July 18, 2024
Marine Lubricant Market

Growing Demand For Marine Vessels Projected To Boost The Growth Of The Marine Lubricants Market

The global Marine Lubricants Market is estimated to be valued at US$ 11,185.6 Mn in 2022 and is expected to exhibit a CAGR of 6.1% over the forecast period 2022 to 2028, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Marine lubricants are crucial for the proper functioning of engines and other shipboard machinery. They play an important role in reducing friction between moving parts, controlling corrosion, and carrying away heat. The major types of marine lubricants include engine oil, hydraulic oil, grease, and other specialty oils. Engine oils are used for lubricating engines and generators, while hydraulic oils are used for lubricating shipboard systems that utilize hydraulic fluid pressure such as cargo handling equipment and steering gears. Grease is used for lubricating sliding parts and other components requiring long-term lubrication. The growing maritime industry and increasing seaborne trade have fueled the demand for marine lubricants over the years.

Market key trends:
One of the key trends in the marine lubricants market is the growing focus on low-viscosity and environmentally acceptable lubricants. Stringent emission regulations by International Maritime Organization (IMO) regarding sulfur emissions have prompted ship operators and original equipment manufacturers to use low-sulfur fuels and advanced lubricants. Lubricant manufacturers are focusing on developing products with reduced viscosity to improve engine efficiency and comply with new emission norms. Bio-based and synthetic ester lubricants that provide better performance than mineral oil-based grades are gaining traction. Furthermore, the increasing average age of ships is boosting the maintenance and repair activities in the marine industry, thus driving the aftermarket sales of marine lubricants. The growing international seaborne trade, especially in emerging regions such as Asia Pacific and South America, is expected to increase marine fuel consumption and augment the demand for marine lubricants over the forecast period.

Porter’s Analysis
Threat of new entrants: The marine lubricants industry requires high R&D investment and established distribution networks. This poses significant barriers to entry for new companies.
Bargaining power of buyers: Large shipping companies have significant bargaining power over lubricant suppliers due to their bulk buying ability. However, switching costs are low.
Bargaining power of suppliers: A few large companies dominate the supply of base oil which is the key raw material for marine lubricants. This gives them strong bargaining power over lubricant manufacturers.
Threat of new substitutes: No close substitutes exist for marine lubricants. However, ship operators constantly seek newer products that enhance fuel efficiency and meet environmental regulations.
Competitive rivalry: The global marine lubricants market is highly competitive with presence of numerous global and regional players. Intense competition keeps pricing pressure on companies.

Key Takeaways
The global Marine Lubricants Market Insights is expected to witness high growth, exhibiting CAGR of 6.1% over the forecast period, due to increasing international seaborne trade and fleet expansion. The Asia Pacific region currently dominates the market backed by large shipping fleet and industrial activities in countries such as China, Japan, and South Korea.

Regional analysis
The Asia Pacific region is expected to retain its dominance in the global marine lubricants market, growing at a CAGR of over 7% during the forecast period. This can be attributed to the presence of busiest ports and shipping lanes in the region along with a majority of worldwide merchant shipping fleet. China and India are emerging as key markets, driven by robust growth in international trade. Europe and North America are relatively mature markets while Middle East and Latin America are expected to witness moderate growth.

Key players
Key players operating in the marine lubricants market are 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. Major players are focusing on developing premium products to target niche applications and gain competitive advantage.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it