Marine Lubricant Market Size, Share & Trends Analysis Report By Oil Type (Mineral Oil, Synthetic Oil, Bio-Based Oil), By Ship Type (Container Ships, Tankers, Cargo Ships, Bulk Carriers), By Product Type (Engine Oil, Hydraulic Oil, Compressor Oil, Cylinder Oils, System Oils), By Region (North America, Europe, APAC, CSA, MEA, CIS) Forecasts, (2024-2032).

Market Overview

The global Marine Lubricant Market size was valued at USD 6.29 billion in 2023. It is projected to reach USD 9.60 billion by 2032, growing at a CAGR of 4.8% during the forecast period (2024–2032).

Lubricants are used to prevent and control friction stress between two moving surfaces. In mechanical equipment, lubricants are used as engine oil, compressor oil, gear oil, and piston oil to improve functionality. Lubrication improves the lifespan of machinery and equipment. Lubricants are also used as cutting fluids to cool as well as lubricate surfaces. Various parameters are considered before choosing a lubricant, including viscosity, volatility, alkalinity, and oiliness, as these fluids play a vital role in managing the main engine lube oil system and its performance. The global marine lubricant market is expected to witness substantial growth during the assessment period with the increase in international trading activities, growth of the shipbuilding industry, and infrastructural development. According to the United Nations Conference on Trade and Development (UNCTAD), over 80% of the global trade by volume and more than 70% by value is carried out by ships and handled by ports worldwide. Additionally, the relaxation of freight tax in the Asia Pacific is expected to boost international trading activities, which, in turn, is projected to fuel the demand for marine lubricants.

Market Dynamics

What are the primary factors driving the Marine Lubricant Market?

Booming Shipping Industry

The shipping industry is said to be responsible for about 90% of all global trade, according to the International Chamber of Shipping (ICS), a major international trade association for the shipping industry. The expansion of existing straits like the Panama and Suez Canal, as well as the sizing up of ships, and the construction of new terminals and terminals, as well as government organizations, all support this increase in the marine trade. These strategic advancements have led to an increase in the use of marine lubricants as larger ships necessitate the use of more lubricants in every mechanical component, including engines, gears, and wire ropes. The increased lifespan of ships' mechanical parts is directly attributed to these lubricants.

Improved Fuel Efficiency due to Marine Lubricants

The maritime supply chain is incomplete without marine lubricants. Global consumption of marine lubricants is likely to rise as a result of rising fuel prices and stricter IMO regulations. Additionally, shippers are expected to run their engines at slow steaming levels in order to conserve fuel as a result of the rise in fuel prices. Marine engines cannot run continuously at low speeds, which could cause corrosion issues in the engine and stressed parts and systems connected to it. The dependence on these lubricants is anticipated to grow as a result of the need to ensure engine safety and proper operation, which is expected to propel the marine lubricant market throughout the forecast period.

What are the main factors that will slow down the Marine Lubricant Market?

Adverse Effects of Synthetic Marine Lubricants

Mineral oil is used as a lubricant and produces high levels of volatile organic compounds (VOCs), which are very dangerous for the environment. Environmentally friendly lubricants include those made of synthetic materials and bio-based materials. The development of synthetic lubricants and bio-based lubricants is anticipated to force the phase-out of mineral oil-based lubricants in the future, even though their prices are still higher than those of synthetic lubricants. This will have an effect on lubricant consumption, eventually reducing the number of marine lubricants used per ship.

What are the future opportunities for Marine Lubricant Market?

Increasing Urbanization and Technological Advancements

To conduct industrial processes at sea, industrial ships are frequently used. The demand for industrial boats is expected to increase as a result of numerous sea drilling projects and rapid technological advancements. Industrial ships are big, well-equipped, and have helipads to make supplying and transporting goods simple. Government funding and the introduction of technologically advanced industrial ships may increase demand for industrial ships. These ships are highly stable toward loads and have a broad range of applications in vessel-lifting operations for offshore construction. Many oil and gas producers are working on drilling initiatives, such as offshore deep-water hydrocarbon production, and the availability of financing will further support the market trends for marine lubricants. Over the anticipated period, it is expected that the booming oil and gas industry will increase demand for industrial ships, ultimately contributing to the growth of the marine lubricant market.

