Soybean Oil-based Lubricants Market was valued at US $ XX Mn and expected to grow at XX% Compound Annual Growth Rate (CAGR) from 2019 to 2025.
Market Outline: Global Soybean Oil-based Lubricants Market
Soybean oil can be used to manufacture many different products that traditionally use a petroleum base. These include foams, films, lubricants, plastic molded parts, composites and packaging. Although many technologies and processes for soybean oil are still in their infancy, there is definite potential to replace petroleum-based ingredients with those from soy. Using plant-derived oils like soybean oil as a form of lubrication is primarily used in companies that operate and maintain machinery. The idea of using soy as a replacement for petroleum has been around for decades and is becoming increasingly important due to volatile petroleum prices and heightened concern with dependency on foreign sources of petroleum. Soy also adds natural lubrication to machinery and enhances engine performance. Soy-based lubricants are positioned to be a capable as a competitor for traditional petroleum lubes. They are safer for workers and for the environment. Most lubricants enhanced with soy oil biodegrade once they are released into the environment, making them ideal for areas where machinery is used outdoors.
Market Dynamics: Global Soybean Oil-based Lubricants Market
The market for soybean oil in lubricants is driven by a combination of environmental concerns, economics and performance issues. Petroleum- or mineral-based oils have historically been, and will likely continue to be, the economical choice for many manufacturers to satisfy performance, logistic and cost targets in many applications. The R&D activities for the development of soybean oil-based lubricants has fostered the growth of soybean oil-based lubricants market. Moreover, owing to its greener and safer attributes it is one of the preferred candidate by most of the manufacturers, thereby increasing in its demand. Rising importance of earning carbon benefits in chemical industry is expected to promote demand for bio-based process oils and tap new markets over the forecast period. However, high price of bio-based lubricants as compared to chemical based counterparts is expected to hinder the growth of market over the next seven years. The availability of oilseeds and biomass as raw materials for the production of bio-based lubricants is expected to have a negative impact on market over the forecast period. Predominant consumption of soy and its derivatives in food & beverage industry is expected to be concerning factor for soybean oil-based lubricants manufacturers in the near future.
Market Scope: Global Soybean Oil-based Lubricants Market
Soybean Oil-based lubricants market is segmented based on product type, and application
Based on application type, market is segmented into the following:
- Metalworking Fluids
- Engine Oils
- Hydraulic Fluids
- Process Oil
- Food Grade Lubricants
Based on the product type, the market is segmented into the following:
- Type 1
- Type 2
Regional Analysis: Global Soybean Oil-based Lubricants Market
Geographically, soybean oil-based lubricants market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. North America soybean oil-based lubricants market is expected to be valued at US$ XX Mn by 2025. Increasing awareness regarding the use of bio based lubricants and a subsequent boost in demand have been key factors propelling market growth in North America. Growing environmental hazards due to petroleum-based lubricants are also anticipated to propel product demand over the forecast period. Europe soybean oil-based lubricants market is driven by implementation of phytosanitary norms aimed at implementing safety measures in food processing industries, which are expected to fuel soybean oil-based lubricants market demand over the next seven years in this region . Asia Pacific soybean oil-based lubricants market has prominent share attributed due to initiative taken by the government of China to introduce bio-economy program as a part of 12th five year plan. Emergence of Malaysia and Indonesia as manufacturing hub for oleo chemicals on account of abundant raw material availability is expected to open lucrative opportunities for market for soybean oil-based lubricants in the near future.
Competition Assessment: Global Soybean Oil-based Lubricants Market
Some of the players in the global soybean oil-based lubricants market include:
- Environmental Manufacturing
- Monsanto Company
- Biosynthetic Technologies
- Cortec Corporation
- Pioneer Hi-Bred International
- Linnaeus Plant Sciences
Notable Market Developments: Global Soybean Oil-based Lubricants Market
- July 2, 2018 – Archer Daniels Midland Company (NYSE: ADM) and Cargill have successfully completed their transaction and formally launched SoyVenTM their new joint venture to provide soybean meal and oil for customers in Egypt.