MARINE LUBRICANT MARKET ANALYSIS

Definition of Market/Industry:

Marine lubricants are primarily used across the shipping industry in order to protect and improve the efficiency of the equipment and engine. These are high-performance fuel that is specially designed to enhance performance in operations. They exhibit exceptional properties that help in increasing shelf-life and protect the components exposed to high temperatures. They improve the performance and also reliability of the machine by protecting it from wear and tear by eliminating corrosion. Inflatable boats, drill ships, outboard motorboats, tankers, cargo ships, passenger ships, and semi-submerged ships are some of the application areas of the marine lubricants.

The global marine lubricants market is estimated to be valued at US$ 11,185.6 million in 2021 and is expected to exhibit a CAGR of 6.1% over the forecast period (2021-2028).

Recent Developments:

• In December 2020, Gulf Oil International (global lubricant company) announced its plans to acquire lubricant blending plant from Singapore’s Ocean Tankers (marine transportation provider). The lubricant blending plant comes with wharf access, storage tank farm and terminal facility, located in Singapore’s Tuas region. The facility will allow Gulf Oil to invest further in the marine segment and grow its market share in marine lubricants.
• In August 2021, Wilh. Wilhelmsen Holding ASA (multinational maritime group) entered into a partnership with Klüber Lubrication (U.S. based lubricants manufacturer). Under the partnership Wilhelmsen will exclusively sell and distribute Kluber’s maritime lubricant range.
• In April 2020, World Fuel Services Corporation (WFS, an energy, commodities, and services company based U.S.) became official distributor for Shell Marine Lubricants in France. With the addition of France, WFS further strengthens its Shell Marine lubricants distribution network, which also includes Gibraltar, Spain, and Argentina.

Figure 1. Global Marine Lubricants Market Value (US$ Mn), by Region, 2020

Europe held dominant position in the global Marine lubricants market in 2020, accounting for 47.1% share in terms of value, followed by Asia Pacific and North America, respectively. Large volume of trade activities and developed infrastructure in the shipping industry are primarily responsible for the high demand of marine lubricants in the region.

Drivers:

Growth in the shipping industry where marine lubricants are widely used is expected to propel the market growth of marine lubricants. According to the Department of Transport and Supply Chain Management (University of Johannesburg, South Africa), the shipping industry is considered as one of the catalysts for the development of an economy that is projected to contribute 90% of world trade. Moreover, continuously evolving marine lubricants along with the new formulation are further expected to accelerate the market growth of marine lubricants.

Increasing seaborne trade around the globe is projected to augment the market growth of the marine lubricants. According to the United Nations, in 2018, developing economies accounted for the largest share of global seaborne trade, both in terms of exports (goods loaded) and imports (goods unloaded). They loaded 59 percent and unloaded 64 percent of the world total. With a volume of 4.2 billion tons loaded and 5.9 billion tons unloaded. 

Marine Lubricants Market Report Coverage

Report Coverage	Details
Base Year:	2020	Market Size in 2021:	US$ 11,185.6 Mn
Historical Data for:	2017 to 2020	Forecast Period:	2021 to 2028
Forecast Period 2021 to 2028 CAGR:	6.1%	2028 Value Projection:	US$ 16,961.2 Mn
Geographies covered:	Regions: North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
Segments covered:	By Product Type: Mineral Lubricants, Synthetic Lubricants, and Bio Lubricants By Application: Engine Oils, Hydraulic Oils, Grease, and Others
Companies covered:	Lubmarine (Total Group), Royal Dutch Shell Plc, BP Marine, Chevron, ExxonMobil Corporation, Sinopec Corporation, Castrol, Gulf Marine and Industrial Supplies Inc., Lukoil Marine Lubricants, Quepet Lubricants, JX Nippon Oil & Energy Corporation, Idemitsu Kosan Co., Ltd., and IKO Marine Lubricant Supply Co. Ltd
Growth Drivers:	Rise in the shipping industry
Restraints & Challenges:	Fluctuating price of crude oil

Market Opportunities

Growing demand for bio-based marine lubricants is expected to open new doors of opportunity to the market of marine lubricants. For instance, in December 2019, Neste introduced the first industrial lubricant with nearly 100% biobased content. The product is based on a new formulation: 95% of its content is produced from renewable sources, Neste MY Renewable Isoalkane being the key component. The new Lubricant can be safely used in all industrial, automotive, DIY applications.

Rising usage of hydraulic oil across the marine industry is expected to accelerate the market growth of the marine lubricants. Hydraulic oil helps in increasing the machine life under the severe condition and also meet the environmental norms due to its low toxicity level is expected to raise its demand which in turn is fueling the market growth of marine lubricants. 

Market Trends/Key Takeaways

The rising popularity of recreational boats due to increasing participation in recreational activities and sports is propelling the market growth of the marine lubricants. Growth in the tourism industry has increased various sports activities such as boat racing, fishing, campaigning, and water sport games. This is expected to positively impact the market growth of marine lubricants over the forecast period.

Favorable government policies coupled with the significant increase in the investment in the naval defense sectors is expected to augment the market growth over the forecast period. In the recent past few years, the government has invested in the naval defense sector in order to increase the naval ships manufacturing which is further raising demand for the lubricants. This is turn is augmenting the market growth of marine lubricants.

Figure 2. Global Marine Lubricants Market Share, By Application, 2020

Key Takeaways of the Graph:

• The engine oils segment held dominant position in the market and accounted for 45.2% share in the global Marine lubricants market in 2020. The segment is expected to reach US$ 7,671.5 million in 2028. Engine oil 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, increased the demand for engine oils.

Market Restraints

Fluctuating prices of crude oil along with the strict rules and regulations is projected to hamper the market growth of the marine lubricants over the forecast period.

The shortage of raw materials such as bright stock materials due to increasing utilization of bright stock material in the production of group II and group III base oils is expected to hinder the market growth of marine lubricants.

Competitive Section:

Company Names 

1. Lubmarine (Total Group)
2. Royal Dutch Shell Plc
3. BP Marine
4. Chevron
5. ExxonMobil Corporation 
6. Sinopec Corporation
7. Castrol
8. Gulf Marine and Industrial Supplies Inc.
9. Lukoil Marine Lubricants
10. Quepet Lubricants
11. JX Nippon Oil & Energy Corporation
12. Idemitsu Kosan Co., Ltd.
13. IKO Marine Lubricant Supply Co. Ltd