Biolubricants: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2019-2029

Market Definition

Biolubricants are produced using sustainable source materials such vegetable and animal oils and fats. These lubricants are very biodegradable and have minimal negative effects on both human health and the environment. Some of the market’s top participants are Exxon Mobil (the United States), Royal Dutch Shell (the Netherlands), Total S.A. (France), and Fuchs Group (Germany). Government laws put in place to address growing environmental concerns play a significant role in driving the market for biolubricants. However, the high price of these lubricants limits the market’s expansion.

Market Insights

Germany and the United States were the two major markets for biolubricants in terms of volume in 2019. The most dominant market is in Europe, but market penetration in the Middle East, Africa, and Asia-Pacific is constrained by lack of awareness, technology, and the cost of biolubricants. However, due to advantageous government initiatives, we can anticipate a strong growth rate in the Asia-Pacific region during the forecast period. Opportunities for bio-lubricant producers are anticipated to arise from the demand for high-performance biolubricants, increased urbanisation and industrialization, and expanding end-use industries such the industrial sector, consumer autos, and commercial transportation.

The COVID-19 pandemic altered the value chain of the biolubricants market at the start of 2020. First, COVID-19 had a significant impact on China, prompting the authorities to order the lockdown of 21 provinces. Leading industrial and commercial hubs, Wuhan and Hubei provinces, were placed on lockdown. This had an impact on the market for biolubricants’ supply chain. Later, the pandemic spread to nations in Europe and North America.

Hydraulic Fluid is the largest product type for biolubricants, with a share of 55-60% in the global market. In 2022, hydraulic fluid was the biolubricants product category with the highest volume and value. Power is transferred to hydraulic equipment using hydraulic fluid. Lubrication of hydraulic machinery, energy transfer, and heat removal are hydraulic fluids’ primary purposes. Heavy materials can be lifted using hydraulics in a variety of industries, including construction, metals and mining. Older pulley-based lifting methods are less effective and efficient than modern hydraulic systems. In all end-use sectors, hydraulic fluid, often known as hydraulic oil, is the most widely utilized fluid product type. Heavy equipment that is mostly utilized in the industrial and automobile production industries uses it.

In terms of value, the industrial sector held the biggest market share for biolubricants in 2022 with 76%. In 2022, the manufacturing, maritime, and other industrial sectors in Europe accounted for more than half of the continent’s market for biolubricants. A switch from mineral-based to bio-based lubricants has occurred as a result of strict government laws and policies on industry. Along with this, the market for biolubricants has grown due to increased environmental awareness and government measures to encourage bioeconomies in nations like Germany, the Nordic countries, the Benelux, and Italy, among others. Biolubricants are widely accepted by consumers for use in household, commercial, and other industrial applications.

Market Dynamics: Drivers

Stringent Government Regulations to Promote Biolubricants

Government rules enacted worldwide to lessen carbon emissions are a primary driver of the bio-lubricant business today. End users are being compelled to transition to biolubricants by these restrictions.

The general vessel permit (VGP) is one of the most significant pieces of legislation that supports the use of biolubricants. The U.S. Environmental Protection Agency introduced the vessel’s general permit in December 2013. The use of biodegradable materials in marine boats operating in North American seas is required by this legislation. VGP was developed primarily to safeguard water from ship-borne pollutants that can accidentally leak into the system while it is in use. This has led to the application of biolubricants by vessel owners on a variety of mechanical surfaces that come into touch with water, including wire ropes and cables, stern tubes, rubber bearings, CP propellers, and propeller shafts. Due to the nature of maritime trade and the power of the U.S. shipping sector, the regulation had an impact all over the world.

The U.S. Department of Agriculture’s (USDA) 2002 introduction of the Bio Preferred Programme is another programme that has led to a rise in the use of biolubricants. In 2018, it was once more extended and reauthorized. To lessen the country’s reliance on foreign oil, this programme encourages the creation, acquisition, and usage of bio-based products. Up to a predetermined amount, the USDA has mandated that producers utilize bio-based material in their products throughout 139 different categories. Paints, lubricants, carpets, and cleaners are a few of the categories.

Market Dynamics: Challenges

High Cost of Biolubricants

In comparison to lubricants made of petroleum, biolubricants are significantly more expensive. This is because renewable raw materials are used, and this renewable oil is chemically altered through the processes of transesterification and epoxidation. Good quality bio-lubricants typically cost between $4.5 and $6 per kilogramme, which is more expensive than the $3 to $4 per kilogramme range for conventional lubricants. If less expensive raw materials and manufacturing technologies are not introduced, this situation is anticipated to persist.

Market Segmentation

• Based on Base Oil, the Global Biolubricants market is segmented into
  • Animal Fat
  • Vegetable Oil
  • Others
• Based on Product Type, the Global Biolubricants market is segmented into
  • Hydraulic fluid
  • Two-cycle engine oil
  • Chainsaw oil
  • Metalworking fluid
  • Grease
  • Gear oil
  • Mold release agent
  • others
• Based on End User, the Global Biolubricants market is segmented into
  • Industrial
    • Marine
    • Agriculture
    • Construction
    • Food Industry
    • Mining and Energy
    • Engineering and Manufacturing Industry
  • Commercial Transport
  • Consumer Automobile
• Based on Geography, the Global Biolubricants market is segmented into
  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa
• All market revenue has been given in US Dollar, while the market volumes are given in units.

Historical Year: 2019-2020
Base Year: 2021
Estimated: 2022
Forecast- 2023-2029

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Biolubricants Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Biolubricants Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Biolubricants Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Biolubricants Market study?