Kline predicts annual growth rate of 5% for bio-lubricants market

(Last Updated On: 02/07/2018)

 

U.S.-based consulting firm Kline & Co.’s latest report on the bio-lubricants market projects a compounded annual growth rate (CAGR) of 5% for this segment over the next five years.

“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,” Kline said in a statement.

According to Kline Project Manager Sharbel Luzuriaga, the Kline study is a comprehensive report covering the 12 largest bio-lubricants country market, by application and product category, providing an analysis of key suppliers as well as a five-year forecast.

Growth rates vary by region. Europe and South America advance at a slower pace than emerging markets in Asia. The United States is an exception, showing robust growth, driven in part by the Federal Bio-Preferred Program, along with the emerging supply of synthetic bio-based basestocks.

Lubricants Oil Market

North America and Europe are the largest consumers of bio-lubricants because of the stringent environmental protection policies, including the Eco-label and VGP (Vessel General Permit), but also due to heightened environmental awareness among end users. Together, the two regions account for nearly 80% of the global market.

Asia-Pacific Lags Behind

Asia-Pacific lags behind the two major regions but is quickly catching up. Some markets in Asia are mirroring European and U.S. regulations, including green labels and public procurement directives. Both Japan and South Korea have eco-labels for bio-lubricants.

The leading product category is hydraulic fluids, followed by metalworking fluids and chainsaw oils, transformer oils, gear oils, automotive engine oils, and greases. There is a new trend towards chlorine-free, non-toxic and biodegradable additives and dedicated additive packages for green labels.

Government initiatives alongside regulations and the emergence of high-performance basestocks are pushing the once niche segment to the forefront, albeit moderately.

Leading Market Players

The leading market players established themselves through access to unique innovative, competitive green formulations, as well as specific regional or industry regulations, such as alpine, transformer or forestry or through the aftermarket of “green” OEMs. Examples include di-electric fluids (Cargill), metalworking (Houghton), marine (Vickers), railroad (Bechem), tunnel driving (Condat), and mountain equipment (York).

Panolin and Fuchs are the leading suppliers of finished bio-lubricants worldwide, driven by their bio-lubricant range and focus, global reach and OEM partnerships.

“Regulation can be a prelude to growth, with an incentive for the blenders to develop relevant products and customer interest, especially when mineral lubricants continue to have significant cost advantages over bio-lubricants. However, regulation by itself, without the relevant enforcement, attractive product offerings in terms of price and performance and dedication, will not drive the sector,” he said.

Towards Biz

Editor

Towards Biz is one of the dedicated news agency focused on Bangladesh Lubricants Oil Market.

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