Global PAG Base Oil Market to Witness Healthy Growth on Account of High Demand from Automotive Industry

The growing automotive industry is having a positive impact on the global polyalkylene glycol (PAG) base oil market. The oil is used extensively on account of its ability to be used across a wide range of temperature. PAG is used in many industries, including the food processing industry. PAG lubricants have various properties that make them suitable for diverse manufacturing and industrial applications. Owing to the water soluble nature, the cleaning up procedure of equipment is easier and this will make PAG base oil highly preferred across industries. In addition to this, PAG base oil are shear stable and provides high viscosity indexes, which makes them suitable for many applications. These fire resistant and energy efficient PAG base oils are finding many applications in industries and this boosting the growth of the market across the globe.

According to a report published by Transparency Market Research (TMR), the global PAG base oil market is likely to rise from US$1,343.8 mn in 2017 to US$1,623.0 mn by the end of 2022. The market is expected to expand at a CAGR of 3.8% between 2017 and 2022.

Q. What are the factors boosting the growth of the global polyalkylene glycol (PAG) base oil market?

PAG base oils offer many benefits which is fueling their demand. Some of these benefits are: wear and tear protection, low friction, excellent thermal stability, and good load carrying capacity. A great contribution is also being made by the constant efforts taken by market players for research and development with an aim to achieve innovation and cutting edge technology. Due to such initiatives, fire-resistant ester-based oils have been developed and used with hydraulic battery packs in order to sustain high pressure and temperature. This fire-resistant oil is also used across diverse industries. In addition to this, the low volatility under high temperature and resistance to the formation of residue and deposits is making PAG base oils suitable for many applications.

Q. What are the factors that may threaten the growth of this market?

The global PAG base oil market is facing a few challenges that are slated to restrict the growth of this market. The high cost of synthetic fibers in contrast with the mineral counterparts could hamper the growth of this market. The consumption of mineral oils in developing nations of Asia Pacific is increasing. This is especially true among the mushrooming small scale manufacturers. This will crush the growth of the global PAG base oil market. 

Q.  Which application area of PAG base oil is expected to lead in the coming years?

The applications of PAG base oil include: worm gear lubricants, anhydrous fire resistant hydraulic fluid, compressor lubricants, and metal working fluid. Of these, the compressor lubricants application segment is leading. The use of compression lubricant in high pressure natural gas and ethylene compression on account of their ability to maintain a stable viscosity is likely to boost the growth of this segment. The PAG base oil is also expected to witness high adoption in refrigeration compression application. This is on account of the high production of eco-friendly HFC refrigerants. 


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