Bio-based lubricants, also known as bio-lubricants, are lubricants that are formulated using renewable, bio-derived materials as their base or major components. These lubricants are derived from natural sources such as vegetable oils, animal fats, and other bio-based feedstock. They are designed to provide lubrication and reduce friction between moving parts in various applications, including automotive, industrial, marine, and aerospace sectors.
Market Insights & Projections: Europe Bio-based Lubricants Market (2023-28):
The Europe Bio-based Lubricants Market is projected to grow at a CAGR of around 5.8% during the forecast period, i.e., 2023-28. Europe has long been at the forefront of promoting sustainable & environmentally friendly approaches, and this commitment is reflected in the growing market for bio-based products. The region's increasing focus on sustainability & stringent environmental regulations has played a significant role in driving the growth of the bio-based lubricants market. To support the twin transition to a green & digital economy, the European Union has implemented strict regulations & initiatives to promote the usage of bio-based products, including lubricants, as part of a circular economy framework.
These regulations have led industries, such as automotive, manufacturing, and agriculture, to embrace bio-based lubricants to comply with regulations & support sustainable practices. Consequently, the demand for bio-based lubricants in place of conventional ones has been contributing to the overall market growth.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Country Covered||Germany, The UK, France, Italy, Spain, Rest of Europe|
|Key Companies Profiled||Shell, BP, Chevron Corporation, Exxon Mobil, Castrol Limited, Fuchs SE, Total Energies, Kluber Lubrication, Biosynthetic Technology, RSc Bioscience, Others|
|Unit Denominations||USD Million/Billion|
Furthermore, growing environmental awareness among industries & consumers has shifted the demand towards greener alternatives like bio-based lubricants due to concerns about carbon footprints & VOC emissions from synthetic petroleum-based lubricants. The Bio-based Lubricants Market in Europe has benefited from the well-developed infrastructure & robust research & development initiatives focused on sustainable products. Europe has made significant investments in advancing bio-based technologies & creating a favorable environment for innovation. For instance:
These initiatives have led to the development of advanced formulations of bio-based lubricants that offer superior performance, in terms of stability & compatibility with various types of equipment & machinery across multiple industries. This emphasis on R&D has facilitated the production of high-quality bio-based lubricants that meet the rigorous demands of European regulations & industry standards.
Hence, with expanded application areas, the research & development of new bio-based lubricants have experienced enhanced sales during historical years. Additionally, several companies are further focusing on improving sustainability & launching new bio-based lubricants specialized for usage across different end-users. This, in turn, would unlock promising prospects for increased adoption of bio-based lubricants & act as a catalyst for market growth in the forthcoming years.
Europe Bio-based Lubricants Market Drivers:
Rising Energy Production Drives Demand for Bio-Based Lubricants in the European Market - The increasing energy production in European countries has sparked a surge in the demand for bio-based lubricants in the market. This heightened demand has been primarily attributed to the essential role lubricants play in the operation and maintenance of power generation equipment.
As these processes necessitate the use of lubricants, energy production companies, including notable players like Electricite de France SA and Engie SA, have started embracing the adoption of bio-based lubricants in the past few years. This shift also aligns with the sustainable approach adopted by governments in the region, which has been leading companies to adopt sustainable alternatives. Furthermore, the growing energy demand has prompted increased investments in the sector, which has been aimed at the development of energy plants and scaling up their production. For instance,
Hence, the heightened investment in the energy sector and constant government initiatives for decarbonization of the energy sector had a positive impact on the bio-based lubricants market. Moreover, with several sustainable energy projects in the pipeline, across the countries like Germany, the UK, etc., the demand for bio-based lubricants would further accelerate in the coming years.
Europe Bio-based Lubricants Market Restraint:
High Cost Associated with the Production of Bio-based Lubricants - One of the major challenges faced by companies in promoting the growth of bio-based lubricants in the market has been the high production cost. Bio-based lubricants were comparatively more expensive to manufacture than conventional lubricants, owing to the high cost of raw materials sourced from crops like corn, soybeans, and sugarcane, which are more expensive than those used in petroleum-based lubricants.
Moreover, the production process for bio-based lubricants has also been quite complex, requiring substantial energy consumption & heavy equipment. As a result, the overall cost of production was significantly higher for manufacturing bio-based lubricants compared to their conventional counterparts. This price disparity between bio-based & conventional lubricants posed a challenge for bio-based lubricants to compete effectively in the market & gain wider acceptance.
As a result, various small-scale enterprises & end-users in industries such as automotive & mining preferred to opt for cheaper conventional lubricant products. Therefore, the cost barrier would hinder the widespread adoption of bio-based lubricants during that forecast period.
