Plenty of space for growth resides within the finished lubricants market, particularly within niche markets, such as bio-lubricants. Currently comprised of roughly 1% of the total finished lubricant market and driven by governmental regulations, it is expected to grow at a CAGR of 5% over the next five years, according to the latest report Opportunities in Bio-lubricants: Global Market Analysis by global market research and management consulting firm Kline.
Tag Archives: biolubricants
Meet the New Normal: Bio-based Lubricants to Become More Prevalent in the Coming Years
Historically, bio-lubricants have constituted a small percentage of the finished lubricants market globally. The leading markets for bio-lubricants are primarily in North America and Europe, including the United States, Germany, and the Nordic countries.
In 2014, the market seemed to have tremendous potential. Now, in the early days of 2017, we are slowly witnessing the fruits of that potential. Government regulations and procurement seem to have created a demand for bio-based lubricants. However, it seems government initiatives alongside regulations and emergence of high performance basestocks are pushing the once niche segment to the forefront, albeit moderately. Continue reading
While Regulations Place Bio-lubricants on the Growth Path, Product Performance at Competitive Pricing Will Drive the Market, Forecasts Kline
The increase of high-performing, cost competitive green base-oils, in the context of government regulations, supported by industry interest to develop innovative green formulations for various end users, is driving the bio-lubricants market growth. According to our recently published Opportunities in Bio-lubricants: Global Market Analysis study the outlook illustrates bio-lubricant growth will outpace that of finished lubricants. Bio-lubricants constitute a small percentage of the finished lubricants market globally. The United States is the largest consumer of bio-lubricants in the world, followed by Germany, Nordic countries, and Brazil close behind. China is the smallest, but also the fastest growing market researched in this study.
The reasons for the relatively limited uptake of bio-lubricants include lack of regulation and domestic labels, high-performing formulations that are up to par with conventional lubricants, high prices, and lack of suitable additives.
The most significant regulation passed to date is the Vessel General Permit, introduced by the U.S. Environmental Protection Agency. The VGP is expected to drive the demand for bio-lubricants, particularly in stern tube oils. Advancements in bio-lubricants industry are most prominent in environmentally-sensitive zones, led by federal procurement programs, tenders and self regulation by OEMs and trade associations, such as forestry and waterway associations.Continue reading
