Rubber Process Oil Market By Type (Naphthenic, TDAE, Paraffinic, MES, DAE, RAE & TRAE) - Growth, Future Prospects & Competitive Analysis, 2016 – 2028

About this report

The global Rubber Process Oil Market report explores the critical analysis of the rubber process oil industry using key parameters. The report consists of investment strategies, the need for investments in the rubber process oil industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the global technical regulations for the rubber process oil industry and how economic and non-economic barriers are helping the market grow. Moreover, the report examines historic and forecasted market sizes at the global, regional, and country levels. The report also includes an in-depth analysis of key investment propositions, the demand and supply gap, competitor positioning, SRC analysis, STAR analysis, and Tornado analysis. Technological advancements and other analyses include Porter's Five Forces, PESTEL, Value Chain, etc.


Key Highlights of the report

How are the major segments performing in the Rubber Process Oil Market?

The Naphthenic segment led the market in terms of type in 2021 and is expected to continue throughout the projection period. The Naphthenic rubber process oil dominates the market due to its high thermal stability and compatibility with synthetic elastomers. It is a non-staining, light-colored compound. The treated distillate aromatic extract (TDAE) is a non-carcinogenic rubber process oil widely used due to its environmentally friendly properties.

Which region dominated the Rubber Process Oil Market?

The Asia Pacific dominated the global rubber process oil market in 2021 and is expected to maintain its dominance throughout the forecast period. The expansion of the Asia Pacific global rubber process oil market can be attributed to a rise in automobile sales in the region, which is expected to boost the global rubber process oils market in the region's tire and rubber market. Several major players have implemented strategies for new product launches, expansions, and agreements to meet the rising regional demand for rubber process oil. China consumes about 40% of the world's rubber production, making it the largest consumer and importer. India currently ranks sixth among countries that produce rubber and has one of the highest productivity rates.

What is the competitive environment of the Rubber Process Oil Market?

The global market for rubber process oil is fragmented, with only a few major players dominating. Market players use mergers, acquisitions, partnerships, and new product development strategies to stay ahead of the competition and expand their market footprint. For instance, Total S.A completed the acquisition of Maersk Oil in March 2018 and issued 97 million new total shares for the benefit of A.P. Moller - Maersk in exchange for the contribution of Maersk Oil shares to Total S.A. On the other hand, Nynas introduced Nytex Bio 6200 in 2020, a bio-based rubber process oil (RPO) for tire manufacturers.

Executive Summary

What are all the technical developments in the Rubber Process Oil Market?

Growing demand for naphthenic oil and adopting new technologies are two new global process oil market trends. Most process oil manufacturers use naphthenic base oil as a primary ingredient in oil processing. The process oil industry has changed dramatically in recent years. Some key trends observed across the global process oil market value chain include the application of new and cutting-edge technologies to boost process oil throughput and the technical strategy of growing partnerships. Moreover, the rapidly rising demand for green rubber process oils, technological advancements in the production process of rubber process oil, and increasing R&D activities will create new opportunities for the rubber process oil industry over the forecast period.

Which are the key investments by the players in the Rubber Process Oil Market?

Companies are investing in developing better rubber process oil to increase revenue and gain a competitive advantage in the market. The rubber process oil market is fragmented due to limited global key players. Other players are investing in mergers, acquisitions, and joint ventures to ensure that their brand name appears on the list of competitors. Rising investments and a shift in focus by market players toward manufacturing biodegradable oils are other key trends in the global market.

Some of the major players in the market are Nynas AB, Repsol S.A., Chevron Corporation, Royal Dutch Shell plc, Petronas Lubricants Belgium NV, ORGKHIM Biochemical Holding, and Hindustan Petroleum Corporation Ltd.

What are the Major Driving Factors for the Rubber Process Oil Market?

Rapid growth in automobile sales and demand is expected to increase the consumption of rubber process oils in tires, causing subsequent growth in the rubber process oil market. Growing R&D activities, rising demand for natural-based products, expansion in the personal care industry, high output in polymer manufacturing, and the cost advantages of using process oil over conventional energy sources are some factors that will drive demand for rubber process oil over the forecast period. Rubber process oils are used when mixing rubber to help compounds increase the flow process of compounds and filler diffusions during the process. It also increases the bulk of the rubber, lowering costs.

What are the Major Risks for the Rubber Process Oil Market?

The major restraints to the global market growth are increasing raw material costs, implementing a European Union directive prohibiting polycyclic aromatic hydrocarbons in tire manufacturing, and growing environmental concerns about using non-biodegradable products. Due to shifting oil prices, major companies in the industry halted several oil exploration and production projects. Crude oil price fluctuations have an impact on the market. The market determines the price at which crude oil is sold, but the production costs are largely fixed, so upstream businesses suffer when crude oil prices change. Another factor that may impede market growth is the availability of substitutes, such as soybean oil used in tire manufacturing.

Which are the key Type in the Rubber Process Oil Market?

