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Pakistan Bio-based Lubricants Market - Forecast(2023 - 2028)
Pakistan Bio-based Lubricants Market Overview
The Pakistan Bio-based Lubricants Market size is projected to reach
US$25.2 million by 2027, after growing at a CAGR of 4.8% during the forecast
period 2022-2027. The term bio-based lubricants apply to all lubricants
that are both rapidly biodegradable and non-toxic to humans and aquatic
environments. A bio-based lubricant may be plant oil-based or derived from
synthetic esters, triglyceride esters and more. The growing automotive &
transportation industry in Pakistan and the increasing adoption of eco-friendly
products in Pakistan are expected to drive the market during the forecast
period. The other factors driving the growth of the Pakistan Bio-based
Lubricants market are the expanding demand from the power generation industry, the
flourishing metallurgy industry and growing applications in the mining
industry. Several end-use
industries in the Pakistan Bio-based Lubricants industry suffered negative
effects as a result of the novel coronavirus pandemic. The production halt
owing to enforced lockdown resulted in decreased supply, demand and consumption
of bio-based lubricants in Pakistan, which had a direct impact on the Pakistan
Bio-based Lubricants market size in the year 2020.
Pakistan Bio-based Lubricants Market Report Coverage
The “Pakistan Bio-based
Lubricants Market Report – Forecast (2022-2027)” by IndustryARC, covers an
in-depth analysis of the following segments in the Pakistan Bio-based
Lubricants industry.
Key Takeaways
- The Pakistan Bio-based Lubricants market is increasing at a rapid pace, owing to the increasing production and demand for automotive in Pakistan. This increase in production and demand can be attributed to the improving lifestyle, growing per capita income and population in Pakistan.
- In comparison to mineral oil or petroleum lubricants, bio-based lubricants based on synthetic esters and triglyceride esters are highly biodegradable, have fewer toxic effects on the environment, cause fewer skin problems in workers and require less maintenance.
- When compared to petroleum-based lubricants, bio-based lubricants perform better and last longer because they evaporate more slowly and adhere better to metal surfaces. Penalties imposed on the operator in the event of spills or leaks into the environment are significantly lower than those for petroleum-based lubricants, which helps the market grow.
- However, bio-based lubricants have a high viscosity and poor oxidative stability at high temperatures are anticipated to restrain the growth of bio-based lubricants in key industrial applications.
Figure: Pakistan Bio-based Lubricants Market Revenue Share, By End-Use Industry, 2021 (%)
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Pakistan Bio-based Lubricants Market Segment Analysis – by Source
The vegetable oils segment held a significant share in the Pakistan
Bio-based Lubricants market share in 2021 and is projected to grow at a CAGR
of 4.7% during the forecast period 2022-2027. This can be attributed to its
excellent biodegradability, less toxicity and enhanced lubricity when compared
to synthetic esters and triglyceride esters. The abundance of vegetable oil
seeds, which are used as raw materials, can also be blamed for the growth.
Vegetable oil-based lubricants generally have higher lubricity, a higher
viscosity index, a lower evaporative loss rate and a higher flash point than
petroleum-based lubricants. They also have better metal adhesion. As a result,
the demand for vegetable oil-based lubricants in Pakistan is on a significant
upsurge, thereby driving segmental growth.
Pakistan Bio-based Lubricants Market Segment Analysis – by Application
The hydraulic fluids segment held a significant share in the Pakistan
Bio-based Lubricants market share in 2021 and is expected to grow at a CAGR
of 5.2% during the forecast period 2022-2027. Recent years have seen a
significant increase in speed and pressure, which has led to the sophistication
of hydraulic systems. These modifications have led to a sharp increase in wear
rates in Pakistan. As a result, using hydraulic oil has taken on a lot more
significance in Pakistan. Many different types of machinery, pieces of
equipment and end-use industries, including agriculture, mining, steel,
shipbuilding, aviation, the aerospace industry, chemicals, food and more, use
hydraulic fluids. All these markets are rapidly growing in Pakistan which has
generated high demand for hydraulic systems, thus, aiding the hydraulic fluids
market growth in Pakistan.
