As an alternative to petroleum-based products, the most prominent feature of bio-lubricants is that they are biodegradable and have less impact on the environment after a leak. They can be non-toxic, which reduces the damage to operators, animals, or plants in contact with them to some extent. They are also renewable energy sources, thereby reducing dependence on petrochemical energy sources. In recent years, environmental law enforcement agencies have increased the pressure and cost of oil and lubricant leakage. Many equipment operators are using or considering the use of environmentally safe lubricant products, and bio-based and biodegradable lubricants have attracted increasing attention. Bio-based lubricating oil bases have a wide range of sources, and they have in common that they are readily biodegradable.
The global bio-lubricants market size value at USD 2.02 billion in 2019 and projected to reach USD 2.66 billion by 2027, registering a CAGR of 3.43%, during the forecast period, 2020-2027. The rise in passenger car sales in emerging economies is a vital factor estimated to fuel the global Bio-lubricants market in future periods. Moreover, increasing environmental awareness, adoption of stringent regulations, and growing acceptance of bio-lubricants in industries will impact the growth of the bio-lubricants market in the upcoming periods. The growth of the market can be attributed to the growing environmental concern and stringent government regulations, especially in Europe and North America. Additionally, the surge in regulatory pressure on synthetic lubricants will accelerate market demand for the global bio-lubricants industry.
Further, the various benefits of bio-lubricants, such as the reduction in energy usage, improved environmental conditions, increased machine life, and increased production, are propelling the growth of the market in the forecast span. Also, the growing demand for more environment-friendly alternatives to synthetic lubricants will trigger the growth of the market. Additionally, the surge in the application of bio-lubricants in the marine, forestry, agriculture industry will boost the growth of the bio-lubricants market. Furthermore, the expansion of the automotive sector, particularly in emerging economies such as India, China, South Africa & Brazil, is anticipated to drive the consumption of sustainable products, which will augment the growth of the market.
The raw materials of bio-based products are mostly non-toxic chemicals, such as sulfates (zinc, calcium) and other heavy metals, which are almost non-toxic after being formulated. The biodegradable petroleum lubricants are ashless additive systems and are less toxic than petroleum-based lubricants. Lubricating oils that are easily biodegradable can degrade more than 60% within 28 days, and most mineral oils do not fall into this category. It Strengthens fatty, high-grade heat resistance and does not contain toxic ingredients.
Bio-based products are easily hydrolyzed and acidified, which can easily cause additives to precipitate and cause unstable oxidation. However, new-improved plant-based raw materials, including the use of low-oleic acid rapeseed oil, high-oleic acid soybeans, and the use of improved low-temperature castor oil, improved additive chemistry, and formulation technology, can develop similar performance and better than conventional petroleum-based liquid biodegradable products.
Recently, the outbreak, the COVID-19 pandemic, has adversely impacted the manufacturing activities and the supply chain of renewable chemicals. Furthermore, current disruption in trade shall impact the availability of oil reserves around the world. The environmental issues associated with the use of petroleum products in various developed like the USA and Europe will spur the demand for renewable, non-toxic, economical, and environmentally friendly oil in the near future.
Based on raw material, the global bio-lubricants market classified into vegetable oil and animal fat. The vegetable oil will witness significant growth in the forecast period. The growth of this segment can be attributed to vegetable oil has high biodegradability, less toxic, and high lubricity along with the abundant availability of vegetable oil seeds, which are used as raw materials.
Animal fat is projected to grow with a significant CAGR for bio-lubricants in the estimated period due to the growing adoption of animal oil in the sector that utilizes petrochemical lubricants such as healthcare.
Based on application, the global bio-lubricants market segregated into Automotive (Automotive Engine Oils, Gear Oils, Hydraulic Oils, Transmission Fluids, Greases, Chainsaw Oils), and Industrial (Process Oils, Demolding Oils, Industrial Gear Oils, Industrial Greases, Metal Working Fluids). The automotive segment held a lucrative share in 2019 and projected to dominate the global bio-lubricants market by 2027. It is due to the rise in demand for automotive engine oil as bio-based engine oils have a higher inherent biodegradation rate and low toxicity to aquatic organisms.
The industrial segment will occupy the lucrative CAGR during the forecast period owing to the surge in demand for process oil in technical & chemical industries to improve production processes.
Based on the end-use industry, the global bio-lubricants market segregated into industrial, commercial transportation, and consumer automotive. The industrial held higher market potential in 2019. It is attributable to the growing demand for bio-lubricants oil in the marine industry and agriculture & construction industry, and the various government has made mandatory for shipping vessels to use bio-lubricants.
The consumer automotive segment exhibits a lucrative market share in 2019 and expected to generate significant revenue during 2020-2027 due to the rising passenger car sales in emerging economies and demand for advanced technologies & performance-enhancing fuel.
Based on geography, the global bio-lubricants market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. Europe estimated to occupy the lion’s share in the global bio-lubricants market by 2027. It is owing to stringent regulations, and the ongoing transition towards bioeconomy in countries such as the UK, Germany, Italy, Benelux, and France will spur the growth of bio-lubricants products in the region.
North America will capture a prominent share of the bio-lubricants market and projected to remain dominant by 2027. Owing to the major consumer of bio-lubricants, the growth of the automotive industry in the U.S. & Canada, coupled with regulatory intervention for using minimum renewable content for various products, will trigger the growth of bio-lubricants in the region.
Companies such as ExxonMobil, Royal Dutch Shell, Total S.A, Cargill, BP, Emery Oleochemicals, FUCHS Group, Panolin, Kluber Lubrication, UBL, Shell, Chevron Corporation, Castrol, Statoil Lubricants, Binol Lubricants, Rsc Bio Solutions, Carl Bechem, Vickers Oil, Renewable Lubricants, and Polnox Corporation are the key players in the global bio-lubricants market.
By Raw Material
By End-User Industry