North America Soybean Oil-based Lubricants Market Analysis, By Application (Metalworking Fluids, Engine Oils, Hydraulic Fluids, Process Oils), By Country, And Segment Forecasts, 2018 - 2025

Industry Insights

The North American soybean oil-based lubricants market size was estimated at USD 191.5 million in 2016. In North America, the presence of stringent environmental regulations regarding petroleum and mineral-based lubricants is expected to drive the market over the forecast period. Growing awareness regarding bio-based products and an increase in the need for the same in North America is further propelling the demand for this market.

Biobased lubricants can be used as reliable alternatives for addressing the increasing concerns regarding renewable resources and a sustainable environment. As a result, green marketing opportunities are witnessing growth in terms of these lubricants, which offer better performance as compared to petroleum-based and other synthetic lubricants. This is, in turn, anticipated to drive the market in the coming years. There has been a renewed interest in vegetable-based lubricants with the rise in environmental consciousness in the past few years.

The U.S. market is likely to ascend at a CAGR of 8.1% from 2017 to 2025. The market is driven by the presence of stringent environmental regulations designed by various regulatory bodies such as the USDA, EPA, VSL, and other state regulations. Continuous R&D activities by industry players are also expected to fuel product demand over the forecast period.  

Environmental concerns are likely to continue playing a key role in the formulation and use. There has been a fast-paced reduction in the use of elements such as phosphorus, chlorine, metal, and sulfur, especially in automotive grease. Usage of environment-friendly fuels, such as renewable fuels, in industrial engines is also projected to propel the demand for changes in lubricant formulation and additives over the next few years.

Soybean oil provides enhanced lubricity, low flammability, low volatility, and a high viscosity index. Lifecycle assessment studies by various authorities demonstrate that using this product as a raw material can help reduce energy costs during product production and carbon dioxide emissions. Moreover, this oil exhibits exceptional solubilizing power for contaminants, additive molecules, and polar deposits as compared to mineral-based oils.

However, soybean oil exhibits limitations in oxidative, thermal, and hydrolytic stability. The natural form of vegetable oil lacks sufficient oxidative stability. It is likely to undergo a quick change in thickness, oxidization, and polymerization during its usage. Chemical modification of vegetable oils or the use of antioxidants can overcome this limitation, but it is anticipated to increase the cost of the product.

Application Insights

The demand for soybean oil-based lubricants in North America for engine oil applications stood at 28.36 kilotons in 2016 and is predicted to ascend at a CAGR of 6.7% from 2017 to 2025. Engine oil applications include diesel engine oil, motor oil, fuel additives, and others. These products are widely used in engine oil applications owing to their advantageous properties including low friction coefficient, low volatility, high flash point, and high viscosity index, which make them more suitable for lubrication as compared to mineral or petroleum-based products.

Among the various engine oils, gas turbine oil, industrial hydraulic fluids, and diesel engine oils are estimated to offer some of the best prospects and create opportunities for manufacturing products that can provide longer drain intervals, better lubrication, and increased environment-friendliness. These factors are predicted to lead to an increased demand for soybean oil-based lubricants in engine oil over the forecast period.  

In terms of revenue, the segment of the hydraulic fluid is anticipated to progress at a CAGR of 7.1% in the coming years. The consumption in this segment accounted for approximately 16% of the total North American share in 2016.  

Regional Insights

The U.S. is anticipated to emerge as a major market in North America for soybean oil-based lubricants over the forecast period, driven by the presence of stringent environmental regulations designed by various regulatory bodies such as the USDA, EPA, VSL, and other state regulations. Continuous R&D activities by industry players are expected to fuel product demand over the forecast period. These lubricants offer sustainable and renewable options for various engine oil applications such as diesel engines, gas turbines, motor, and fuel additives.  

A large number of industry players are involved in various strategic initiatives in an attempt to expand the market. For instance, in May 2017, Cargill, Inc. acquired the vegetable-based polyol product lines and other assets of BioBased Technologies in an attempt to strengthen its bio-industrial offerings for existing customers and mark its entry into new segments.

Mexico is one of the largest importers of soybean from the U.S. Growing environmental concerns and increasing the need for biobased products in various applications are anticipated to fuel the demand in Mexico over the next eight years. In terms of revenue, Mexico was valued at USD 11.9 million in 2016 and is anticipated to ascend at a CAGR of 2.5% over the forecast period.

Competitive Insights

The global competition is highly intensive and the market is relatively integrated with the presence of major companies capturing a major revenue share in 2016. Key participants include Cargill, Inc., Environmental Manufacturing, Inc., Monsanto Company, Biosynthetic Technologies, Cortec Corporation, Pioneer Hi-Bred International, Inc., and Linnaeus Plant Sciences, Inc. The volatile prices of petroleum and concerns regarding the dependency on foreign resources of petroleum are further driving the growth.

Report Scope

Segments Covered in the report

This report forecasts revenue growth at regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the North America soybean oil-based lubricants market based on application and country:

• Application Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)

  • Metalworking Fluids

  • Engine Oils

  • Hydraulic Fluids

  • Process Oils

  • Food Grade Lubricants

  • Others

• Country Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico