Global Bio-Based Lubricants Market Size, Share & COVID-19 Impact Analysis, By Product Type, By Application, By End-Users, and Regional Forecast, 2024-2032

Global Bio-Based Lubricants Market Size, Share & COVID-19 Impact Analysis, By Product Type, By Application, By End-Users, and Regional Forecast, 2024-2032

Global Bio-Based Lubricants Market was valued at US $ 3.08 billion in 2023 and is expected to reach US $ 4.26 billion by 2032 growing at a CAGR of 4.7% during the forecast period 2024 – 2032.

Bio-based, biodegradable base stocks are used in the production of bio lubricants. Over the course of the forecast period, it is anticipated that growing demand for bio-based lubricants in the manufacturing and transportation sectors will drive market expansion. Does the growing usage of bio-based lubricants depend only on greater environmental consciousness and stricter laws? How did the industry come to accept it? Furthermore, new markets for bio lubricants will undoubtedly present themselves thanks to legislation and government spending on R&D and product development.

One of the main drivers of recent industrial expansion has been the rise in passenger car demand in developing nations. Over this time, it is anticipated that the favourable regulatory environment would promote the creation and application of bio-based lubricants. All maritime vessels operating in the United States are required by the U.S. EPA to obtain a Vessel General Permit (VGP) and use environmentally preferred lubricants whenever oil comes into contact with the sea. The adoption of vegetable and plant-based lubricants is being encouraged by a number of environmental problems associated with traditional oils. It is anticipated that the product segment will be able to accommodate the expanding demands of transportation and industry in developed regions.

“Biodegradable synthetics segment, by product type, to be dominating market from 2023 to 2030.”

During the forecast period, biodegradable synthetics is expected to dominate the market. Lubricants made from synthetic esters have been around since the 1950s. But at the moment, producers of bio-based lubricants are strongly inclined to use synthetic esters rather than vegetable oil. In other words, synthetic esters are more abundant in nature than the advantages that come with vegetable oil. However, synthetic esters are preferred for lubricant applications that require regular changes (such as hydraulic fluid, engine oil, and stern tube thrusters). Numerous companies, including TotalEnergies, Fuchs, and Condat, also manufacture lubricants containing synthetic esters.

“Hydraulic Fluid segment, by application, to be dominating market from 2023 to 2030.”

The area of the market that directly competes with regular oil is the one pertaining to hydraulic fluid. The market for bio-based hydraulic fluid appears to be expanding because it may be used in mining, forestry, and agriculture equipment.

“Marine segment, by end user, to be dominating market from 2023 to 2030.”

In the market for bio-based lubricants in 2023, the marine sector held the most share of the market. However, it is anticipated that the automotive sector is expected to be the fastest growing segment in end user in the bio-based lubricants market during the forecast period. Due to mounting legislative demands and the aim to prevent a repeat of the oil spill from last year, bio-based lubricants have been used on warships more and more. This is a great illustration of a regulated marine sector. In addition to the vessel grant permit intended to increase the market for biodegradable lubricants and reduce carbon emissions during ship equipment operation, there are a number of primary regulations set forth by IMO 2021 that apply to marine vessels.

“North America to be largest and fastest growing region in bio-based lubricants market.”

The bio-based lubricant market in North America has grown significantly in the last several years. The United States is an important nation in this region because of its enormous gross domestic output. Today, the United States is a leading hub for the production of bio-based lubricants, drawing international corporations to establish their operations due to its robust transportation system and stringent regulations governing emissions from internal combustion engines.

Over the course of the forecast period, the bio-based lubricant market in Asia-Pacific is anticipated to grow at the fastest rate. China, Indonesia, and Malaysia are at the top of the area. Demand from these regions is expanding, including the mining and transportation sectors, the automotive and transportation industries, and manufacturing machinery that affects all industry sectors varyingly. This is due to governments imposing ever-tougher requirements on reduction of carbon emissions. For instance, Indonesia and Malaysia are major producers of palm oil in the Asia-Pacific region, whereas India ranks third in terms of rapeseed production and is the biggest producer of castor oil. As a result, lubricant manufacturers are focusing more on expanding their manufacturing plants in Asia, where labour is less expensive and raw materials are easily manufactured.

The basis for consumption is also impacted by foreign investment, a growing middle class with higher living standards dispersed throughout APAC, and expansive manufacturing output (a product of the policy-friendly atmosphere).

Bio-Based Lubricants Competitive Landscape

The competitive landscape of the Bio-Based Lubricants market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Bio-Based Lubricants holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Bio-Based Lubricants market is highly competitive, with numerous companies vying for market share. Prominent companies in the Bio-Based Lubricants Market include:

Castrol, Renewable lubricants, FUCHS, Addinol, TotalEnergies, Condat, Cortec Corporation, Exxon Mobil Corporation, DuBois Chemicals, Haynes Lubricants, Environmental Lubricants Manufacturing, Lubriplate Lubricants Company, Kluber Lubrication, Panolin AG, Metalube, Vickers Oil, Repsol

Recent Developments:

In April 2022, Eneos announced to make lubes with biobased base oils. It is first firm in Japan to successfully create lubricants and others utilising 100% of these newly developed base oils, which are composed entirely of carbon and hydrogen.

The Abu Dhabi National Oil Company (ADNOC) introduced new biodegradable engine lubricants composed entirely of plant oil to the UAE market in March 2020.

A joint venture agreement was struck in 2021 by Exxon Mobil and BioAccelergy to produce lubricants derived from vegetable and seed oils. This joint venture would increase Exxon Mobil's sustainability while also advancing its technological capabilities.

Steel wire ropes and umbilical cables in maritime conditions can be protected and greased with Metalube's environmentally friendly, biodegradable lubricants, which were introduced in 2019. Its lubrication product blends biodegradable materials that are safe for aquatic life with high-performance additives.