Biolubricants Market Overview and Industry Analysis by Type (Vegetable Oils, Animal Fats), Application (Hydraulic Fluids, Mold Release Agents, Chainsaw Oils, Greases, Automotive Engine Oils and Others), End-Use Industry ( Automotive, Construction, Transportation, and Others) & Region, Competitive Market Size, Share, Trends & Forecast to 2027

/EIN News/ — New York, U.S., May 31, 2022 (GLOBE NEWSWIRE) — Overview of the bio-lubricants market

According to a comprehensive research report by Market Research Future (MRFR), “Bio-lubricants market Information by Type, Application, End-Use Industry and Region – Forecast to 2027“, the market is expected to grow at a CAGR of 4.40% to reach $3.98 billion by 2027.

Market summary

Bio-based lubricants are environmentally friendly and have no toxic impact on the ecosystem. Biolubricants do not cause skin inflammation, unlike petroleum-based lubricants. In addition to this, they provide several benefits including decreased energy consumption, reduced labor costs, increased employee safety, better environmental conditions, increased service life of machines and an increase in production, which increases the growth of the market.

Biolubricants are produced by the process of trans-esterification of a vegetable oil or the process of esterification of a fatty acid. This process is carried out in the presence of long chain alcohol with an 8-10 homogeneous acid/base catalyst, or with the use of an ion exchange resin.

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Report Scope:

Report attribute Details
Market size 2027 $3.98 billion
CAGR 4.40% (2021-2027)
Year of reference 2020
Forecast period 2021-2027
Historical data 2019
Forecast units Value (USD billion)
Report cover Revenue forecasts, competitive landscape, growth factors and trends
Segments Covered Type, Applications, End User
Geographical areas covered North America, Europe, Asia-Pacific and Rest of the World (RoW)
Key Market Drivers Widely accepted as substitutes for petroleum-based oils.
Being renewable is another added benefit driving demand

Market Competitive Landscape:

Affluent companies in the bio-lubricant industry include

  • Exxon Mobil Corporation (USA)
  • Together (France)
  • BP plc (UK)
  • FUCHS (Germany)
  • PANOLIN AG (Switzerland)
  • Emery Oleochemicals (Malaysia)
  • Biol Biolubricants (Sweden)
  • RSC Bio Solutions (USA)
  • BECHEM (India)
  • IGOL (France)

Covered USP market:

Market factors:

Organic motor oil has grown in popularity as it is increasingly accepted as a replacement for petroleum-based oil. This should have a favorable impact on the environment and also contribute to solving related problems. Renewable raw materials such as animal fats and vegetable oils are gradually being used. Vegetable oil-based lubricants offer many long-term and environmental benefits over petroleum-based substitutes. Moreover, these are cost effective with a significant level of biodegradability.

Before being propelled into the environment, the lubricants are modified several times. Fresh water, soil and fresh air are all contaminated because of this, which has a huge effect on the environment. The requirement for biodegradable biolubricants has increased as public awareness regarding the environmental implications of mineral oil-based lubricants has increased.

Following the COVID-19 outbreak, there have been multiple opportunities for biodegradable solutions ranging from sustainable lubrication to green buildings. A bio-lubricant is a biodegradable, non-toxic product that decomposes 60% in 28 days, is renewable and includes 25% carbon from biobased sources.

Market constraints:

The bio-lubricants market will experience some restraints in the form of volatile costs. A traditional biolubricant is generally available on the world market at a price increased by 40%. The search for cost-effective lubricants has become a major challenge faced by major players in the market.

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COVID 19 analysis

The bio-lubricants market has been significantly affected by the COVID-19 outbreak. Considering the pandemic scenario, many countries had to quarantine themselves to control the increase in cases. As a result, the demand and the supply chain have been disrupted, which has affected the global market. Infrastructure projects, manufacturing units, industries and various operations had to be put on hold due to the pandemic situation.

Volatility in the cost of raw materials used for the development of bio-lubricants as well as the COVID-19 pandemic has limited the growth rate of the market. On the bright side, the situation is returning to normal, which means that the market in the future will see better growth.

Market segmentation

By base oil

The major base oil segments highlighted in the study include animal fat, vegetable oil and others like synthetic ester.

By app

The main applications of biolubricants are two-stroke engine oils, hydraulic oil, gear oils, mold release agents, chainsaw oil and others like greases, metal working fluids, oils transformers and refrigeration fluids.

By industry end users

The various end-use industries include pharmaceutical, metallurgy, energy, power, marine, food, mining, and others such as consumer automotive and commercial transportation.

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Regional outlook

Europe has become the leading market for biolubricants. The production of lubricants in the environment in the form of two-stroke oils, mold release agents and chainsaw oils has become a major concern for emerging countries. Therefore, developed countries in Europe boast of eco-labels that support the deployment of bio-lubricants rather than the traditional ones. This should be quite favorable for the European market in the coming years.

In Asia-Pacific, the biggest consumer of bio-lubricants is China, given the country’s rapid economic growth. China is the world’s largest electricity market, accounting for nearly 70% of global demand. In China, electricity demand is extremely high, driven by the industrial sector, such as steel, iron and other metals, construction and cement, as well as substantial cooling demand. Electricity demand in India is also growing exponentially. This surge was fueled by the heavy use of buildings, especially air conditioning. Apart from this, the Japanese government is working on the development of about 48 coal-fired power plants in the country, using high-energy, low-emission technology, which uses high-quality black coal. The increasing number of power units in the country and the subsequent increase in the demand for bio-lubricants in these power plants can favor the regional market.

In North America, booming passenger car sales have been a major reason for the rapid expansion of the market over the years. The favorable regulatory framework will encourage the demand and production of bio-lubricants in the years to come. The US EPA has developed policies and regulations requiring marine vessels to obtain the mandatory Vessel General Permit (VGP) on US waters and also use environmentally friendly lubricants in oil-sea interfaces.

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