Base oil growth across the region will grow by 3.5% CAGR over the next five years
CNPC meets demand for base oils Image: CNPC |
According to a new report, the Asia-Pacific base oil market is expected to grow from an estimated 21,320 kilotonnes (KT) in 2015 to 25,226 kilotonnes (KT) by 2020, representing a CAGR of 3.5% over five years.
The Markets and Markets report confirms Asia-Pacific is the world's fastest growing lubricants market and is showing a consistent increase in demand of around 3%, with China accounting for some 56% of the total regional market.
Despite signs of a slowdown in manufacturing, the report asserts China will still power growth in the sector over the next five years, as growth in the mature US market begins to slow. Meanwhile, demand for biolubricants, driven by the need to enhance fuel efficiency and improve environmental credentials, will also continue to strengthen - a market currently being driven by CNPC.
A separate report, from Transparency Market Research, shows that Asia-Pacific will also surpass Europe as the world's largest marine lubricants market, led by demand from China, Japan and Singapore.