Biodegradable Engine Oil Market

Biodegradable Engine Oil Market Overview - 2027

The global biodegradable engine oil market size was valued at $931.2 million in 2019, and is projected to reach $1,180.4 million by 2027, growing at a CAGR of 4.3% from 2020 to 2027. Biodegradable engine oils, also known as bio-lubricants and bio-lubes, are biodegradable and nontoxic lubricants. Organic lubricants are usually made by using raw materials such as rapeseed oil, sunflower oil, palm oil, coconut oil, and animal fats. In terms of non-toxicity, sustainability, carbon neutral, and environmentally safe, bio lubricants provide many advantages over conventionally used petroleum-based product offerings. Attributed to the high flash point and high stability, the use of bio-lubricants over traditional lubricants is comparatively better. Bio-lubricants are used for a variety of applications across diverse set of industries, including automotive, marine, construction, among others.

The outbreak of COVID-19 has negatively impacted the demand for biodegradable engine oil, owing to the decreased automotive sales, disturbed construction activities, and others.

Rise in demand for sustainable and high-performance lubricants is expected to accelerate market growth along with increase in environmental concerns. In addition, with the growth of the construction sector in China, the demand for heavy machinery lubricants in the construction sector, such as wire rope lubricants for penetration and coating, diesel fuel, engine oil, bearing grease, and others, is expected to increase over the forecast period. Moreover, high cost and poor performance of biodegradable engine oil are the major factors that restrict the biodegradable engine oil market growth. Additionally, it is a very demanding job to convince small-scale farmers to use agricultural lubricants. Low capital is also an obstacle to the adoption of agricultural lubricants by small-scale farmers as they tend to stick to conventional cost-friendly methods.

The global biodegradable engine oil market is segmented on the basis of type, application, and region. By type, the market is classified into vegetable oils, polyalkylene glycols, synthetic esters, and others. According to application, it is divided into agriculture, transportation, construction, and others. Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Global Biodegradable Engine Oil Market, by Type

By type, the vegetable oil segment garnered 54.6% share in 2019, in terms of revenue. Vegetable oils are increasingly being used for bio lubricant development due to their advantageous characteristics such as renewability, non-toxicity, economic & environmental friendliness, and others. 

Global Biodegradable Engine Oil Market, by Application

By application, the use of biodegradable engine oil is expected to increase in the transportation sector in the near future. It consumes biodegradable engine oil on a large scale. Lubricants are utilized in heavy vehicles such as lorries, buses, agricultural machines, and marine transport.

Global Biodegradable Engine Oil Market, by Region

By region, Europe is expected to be the fastest-growing region in terms of revenue. Demand for biodegradable engine oil in Europe is strong in the UK, Spain, Italy, Germany and France, owing to the rapid growth in the industrial sector in those countries. The European Union stresses the protection of the environment and provides subsidies to biodegradable engine oil producers. In order to encourage the use of biodegradable engine oil, the Organization for Economic Co-operation & Development (OECD) has set such regulatory requirements.

Key benefits for stakeholders

• The report provides in-depth analysis of the biodegradable engine oil market along with the current and future market trends.
• This report highlights the key drivers, opportunities, and restraints of the market along with the impact analyses during the forecast period.
• Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the global biodegradable engine oil industry for strategy building.
• A comprehensive biodegradable engine oil market analysis covers factors that drive and restrain the market growth.
• The qualitative data in this report focuses on market dynamics, trends, and developments.

Impact of COVID-19 on the global biodegradable engine oil market

• The world is battling the contagious COVID-19 pandemic, which has spread across the globe.
• Some of the major economies suffering the COVID-19 crises include Germany, France, Italy, Spain, the UK, and Norway.
• The outbreak has forced many industries to shut down due to lack of raw material availability and disruptions in the supply chain. The global lockdown has suspended the activities of construction and many other industries, which declined the demand for biodegradable engine oil.
• The demand-supply gap, disruptions in raw material procurement, price volatility, and many other factors are expected to hamper the growth of the chemical industry during the COVID-19 pandemic.
• Biodegradable engine oil is primarily used in manufacturing, transportation, construction, consumer goods, and others. As a reaction to the national lockdown, these sectors were experiencing sudden decline in growth rates.
• Less usage of machinery results in reduced demand for industrial lubricants from various end-use sectors. Subsequent downfall in the construction industry across various nations further hinders the market growth.

 Biodegradable Engine Oil Market Report Highlights