Details

Forecast Period

2022 to 2029

Base Year

2021

Historic Years

2020 (Customizable to 2014 - 2019)

Quantitative Units

Revenue in USD Thousand, Volumes in Units, Pricing in USD

Segments Covered

Product (Conventional Water Insoluble and Water-soluble), Application (Hydraulic Oil, Gear Oil, Compressor Oil, Metal Working Fluids, Greases, and Others), End-Use (Automotive, Aerospace, Marine, Tooling and Industrial Equipment, HVAC & Refrigeration, and Others)

Countries Covered

U.S., Canada, Mexico Japan, China, South Korea, India, Singapore, Thailand, Indonesia, Malaysia, Philippines, Australia & New Zealand and Rest of Asia-Pacific, Germany, U.K., Italy, France, Spain, Russia, Switzerland, Turkey, Belgium, Netherlands, Luxemburg, and Rest of Europe, Brazil, Argentina, and Rest of South America, South Africa, Egypt, Saudi Arabia, United Arab Emirates, Israel, and Rest of Middle East and Africa

Market Players Covered

Phillips 66 Company (U.S.), Exxon Mobil Corporation (U.S.), Total Energies (France), Royal Dutch Shell plc (U.K.), Denso Corporation (Japan), BASF SE (Germany), ENI Oil Products (Italy), Chevron Corporation (U.S.), FUCHS (Germany), Croda International Plc (U.K.), HANNONG Chemicals Inc. (South Korea), Petronas Lubricants International (Malaysia), Hornett Bros & Co Ltd. (U.K.), LIQUI MOLY GmbH (Germany), Morris Lubricants (U.K.), Ultrachem Inc (U.S.), Idemitsu Kosan Co., Ltd. (Japan)

Data Pointers Covered in Report

In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and climate chain scenario.

Segment Analysis:

The polyalkylene glycol (PAG) base oil market is segmented on the basis of product, application and end-use.

  • On the basis of product, the polyalkylene glycol (PAG) base oil market is segmented into conventional (water insoluble) and water soluble. In 2022, conventional (or water insoluble) is expected to dominate the polyalkylene glycol (PAG) base oil market with a 62.79% market share because they have a very high viscosity index and well low high-temperature abilities.

In 2022, the conventional (or water insoluble) segment is projected to hold the largest share of product segment in the polyalkylene glycol (PAG) base oil market

In 2022, the conventional (or water insoluble) segment is anticipated to hold the largest share of global polyalkylene glycol (PAG) base oil market because they have a very high viscosity index and well low and high-temperature abilities. The conventional (or water insoluble) segment is growing with a CAGR of 3.9% in the forecast period of 2022 to 2029.

  • On the basis of application, the polyalkylene glycol (PAG) base oil market is segmented into hydraulic oil, gear oil, compressor oil, metal working fluids, greases and others. In 2022, compressor oil is expected to dominate the polyalkylene glycol (PAG) base oil market with 34.51% market share because it reduces the wear and tears on rotating parts and prevents metal from rubbing against metal.

In 2022, the compressor oil segment of application segment is anticipated to dominate the polyalkylene glycol (PAG) base oil market

In 2022, the compressor oil segment of this market will dominate the polyalkylene glycol (PAG) base oil market because they are highly flame retardant and can also be used in a wide range of industrial applications. The compressor oil segment is expected reach the highest CAGR of 4.4% in the forecast period of 2022-2029.

  • On the basis of end-use, the polyalkylene glycol (PAG) base oil market is segmented into automotive, aerospace, marine, tooling and industrial equipment, HVAC and refrigeration and others. In 2022, automotive is expected to dominate the polyalkylene glycol (PAG) base oil market with 33.34% market share because PAG oil helps control friction and wear in the automotive engine.

Major Players

Data Bridge Market Research recognizes the following companies as the major polyalkylene glycol (PAG) base oil market players in polyalkylene glycol (PAG) base oil market are Denso Corporation (Japan), BASF SE (Germany), ENI Oil Products (Italy), Chevron Corporation (U.S.), FUCHS (Germany).

Polyalkylene Glycol (PAG) Base Oil Market

Market Development  

  • In March 2021, Phillips 66 Company had announced the launch of a high-performing lubricant solution to optimize electric vehicle performance and protection named Phillips 66 e-Shield. e-Shield is a new line of products for electric vehicles that comprises system fluid, lubricant, and coolant. To allow prolonged driving range, these lubricants employ current proprietary formulas. Electric vehicles are safeguarded by their excellent thermal and conductivity qualities, allowing them to run cooler and longer on a single charge.
  • In January 2022, Exxon Mobil Corporation had announced the acquisition of 49.9% stake in Biojet AS, a Norwegian biofuels company that plans to convert forestry and wood-based construction waste into lower-emissions biofuels and biofuel components. Based on the theoretical capacity of five plants, the deal allows ExxonMobil to buy up to 3 million barrels of the products per year.

Regional Analysis

Geographically, the countries covered in the polyalkylene glycol (PAG) base oil market report are U.S., Canada, Mexico Japan, China, South Korea, India, Singapore, Thailand, Indonesia, Malaysia, Philippines, Australia & New Zealand and Rest of Asia-Pacific, Germany, U.K., Italy, France, Spain, Russia, Switzerland, Turkey, Belgium, Netherlands, Luxemburg, and Rest of Europe, Brazil, Argentina, and Rest of South America, South Africa, Egypt, Saudi Arabia, United Arab Emirates, Israel, and Rest of Middle East and Africa.

As per Data Bridge Market Research analysis:

Asia-Pacific is the dominant region in polyalkylene glycol (PAG) base oil market during the forecast period 2022 - 2029

Asia-Pacific will continue to dominate the polyalkylene glycol (PAG) base oil market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period due to the increasing use of polyalkylene glycol in the lubricants industry and swift industrialization as well as urbanization. China dominates the Asia-Pacific region due to high demand from the automotive industry in the region.

North America is estimated to be the fastest growing region in polyalkylene glycol (PAG) base oil market the forecast period 2022 - 2029

North America region is anticipated to grow at the highest rate during the forecast period of 2022-2029 due to the rising adoption of PAG base oil by the numerous end-users in the region. Due to the increase in the residential sector's construction activities, the U.S. dominates the North America region.

COVID-19 Impact Analysis 

The COVID-19 pandemic caused significant economic concerns and hurdles for the oil and gas industry and other businesses around the world. As per the International Monetary Fund (IMF), COVID-19's economic impact reduced global GDP growth by 3.5 percent. Governments all around the world declared strict measures to slow the spread of the coronavirus, allowing only the manufacture of critical commodities, affecting non-essential commodity industries and hence polyalkylene glycol production. Additionally, the global demand for lubricants was also disrupted by the shutdown of production facilities and the suspension of transportation activities, which damaged the PAG market globally. However, due to the resumption of production facilities in the Asia Pacific area, the market is expected to reflect a positive trend in 2021.

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