The global bio-lubricants market size is projected to reach USD 4,514.5 million by 2027, exhibiting a CAGR of 4.8%during the forecast period. Soaring demand for electric vehicles (EVs)worldwide will create unique opportunities for players in this market, observes Fortune Business Insights™ in its report, titled “Bio lubricants MarketSize, Share & Covid-19 Impact 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 OtherTransportation, Metalworking, Mining, Forestry, Marine, Engines, and Others),and Regional Forecast, 2020-2027”. As per recent data and analysis releasedby the International Energy Agency (IEA), 2.1 million electric cars were soldacross the globe in 2019, taking the global EV stock to 7.2 million. Electriccar sales, the IEA highlights, accounted for 2.6% of the global car sales, andeven amid the coronavirus pandemic, the IEA predicts that EVs will hold a 3%share in the overall car sales worldwide in 2020. Bio-lubricants are expectedto play a critical role in augmenting the eco-friendly quotient of EVs.Bio-based compounds, such as polyalkylene glycols and saturated esters, haveproven to be highly effective as lubricants, even more so than conventionalmineral oil-based lubricants. The increasing intensity towards achievingsustainable mobility is, therefore, foreseen to drive the dynamics of thismarket over the next decade.
In 2019, the report states that theglobal market value stood at USD 3,275.7 million. The report also shares thefollowing:
- Microscopic diagnosis of all the factors driving and restraining the market;
- Comprehensive analysis of the various market segments;
- Granular examination of the regional prospects for the market; and
- Unparalleled research of the competitive landscape of the market.
Stalled Automotive Production amidCOVID-19 to Hamper Market Growth
The COVID-19 pandemic has led to asevere and unprecedented downturn in the automotive industry. Lockdowns, socialdistancing, and strict government regulations on the movement of people andmaterials have forced auto companies to shut down production and salesoperations. For example, in March 2020, the French automotive giant, PSA Group,announced the closure of a dozen of its plants across Europe. Similarly, FiatChrysler halted production at most of plants in Europe, with temporary shutdownof its facilities in Serbia, Italy, and Poland. The demand for vehicles hasalso had to deal with multiple shocks across regions as employees swiftlyadopted work from home measures. For example, the Oxford Business Group foundthat light vehicle year-on-year sales in China contracted by a historic 79.1%in February, while in Europe the decline was by 44% in March. The pandemic is,thus, restraining the bio-lubricants market growth as these materials areextensively used in the automotive industry and contracting activities of thisindustry will inevitably affect markets associated with it.
Browse In-depth Summary of This ResearchInsight@ https://www.fortunebusinessinsights.com/bio-lubricants-market-104654
North America to Retain LeadingPosition with Growing Activities in the Region’s Auto Industry
North America is slated to dominate thebio-lubricants market share during the forecast period due to the risingintensity of technological advancements in the region’s automotive industry.Top carmakers are constantly experimenting with different ecofriendly materialsto increase the sustainability of their products and manufacturing operations.In 2019, the North America market size stood at USD 1,410.3 million.
Asia Pacific, which is rapidly emergingas the auto manufacturing hub of the world, is generating wide growthopportunities for market players. Governments in the region are creatingfavorable investment conditions to attract global automakers and are alsoframing policies to promote the adoption of sustainable materials for domesticvehicle manufacturers. Active encouragement to adopt bio-based lubricants andother materials through policy nudges is fueling the market for bio-lubricantsin Europe.
Strategic Investments in New Venturesto be a Prominent Feature of Market Competition
The competitive dynamics of this marketare currently being shaped by the well-calculated investments by key players ininitiating novel production ventures in distinct geographies. These venturesare aimed at capitalizing on the speedily evolving trend of utilizingbio-lubricants and other bio-based materials for industrial operations.
- August 2020: Novvi LLC announced the successful commencement of its plant in Deer Park, Texas, where it will be producing and marketing all of its renewable base oils for the lubricant industry. The company aims to advance its sustainable lubricant offering range and engage with local vendors to reduce their carbon footprint.
List of Key Companies Covered in theBio-lubricants Market Report:
- Castrol (Pangbourne, UK)
- Emery Oleochemicals (Selangor, Malaysia)
- Repsol (Madrid, Spain)
- Klüber Lubrication (Munich, Germany)
- Cortec Corporation (Minnesota, U.S.)
- Axel Christiernsson (Gothenburg, Sweden)
- Total (Paris, France)
- Shell (The Hague, Netherlands)
- PANOLIN AG (Madetswil, Switzerland)
- IGOL (Geneva, Switzerland)
- bp p.l.c. (London, UK)
- Environmental Lubricants Manufacturing, Inc. (Iowa, U.S.)
- BECHEM (Hagen, Germany)
- Cargill (Minnesota, U.S.)
- Exxon Mobil Corporation (Texas, U.S.)
- FUCHS (Mannheim, Germany)