Biolubricants Market Size, Share & Industry Analysis, By Application (Hydraulic Fluids, Metalworking Fluids, Chainsaw Oils, Mold Release Agents, Two-Cycle Engine Oils, Gear Oils, Greases, and Others), By End-use Industry (Automotive and Other Transportation, Metalworking, Mining, Forestry, Marine, Engines, and Others), and Regional Forecast, 2024-2032

The global biolubricants market size was valued at USD 3.26 billion in 2023 and is projected to grow from USD 3.44 billion in 2024 to USD 4.90 billion by 2032, exhibiting a CAGR of 4.7% during the forecast period. North America dominated the biolubricants market with a market share of 44.78% in 2023. The biolubricants market in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.96 billion by 2032, driven by regulatory support and demand from automotive and industrial sectors.

The widely accepted fact about bio-lubricants is that sustainable and biodegradable base stocks are used to formulate them. The global demand for bio-based lubricants is projected to witness substantial growth during the forecast period due to the growing usage of these chemicals in the transportation & manufacturing industries. The increasing demand for bio-based lubricants is mainly due to the rising awareness and understanding of the environment, the introduction of strict legislation, and the acceptance by industries of bio-based lubricants. In addition, the introduction of legislation and the rise in government spending on research and development and product innovation are projected to create lucrative opportunities for the biolubricants market growth.

Beyond the negative effect on volume demand, COVID-19's adverse repercussions may result in the postponement or even the extension of regulations regarding conventional lubricants. Meanwhile, the automobile industry in Europe has called on the European Commission to loosen its carbon dioxide reduction goals. In addition, investment inflows will most likely decrease or halt for most of 2020 due to COVID-19.

Global Biolubricants Market Key Takeaways

Market Size & Forecast:

• 2023 Market Size: USD 3.26 billion
• 2024 Market Size: USD 3.44 billion
• 2032 Forecast Market Size: USD 4.90 billion
• CAGR: 4.7% from 2024–2032

Market Share:

• North America dominated the biolubricants market with a 44.78% share in 2023, supported by regulatory mandates and increased use across automotive and industrial sectors in the U.S. and Canada.
• By application, hydraulic fluids held the largest market share in 2023, primarily due to their usage in forestry, agriculture, and industrial machinery operating in environmentally sensitive areas.

Key Country Highlights:

• United States: Market leadership is supported by environmental regulations like the Vessel General Permit (VGP) and increased adoption in marine and industrial applications.
• China: Rapid industrial development and growing adoption of bio-based solutions are driving market growth in the manufacturing and automotive sectors.
• Germany: Strong regulatory framework and promotion of bio-based alternatives have positioned Germany as a key market for biolubricants within Europe.
• India: Demand is increasing due to expanding manufacturing and agriculture sectors along with supportive government initiatives for sustainable products.
• Brazil: Rising awareness and growing adoption in automotive and industrial applications are contributing to the development of the biolubricants market in Latin America.

Biolubricants Market Trends

Biodegradable Lubricants to Replace Mineral Oil-Based Lubricants

The increased use of biolubricants as an acceptable substitute for petroleum-based oils has solved environmental issues. Plant oils and animal fat are gradually being used as renewable raw materials. In the field of lubricants, environmental and economic considerations contribute, after necessary chemical changes, to the use of plant oils and animal fats or used oils and fats. Vegetable oil-based lubricants, including biodegradability, cost-effectiveness, renewability, and lower environmental impacts, give major advantages over petroleum-based lubricants. In the market, mineral oil-based lubricants are commonly used. Lubricant use is immense, and as a result of leakages, injuries, instability, and overall failure applications, 50% of the quantity is released back into the atmosphere. Fresh lubricant is altered several times before being discarded into the environment. Such losses have severely impacted the atmosphere by allowing air, freshwater, and soil to become polluted. With rising public awareness about the environmental effects of mineral oil-based lubricants, the need for biodegradable bio-based lubricants has increased.

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Biolubricants Market Growth Factors

Stringent Government Regulations Governing Oil-based Lubricants to Boost Market

The United States and Europe are the most advanced regions on the regulatory front, having introduced obligatory and optional programs encouraging the use of bio-based materials over the entire service life of goods and services due to their lower environmental impact. The Vessel General Permit (VGP) is the most impactful legislation in North America. Europe has the EU eco-label, a forum primarily focused on established eco-labels from various European countries, including Germany (Blue Angel), the Netherlands (VAMIL Regulation), and Sweden (Swedish Standard). End-use businesses are eager to introduce lubricants of high quality and outstanding output embodied in lubricants and machines' energy efficiency and extended lifespan. While environmental responsibility and public opinion are important, a secondary focus is given to these facets. If the EU Ecolabel is set to hit a wider range of end-users, more concrete initiatives, such as balancing price, efficiency, and sustainability, are required. A popular assumption is that stricter standards, such as limiting the use of compounds (including lubricant additives such as intense heat, corrosion inhibitors, and biocides) containing the harmful properties required to satisfy efficiency specifications, concern the authorities.

