The North America soybean oil-based lubricants market is expected to be valued at USD 364.6 million by 2025, according to a new report by Grand View Research, Inc. Increasing awareness regarding the use of biobased 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.
Engine oils segment held the largest market share in 2016 owing to a wide-scale usage of the product in various engine oil applications such as diesel engine oil, motor oil, and fuel additives. Soybean oil-based lubricants are widely used in engine oil applications owing to their advantageous properties such as low friction coefficient, low volatility, high flash point, and high viscosity index, which make them more suitable for lubrication than mineral or petroleum-based lubricants.
The use of environmentally acceptable lubricants for hydraulic fluids is already widespread in European countries owing to consumer pressure and stringent environmental regulations. Lubricants find application in hydraulic equipment systems with mechanical components, such as pumps, valves, pistons, cylinders, and gears, in various commercial sectors including transportation, construction, agriculture, and other manufacturing equipment.
Process oil is extensively used in various chemical and technical industry applications as a raw material or to aid production, to modify or impart the desired properties to a product, or to reduce the cost of production. It can be used in the form of epoxidized soybean oil (ESO) or modified or highly refined soybean oil in various process oil applications.
In terms of demand, North America soybean oil-based lubricants market was valued at USD 191.5 million in 2016 and is expected to ascend at a CAGR of 7.6% from 2017 to 2025. In terms of volume, engine oils segment was the largest application segment in 2016 and is anticipated to progress at a CAGR of 6.7% between 2017 and 2025.
The regional demand for food grade lubricants was valued at USD 10.7 million in 2016 and is anticipated to witness a staggered growth over the next eight years. In terms of volume, the U.S. market in metalworking fluids segment was 7.25 kilotons in 2016 and is projected to ascend at a CAGR of 5.3% from 2017 to 2025.
The market in Canada is projected to experience substantial growth over the next eight years owing to growing R&D activities, especially in the engine oil segment. In terms of volume, the Canada market is projected to ascend at a CAGR of 4.3% between 2017 and 2025.