Europe Bio-based Lubricants Market Opportunities:
Growing Mining Sector to Boost Bio-based Lubricants Demand in the Forecast Years - In European countries like Germany, the UK, etc., the mining sector would present a significant opportunity for bio-based lubricant manufacturers. Governments across European countries are aiming to reduce the dependence on imported critical minerals by revitalizing their mining operations & seeking self-sufficiency in the supply of crucial minerals. For this, they are taking measures to expand the manufacturing of minerals across their country through investments, initiatives, and partnerships. For instance,
In addition to this, governments across Europe have been taking initiatives like investing in the mining sector to escalate the adoption of sustainable resources. This is in line with the green transition motive of the European countries, which aims to reduce their carbon emission to near zero in future years. Hence, as the mining sector undergoes expansion & seeks to achieve sustainable resources, the demand for bio-based lubricants is expected to rise in the region across the mining sector in the coming years.
Europe Bio-based Lubricants Market Trend
Adoption of Certifications & Standards has been Improving the Sales of Bio-based Lubricants - The Bio-based Lubricants Market in Europe has been witnessing a trend toward the adoption of certifications & standards to provide quality assurance to the end-users. This trend is driven by several factors, including the need for credibility, regulatory compliance, market differentiation, and meeting consumer demands for sustainable products.
Certifications & standards have proven to assure consumers & end-users that bio-based lubricant products meet specific criteria related to sustainability, environmental impact, and performance. Due to this, many bio-based lubricant manufacturers are launching their products in the name of environment-friendly products with certifications to cater to the demand for sustainable products.
Moreover, global bio-based lubricant manufacturing companies have recently launched their products in Europe as eco-friendly products by taking certification from EU Eco-lab to compete with the existing product in the market. For instance:
Hence, as bio-based lubricant manufacturers showcase their quality assurance by adhering to new standards & certifications, it has been observed to instill confidence in customers & foster their sales. This trend of obtaining certification to prove regulatory compliance with bio-based products is projected to raise the demand for sustainable bio-based lubricants among end-users in the upcoming years as well.
Europe Bio-based Lubricants Market (2023-28): Segmentation Analysis
The Europe Bio-based Lubricants Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023-2028 at the UAE, regional, and national levels. Based on the analysis, the market has been further classified as:
Based on the Oil Type:
Vegetable oils dominated the Bio-based Lubricants Market due to their higher production volumes, availability, and thermal stability. Thermal strength enhances the performance & protection provided by vegetable-based lubricants, making them a preferred choice among end-users. In response to the increasing demand for vegetable-based oils, companies have been introducing innovative products to meet market needs. For instance:
The market for bio-based lubricants has been growing due to the introduction of innovative products by vegetable oil-based lubricant manufacturers & their increasing demand among consumers. Additionally, the ease of availability & usage of vegetable-based lubricants in various applications compared to animal fat-based lubricants is expected to further boost demand in the region from 2023-2028.
Based on End-User
The automotive category held a dominant share, which was primarily attributed to the environmental friendliness, longevity, performance, and energy efficiency of bio-based lubricants. Europe's expanding automotive sector witnessed an increasing demand for bio-based lubricants to meet the requirements of various vehicle types, including passenger cars, commercial vehicles, and off-road vehicles. To cater to this rising demand, lubricant manufacturers were actively working on launching bio-based products specifically designed for vehicles. For instance,
Henceforth, the high utilization of bio-based lubricants in the automotive industry & the availability of larger options has been enhancing the overall market growth. Further, as the automotive industry across the region is constantly growing, bio-based lubricant manufacturers have been constantly working on improving their portfolios to cater to the industry. Hence, the automotive industry is projected to dominate the market in the upcoming years as well.
Based on Geography:
Among all, Germany experienced a remarkable expansion in the Bio-based Lubricants Market. This growth was attributed to the stringent emission standards & a rising trend of adopting bio-degradable products in the country. The market's upward trajectory was further propelled by the government's efforts to rejuvenate the automobile sector through transformative programs. For instance:
These initiatives contributed to the development of the automotive sector, subsequently influencing the demand for bio-based lubricants in the market. Moreover, the growing governmental expenditure on improving the use of bio-based products across the automotive, marine & mining industries is anticipated to create lucrative opportunities for bio-lubricants in coming years as well.
Europe Bio-based Lubricants Industry Recent Developments
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Frequently Asked Questions
A. The growth rate or CAGR of the Europe Bio-based Lubricants Market is around 5.8% during 2023-28.
A. Supportive government regulations are expected to drive the Europe Bio-based Lubricants Market during 2023-28.
A. Shell, BP, Chevron Corporation, Exxon Mobil, Castrol Limited, Fuchs SE, Total Energies, Kluber Lubrication, Biosynthetic Technology, and RSc Bioscience are the top players in the Europe Bio-based Lubricants Market
A. Vegetable-based is the leading oil type in the Europe Bio-based Lubricants Market
A. Germany would present growth prospects in the Europe Bio-based Lubricants Market during 2023-28
A. Adoption of Certification and Standards are the key trends shaping the growth of the Europe Bio-based Lubricants Market
A. The development of novel Bio-based lubricants is the growth opportunity driving the Europe Bio-based Lubricants Market through 2028
A. High production cost is a possible restraint affecting the growth of the Europe Bio-based Lubricants Market.
A. Industrial & Transport are the potential end-users of the Europe Bio-based Lubricants Market.
Europe Bio-based Lubricants Market Research Report (2023-2028) - Table of Contents