Biolubricants Market By Raw Material (Palm, Coconut Oil, Sunflower, Rapeseed & Others), By Base Oil (Vegetable Oils, Animal Oil, Synthetic Ester & Others), By Application (Hydraulic Fluids, Mold Release Agents, Chainsaw Oils, Greases, Engine Oils, Refrigeration Fluids & Others), By End-use Industry (Automotive [Passenger Vehicles (PVs), Light Commercial Vehicles (LCVs) & Heavy Commercial Vehicles (HCVs)], Building & Construction (Residential, Commercial, Industrial & Infrastructural), Oil & Gas (Onshore & Offshore), Metalworking, Marine (Passenger, Cargo & Others) & Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2022-2027

Report Code: CMR 0787 Report Format: PDF + Excel

Biolubricants Market Overview

The Biolubricants Market size is estimated to reach more than US$3.2 billion by 2027, after growing at a CAGR of 4.3% during the forecast period 2022-2027. Biolubricants are functional fluids that are prepared from animal and vegetable oils and downstream esters or natural sources or biomass, which are renewable feedstock, non-toxic and friendly to the environment. The preference for biolubricants in automotive vehicles as automotive engine oils, hydraulic fluids and others act as a driving factor for the growth of the biolubricants industry. According to the International Organization of Motor Vehicle Manufacturers (OICA), global automotive production increased from 77,621,582 units in 2020 to 80,145,988 units in 2021. In addition, the rapid inclination towards environment-friendly lubricants and favorable government policies for biolubricants are propelling the growth scope in the market. The major disruption caused by the COVID-19 outbreak impacted the growth of the Biolubricants market due to disturbance in manufacturing, supply chain disruption, falling demand from major end-use industries and other lockdown restrictions. However, significant recovery is boosting the demand for biolubricants for a wide range of applicability and utilization in automotive, construction, marine and other sectors. Thus, the Biolubricants industry is anticipated to grow rapidly and contribute to the Biolubricants market size during the forecast period.

Biolubricants Market Report Coverage

The “Biolubricants Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Biolubricants Industry.

By Raw Material: Palm, Coconut Oil, Sunflower, Rapeseed and Others.
By Base Oil: Vegetable Oils, Animal Oil, Synthetic Ester and Others.
By Application: Hydraulic Fluids, Mold Release Agents, Chainsaw Oils, Greases, Engine Oils, Refrigeration Fluids and Others.
By End-use Industry: Automotive [Passenger Vehicles (PVs), Light Commercial Vehicles (LCVs) and Heavy Commercial Vehicles (HCVs)], Building & Construction (Residential, Commercial, Industrial and Infrastructural), Oil & Gas (Onshore & Offshore), Metalworking, Marine (Passenger, Cargo and Others) and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World [the Middle East (Saudi Arabia, the UAE, Israel and the Rest of the Middle East) and Africa (South Africa, Nigeria and the Rest of Africa)].

Key Takeaways

  • Asia-Pacific dominates the Biolubricants Market, due to growth factors such as the flourished base for the automotive sector, flourished construction projects and fast-paced industrialization.
  • The flourishing automotive industry sector across the world is propelling the demand for Biolubricants for major utilization in automotive engine oils and others in lightweight and fuel-efficient vehicles. This is influencing the growth in the Biolubricants market size.
  • However, the high costs associated with Biolubricants and functional drawbacks act as a challenging factor in the Biolubricants industry.

Figure: Biolubricants Market Revenue Share by Geography, 2021-2027 (%)
Biolubricants Market
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Biolubricants Market Segment Analysis – by Base Oil

The vegetable oils segment held a significant share in the Biolubricants Market in 2021 and is projected to grow at a CAGR of 4.4% during the forecast period 2022-2027. The vegetable oil segment is significantly growing compared to the animal oil type due to its superior features such as biodegradability, cost-effectiveness, high lubricity, non-toxicity and the availability of vegetable-based raw materials such as soya bean, rapeseed, canola and others for the base oil. Furthermore, the major advantage of renewability and biodegradability is fueling the growth scope for the vegetable oil segment in the Biolubricants market during the forecast period.

