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

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.