Technavio analysts forecast the biolubricants market in the US to grow at a compound annual growth rate (CAGR) of nearly 7% during the forecast period, according to their latest market research report.
The increase in demand from the defence industry is one of the major trends being witnessed in the biolubricants market in the US 2018 – 2022.
Increase in aerospace and defence budget allocations, owing to the resurgence of global security threats in the US, can positively influence the market. Plant-based biolubricants are increasing in popularity as they offer environmental benefits and have a low carbon content.
According to Technavio analysts, one of the key factors contributing to the growth of the biolubricants market in the US is the reduction in crude oil dependence.
Biolubricants are replacing synthetic lubricants in various applications. Plant-based products such as soybean, rapeseed, and canola are used for producing biolubricants. Petroleum-based lubricants are mainly produced from crude oil. Fluctuations in crude oil prices lead to volatility in raw material prices, which further leads to volatility in the price of mineral lubricants.
According to a senior analyst at Technavio for research on specialty chemicals, “Synthetic esters, polyalphaolefin, phosphate esters, glycols, and other silicate esters obtained from petroleum are the major sources of petroleum-based lubricants. High-performance benefits, biodegradability, and non-toxicity of biolubricants are the key reasons for the preference of biolubricants over crude oil-based lubricants.”
The biolubricants market in the US research report provides market segmentation by product (plant-based and animal-based) and by end-user (transportation and industrial). It provides analysis of the prominent factors influencing the market, including drivers, opportunities, trends, and industry-specific challenges.
The plant-based segment held the largest market share in 2017, accounting for nearly 78% of the market. This product segment is expected to dominate the global market throughout the forecast period.
By end-user, the transportation segment held the largest market share in 2017, accounting for nearly 57% of the market. This segment is expected to dominate the global market throughout the forecast period.
Read the article online at: https://www.hydrocarbonengineering.com/refining/04102018/reduction-in-crude-oil-dependence-to-drive-us-biolubricants-growth-says-technavio/