Growing concerns regarding oceanic pollution caused by improper engine function and subsequent demand for fuel-efficient engines are estimated to trigger the growth of the marine lubricant market around the globe. A rise in seaborne trade across the globe is anticipated to spur the high revenues for marine lubricants. When compared to airways and roadways approximately 80% of trade around the globe is done through seaways as it is the most cost-effective medium of transport. According to the United Nations Conference on Trade and Development (UNCTD), seaborne trade around the globe reached 10.7 billion tons in 2017. With high load carrying, water splash pressure and high corrosion resistance properties marine lubricants can increase the machinery output. A rise in demand for enhancing the overall operational efficiency of engines and component parts are the key factors impelling the growth of the marine lubricants industry. The global marine lubricants market size is valued at $6100 million as of 2018 and is anticipated to grow with a CAGR of 3.51% throughout the forecast period 2019-2025.
A rise in tourism activities which are coupled with cruising accomplishments and recreational sports are also trigger the marine lubricants market growth. According to the National Marine Manufacturers Association (NMMA), the recreational boating industry contributes an estimated $170.3 billion to the economy of the U.S in 2018. An upsurge in adventure sports and leisure activities and growing demand for luxury cruises influences the marine lubricants industry share across the world. Increase in the offshore drilling activity to meet the growing requirement of crude and petroleum-based product from refineries and chemical industries should drive marine grade grease industry size. Increase in demand from end-user industries such as shipping industry drives the growth of the global marine lubricants profits. Lubricants are the high-performance fuels, which are explicitly designed for marine operations in order to enhance their optimal performance. Marine lubricants have excellent characteristics such as extending engine life, improving performance, and protecting components at high temperature. Preventing ship materials and marine vehicles from rusting is another growth driving factor for marine lubricants industry. Marine bearing grease is a high-performance grease and has many applications in marine and automotive applications. Crosshead cylinder oils, crosshead crankcase oils, and trunk piston engine oils are widely used oils in the marine industry. Marine lubricants reduces the excessive friction in the engines of the marine equipment. Excessive friction in the vehicles makes them outdated and out-of-order, which in turn, demands the application of marine lubricants. Emerging emission control technologies are anticipated to drive the growth of the global marine lubricant industry. Ships are generally dependent on oil-based fuels, with the increasing number of ships delivering cargo across the globe, concerns over waste product disposal and emissions are rising. In the manufacturing process base oil and additives are used as key feedstock and its price is highly dependent upon crude oil index. The instability in the crude oil prices affects base oil availability which directly influences the marine lubricants revenues in the global scenario. Major industry players in the marine lubricants are, therefore, shifted their focus on the development of a broad range of high-quality and efficient oils by incorporating the latest technological advancements for delivering consistently high performance for engines in the marine vehicles. Extensive research and development activities in the global marine industry, from various heavy shipping industries, are also leading to market growth.
Asia-Pacific is anticipated to hold Prominent Position in the Global Arena Throughout the Forecast Period
The APAC held the largest share in the marine lubricant market with a 45% share of the global demand in 2018. According to the India Brand Equity Foundation (IBEF), total investment in Indian ports is expected to reach $43 billion by 2020. India has a long coastal corridor of about 7,517 with more than 200 ports and providing the abundant opportunities for the marine industry, which in turn, led the high demand for marine lubricants. Industries are opening their manufacturing units in this region due to the high availability of manpower and raw materials which are using in the manufacturing of the products. According to World Bank Data, the manufacturing sector in China was approximately 29% of the global GDP in 2018. This region has been witnessing growth in investments in the manufacturing sector due to increasing trade activities in China. The Asia-Pacific shipping industry is majorly driven by Singapore’s core container business. In line with the Paris Climate Pact, the major developing nations of Asia-Pacific are cutting down their coal usage and converting to natural gas, for power generation and cooking purposes. As the production is not sufficient to cope up with the demand natural gas is imported in the Asia-Pacific region. Hence, a rise in marine activities is anticipated to trigger the marine lubricants market over the forecast period.
Bio-based lubricant segment is projected to grow at a CAGR of 6.22% in the global marine lubricant market through to 2025. Improved technologies along with environmental concerns are causing recovery of bio-based and synthetic marine grease. The improved version of bio-based grease demands for more compatible additives to sustain with oxygen-containing esters in the oils. Bio-based lubricants reduce the operational cost of a ship over the lifetime due to minimum maintenance, storage, and disposal requirements. Oils from algae or exotic plants with a mixture of minerals synthetic oils or plant-based oils increasing demand for new feedstocks in the lubricants market.
The Major Players in the Marine Lubricants Market:
The prominent players in the marine lubricants market include British Petroleum, Chevron Corporation, ExxonMobil, Fuchs Lubricants, Idemitsu Kosan Co., Ltd., JXTG Nippon Oil & Energy Corporation, LUKOIL Marine Lubricants, PETRONAS, Royal Dutch Shell, and Total SA. The prominent companies are increasing adopting strategic plans such as acquisitions, collaborations, new product development, and partnerships to stay ahead of the curve and build their brand name.
· Total S.A., is a France based Integrated Oil and Gas Company collaborated with Switzerland based Nexus Automotive International, an automotive car and truck parts supplier in April 2018. Their collaboration led to the major growth of the lubricants in the marine industry around the globe.
Mergers and acquisitions are the other key strategies adopted by the players to stay ahead of their competitors. Fuchs Lubricants announced acquisition with VDV Lubricants, a Belgium based company in Aug 2018. This merger brings additional specialist technology in the production of glass lubricants. Such joint ventures aid the industry players to expand their geographical boundaries and accentuate their footprint into the global marine lubricants market.
Talk to one of our sales representative about the full report by providing your details in the link below:
· Lubricants Market
Industrial Lubricants Market
Mr. Venkat Reddy
Email: [email protected]
Contact Sales: +1-614-588-8538 (Ext-101)
About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.