Pakistan Bio-based Lubricants Market Segment Analysis – by End-use Industry
The automotive & transportation segment held a significant share in the Pakistan Bio-based Lubricants market share in 2021 and is projected to grow at a CAGR of 5.6% during the forecast period 2022-2027, owing to the growing demand for bio-based lubricants from the automotive & transportation industry in Pakistan. Bio-based lubricants based on vegetable oils and synthetic ester are often used in the automotive & transportation industry as engine oils, hydraulic fluids, gear oils and more. According to the International Organization of Motor Vehicle Manufacturers (OICA), motor vehicle production in Pakistan increased from 1,86,751 units in 2019 to 2,38,702 units in 2021, an increase of 28%. According to the International Air Transport Association (IATA), according to the trend scenario for 2018, air travel in Pakistan is expected to increase by 184 percent over the next 20 years. By 2038, there would be 22.8 million more passenger departures due to this. If satisfied, this increased demand would generate about $9.3 billion in US GDP and support 786,300 jobs. As a result, the expanding automotive & transportation sectors are expected to boost demand for hydraulic fluids, gear oils, engine oils and more, thereby propelling the market growth.
Pakistan Bio-based Lubricants Market Drivers
Increasing Adoption of Bio-based Lubricants:
The market for bio-based lubricants is
booming in Pakistan as a result of their widespread acceptance as alternatives
to oils with a petroleum base. This change aims to alleviate environmental
worries and also aids in resolving related problems. Animal and plant oils are
used as renewable raw materials in manufacturing. It is well known that
lubricants made from vegetable oil have several sustainable and environmental
benefits over their petroleum-based counterparts. For their part, end-use
industries in Pakistan started to be more receptive to the appeal of
bio-lubricants, partly in response to regulatory demands but also because they
were drawn to this new wave of high-quality bio-lubricants with superior
performance, improved energy efficiency and an extended lifetime for lubricants
and machines. Additionally, they are following government regulations and have
a higher level of biodegradability, thereby driving the Pakistan Bio-based
Lubricants market.
Expanding Wind Energy Sector in Pakistan:
In the wind energy industry, bio-based lubricating oils have many
uses, such as protecting against surface wear, avoiding metal surface corrosion
and cooling the internal gearbox components. In Pakistan, for instance, the
Alternative Energy Development Board (AEDB) announced in March 2020 a plan for
eleven wind projects with a combined capacity of 660MW. These projects have
been operational since December 2021. 50MW Indus Wind Energy Ltd, 50MW Master
Green Energy Ltd, 50MW ACT2 Wind Pvt Ltd, 50MW Liberty Wind Power 2 Pvt Ltd,
50MW DIN Energy Ltd, 60MW Metro Wind Power Ltd, 50MW Masda Green Energy Pvt Ltd
and 50MW Gul Ahmed Electric Ltd are among the projects that are a part of the
initiative. The goal of the policy is to increase the
percentage of electricity produced from renewable sources from around 5% in
2020 to 20% by 2025 and another 30% by 2030. With the increasing wind energy
sector, the demand for lubricating oil was also spurred in Pakistan, thereby
fueling the Pakistan Bio-based Lubricants market growth during the forecast
period.
Pakistan Bio-based Lubricants Market Challenge
High Cost of Bio-based Lubricants:
The market is being restricted by the high cost of bio-based
lubricants and their lack of lubricating properties, which is the biggest
problem facing producers of bio-based lubricants. The biodegradability of
vegetable oil-based lubricants makes them an excellent substitute for
traditional lubricants. As a result, it is
extremely difficult to create bio-based lubricants that are both cost-effective
and have a breakthrough combination of biodegradability and high lubricant
properties. The cost of these lubricants is a substantial obstacle for the
market to get past. The cost of a bio lubricant is 30-40% higher than that of a
standard lubricant. The majority of bio-based goods are priced similarly to
mid to high-performance mineral oil goods. It is anticipated that the high
price of bio-based lubricants will have an impact on its demand in Pakistan,
thereby negatively affecting the Pakistan Bio-based Lubricants market size
during the forecast period.
Pakistan Bio-based Lubricants Industry Outlook
Technology launches,
acquisitions and R&D activities are key strategies adopted by players in
the Pakistan Bio-based Lubricants market. The top 10 companies in the Pakistan
Bio-based Lubricants market are:
- Shell Pakistan Limited
- Total PARCO Pakistan Limited
- Chevron Pakistan Limited
- MAL Pakistan
- INEOS Pakistan
- Pakistan State Oil Company Limited
- Castrol Pakistan (Private) Limited
- Idemitsu Lube Pakistan
- Cargill Pakistan Holdings (Pvt) Ltd.
- Fuchs Oil Pakistan (Pvt) Ltd.
Relevant Reports
Report Code: CMR 0129
Report Code: CMR 0417
Report Code: CMR 0584
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