Biolubricants Market - Forecast(2023 - 2028)

The Biolubricants Market size is estimated to reach more than US$3.2 billion by 2027, after growing at a CAGR of 4.3% during the forecast period 2022-2027. Biolubricants are functional fluids that are prepared from animal and vegetable oils and downstream esters or natural sources or biomass, which are renewable feedstock, non-toxic and friendly to the environment. The preference for biolubricants in automotive vehicles as automotive engine oils, hydraulic fluids and others act as a driving factor for the growth of the biolubricants industry. According to the International Organization of Motor Vehicle Manufacturers (OICA), global automotive production increased from 77,621,582 units in 2020 to 80,145,988 units in 2021. In addition, the rapid inclination towards environment-friendly lubricants and favorable government policies for biolubricants are propelling the growth scope in the market. The major disruption caused by the COVID-19 outbreak impacted the growth of the Biolubricants market due to disturbance in manufacturing, supply chain disruption, falling demand from major end-use industries and other lockdown restrictions. However, significant recovery is boosting the demand for biolubricants for a wide range of applicability and utilization in automotive, construction, marine and other sectors. Thus, the Biolubricants industry is anticipated to grow rapidly and contribute to the Biolubricants market size during the forecast period.

The Biolubricants are functional fluids based on vegetable oil or biodegradable feedstock and animal base oil. They have major applicability in the building & construction sector across residential, commercial, industrial and others for refrigeration oil, lubrication, greases and others. The construction sector is growing significantly due to growth factors such as rising government for infrastructural projects, residential housing projects and rapid industrialization. According to Oxford Economics, the global construction output in 2020 accounted for US$10.7 trillion and is projected to grow by 42% to reach US$15.2 trillion between 2020 and 2030. According to the United States Census Bureau, the total construction spending in the U.S. increased from US$1.62 million in May 2021 to US$1.77 million in May 2022. With the fast-paced growth scope for the building & construction sector, the demand for biolubricants in building structures due to their low toxicity and environmental-friendly features is increasing. This is thereby driving the global Biolubricants industry.

The high costs associated with Biolubricants and a lack of lubrication features create a major challenge in the Biolubricants market. In addition, the usage of biolubricants as base oil faces major constraints, such as poor low-temperature features, low oxidative properties and narrow viscosities range. The mitigation of these drawbacks leads to high costs of production and alternation in formulations. Due to such factors, the global Biolubricants market faces a major slowdown in its growth.