What is Conventional oil?
Conventional oil is engine oil that helps in lubrication and gives higher engine protection. Conventional oil is extracted from the crude oils which is further refined to acquire lubricating properties for the engine. The oil is extracted by traditional pumping, drilling, and compression techniques. Conventional oil is better used for older vehicles due to its high viscosity. Due to less refining, conventional oil is very cost-effective. Conventional oil is used in Automotive, Chemical, Power, Industrial, and other industries. Demand for Conventional oil in all such industries will boost the growth of the Conventional Oil market.
Here are some of the driving factors that are increasing opportunities for the Conventional Oil market growth:
Expansion of the Automobile Industry:
According to the CEIC data, India Motor Vehicles Sales grew by 2.8% in March 2022. The rising income of the middle-class and the increased population of youth is rapidly increasing the use of private vehicles. Increasing the use of private vehicles leads to the use of more conventional oil. Increased mergers and acquisitions in the automobile industry are likely to boost the automobile industry and ultimately the Conventional oil market.
Increasing technological advancement in the industry:
The advanced extraction and drilling methods of conventional oil will likely boost the market. Hydraulic fracturing, tar sands, deepwater drilling, horizontal drilling, and seismic mapping are some of the modern technologies for oil extraction. The use of artificial intelligence to optimize production and detect machinery failures is used in the conventional oil industry. Hence such developments in technology are driving the Conventional Oil market.
Here are some of the restraining factors that are increasing opportunities for Personal Care Product market growth:
Emergence of electric vehicles (EV):
According to an article from the World Economic Forum, Electric vehicle (EV) car sales increased by 60% in 2022. The introduction of electric vehicles is the biggest hurdle for the Automotive Lubricants market. The demand for engine oil is maximum in the automotive lubricants market. The engine in vehicles is replaced by the motor in electric vehicles. Hence the use of oils is minimized in the electric vehicle as compared to the combustion engine. Hence such reasons are hindering the Conventional Oil market growth.
Volatile prices of conventional oil:
Crude oil serves as the raw material for conventional oil. The prices of crude oil are influenced by the Organization of Petroleum Exporting Countries. Also, according to the demand and supply the prices of crude oil varies. Political issues among the oil-producing countries fluctuate the oil prices. All such reasons fluctuate the prices of crude oil which ultimately affect the prices of conventional oil. Such fluctuation is likely to hinder the Conventional Oil market growth. By using alternative oils, we can minimize the effect of volatile prices of oil.
Conclusion:
Conventional oil is cheaper due to less refinement and re-engineering. The emergence of electric vehicles and volatile prices of conventional oil is hampering the market growth. Expansion of the automobile industry and increasing technological advancement is likely to boost the Conventional Oil market. The increase in the disposal income and economic stability is leading the automobile industry which will ultimately boost the demand for the Conventional Oil market in the coming years.
Author's Detail
Sonali Shinde, LinkedIn
Working as a research analyst in the Energy and power domain. I gained experience in formulating strategic insights, trend analysis, market estimations, competitive landscapes, M&A analysis, DRO, report writing, secondary research, and quantitative research. I also have experience in using a range of statistical and analytical tools to analyze data.
Author's Detail:
Sonali Shinde /
LinkedIn
Working as a research analyst in the Chemical & Materials domain. I gained experience in formulating strategic insights, trend analysis, market estimations, competitive landscapes, M&A analysis, DRO, report writing, secondary research, and quantitative research. I also have experience in using a range of statistical and analytical tools to analyze data.
