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.
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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.