Bio Lubricants Market Size
The Bio Lubricants market is expected to grow from an estimated USD 3.1 billion in 2024 to USD 10.1 billion in 2033, with a CAGR of 14.00%.
The global bio-lubricants market is predicted to expand in response to increased environmental awareness and declining crude oil reserves in industrialized countries. The bio-lubricants industry is growing as it is recognized as a viable alternative to petroleum-based oils.
This change is intended to have a positive impact on environmental concerns and assist in their resolution. A systematic approach is now being used to study the lifecycle of a bio lubricant, including the environmental effects of bio-based lubricants throughout manufacture, use, and disposal.
Motor oil for autos receives special attention. The expansion of the automotive sector has increased the supply of high-performance and cost-competitive green base oils, which is expected to propel the growth of the bio-lubricants market.
The rising interest in environmental issues will benefit bio-based lubricants, leading to a rise in demand. The United States and Europe are the most advanced regions, and they promote the use of bio-based materials due to their lower environmental effect.
Because of the growing uses in the transportation and manufacturing industries, there is a greater demand for lubricants with superior properties such as high flash points, consistent viscosity, fewer emissions, and biodegradability.
Stringent emission requirements and regulatory frameworks drive this demand. Key industry participants are increasing their R&D efforts and technological breakthroughs, which are projected to open up new potential for lubricant applications.
For instance, in April 2023, Exxon Mobil intended to invest USD 110 million in a lubricant production facility in India, with operations set to commence by the end of 2025. The plant plans to produce up to 159 million liters of lubricants per year, catering to expanding demand in a variety of sectors, including manufacturing, steel, electricity, mining, and construction, as well as the commercial and passenger car industries.
Bio Lubricants Market Drivers
The Rise of the Automobile Industry Supports the Bio-Lubricants Market
Lubricants are utilized extensively in the automobile and manufacturing industries. These industries are driving growth in the biolubricant market by looking for environmentally sustainable, high-performance lubricants. Bio-lubricants are used to improve efficiency and reduce environmental impact in gearboxes, hydraulic systems, and engines, among other applications.
The rising vehicle sector is expected to drive future growth in the lubricants market. The automotive industry includes any organization or corporation involved in the creation, refining, distribution, sale, or service of motor vehicles. It is critical to consider the vehicle's specific needs and whether bio-lubricants are compatible with its components, as not all vehicles and applications are acceptable for them.
For instance, the European Automobile Manufacturers' Association (ACEA), a UK-based organization, presented a study in May 2023 stating that 85.4 million automobiles were produced worldwide in 2022, a 5.7% increase over 2021.
Furthermore, the International Organization of Motor Vehicle Manufacturers, a 36-nation trade association, predicts that the overall number of autos and commercial vehicles manufactured in 2021 was 80,145,988, with an increase to 85,016,728 in 2022. Thus, the rising automotive industry is driving the lubricant market.
Bio Lubricants Market Restraints
High Cost of Bio-Based Lubricants and Low Lubricating Properties May Hamper the Market
Lubricants made from vegetable oil have the potential to replace more conventional options as they are both organic and biodegradable. Their restricted range of accessible viscosities, low-temperature properties, low thermal and hydrolytic stability, and low oxidative qualities preclude their direct utilization as base oils.
Chemical adjustments, antioxidants in formulas, and mineral oil combinations help mitigate these drawbacks. However, they have a negative impact on biodegradability, increase pollutants, and drive up costs. Consequently, there is a big challenge in creating an affordable bio-based lubricant that has an innovative combination of biodegradability and good lubricating properties.
In comparison to a conventional lubricant, the cost of these lubricants is significantly greater; a bio-based lubricant might cost somewhere between 30% and 40% more. Most bio-based products are priced to compete with mineral oil products of medium to high performance. However, in many situations where biodegradability, lubricity, viscosity, and fire protection are critical, higher-priced items can be justified.
Bio Lubricants Market Segment Insights
Bio Lubricants Oil Insights
The vegetable oil sector had the biggest revenue market share in 2023 and is predicted to continue to dominate the industry during the forecast period. Biolubricants generated from animal fats and vegetable oils are becoming increasingly popular due to their environmental benefits and widespread acceptability.
