The global synthetic and bio-based lubricant market is set for moderate growth, according to research.
Transparency Market Research has reported that demand for synthetic lubricants is expected to reach 41.5 million tons by the end of 2018 and bio-based lubricant volumes is set to increase to 785.0 kilo tons in 2018 from 505 kilo tons in 2011.
Increasingly, regulators are offering tax benefits for using synthetic and bio-based lubes, but the high investment and production cost can deter lubes manufacturers. Bio-based lubricant costs almost 30% to 35% more than other types of mineral oil, with the automotive sector reportedly accounting for 25.7% of the demand globally in 2011.
In contrast, 61.4% of the global synthetic lubes market (2011) came from the automotive market whose growth across Asia Pacific and Latin America is likely to continue to affect the demand in the future. The lower cost of synthetics is likely to drive the demand further.
The report also indicates that price fluctuation remains a challenge, along with shipping disputes and the uncertain supply of raw materials.