by Pag base oil is extensively used for the production of lubricants and greases in the transportation, industrial, and metalworking sectors. Pag base oils provide several advantages such as high viscosity index, thermal and oxidative stability, and film strength that makes them suitable for high-performance lubricants. The growing global transportation industry has led to an increase in demand for high-performance lubricants made from pag base oil. Lubricants play a vital role in reducing friction between moving parts of automobiles and maintaining their efficiency. With rising vehicle production and fleet size worldwide, the consumption of lubricants is growing steadily.
The global Pag Base Stock Market was valued at US$ 13.49 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.
Market Key Trends:
One of the key trends in the pag base stock market is increasing focus on environment-friendly lubricants. Pag base oils that are chemically modified to exhibit excellent low-temperature properties, biodegradability, and low toxicity are gaining popularity. Such eco-friendly pag base stocks cater to the stringent emission norms and help lubricant manufacturers expand their product portfolio. Another trend is the increasing demand for group III pag base oils in high-performance lubricants for engine oils and industrial applications owing to their better oxidative stability compared to group I and II oils.
Porter’s Analysis :
Threat of new entrants: The established market players hold significant market share and new entrants will find it challenging to gain foothold.
Bargaining power of buyers: Buyers have moderate bargaining power as there exist few substitutes and switching costs are moderate.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of raw material sources and established supply chain.
Threat of new substitutes: Substitution threat is low as PAG base stocks have unique properties that are difficult to replicate.
Competitive rivalry: Competition is expected to intensify with market players focusing on expanding production capacities and backward integration.
Pag Base Stock Market Segmentation:
By Base Oil Type
- Group I
- Group II
- Group III
- Group IV
- Group V
By Application
- Automotive Oil
- Industrial Oil
- Hydraulic Oil
- Grease
- Metalworking Fluid
- Others (Process Oil, Marine Oil etc.)
By End-Use Industry
- Automotive
- Industrial
- Construction
- Marine
- Others (mining, textile etc.)
Key Takeaways:
The global PAG Base Stock Market Size is expected to witness high growth.
Regional Analysis: The Asia Pacific region currently dominates the global PAG base stock market due to strong presence of automotive and industrial sector in countries like China and India.
Key Players operating in the PAG base stock market are ExxonMobil, Shell, Chevron, Nynas, Calumet Specialty Products Partners, HollyFrontier, Petrobras, S-Oil, Repsol, Saudi Aramco, Gazpromneft, Lukoil, Total, SK Lubricants, Indian Oil Corporation, Bharat Petroleum, Idemitsu Kosan, Cosmo Oil Lubricants, CNOOC, Sinopec. ExxonMobil is one of the largest supplier of PAG base stocks globally. The company is focusing on expanding its production capacities in Asia and the Middle East to cater to increasing demand.
*Note:
1. Source: CoherentMI Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
