Bio-Lubricants Market - Segmented by Product Type, End-user Industry, and Geography - Growth, Trends, and Forecast (2018 - 2023)
The bio-lubricants market is expected to register moderately high growth during the forecast period. The demand for bio-lubricants in Asia-Pacific is expected to grow at a fastest rate, owing to the rising automotive production and sales in the region.
Increasing Regulations across the Globe to Drive the Demand
Bio-based lubricants are environment-friendly, and do not have any toxic effect on the ecosystem. Bio-based lubricants do not cause skin inflammation, which is generally caused by petroleum-based lubricants. However, these lubricants have various advantages, such as reduction in energy usage, reduction in labor cost, increased employee safety, improved environmental conditions, increased machine life, and increased production. For instance, The Food, Conservation and Energy Act of 2008, the Farm Security and Rural Investment Act of 2002, Presidential Executive Order #13423, and the Federal Acquisition Regulations (FAR) support the usage of bio-based lubricants. These legislations require government agencies to purchase bio-based lubricants instead of petroleum-based lubricants. This highlights the importance of considering food grade lubricants for industrial and machinery lubrication. Increasing environmental regulations, such as the Vessel General Permit (VGP) in developed nations (like the United States and European countries), coupled with new and upcoming R&D firms, are expected to boost the bio-lubricants market during the forecast period.
Hydraulic Fluids to Dominate the Market
Hydraulic fluids are used as a medium for transferring power and energy in hydraulic systems. Additionally, they are used for heat transfer, sealing, contaminant removal, and lubrication. They are incompressible fluids that are used as a power transmitting media in hydraulic systems. Majority of the hydraulic fluids are based on mineral oils. However, owing to accelerated regulation of environmental and human safety factors, primarily due to growing pressure on policy makers to curb the deterioration of the environment, the companies are developing bio-based hydraulic fluids. According to suppliers and current users of bio-based hydraulic fluids, they do not normally face any compatibility issues. The performance and physical characteristics of vegetable-based hydraulic oils vary with the type of base oil chosen and additives that are used.
North America and Europe to Lead the Market
Europe and North America, combined, hold the largest share in the market. This is primarily due to the robust demand from the United States and Germany. 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, 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. Germany is another major consumer of bio-lubricants. This is primarily due to the increasing demand from construction, forestry and agriculture, and other industrial applications
Major Players - Klüber Lubrication, FUCHS, Panolin AG, Total, BP PLC, Emery Oleochemicals, and Royal Dutch Shell, among others.
Reason to Purchase the Report
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- To understand end-user industry that is dominating in the market
- Countries expected to witness the fastest growth during the forecast period
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3 months analyst support, along with the Market Estimate sheet (in Excel)
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