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 Market Size, 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 Other Transportation, Metalworking, Mining, Forestry, Marine, Engines, and Others), and Regional Forecast, 2020-2027”.

Bio-based compounds, such as polyalkylene glycols and saturated esters, have proven to be highly effective as lubricants, even more so than conventional mineral oil-based lubricants. The increasing intensity towards achieving sustainable mobility is, therefore, foreseen to drive the dynamics of this market over the next decade.

Source:

https://www.fortunebusinessinsights.com/bio-lubricants-market-104654 

In 2019, the report states that the global market value stood at USD 3,275.7 million. The report also shares the following:

• 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.

Restraining Factor

Stalled Automotive Production amid COVID-19 to Hamper Market Growth

The COVID-19 pandemic has led to a severe and unprecedented downturn in the automotive industry. Lockdowns, social distancing, and strict government regulations on the movement of people and materials have forced auto companies to shut down production and sales operations. For example, in March 2020, the French automotive giant, PSA Group, announced the closure of a dozen of its plants across Europe. Similarly, Fiat Chrysler halted production at most of plants in Europe, with temporary shutdown of its facilities in Serbia, Italy, and Poland.

Regional Insights

North America to Retain Leading Position with Growing Activities in the Region’s Auto Industry

North America is slated to dominate the bio-lubricants market share during the forecast period due to the rising intensity of technological advancements in the region’s automotive industry. Top carmakers are constantly experimenting with different ecofriendly materials to increase the sustainability of their products and manufacturing operations. In 2019, the North America market size stood at USD 1,410.3 million. 

Competitive Landscape

Strategic Investments in New Ventures to be a Prominent Feature of Market Competition

The competitive dynamics of this market are currently being shaped by the well-calculated investments by key players in initiating novel production ventures in distinct geographies. These ventures are aimed at capitalizing on the speedily evolving trend of utilizing bio-lubricants and other bio-based materials for industrial operations.

Industry Development:

• 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.