Biolubricants Market Segment Analysis – by End-use Industry

The automotive segment held a significant share of the Biolubricants Market in 2021 and is projected to grow at a CAGR of 4.9% during the forecast period 2022-2027. Biolubricants are functional fluids, which are prepared from the renewable feedstock or biomass feedstock. They have growing applications in the automotive sector for engine oils, hydraulic fluids and others due to their major contribution to fuel-efficient and low-carbon emission vehicles. The lucrative growth scope for the automotive sector is influenced by factors such as initiatives for vehicle electrification, flourished public transportation and urbanization. According to the European Automobile Manufacturer Association, South America's car production grew by 11%, while U.S. car production grew by 3.1% in 2021. According to the International Organization of Motor Vehicles Manufacturers (OICA), the global production of passenger cars increased from 55,834,456 units in 2020 to 57,054,295 units in 2021. With the rapid growth scope and established automotive production, the utilization of Biolubricants in fuel-efficient and low-emissions vehicles is projected to rise, which, in turn, is anticipated to boost its growth scope in the automotive sector during the forecast period.

Biolubricants Market Segment Analysis – by Geography

Asia-Pacific dominated the Biolubricants Market in 2021 with a share of up to 34.6%. The lucrative growth scope for biolubricants in this region is influenced by the rise in the automotive manufacturing base, flourishing transportation sector, rising spending on construction projects and urbanization. The lucrative growth of the automotive sector in Asia-Pacific is influenced by the flourished base for the automotive sector and growing demand for public transportation. According to the Federal Chamber of Automotive Industries, the new vehicle registration in Australia represented an increase of 1.2%, with 101,233 units in March 2022 compared to March 2021. According to the India Brand Equity Foundation (IBEF), the automotive industry in India is expected to reach US$251.4-282.8 billion by 2026. With the bolstering growth and rising production in the automotive sector in APAC, the utilization of Biolubricants in engine oils for vehicles is growing, which, in turn, is projected to boost its growth prospects in the Asia-Pacific region during the forecast period.

Biolubricants Market Drivers

Favourable Government Regulations on Biolubricants Usage:

Biolubricants, which are prepared from animal and vegetable oils and downstream esters or natural sources or biomass (renewable feedstock), are increasingly preferred over mineral-based oil. Various favorable government policies are supporting the increasing demand for bio-based lubricants. For instance, the U.S. EPA had established laws, stating the mandatory Vessel General Permit (VGP) for all marine boats playing in the U.S. waters to use environment-friendly and bio-based lubricants in all oil-to-sea interfaces. In addition, biolubricants products are a greener alternative to conventional mineral-based or petroleum-based options. Furthermore, the Vessel General Permit (VGP) is crucial legislation in North America. Similarly, Blue Angel in Germany, VAMIL Regulations in the Netherlands and Swedish Standard in Sweden govern the output embodied in lubricants. Thus, such favorable regulations are boosting the demand for Biolubricants, thereby driving the Biolubricants industry.

Flourishing Growth of the Building & Construction Sector:

The Biolubricants are functional fluids based on vegetable oil or biodegradable feedstock and animal base oil. They have major applicability in the building & construction sector across residential, commercial, industrial and others for refrigeration oil, lubrication, greases and others. The construction sector is growing significantly due to growth factors such as rising government for infrastructural projects, residential housing projects and rapid industrialization. According to Oxford Economics, the global construction output in 2020 accounted for US$10.7 trillion and is projected to grow by 42% to reach US$15.2 trillion between 2020 and 2030. According to the United States Census Bureau, the total construction spending in the U.S. increased from US$1.62 million in May 2021 to US$1.77 million in May 2022. With the fast-paced growth scope for the building & construction sector, the demand for biolubricants in building structures due to their low toxicity and environmental-friendly features is increasing. This is thereby driving the global Biolubricants industry.

Biolubricants Market Challenge

High Costs Associated with Biolubricants:

The high costs associated with Biolubricants and a lack of lubrication features create a major challenge in the Biolubricants market. In addition, the usage of biolubricants as base oil faces major constraints, such as poor low-temperature features, low oxidative properties and narrow viscosities range. The mitigation of these drawbacks leads to high costs of production and alternation in formulations. Due to such factors, the global Biolubricants market faces a major slowdown in its growth.

