I recently was able to read the Global Biolubricant Market Analysis study from Merkle & Sears, published in March. It really is exciting to see the progress the overall industry is making, and the growth expectations Merkle & Sears has for the market in the years to come. Here are some major takeaways from my standpoint, as I perused the research.
- It’s big and growing fast. The market for bio lubricants is expected to nearly double to over $3.0 billion in 2024, an 8.8% CAGR. Much of this is supported by the rising environmental concerns and regulations, but the study first points out the improved performance, efficiency, and safety biolubricants offer. The study states that “bio lubricant products are in great demand because of the advantages they offer over mineral oil based lubricants”.
- The adoption of biolubricants is broad-based. The study addresses a very wide range of industries, applications and geographies that have already reached a decent scale. This market isn’t isolated to a few niche segments.
- Bio-hydrocarbons and HEPR biolubricants are still flying under the radar. The study points out the clear advantages of PAOs and synthetic hydrocarbons but fails to recognize that there is a growing class of high performance bio hydrocarbons that address environmental concerns and the requirements of emerging regulations with the same performance advantages of a PAO.
As markets mature, the collective knowledge of developing industries can be spotty. Even research organizations can struggle to fully understand what’s happening, especially in terms of technology. While the study acknowledges significant technological improvements, it fails to fully explain the advanced options that now exist to address the most demanding of industrial applications.
Ultimately, though, these studies plus the collective discussions and education coming from the biobased lubricant players themselves, will evolve and continue to demystify this growing market.
CEO, RSC Bio Solutions