The global bio-lubricants market size is projected to grow from $2 billion in 2020 to $2.4 billion by 2025, at a CAGR of 4.1 per cent between 2020 and 2025.
The demand for bio-lubricants can be attributed to the growing environmental awareness, adoption of stringent regulations, and increasing acceptance of bio-lubricants in industries.
On the basis of base oil, the vegetable oil segment is projected to be the largest market for bio-lubricants.
The dominant market position of the vegetable oil segment can be attributed to its high biodegradability, less toxic, and high lubricity. The growth can also be attributed to the abundant availability of vegetable oil seeds which are used as raw materials.
The industrial segment includes the marine industry and agriculture and construction industry. These two industries are the largest consumers of bio-lubricants.
Additionally, various regulations such as the vessel general permit (VGP) in the US and EcoLabel in Europe has made it mandatory to use bio-lubricants or environmentally accepted lubricants (EAL) in shipping vessels, which is driving the market.
The European region is projected to lead the global bio-lubricants market from 2020 to 2025. Stringent regulations and the ongoing transition towards bioeconomy in countries such as Germany, Italy, Nordic countries, Benelux, and France are promoting the use of bio-based chemicals such as bio-lubricants and biofuels in the region.
Key players such ExxonMobil (US), Royal Dutch Shell (Netherlands), Total (France), Cargill (US), BP (UK), FUCHS Group (Germany), and Panolin (Switzerland) have adopted various strategies to strengthen their product portfolios, expand their market presence, and enhance their growth prospects in the bio-lubricants market. –OGN