Biolubricants Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Biolubricants Market. The 10 companies in the Biolubricants Market are:

1. ExxonMobil
2. TotalEnergies
3. Royal Dutch Shell Plc
4. RSC Bio Solutions
5. Renewable Lubricants Inc.
6. Cargill Inc
7. Balmer Lawrie & Co. Ltd
8. KAJO Group
9. Polnox Corporation
10. BECHEM

Recent Developments

  • In December 2021, RSC Bio Solution and Standard Sekiyu Osaka Hatsubaisho Co., ltd announced the latest distribution partnership to meet the growing demand for Environmentally Acceptable Lubricant (EAL) in Japan, offering services in industrial and marine applications.
  • In April 2020, FUCHS and BASF collaborated for the sustainability assessment and sustainable lubricant products – Life Cycle Analysis of hydraulic fluids. The collaboration of both companies jointly pioneered the sustainability aspects within the lubricant sector.

Relevant Reports

Report Code: CMR 0128

Report Code: CMR 34342

Report Code: CMR 1064

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1. Biolubricants Market - Market Overview
    1.1 Definitions and Scope
2. Biolubricants Market - Executive Summary
    2.1 Key Trends by Raw Material
    2.2 Key Trends by Base Oil
    2.3 Key Trends by Application
    2.4 Key Trends by End-use Industry
    2.5 Key Trends by Geography
3. Biolubricants Market – Comparative analysis
    3.1 Market Share Analysis - Major Companies
    3.2 Product Benchmarking - Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis - Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Biolubricants Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Biolubricants Market – Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Biolubricants Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Biolubricants Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Biolubricants Market – by Raw Material (Market size – US$ Million/Billion)
    8.1 Palm
    8.2 Coconut Oil
    8.3 Sunflower
    8.4 Rapeseed
    8.5 Others
9. Biolubricants Market – by Base Oil (Market size – US$ Million/Billion)
    9.1 Vegetable Oil
    9.2 Animal Oil
    9.3 Synthetic Ester
    9.4 Others
10. Biolubricants Market – by Application (Market size – US$ Million/Billion)
    10.1 Hydraulic Fluids
    10.2 Mold Release Agents
    10.3 Chainsaw Oils
    10.4 Greases
    10.5 Engine Oils
    10.6 Refrigeration Fluids
    10.7 Others
11. Biolubricants Market - by End-use Industry (Market Size - US$ Million/Billion)
    11.1 Automotive
        11.1.1 Passenger Vehicles (PVs)
        11.1.2 Light Commercial Vehicles (LCVs)
        11.1.3 Heavy Commercial Vehicles (HCVs)
    11.2 Building & Construction
        11.2.1 Residential
        11.2.2 Commercial
        11.2.3 Industrial
        11.2.4 Infrastructural
    11.3 Oil & Gas
        11.3.1 Onshore
        11.3.2 Offshore
    11.4 Metalworking
    11.5 Marine
        11.5.1 Passenger
        11.5.2 Cargo
        11.5.3 Others
    11.6 Others
12. Biolubricants Market - by Geography (Market Size - US$ Million/Billion)
    12.1 North America
        12.1.1 The USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 The UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 The Netherlands
        12.2.6 Spain
        12.2.7 Belgium
        12.2.8 The Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zealand
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 The Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 The Rest of South America
    12.5 The Rest of the World
        12.5.1 The Middle East
            12.5.1.1 Saudi Arabia
            12.5.1.2 The UAE
            12.5.1.3 Israel
            12.5.1.4 The Rest of the Middle East
        12.5.2 Africa
            12.5.2.1 South Africa
            12.5.2.2 Nigeria
            12.5.2.3 The Rest of Africa
13. Biolubricants Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Biolubricants Market – Industry/Competition Segment Analysis Premium
    14.1 Company Benchmarking Matrix – Major Companies
    14.2 Market Share at Global Level - Major companies
    14.3 Market Share by Key Region - Major companies
    14.4 Market Share by Key Country - Major companies
    14.5 Market Share by Key Application - Major companies
    14.6 Market Share by Key Product Type/Product category - Major companies
15. Biolubricants Market – Key Company List by Country Premium Premium
16. Biolubricants Market Company Analysis - Business Overview, Product Portfolio, Financials and Developments
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10 and more
* "Financials would be provided to private companies on best-efforts basis."
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