In the moderately consolidated market for polyolesters for bio-based lubricants and lubricant additives, the top four companies collectively held nearly 45% of the global market in 2014. Small- and medium-sized regional players accounting for the remainder of the market in that year, finds Transparency Market Research (TMR) in a new study.
With several small- and medium-scale competitors holding leading positions across regional territories, consolidations with specialty products manufacturers seem to be the most practical approach for sustained growth for large companies, TMR points. More focus on developing markets, strengthening distribution channels, and developing customized products can also help large companies gain prominence in the market.
Environmental Concerns Stemming from Adverse Effects of Petroleum-based Products to Work in Favor of Polyolesters
Plant- and bio-based polyolesters rate significantly better on the environment friendliness scale as compared to conventional petroleum-based lubricants and lubricant additives. Rising environmental awareness and strict emission control regulations across a number of countries have helped in renewing interest in bio-based lubricants. Development of increasingly efficient polyolesters at a sustained pace is also playing a major role in the increased popularity of polyolesters for bio-based lubricants and lubricant additives across the globe.
Emission control regulations and the ban on CFCs will also help keep the global consumption of conventional synthetic lubricants in check, favoring the increased adoption of polyolesters in the next few years. The sustained rise in R&D efforts and investments aimed at the development of bio-based lubricants across the globe will act as a major growth opportunity for the global polyolesters for bio-based lubricants and lubricant additives market in the near future.
Price Constraints to Emerge as Major Challenge
Polyolesters for bio-based lubricants and lubricant additives are nearly 4 to 10 times more expensive than mineral-oil based lubricants. Such high disparity in prices in these lubricant choices, the latter of which has conventionally been the choicest lubrication option owing to high efficiency, easy availability, and lower costs, will be a major restraint for the global polyolesters market in the near future. Although bio-based feedstock is cheaper than crude oil and other base materials, the yield from bio-based raw materials has been comparatively very low owing to technology constraints. To reduce the impact of this restraint on the overall development of the global polyolesters market, increase in commercial-scale production activities will be required.
Europe was the largest market for polyolesters in terms of volume in the market in 2014, accounting for more than 40% share. Europe’s dominance can be ascribed to the early-adoption of bio-based products across numerous industries in the region. Over the next few years, however, North America is expected to provide the most lucrative returns for the polyolesters market. Factors that will encourage increased adoption of polyolesters in North America will be the increased demand for bio-based lubricants and lubricant additives in industries such as aviation, automotive, refrigeration, and fire-resistant hydraulic fluids.
The overall demand for polyolesters is also expected to heighten in Asia Pacific in the next few years, primarily owing to the flourishing automotive and aviation industries in the region. The market will witness moderate growth in Middle East and Latin America in the near future, where polyolesters will face intense competition from the much preferred petroleum-based lubricants and lubricant additives.
The global polyolesters for bio-based lubricants and lubricant additives is expected to expand at a healthy 6.7% CAGR from 2015 to 2023, rising from a valuation of US$412.9 mn in 2014 to US$735.9 mn in 2023.
This review of the market is based on a recent market research report published by Transparency Market Research, titled “Polyolesters for Bio-based Lubricants and Lubricant Additives Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2023.”
The report segments the global polyolesters for bio-based lubricants & lubricant additives market as follows:
Polyolesters for Bio-based Lubricants & Lubricant Additives Market - Product Analysis
- Neopentyl Glycols
- Others (Including Dipentaerythritols (DiPEs), etc.)
Polyolesters for Bio-based Lubricants & Lubricant Additives Market - Application Analysis
- Automotive Lubricants
- Aviation Oil
- Biodegradable and Fire-resistant Hydraulic Fluids
- Refrigerant Oil
- Metalworking Oil
- Compressor Oil
- Other (Including Greases, Industrial Gear, Transformer Oil, etc.)
Polyolesters for Bio-based Lubricants & Lubricant Additives Market - Regional Analysis
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- South Africa
- Rest of MEA