United States Base Oil Market

Market Overview:

United States base oil market size reached 8.4 Million Tons in 2024. Looking forward, IMARC Group expects the market to reach 11.0 Million Tons by 2033, exhibiting a growth rate (CAGR) of 2.76% during 2025-2033. The growing number of manufacturing units and the widespread adoption of automation across the industrial sector represent some of the key factors driving the market.

United States Base Oil Market Analysis:

• Major Market Drivers: The increasing demand for industrial and automotive lubricants continues to drive the United States base oil market growth, backed by performance standards and innovations in refining technologies. Growing emphasis on premium-grade oil and green formulations further accentuates market growth in various applications across the country.
• Key Market Trends: The market is seeing a distinct transition towards Group II and Group III base oils, in addition to the growing consumption of synthetic lubricants. Low-viscosity products are becoming popular due to stringent emission regulations, enhanced engine efficiency, and the need for eco-friendly, high-performance lubricant products.
• Competitive Landscape: United States base oil market share is highly concentrated in the hands of major refiners and blenders, with competition centered on technology-fueled enhancements, processes, and efficiency and sustainability. Firms are going for partnerships and expansions to enhance supply capabilities and address changing automotive and industrial sector needs effectively.
• Challenges and Opportunities: Price volatility of crude oil and environmental requirements continue to be major hurdles; however, opportunities arise through renewable base oils, bio-based products, and increasing demand for high-performance lubricants. Widening uses in energy, auto, and heavy industry further provide growth opportunities for innovative refining processes.

Base oil is a blended substance essential for creating various lubricating oils employed in engines and various machinery. It is manufactured by extracting and treating high-viscosity material from specific distillation cuts of vacuum gasoil (VGO) or residue, necessitating specialized processing through distinct units. Its role is crucial in forming a thin film that improves heat transfer and lessens friction between moving components. Currently, there is a notable increase in the usage of lubricants in automotive and truck engines, contributing positively to the demand for base oil.

United States Base Oil Market Trends:

Rising Trend Towards Group II and Group III Base Oils

One of the biggest trends in the business is the rising demand for premium Group II and Group III base oils, which are quickly displacing traditional Group I products. This shift is chiefly propelled by the demand for cleaner, more efficient, and longer-draining lubricants that better meet changing automotive and industrial performance demands. The increased focus on sustainability and energy efficiency has also driven this change further, as these new base oils allow lower emissions and better fuel efficiency. Moreover, their better thermal stability and oxidation resistance make them perfect for contemporary engines and equipment running under harsh conditions. With refiners putting emphasis on innovation and improved production methods, the United States base oil market analysis reveals the manner in which the increased use of these new base oils is defining performance norms, consumer behavior, and the direction of growth within the industry. As per the sources, in March 2025, Blue Tide and Shell Lubricants commissioned the Baytown, Texas, re-refinery facility with capacity to re-refine 5,000 barrels per day manufacturing sustainable Group II+ base oils and high-performance lubricants with lower carbon footprint to supply the U.S. market.

Greater Use of Synthetic and Low-Viscosity Lubricants

The increasing applications of synthetic and low-viscosity lubricants represent a significant trend in the market, echoing the amplifying need for formulations that provide better efficiency and performance. These lubricants, which are made from premium base oils, provide better protection, lower friction, and better fuel economy, meeting the evolving needs of today's cars and high-performance industrial machinery. The growth of hybrid technology and electric vehicles has also supported the demand for sophisticated lubricants that can minimize wear in high-stress and high-heat conditions. In addition, fuel economy- and emissions-related regulatory environments are driving the trend further, promoting refiners and blenders to make formulations according to world efficiency standards their top priority. Consequently, the United States base oil market demand is highly shaped by low-viscosity and synthetic lubricants, exemplifying how technological developments and regulatory changes continue to propel end-use applications and lubricant formulation changes.

Sustainability and Bio-Based Alternatives Driving Innovation

Sustainability is now a central theme in the industry, with increasing research and investment aimed at bio-based and renewable base oil solutions. This trend is driven by both regulatory support and consumer demand for environmentally friendly products that mitigate carbon intensity but retain high performance. Bio-based base oils possess superior biodegradability, reduced toxicity, and the capacity to drive circular economy efforts, making them a long-term substitute for traditional petroleum-based products. In addition, refining and processing technology improvements are .improving the viability of these alternatives for large-scale use in automotive, industrial, and energy sectors. The blending of bio-based alternatives with synthetic blends is also opening up new prospects for value addition and product differentiation in lubricant markets. The focus on sustainability, as the United States base oil market forecast shows, is leading to bio-based and renewable products playing a more pivotal role in determining future competition and growth strategies.

United States Base Oil Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type, group, and application.

Type Insights:

• Mineral
• Synthetic
• Bio-Based

The report has provided a detailed breakup and analysis of the market based on the type. This includes mineral, synthetic, and bio-based.

Group Insights:

• Group I
• Group II
• Group III
• Group IV
• Group V

A detailed breakup and analysis of the market based on the group have also been provided in the report. This includes group I, group II, group III, group IV, and group V.

Application Insights:

• Automotive Oil
• Industrial Oil
• Metalworking Fluids
• Hydraulic Oil
• Greases
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes automotive oil, industrial oil, metalworking fluids, hydraulic oil, greases, and others.

Regional Insights:

• Northeast
• Midwest
• South
• West

The report has also provided a comprehensive analysis of all the major regional markets, which include the Northeast, Midwest, South, and West.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Latest News and Developments:

• In April 2025, Valvoline introduced new passenger car motor oil formulations in the United States and Canada ahead of the revised ILSAC GF-7 standards that were effective on March 31. The full-synthetic motor oils provide improved performance, longer engine life, and fuel economy while being compliant with the latest industry specifications.
• In October 2024, Methes Energies International Ltd. (OTC PINK: MEIL) launched b2 biOil, a biodegradable, bio-based chainsaw bar and chain lubricant made with locally derived renewable stocks. The season-long product blends better lubricity with environmentally friendly performance, with the goal of minimizing environmental footprint during mass storm restoration projects.

United States Base Oil Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States base oil market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the United States base oil market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States base oil industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.