The Bio-Lubricants Market size is expected to Reach USD 2754.3 Million by 2027, Registering to Accelerate at a +4.2% CAGR, According to the most recent study by Brandessence Market Research & Consulting Pvt ltd.
The Global Bio-Lubricants Market size was Valued at USD 2065.1 Million in 2020. Increasing demand of bio-lubricants, rising environmental awareness regarding the use of conventional lubricants and growing research & development for new applications of the bio-lubricants are some of the factors anticipated to the drive the growth of the global bio-lubricants market over the forecast period. “Bio-Lubricants Market Size, Share & Trends Analysis Report By Type (Vegetable Oil, Animal Oil), By End-Users (Industrial Use, Commercial Transport, Consumer Automobile, Other) Based On Region, And Segment Forecasts, 2022 – 2028”
Bio-lubricants market: Market Scope
The global market of the bio-lubricants has been expected to maintain growth at a modest rate in the coming few years. These lubricants are bio-based better for the environment and don’t have a bad effect on the climate. The lubricants are ones which don’t cause any skin inflammation that are generally caused by the lubricants that are petroleum-based.
Bio-lubricants market Key Drivers
Bio-based lubricants are friendly for skin and also have many advantages like the reduced energy usage. There is also an advantage while manufacturing the product as it requires lower cost of labor and is safer for employees too. This helps in achieving better conditions for the environment and have a better machine life and increase production. This augments growth of the global bio-based lubricants market. The bio-lubricants are manufactured by fatty acids esterification or vegetable oil trans-esterification. This kind of a process is held with alcohol with a homogenous acid catalyst being present or by the use of ion-exchange resin. It is a process which raises the cost of a lubricant. This will restrain the growth of this market.
Many research and development projects have already been completed for improving the properties of the bio-based lubricants. There are research that have found bio-lubricants to be used as substitutes for the petroleum-based oils. This provides a massive growth opportunity for the future. Among the most important sectors in the economy of our world is power generation. This is the one sector which drives the operations of every single of the manufacturing industries. There are advancements taking place in manufacturing sector and that has resulted in many new plants being commenced. This is also adding to the increase in demand for electricity in different end-user industries.
- Binol Biolubricants
- Total S.A.
- British Petroleum
- Chevron & British Petroleum
- Exxon Mobil
- Renewable Lubricants
- Statoil Lubricants
Bio-lubricants market: Recent Developments:
- In March 2020, Royal Dutch Shell announced the expansion of the lubricant production facility located at Marunda Centre, Indonesia. After the expansion, the plant will be capable of 300-million-liter lubricant production
- In December 2019, FUCHS Group acquired 50% shares of three distributor companies based in Zimbabwe, Zambia, and Mozambique to enhance its presence in the sub-Saharan Africa region.
- In January 2018, ExxonMobil launched Mobil SHC Aware HS (Hydraulic System) Series hydraulic oils, which provides protection in challenging marine operating environments and meet VGP requirements for EAL. This will provide the company with a competitive advantage over others in the bio-lubricants market in the marine application segment.
Bio-lubricants Market Segmentation Analysis
Segmentation of the bio-lubricants market has been done on the basis of product type into transmission, engine oil, metalworking fluid, general industrial oil, process oil, grease, gear oil and hydraulic fluid. In terms of the end-user industry, the power generation, automotive, heavy equipment, metallurgy, food and beverage and chemical manufacturing sector has been showing the greatest growth. In terms of base oil, it is expected that vegetable oil segment will be growing in the market the most.
The most dominant market position of the vegetable oil segment is attributed to the fact that it is highly biodegradable, less in toxicity and higher in lubricity. This is a growth may be attributed to the availability of the vegetable oil seeds which might be used for the raw materials. The industrial segment consists of the marine industry and the construction and agriculture industry. These are two industries which are the biggest consumers of the bio-lubricants. Further, many regulations have made it necessary that the bio-lubricants are used and are therefore used in the shipping vehicles as per the guidelines given by the world. This drives the market significantly.
Bio-lubricants Market Key Trends
Turbines here are playing a major role in the energy sector for the generation of electricity, irrespective of this source of electricity, that is the wind, hydro, solar, thermal etc. The turbines are also used in the power generation. Apart from turbines, the significant components in the sector of power generation includes the bearings, pumps, compressors, fans, hydraulic systems and gears. The wind turbines get subjected to different factors such as high pressure, humidity high loads, temperature and vibrations. The turbine and gear oils have wide usage in the sector for the purposes of lubrication.
Companies are aware already supporting the fact that the reduction of the total ownership cost across lifetime of this machinery is important for extracting the best value possible from this investment. Though, the impact of this cost is underestimated too often. Generally, the lubricant cost is going to account for a very less portion of the company’s operational cost in their total expenditure.