The Naphthenic type segment led the rubber process oil market in 2021. Naphthenic process oil is a non-staining, light-colored compound with excellent compatibility with synthetic elastomers. Naphthenic oil is made from natural and petroleum gas. It primarily comprises paraffinic hydrocarbons, with a trace of naphthene, cycloparaffins, aromatic compounds, and other compounds. The viscosities of naphthenic oils are low at room temperature and range from clear to straw in color. These characteristics make them suitable for melding items such as LPG tubes, slippers, and floor tiles. Due primarily to its low PCA content, naphthenic rubber process oil is becoming increasingly popular in North America and Europe.

How is the Rubber Process Oil Market performing in regions?

The Asia Pacific region dominated the global market for rubber process oils in 2021, owing to the rapidly increasing automobile sector sales and corresponding rises in tire consumption. Most tire manufacturers prefer to form alliances with local rubber process oil suppliers to ensure easy, convenient, and uninterrupted product supply. The high rate of consumption of rubber processing oil in automobile tire production, particularly in China, India, Taiwan, and Japan, will help this region maintain its dominance. The region's gas, oil, and automotive industries use these rubber oils to produce sealants and adhesives used in houses and pipelines.

Besides, North America is expected to grow the fastest during the forecast period due to the product's use in various end-use industries in the region, including automotive, construction, oil and gas, and pharmaceuticals. North America and other developed economies account for nearly 70% of naphthenic oil production. About 60% of the world's naphthenic oil is consumed in North America alone. Manufacturers anticipate an increase in the use of processed oil from manufacturers in the coming years. The main reason for using naphthenic oil in North America is the region's abundant supply of naphthenic base process oil.

What is the regulatory landscape for the Rubber Process Oil Market?

Rubber process oil enhances vulcanization's physical properties, lowering the final product of rubber compounds. Its usability has increased due to its compatibility with most elastomer types. Environmental regulations imposed by various regulatory bodies are also fueling the growth of the rubber process oil market. For instance, the French government declared in 2017 that it would completely outlaw diesel and gasoline-powered cars and switch to electric cars by 2040 to meet zero-emission targets outlined in the Paris Climate Accord. The development and implementation of various regulations encouraging the production of environmentally friendly products is one factor that may work against the progress and expansion of the rubber process oil sector. Regulatory policies restricting hydrocarbons' use would negatively impact rubber process oil consumption over the forecast period. Moreover, government-imposed emissions standards will reduce global demand for rubber process oil.

What is the Market Size of Rubber Process Oil regarding value?

The global rubber process oil market is anticipated to grow at a substantial CAGR of 4.3% in the upcoming years. The global rubber process oil industry was estimated to be worth USD 2.1 billion in 2021 and was expected to be worth USD 2.7 billion by 2028.

What are the major players planning for the future of the Rubber Process Oil Market?

The benefits of rubber process oils, the growing number of tire manufacturing industries, and the growing demand for solution styrene-butadiene rubber (S-SBR) in automobile tires are driving the market. Several rubber process oil (RPO) providers are also planning to launch bio RPOs to meet the growing demand. For instance, Chevron introduced rubber process oils such as ParaLux 701, 1001, 2401, and 6001. Similarly, Brenntag offers rubber process oils such as Poweroil Process Oils. Besides, some tire manufacturers are shifting toward naphthenic RPOs, which have excellent execution and accessibility. In addition, several significant market participants in the global rubber process oil market are currently concentrating and planning to establish successful joint ventures, acquisitions, and collaborations to increase their future customer bases.

Segmentation of Global Rubber Process Oil Market -

Global Rubber Process Oil Market – By Type

  • Naphthenic
  • TDAE
  • Paraffinic
  • MES
  • DAE
  • RAE & TRAE

Global Rubber Process Oil Market – By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • Germany
    • France
    • The U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of the Middle East and Africa

Frequently asked questions about the global Rubber Process Oil Market

The rubber process oil market also suffered from the COVID-19 pandemic, which resulted in a decline of over 1.8% in revenue generated in 2020.

The Asia Pacific accounted for the highest share of the global rubber process oil market in value and volume.

The consumption of rubber process oil in tire manufacturing is one of the major factors driving the global rubber process oil market. The growing number of automobiles on the road has increased tire demand, propelling the rubber process oil market. Process oil manufacturers are using naphthenic base oil as a key ingredient in the production of rubber oil.

Naphthenic segment had a major share in 2021, with more than 45% of the market revenue share. Besides, the paraffinic segment is projected to witness the fastest growth.

Increased raw material costs, the implementation of a European Union directive prohibiting polycyclic aromatic hydrocarbons in tire manufacturing, and growing environmental concerns about using non-biodegradable products are the major restraints on global market growth.

Rubber Process Oil Market Scope

Report Attribute Details
Market Value in 2021 USD 2.1 billion
Market Value in 2028 USD 2.7 billion
CAGR 4.3%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Published Date:  Oct 2022
Category:  Automation & Process Control
Report ID:   60749
Report Format:   PDF
Pages:   120
Rating:    4.6 (60)
Delivery Time: 24 Hours to 48 Hours   
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