Regulators are imposing tougher requirements for renewability as well. There are signs that the renewable content of 25% to -50% will rise to 60% or even 80%. Although benefiting the bio-synthetic base stock and the oleo chemical synthetic esters, this would exclude the petrochemical synthetic base stock from the bio-based lubricants industry. A systematic approach is being taken today as the lifecycle of bio-lubricants is being analyzed, including the environmental effects of bio-based lubricants through processing, use, and disposal. Special focus is placed on motor oil for cars. The growing interest in environmental issues would benefit bio-based lubricants, but also from the background of current regulations. Consequently, the current favorable climate for bio-based lubricants makes market players very positive about the sustainability of an evergreen industry.

Rapid Development of New and Advanced Technologies to Make Bio-Lubricants More Efficient and Cost-Effective to Fuel Market Growth

Biolubricants are gaining popularity as a sustainable alternative to traditional petroleum-based lubricants. The development of new and advanced technologies is playing a key role in enhancing the efficiency and cost-effectiveness of these eco-friendly lubricants. Recent technological advancements have enabled the production of high-performance bio-lubricants that are more efficient and cost-effective than ever before. For instance, nanotechnology has led to the development of nanofluids and bio-lubricants containing nanoparticles. These nanoparticles enhance the lubrication performance of the bio-lubricants by reducing friction and wear. Similarly, the use of ionic liquids has led to the development of more stable biolubricants with a longer shelf life.

The increasing demand for environmentally friendly lubricants is driving the growth of the biolubricants market. Industries such as automotive, manufacturing, and aerospace are adopting bio-lubricants to reduce their carbon footprint and comply with environmental regulations. Bio-lubricants' cost-effectiveness is also driving their adoption, as they offer a longer service life and reduce maintenance costs. As the demand for sustainable lubricants continues to grow, we can expect to see further advancements in bio-lubricant technology, leading to even more efficient and eco-friendly lubricants.

RESTRAINING FACTORS

High Cost of Bio-Based Lubricants and Low Lubricating Properties to Hamper Market

Vegetable oil-based lubricants are organic and largely biodegradable and can thus be used as a potential alternative for conventional lubricants. However, their direct use as base oil is constrained by their low oxidative properties, thermal and hydrolytic stability, poor low-temperature properties, and a narrow range of accessible viscosities. These drawbacks can be mitigated through proper chemical alterations, formulations with antioxidants, and combinations with mineral oils. However, they contribute to increased costs, contamination, and biodegradability decline. Therefore, it is a great challenge to produce a cost-effective bio-based lubricant with a groundbreaking combination of biodegradability and high lubricant properties.

The cost of these lubricants is a significant hurdle in contrast to a conventional lubricant; a bio-based lubricant costs anywhere between 30% and 40% higher. Most bio-based products are priced to compete with mineral oil products that are mid- to high-performance. However, for use in many applications where biodegradability, lubricity, viscosity, and fire protection are particularly significant, higher-priced goods can also be justified.

Biolubricants Market Segmentation Analysis

By Application Analysis

Hydraulic Fluids Segment to Hold a Substantial Share of the Global Market

Based on application, the market is segmented into hydraulic fluids, metalworking fluids, chainsaw oils, mold release agents, two-cycle engine oils, gear oils, greases, and others.

The hydraulic fluids segment held the major market share in 2023. To improve operations such as harvesters, cranes, tractors, or load carriers in forests, bio-based lubricants are often used as hydraulic fluids. Many manufacturers of bio-based lubricants are mindful of this market opportunity and currently have and/or are designing products that represent areas most vulnerable to spills and applications that are lost in usage.

Another lost-in-use application that requires additional lubrication of chainsaw bars and chains is a bar and chain oil. This is a tiny but potentially lucrative market, provided that most chainsaws are used outdoors, and most are used in environmentally vulnerable areas such as forests and agriculture. In the lubrication of chainsaws, bio-based lubricants are used. Oil is exposed to a centrifugal force during the operation of the instrument and extended across the forest floor.

By End-use Industry Analysis

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Automotive and Other Transportation Segment to Expand Rapidly Due to Low Toxicity and Strong Lubricating Properties

The market is segmented by end-use industry into automotive and other transportation, metalworking, mining, forestry, marine, engines, and others.

In terms of volume, the automotive and other transportation segments accounted for the primary market share in 2023. In the automobile and machinery industries, considerable interest is concentrated on maximizing the environmental friendliness, longevity, performance, and energy efficiency of lubricant materials. Due to their low toxicity, strong lubricating properties, high viscosity index, high combustion temperature, the extended service life of machines, and others, bio-based lubricants are potential replacement lubricants in the automotive industry.

Many industries are using bio-based metal cutting oils and coolants for gear cutting, grinding, and general machining. Bio-based metalworking fluids have several advantages over petroleum-based materials, aside from the environmental benefits such as superior viscosity/pressure performance, lower volatility, higher flash point, less smoke and risk of fire, and others. Bio-greases are especially suitable for the lubrication of forestry equipment, construction vehicles, rail curves, rail flanges, and marine applications. There is a simple loss-lubrication condition in all the above cases, where the lubricating grease inevitably ends up in either soil or water. The market currently consists of many high-performance bio-greases, but the amount generated remains scanty.