These lubricants are known for their good environmental impact, which has led to their increased acceptance across a variety of industries. Vegetable oils have high lubricity, surpassing that of mineral oils. Furthermore, vegetable oils have a high viscosity index and flash point.
The animal fat market is expanding at a rapid pace. As a bio-lubricant made from renewable resources, animal oil is better for the environment than other options. It contains rendered fats and oils from animal wastes. Using animal oil lessens our reliance on finite resources.
Many different types of machinery and tools can benefit from the exceptional lubricating properties of bio-lubricants made from animal oil. They minimize maintenance needs while providing optimal performance by effectively lubricating, protecting, and lasting.
Bio Lubricants Regional Insights
Bio Lubricants North America Market
North America dominated the bio-lubricants market in 2023 and is expected to hold that position during the forecast period. A resurgent automobile industry in the United States and Canada is predicted to drive the worldwide market, as is the US government's increasing regulatory interference in the use of traditional lubricants.
The United States Air factor promotes plant-derived biodegradable products as a strategic and basic approach to national defense, which is another market-directing factor. Rising government spending on bio-lubricants used in the marine and automotive industries is expected to generate profitable prospects for the market.
Bio Lubricants Asia Pacific Market
The bio-lubricants market in Asia Pacific is predicted to expand throughout the forecast period. The region is home to large vehicle manufacturing hubs. China, India, Indonesia, and other Southeast Asian countries are progressively manufacturing and exporting passenger automobiles and trucks to developed markets.
The shift of production facilities to Asian countries, owing to favorable government rules and lower labor costs, is predicted to boost regional industrialization and automotive investment. Furthermore, the growing trend toward more efficient, environmentally friendly automobiles is projected to boost both production and demand for biolubricants.
Bio Lubricants Top Companies and Competitive Landscape
The primary market share is fiercely competitive, with large oil firms competing against independent, small, and medium-sized specialist essential players. The market is now in its early stages of development. Still, it is highly concentrated, with prominent corporations such as Panolin, Fuchs, Total, Shell, Exxon Mobil Corporation, and BP plc owning the majority of the market. Global oil refiners, which formerly produced traditional lubricants, are now increasingly offering biodegradable lubricants for transportation uses.
For instance, in February 2023, Neste plans to offer a new line of Neste ReNewTM lubricants in Finland, Sweden, the Baltic States, and Poland in the first quarter of 2023. The new lubricants are made from renewable or re-refined base oils combined with high-quality additives. Nestle customers may use lubricants more responsibly and reduce their reliance on crude oil-based products owing to the solution.
Some of the key companies in the global Bio Lubricants Market include:
ExxonMobil
Biosynthetic Technologies
Royal Dutch Shell
Total S.A
Cargill
BP
Emery Oleochemicals
FUCHS Group
Panolin
Kluber Lubrication
Binol Lubricants
Bio Lubricants Latest Industry Updates
In January 2023, Biosynthetic Technologies, a prominent bio-lubricant manufacturer, announced the release of a new line of bio-lubricants for the automotive sector. The new line of lubricants is intended to suit the performance needs of current automobiles while still being environmentally friendly.
In February 2023, Green Earth Lubricants, another top lubricant company, announced the release of a new line of industrial lubricants. The new series of lubricants is intended to meet the stringent demands of industrial applications while still being environmentally benign.
Bio Lubricants Report Summary
Bio Lubricants Market Segmentation Analysis
By Base Oil Outlook (Revenue, USD Million; 2020-2033)
Vegetable oil
Animal fat
Others ( synthetic ester)
By Application Outlook (Revenue, USD Million; 2020-2033)
Hydraulic oil
Metalworking fluids
Chainsaw oil
Mold release agents
Two-cycle engine oils
Gear oils
Greases
Others (transformer oils, refrigeration fluids, and textile machinery oils)
By Distribution Channel Outlook (Revenue, USD Million; 2020-2033)
Industrial
Marine
Mining & Metallurgy
Energy & Power
Food & Pharmaceutical
Commercial Transport
Consumer Automobile
By Geography Outlook (Revenue, USD Million; 2020-2033)
North America
United States
Canada
Mexico
Europe
Germany
France
United Kingdom
Italy
Spain
Benelux
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle East and Africa
Saudi Arabia
UAE
South Africa
Turkey
Rest of MEA
