The market size of process oil is estimated to grow from USD 4.8 billion in 2022 to USD 5.3 billion by 2027, at a CAGR of 2.1% during the forecast period. The process oil market has been growing at a moderate pace over the past five years, owing to the increasing demand for finished lubricants from various industries, such as automotive, among others. Process oils are used for various applications, such as tire & rubber, polymer, personal care, and textile, among others. Process oils can be categorized into four types, namely, aromatic, paraffinic, naphthenic, and non-carcinogenic. Process oils improve efficiency and productivity as well as ensure low energy consumption, thereby leading to reduced production costs and improved quality of products.
Among types, the non-carcinogenic segment is expected to grow at the highest CAGR during the forecast period, in terms of value. Non-carcinogenic process oils include Treated Distillate Aromatic Extracted Solvent (TDAES), Mild Extracted Solvent (MES), Residual Aromatic Extracted Solvent (RAES), and Treated Residual Aromatic Extract (TRAE). The implementation of EU Regulation 1907/2006 (REACH) Annex XVII Restriction 501 defines the acceptable levels of Polycyclic-Aromatic Hydrocarbons (PAHs) in extender oils and tires. Apart from European countries, other nations such as China and Brazil have also implemented similar regulations to restrict the hazardous effects of tire and rubber products on the environment.
On the basis of application, the process oil market is classified into tire & rubber, polymer, personal care, and textile, among others. The tire & rubber segment is expected to grow at the highest CAGR during the forecast period, in terms of value. Increasing demand for process oils as carrier oils, plasticizers, dust control agents, and processing aids in the tire & rubber industry drives the process oil market. Process oils form a group of additive-free petroleum products used in various industrial processes.
On the basis of function, defoamer segment is expected to grow at the highest CAGR during the forecast period, in terms of value. Defoamers can significantly reduce foam, allowing trapped gases to be released easily and maintaining product stability under a range of situations. Antifoams or polymeric surfactant defoamers ensure that oil quality is not compromised whilst optimizing the production of oil and natural gas. Thus, the reduction of foam formation in industrial process with defoamers is expected to increase its demand.
The Asia Pacific process oil market is expected to grow at the highest CAGR during the forecast period, in terms of value, owing to the increasing investments in the automobile sector and rapid industrial growth.
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