Bio-lubricants also known as bio-lubes are the biodegradable and nontoxic lubricants. Bio-lubricants are generally produced by using raw material like rapeseed oil, sunflower oil, palm oil, coconut oil and animal fats. The report includes Bio-Lubricants market by type (Vegetable Oils, Animal Fat, and Others), application (Gear Oils, Greases, Chainsaw Oils, Hydraulic Fluids, Metalworking Fluids, Mold Release Agents, Two-Cycle Engine Oils, and Others), end-user industry (Transportation and Industrial) and Geography.
Market Dynamics
Drivers
- Stringent regulations on petroleum based lubricants
- Increased end-user applications
- Rising demand from emerging economies
Restraints
- Inadequate oxidative stability
- High price as compared to conventional lubricants
Increased end-user applications will drive the global market for Bio-Lubricants
The demand of bio-lubricants is driven by application of end-products in various industries such as the industrial, automotive, marine, transportation, steel, construction, and mining.
The bio-lubricants are utilized in increasing number of industrial fluids such as hydraulic oils, chainsaw oils, spindle oils, metalworking fluids, industrial gear oils, and greases.
Most lubricants are discharged into the environment after use. Thus the industry focus is shifting towards bio-based lubricants which are eco-friendly, provide better equipment service life and surface finish compared to petroleum-based lubricants.
The industries require lubricants that possess excellent lubricity, reduce downtime, reduce energy consumption, improve environmental conditions, increase tool life, and boost operational efficiency. Bio-lubricants fulfill such criteria made mandatory for the production and manufacturing sector, further driving the growth of the market.
Geographical Analysis
The Global Bio-Lubricants market is segmented by geography into North America, South America, Europe, Asia-Pacific, and Rest of the World.
Europe holds the largest market share by region owing to rising consumer awareness about the benefits associated with use of bio-lubricants and implementation of stringent regulations put forth by organizations such as the EU Ecolabel and the European Committee for Standardization (CEN).
Asia-Pacific is the fastest growing segment owing to environment friendly industrialization measures undertaken by private and public companies with the purpose of reducing marine pollution. China is expected to be the major contributor to the growth factor with demand of bio-lubricants driven by increasing vehicular ownerships and growth of the automotive sector.
The bio-lubricants market in Germany holds a significant share in the global market scenario as successful implementation of Ecolabel regulations such as the Blue Angel have set high standards of product design for a more sustainable manufacturing process.
North America holds the significant market share in the global bio-lubricants market owing to stringent environmental regulations and consumer interest towards greener alternatives.
Transportation is the primary consumer of bio-lubricants.
Automotive vehicles consumption and light vehicle sales in North America is growing at a steady growth rate which will have a positive impact on the lubricants market.
Increasing R&D investments by lubricants manufacture especially in the United States, and Canada is one of the primary drivers for the North American bio-lubricants market.
Owing to strict environmental regulation by the United States and Canada governments, the lubricants companies are investing in the new type of lubricants such as bio-lubricants.
Moreover, Industrial lubricants will have a prominent share in the North American bio-lubricant applications.
United States
Bio-based lubricants have been gaining importance in the United States owing to their environmentally friendly properties. Growing emphasis on marine pollution through the unregulated disposal of conventional counterparts has also been a significant factor in the development of bio-based alternatives. Rising popularity of these sustainable products is expected to influence the industry growth over the forecast period negatively.
The bio-lubricants market in the United States has crossed its nascent stage and has been growing at a moderate rate. Chemical registration policies in the United States played a crucial role in incentivizing greater adoption of bio-lubricants.
In the marine industry, the United States Environment Protection Agency’s (EPA) launched a policy of Vessel General Permit (VGP), which became effective in December 2013. According to this permit, any vessel greater than 79 feet has to use environmentally acceptable lubricants (EAL) in all oil-to-sea interfaces, increasing the usage of bio-lubricants.
Growing automotive consumption and consumer preferences towards green alternatives are major factors for the United States market growth.
Canada
The use of bio-lubricants is higher in Canada owing to an increase in product awareness among consumers and continued governmental support towards bio-based lubricant products.
The number of toxins present in bio-lubricants is significantly lesser than other lubricants. Thus, bio-lubricants are increasingly used in marine and industrial applications. The abundance and easy availability of biolubricant feedstock such as rapeseed and canola in Canada drive the market growth rate.
Key bio-lubricant companies present in Canada include Chevron Corporation, Exxon Mobil Corporation, Royal Dutch Shell PLC, Altranex Corp., Maryn International Ltd., and Crevier Group.
Companies focus on strategic partnerships with local suppliers and contractors which helps to foster local economic development and fulfill the demand of global product demand.
In February 2017, Chevron Corporation made an equity investment into Novvi LLC (a joint venture of Amyris, Inc., Cosan S.A., and American Refining Group, ARG), which delivers sustainable, high-performance bio-based solutions in a range of lubricant applications.
Mexico
The use of bio-lubricants in Mexico is driven by the ability of bio-lubricants to improve processing efficiencies, deliver outstanding technical performance and enhance environmental safety.
The bio-lubricant production remains highly dependent on the supply of raw materials such as vegetable and animal oils. The high production costs as compared to mineral oil lubricants and lack of public awareness related to the benefits of bio-based lubricants hinder growth rate of the Bio-Lubricants market in Mexico.
The major companies present in Mexico include ExxonMobil Mexico, S.A. de C.V., Fuchs Petrolub AG, Panolin AG, and Total SA.
A vital component of the business strategy includes the formation of joint ventures and collaborations with local suppliers and manufacturers to expand product portfolio and market reach.
In July 2018, Repsol S.A. reached an agreement with Mexican lubricants company Bardahl to acquire 40% of its share capital, which will allow Repsol to manufacture and sell its lubricants in Mexico through Bardahl, a company with extensive experience and recognition that operates one of the most modern production plants, located in Toluca, Mexico.
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