Process Oil are used in chemical and technical industries as raw material or to facilitate processing. Their main application is process aid. For instance, they improve the process ability of rubbers and increase the bulk of rubber. Additionally, efficiency, productivity, and energy savings also increases. Process Oils are petroleum derived and have important properties such as miscibility, color stability, and ageing resistance, which makes it useful in various applications. They are used in manufacture of personal care products, polymers, textile, automobile parts, and industrial applications.
The major drivers for process oil market is the growth of end user industries. Moreover, the benefits outweigh the capital expenditure costs of process oils. The major challenges include the presence of carcinogens polycyclic aromatic hydrocarbons (PAH) and polycyclic aromatics (PCA), which can cause carcinogenic mutations. Stringent regulations has led to development of non-carcinogenic alternative.
Process Oil Market Taxonomy
On basis of oil type, the process oil market is segmented into:
On basis of end use industry, the process oil market is segmented into:
Naphthenic process oils have good color and thermal stability, hence they are used for floor tiles and LPG tubes. Paraffinic process oils have high viscosity and flash point, which are largely used in automotive applications. Aromatic process oils are blended to meet stringent regulations and specifications. Bio-based process oil is used in the automobile and tire industry. Non-carcinogenic process oil is free of carcinogens and meets the regulations of PAH<10ppm.
Process Oil Market Outlook
Key Developments:
For instance, in September 2013, Nynas AB acquired Shell's refinery based in Harburg, Germany. The Harburg refinery manufactures naphthenic base and process oils which are used as raw material for industrial rubber, adhesives, and fertilisers. The annual production capacity of Harburg refinery is 330000 tons. This acquisition is expected to strengthen Nynas AB’s presence in European market.
In March 2019, Nynas AB launched bio based type oil ‘NYTEX BIO 6200’ which is produced from renewable feedstock. NYTEX BIO 6200 is companies first bio based oil in portfolio. This new product launch aided the company to strengthen its product portfolio and further increase its position in the global market.
For instance, in February 2018, Norman Process Oils Malaysia Plant Sdn Bhd, a subsidiary of Orgkhim Biochemical Holding from Russia, built new production at Johor Bahru District, Johor, Malaysia to manufacture Carcinogen-Free Rubber Process Oils. The company has invested US$ 50 million to build this new production facility. This new plant enabled the company to strengthen its product portfolio and further increase its business of process oil Asia Pacific market.
For instance, in May 2017, ExxonMobil Asia Pacific Pte Ltd acquired Jurong Aromatics Corporation Pte Ltd plant, a Singapore based aromatic manufacturer. Jurong Aromatics Corporation Pte Ltd has production capacity over 3.5 million tonnes per year. This acquisition has helped ExxonMobil Asia Pacific Pte Ltd to expand its product portfolio in Asia Pacific market.
Major players in the process oil market are Royal Dutch Shell plc, Chevron Corporation, and Petronas Lubricants Belgium NV, Nynas AB, ORGKHIM Biochemical Holding and Repsol S.A.
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About Author
Vidyesh Swar
Vidyesh Swar is a seasoned Consultant with a diverse background in market research and business consulting. With over 6 years of experience, Vidyesh has established a strong reputation for his proficiency in market estimations, supplier landscape analysis, and market share assessments for tailored research solution. Using his deep industry knowledge and analytical skills, he provides valuable insights and strategic recommendations, enabling clients to make informed decisions and navigate complex business landscapes.
Process Oil Market Report Snapshots
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