Marine Lubricant Market to Surpass US$ 16,961.2 Million by The End of 2028 - Coherent Market Insights

Definition of Market/Industry:

Marine lubricants are substance primarily used to reduce the friction between surfaces and improve productivity. Marine lubricants are widely used to protect the equipment and engine and enhance the performance of the machine by preventing the tear and wear of the operating parts. These lubricants have a high viscosity index, thermal stability, low freezing point, and excellent resistance to oxidation. The use of lubricants increase the shelf-life of the mechanical parts and also facilitate the smooth functioning of the operations. Moreover, lubricants eradicate the residues of deposited over the different parts of the machine. Lubricants are produced by using different raw materials such as mineral oils and synthetic oils along with 10% of the additives.

The global marine lubricants market to surpass US$ 16,961.2 million in terms of value by the end of 2028.

Drivers:

Rising demand for enhanced quality marine lubricants that possess excellent oxidation resistance properties is expected to accelerate the market growth of marine lubricants. The advanced lubricants are gaining huge demand from end-users in order to enhance the operating efficiency of the machine even at extremely high temperatures. Thus, the rising demand for advanced lubricants across the marine industry will favor market growth.

Market Opportunities

The rising production of petroleum products coupled with the flourishing petroleum industry is expected to accelerate the market growth of lubricants. According to the International Energy Agency, the global oil production stood at 98.3 Mb/d in 2018, up from the 2017 daily production level of 95.7 mb/d. This increase in world oil production was driven by the United States, where production raised by 15.6% compared to 2017. The United States remained the world’s top producer, followed by Saudi Arabia, Russia, and Canada

Global Marine Lubricants Market: Recent Developments

• In May 2021, Exxon Mobil Corporation, added Mobil SHC Aware Hydraulic Series oils and Mobil SHC Aware Grease EP 0 to its range of high performance marine lubricants. Both are formulated to meet the US Vessel General Permit (VGP) requirements for Environmentally Acceptable Lubricants (EALs)1 making them ideal for deck and underwater machinery operating in areas where environmental protection regulations are in force.
• In September 2020, Brenntag SE (global chemicals distributor) acquired Oils ‘R Us Co., Ltd. (Thailand based distributor of wide range of lubricants for Automotive, Commercial Vehicle, Industrial and Marine applications). Brenntag already markets, sells, and distributes lubricants in Singapore, Hong Kong, the Central & South of Vietnam, and West Java including Jakarta in Indonesia. The acquisition of the business in Thailand will thus enlarge Brenntag’s footprint in Southeast Asia.
• In June 2021, Chevron Marine Lubricants extended its joint venture with Akwa Group, the Moroccan oil and gas and lubricants supplier. Chevron has taken a joint stake in Afriquia Lubrifiants (subsidiary of Akwa Group), and plans to extend the blending, distribution, and marketing business beyond Morocco to markets in sub-Saharan Africa. The the joint venture will manufacture Chevron’s premium products locally for the first time, including Chevron Marine Lubricants’ product portfolio.

Market Restraints

Rising concern over the environment owing to the increasing emissions and waste products as ships are highly reliable on oil-based fuel is expected to hinder the market growth of marine lubricants. Over the recent past year, there has been a significant increase in the number of ships around the globe which is expected to contribute to environmental pollution due to the emission of fuel. This is a factor is expected to restrict the market growth of marine lubricants.

Global Marine Lubricants Market - Impact of Coronavirus (Covid-19) Pandemic

The outbreak of the Covid-19 pandemic has drastically disrupted the supply chain and economies which has caused a steeper decline. However, the situation is improving now and the industry is increasing its efforts towards a sustainable recovery. United Nations Conference on Trade and Development expects maritime trade growth to return to positive territory and expand by 4.8% in 2021, assuming world economic output recovers.

Key Takeaways:

• The marine lubricants market was valued at US$ 10,539.8 Mn in 2020 and is forecast to reach a value of US$ 16,961.2 Mn by 2028 at a CAGR of 6.1% between 2021 and 2028.
• The mineral lubricant segment was valued US$ 8,917.0 Mn in 2020 and is expected to witness a CAGR of 6.1% over the forecast period. Mineral oil is the most commonly used marine lubricant that is used in engines, stern tubes, hydraulics, compressors and various other Product types. Low cost of mineral oils is driving the demand for mineral oils

Market Trends

Increasing offshore activities coupled with the rise in sea voyages and water adventure activities is expected to foster market growth of marine lubricants. This is attributed to the rise in the disposable income of the consumer across the developing region is further anticipated to accelerate the demand for lubricant, thus boosting the market growth over the forecast period.

Various manufacturers are adopting growth strategy in order to expand their product portfolio in the marine lubricant market and this is expected to favor market growth in the near future. For instance, in July 2018, Cepsa and Global Energy Private Limited (GPGEPL), part of UAE-based global conglomerate GP Global, have entered into an exclusive partnership to produce and market Cepsa branded marine and power generation lubricants in India.

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