REGIONAL INSIGHTS

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North America dominated the biolubricants market with a market size of USD 1.46 billion and a share of 44.79% in 2023, likely to maintain its position during the forecast period. A revitalized automotive industry in the U.S. and Canada is expected to drive the global market along with the growing regulatory intervention by the U.S. government regarding the use of conventional lubricants. As a strategic & basic approach to national defense, which is another guiding force for the market, the U.S. Air Force also encourages plant-derived biodegradable products. The rising governmental spending on bio-lubricants used in the marine and automotive industries is likely to create lucrative opportunities for the market.

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Asia Pacific is home to major automotive production centers other than developed ones such as the U.S. and Germany. China, India, Indonesia, and Thailand manufacture and sell passenger cars and other vehicles to developed regions. The shift of manufacturing facilities to Asian countries is projected to further increase automobile spending and industrialization due to favorable government policies and cheap labor. In addition, a change in the trend toward sustainable, more productive vehicles is expected to fuel this market in the region.

The use of bio-based chemicals in Europe is being encouraged by strict legislation and the ongoing shift toward a bio-economy in Germany, Italy, the Nordic countries, Benelux countries, and France.

The growing awareness of biodegradable lubricants in Latin America is expected to drive the market during the forecast period. Moreover, high growth in major end-use industries, such as automotive, mining, metalworking, and others, is expected to boost the market in the region.

The fast growth of the market for base oil, combined with rapid industrialization, population growth, and urbanization is expected to boost the Middle East & Africa market growth and witness significant growth rate during the forecast period. Strong demand for high-performance, premium passenger cars has risen from rapid economic growth combined with a rising standard of living. Such trends have largely drawn strong investments from international automotive manufacturers, which is likely to fuel the market.

List of Key Companies in The Biolubricants Market

Strategic Planning Adopted by Companies to Strengthen their Market Share

The key market share is intensely competitive, with large oil companies battling with independent, small & medium-sized specialist key players. The market is currently in a nascent growth stage, but with the major share owned by top companies, such as Panolin, Fuchs, Total, Shell, Exxon Mobil Corporation, and bp p.l.c., the market is strongly concentrated.

Global oil refiners, historically engaged in manufacturing conventional lubricants, are rapidly supplying biodegradable lubricants for transport applications. In addition to the above-mentioned companies, most suppliers are small businesses based solely on R&D in bio-based lubricants. Several other companies, such as Cargill, Axel Christiernsson, BECHEM, Cortec Corporation, Environmental Lubricants Manufacturing, Inc., Klüber Lubrication, and Novvi, LLC, are active participants in the market.

LIST OF TOP BIOLUBRICANTS COMPANIES:

• PANOLIN AG (Switzerland)
• FUCHS (Germany)
• Shell (Netherlands)
• Exxon Mobil Corporation (U.S.)
• Total (France)
• Cargill (U.S.)
• Axel Christiernsson (Sweden)
• BECHEM (Germany)
• Cortec Corporation (U.S.)
• Environmental Lubricants Manufacturing, Inc. (U.S.)
• Klüber Lubrication (Germany)
• Novvi, LLC. (U.S.)
• Repsol (Spain)
• bp p.l.c. (U.K.)
• Emery Oleochemicals (Malaysia)
• IGOL (Norway)
• LanoPro (Norway)

KEY INDUSTRY DEVELOPMENTS:

• April 2023 - Exxon Mobil planned to invest USD 110 million in a lubricant production facility in India, which is expected to begin operations by the end of 2025. The plant aims for a production capacity of up to 159 million liters of lubricants annually, catering to the growing demand across various sectors, such as manufacturing, steel, power, mining, and construction, as well as the commercial and passenger vehicle industries.
• July 2022 - Chevron Corporation launched a new synthetic grease that complies with the 2013 Vessel General Permit regulations for environmentally acceptable lubricants. This biodegradable product is versatile and exhibits optimal flow characteristics, making it compatible with various sectors. It represents a promising development in sustainable lubricants and is an optimal choice for modern centralized lubrication systems.
• December 2020 –Axel Christiernsson introduced heavy-duty biodegradable grease. A new biodegradable heavy-duty grease, ALASSCA 762 BD, complies with both the VGP Regulations and the Swedish Standard 155470.0.
• November 2020 – Chevron and Novvi LLC announced the first fully-renewable base oil production from Novvi’s Deer Park facility in Houston, Texas. The company added main processing measures and debottlenecked processes to make a standalone site for the Deer Park facility and enable 100% clean and sustainable product lines to be produced.
• May 2020 - FUCHS and BASF are collaborating to develop environmentally friendly lubricant products. Recently, they conducted an Eco-Efficiency Analysis for mineral oil-based hydraulic fluids, establishing the need for an evidence-based sustainability assessment. The partnership aims to create lubricant products that align with environmentally responsible practices.

REPORT COVERAGE

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The global biolubricants market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and products. Also, it offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years. It further includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation