Biodegradable Engine Oil Market: Current Analysis and Forecast 2021-2027

Global Biodegradable Engine Oil Market was valued at US$ XX billion in 2020 and is anticipated to reach US$ XX billion by 2027 displaying an elevated CAGR of XX% over the forecast period (2021-2027). Biodegradable Engine Oil are also referred to as bio-lubricants and bio-lubes, are those lubricants that are biodegradable and non-toxic in nature. The raw materials used to make these lubricants include rapeseed oil, sunflower oil, palm oil, coconut oil, and animal fats. Bio-lubes are deployed in wide range of applications across various industrial domains including automotive, marine, construction, agriculture, among others.
World's air quality is degrading rapidly as the air pollution levels are on rise across the globe which may pose major health risks to global population. For instance, as per the World Health Organization, nearly 7 million deaths are attributed to air pollution every year. Also, 9 out of 10 people breathe air that exceeds WHO guideline limits containing high levels of pollutants, with low- and middle-income countries suffering from the highest exposures. To tackle the degrading environmental changes and its negative impacts world leaders were legally bound to the Paris agreement in 2015. this agreement was joined by 191 parties and includes commitments from all countries to reduce their emissions and work together to adapt to the impacts of climate change. Owing to these concerns regarding deteriorating environment and various government regulations the biodegradable engine oil market is expected to witness growth in upcoming years.
Another significant reason responsible for the growth of biodegradable engine oil market is the rising demand for lubricants across the world owing to the growth in industrial sector. For instance, the global demand for lubricants was more than 36 million metric tons in 2018. this demand is anticipated to increase and reach 37.4 million metric tons by 2023. further, the global market value of lubricants is projected to reach USD 182.6 billion by 2025 with China being the leader of the global lubricants market as of 2019, accounting for market value roughly of 7.3 million tons.
BP, Castrol, Exxon Mobil Corporation, Royal Dutch Shell, Repsol, Croda International plc, FUCHS group, Total lubricants, Condat, SKF are some of the prominent players operating in the biodegradable engine oil market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products.
Insights Presented in the Report
"Amongst Type, vegetable oils segment holds the major share"
Based on type, the global biodegradable engine oil market is fragmented into vegetable oils, polyalkylene glycols, synthetic esters, and others. The vegetable oils segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027 growing with a CAGR of XX% over the forecast period. Vegetable oils in their natural forms can be used as lubricants in machinery as well as in industries as these oils have far superior lubricity than that of mineral oil. The high viscosity index, high flash points, less toxicity and biodegradable nature of vegetable oils is also adding pace to the growth of biodegradable engine oil market across the globe. For example, the viscosity index for soyabean oil is 223 which is much more in comparison to most petroleum oils i.e., 90-100.
"Amongst Application, transportation segment holds the major share"
Based on Application, the global biodegradable engine oil market is segmented into agriculture, transportation, construction, and others. The transportation segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027 growing with a CAGR of XX% over the projected timeframe. The growth of this segment is attributed to the rising number of operating transports which in turn will increase in consumption of various lubricants including biodegradable engine oil on a large scale. For instance, In the year 2018, annual consumption volume of lubricants in cars was estimated to be around 258 million liters, up from about 208 million liters in 2015. Furthermore, the increasing focus of many automobile manufacturers for implementation of biodegradable engine oil in various automobiles is also driving the growth of this segment.
"Europe represents one of the largest markets of biodegradable engine oil market"
For a better understanding of the market dynamics of the biodegradable engine oil market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Spain, United Kingdom, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), Rest of World has been conducted. Europe dominated the market and generated revenue of US$ XX million in 2020 owing to the increasing adoption of biolubricants across countries such as Germany, France, etc.
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- The study includes market sizing and forecasting analysis validated by authenticated key industry experts
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- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
- The study comprehensively covers the market across different segments
- Deep dive regional level analysis of the industry
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Biodegradable Engine Oil is also referred to as bio-lubricants and bio-lubes, are those lubricants that are biodegradable and non-toxic in nature. The raw materials used to make these lubricants include rapeseed oil, sunflower oil, palm oil, coconut oil, and animal fats. Bio-lubes are deployed in a wide range of applications across various industrial domains including automotive, marine, construction, agriculture, among others.
The world's air quality is degrading rapidly as the air pollution levels are on the rise across the globe which may pose major health risks to the global population. For instance, As per, the World Health Organization, nearly 7 million deaths are attributed to air pollution every year. Also, 9 out of 10 people breathe air that exceeds WHO guideline limits containing high levels of pollutants, with low- and middle-income countries suffering from the highest exposures. To tackle the degrading environmental changes and their negative impacts world leaders were legally bound to the Paris agreement in 2015. this agreement was joined by 191 parties and includes commitments from all countries to reduce their emissions and work together to adapt to the impacts of climate change. Owing to these concerns regarding the deteriorating environment and various government regulations the biodegradable engine oil market is expected to witness growth in upcoming years.
Another significant reason responsible for the growth of the biodegradable engine oil market is the rising demand for lubricants across the world owing to the growth in the industrial sector. For instance, the global demand for lubricants was more than 36 million metric tons in 2018. this demand is anticipated to increase and reach 37.4 million metric tons by 2023. further, the global market value of lubricants is projected to reach USD 182.6 billion by 2025 with China being the leader of the global lubricants market as of 2019, accounting for a market value roughly of 7.3 million tons.
Based on type, the global biodegradable engine oil market is fragmented into vegetable oils, polyalkylene glycols, synthetic esters, and others. The vegetable oils segment of the global biodegradable engine oil market dominated the market with around XX% market share in 2020 and generated the revenue of USD XX Mn in 2020 as they have high viscosity index and are less toxic.
Based on Application, the global biodegradable engine oil market is segmented into agriculture, transportation, construction, and others. The transportation segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027 growing with a CAGR of XX% over the projected timeframe owing to the growing number of vehicles on-road and surge in demand for lubricants on the large scale.
For a better understanding of the market adoption of the biodegradable engine oil, the market is analyzed based on its worldwide presence in the countries such as North America (the United States and Canada), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia and Rest of APAC), and Rest of World. Europe constitutes a major market for the biodegradable engine oil industry and generated revenue of USD XX Million in 2020 due to the emerging demand for sustainable and cost-competitive green base oils. Also, the presence of well-established players in the region adding pace to the growth of the market in the region.
Some of the major players operating in the market are BP, Castrol, Exxon Mobil Corporation, Royal Dutch Shell, Repsol, Croda International plc, FUCHS group, Total lubricants, Condat, SKF, among others. Several M&As along with partnerships have been undertaken by these players to develop biodegradable engine oils.