Biolubricants market
Biolubricants Market – ICONIC President Alexandre Bassaneze considers that the biolubricants sector could reach US＄ 3.9 billion in business and operations by 2027, in addition to growing about 8% by 2024 on an international scale.
The assessment is based on data from the Global Biolubricants Market Analysis, produced by GMR Analytics. This was one of the focuses of the executive’s presentation on the panel “The lubricant market and the challenges for the supply of base oils in Brazil”, held on September 29, at 12:00, at Rio Oil & Gas 2022.
Use of biolubricants focuses on Industry
In Brazil, even without a specific regulation for this type of lubricant, the market is valued at US＄ 206 million and 98% of the use of the product is carried out by the industrial sector. “We expect the market to grow by up to 6% in Brazil, by 2024”, analyzes Bassaneze.
There are still challenges for the sustainable development of this market in Brazil. “We have high production costs for the entire chain and technologies still need to be implemented at scale to have greater competitiveness and a circular economy for the product”, he comments.
According to the CEO of ICONIC, manager of the Ipiranga Lubrificantes and Texaco Lubrificantes brands, the implementation of government initiatives based on incentive policies for the application of biolubricants must be related to the fact that mineral lubricants have a significant cost advantage over biolubricants.
Bassaneze believes that the growth of the biolubricants market will provide a reduction in the carbon footprint in the sector and will encourage a joint construction of governments, the private sector and society to use a cleaner and renewable matrix in the generation of energy on a global scale.
Global growth of biolubricants
The biolubricants market is 70% concentrated in the United States and Europe. Although the North American, Canadian, German and English markets are the largest in the world at the moment, an increase in Asia of 9.5% is expected in the coming years in the use of biolubricants annually.
Chemical registration policies in the United States, promoting greater adoption of biolubricants; the growth in popularity of plant-based biolubricants for being low in carbon; the tax incentive for the use of biolubricants in hydraulic machines and the growth of application in the automotive industry are some of the main aspects that lead to the progress of the biolubricants market in the United States, Germany and Asia.
However, some factors impact this market on an international scale, in Bassaneze’s view. For example, there are still governmental regulatory pressures in Europe and the United States to ensure the safety and effectiveness of biolubricants, which influence the offerings of different market players and affect the rate of product adoption.
At this moment, new technologies and innovations indicate opportunities for the growth of this market, promoting reduction of operational and retail costs, especially for lines classified as premium. “Research indicates that the use of biolubricants can support the oil and gas sector in reducing greenhouse gas emissions by 50%, in addition to reducing energy consumption by two thirds in relation to oil-derived lubricants”, concludes Bassaneze .