Regional Analysis

The global marine lubricant market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific Dominates the Global Market

Asia Pacific region is the highest contributor to the market and is expected to grow at a CAGR of 1.98% during the forecast period owing to the increasing trade activities, growth of the shipbuilding industry, and significant investments by key players. The region has some of the world's busiest ports, including Shanghai, Singapore, Shenzhen, and Ningbo-Zhoushan, which further contributes to market growth alongside key players pursuing geographical expansion and substantial economic growth in Southeast Asian countries. Several projects by the Indian government to expand and develop the ports will propel the growth of the marine lubricant market in the region. Since more than 90 percent of India's trade by volume is conducted via the country's maritime route, there is an ongoing need to develop India's ports and trade-related infrastructure in order to accelerate growth in the manufacturing sector and support the 'Make in India' initiative. According to studies conducted under the Sagarmala Programme, it is anticipated that by 2025, cargo traffic at Indian ports will reach approximately 2500 MMTPA, whereas the current capacity of Indian ports to handle cargo is only 1500 MMTPA. To accommodate the escalating volume of traffic, a plan has been drafted to expand the Indian port capacity to more than 3,300 MMTPA by 2025.

Europe is expected to witness dynamic growth in the marine lubricant market during the forecast period. Europe is home to a number of developed countries, such as Germany, the U.K., and France, which are among the largest traders in the world. Well-developed marine infrastructure, a large industrial base, and a strong network of ports are some of the factors driving the growth of the Europe marine lubricant market. 35% of all trade between the E.U. Member States and 77% of all European exports are transported by sea, driving the growth of marine lubricants in the region. E.U. maritime transportation is investing in new sustainable technologies, adopting digital solutions, and automating processes in order to maintain its competitiveness while reducing pollution and climate impacts.

North America is expected to witness significant growth in the marine lubricant market during the forecast period owing to the presence of large industries, advanced marine infrastructure, and significant export numbers. In March 2022, the U.S. Department of Transportation's Maritime Administration (MARAD) announced the allocation of USD 25 million in funding for America's Marine Highway Program (AMHP). The AMHP promotes the development and expanded use of America's navigable waterways and will improve the nation's supply chains and the movement of goods. The AMHP will increase waterway transport, thus driving the growth of marine lubricants in the region.

The LAMEA region is expected to witness moderate growth in the global marine lubricant market during the forecast period due to the growing marine infrastructure and large consumption of lubricants in oil tankers in Middle-Eastern countries. Four of the top five performing ports in the world are located in the Middle East and North Africa, which is important for maritime trade. The mega port of Chancay, Peru, is being constructed by the Chinese company Cosco Shipping Ports and has 11 berths that can accommodate post-Panamax ships. It is anticipated that this new port infrastructure will also serve as a destination for cargo coming from the east and the central highlands as a substitute for decongesting Callao. It is anticipated that the province of Huaral will serve as both a commercial exchange hub for cargo redistribution to Ecuador, Chile, and Colombia as well as the gateway to Peru from Asia thanks to the port of Chancay.  

Segmental Analysis

The global marine lubricant market is segmented by oil type, product type, and ship type.

Based on oil type, the global marine lubricant market is bifurcated into mineral, synthetic, and bio-based.

The mineral oil segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period due to its low price and ease of availability. They are a complex blend of aromatics, paraffin, and naphthene. They have a wide range of properties that can be altered depending on the particular product type due to the complex mixture of mineral oils. Due to this, marine lubricants based on mineral oil are preferred over alternatives.

The bio-based oil segment is expected to witness a higher CAGR. Bio-based lubricants, made from vegetable oil and animal fat, among others, are gaining significant traction in the marine industry as they exhibit greater lubricity, a high viscosity index, and a smaller change in viscosity with temperature, among other benefits. Moreover, bio-based lubricants are bio-degradable, less toxic, and renewable, and more importantly, they reduce dependency on imported petroleum oils.

Based on the ship type, the global marine lubricant market is bifurcated into container ships, oil tankers, cargo ships, bulk carriers, and others.

The bulk carriers segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. Bulk carriers are ships built specifically to transport dry goods with little or no containment outside of the boundaries of the ship. These vessels are also known as the "workhorses" of the shipping fleet because they handle the lion's share of the services required by international trade. Through these ships, a wide range of cargo, including packaged goods, iron ore, coal, and other dry bulk, is transported. The need for more powerful and spacious ships to handle the increasing cargo demand is being fueled by the region's improving economic conditions.

The oil tankers segment is expected to grow at a significant rate. The disruption of crude oil production and modifications to the trade of crude oil supply has an impact on the market expansion. Crude oil is transported by very large crude carriers (VLCCs) from the countries where it is extracted to the countries where it is refined into its final products. These vessels are typically capable of transporting 350,000 tons of crude oil in a single shipment.

Based on product type, the global marine lubricant market is bifurcated into the engine oil, hydraulic, and compressor oil.

The compressor oil segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. An essential piece of equipment in a ship or vessel is a compressor. The vapor/gas is compressed in various areas of the ship to reduce volume while increasing pressure at the same time. On a ship, various compressor types are employed. Compressors are primarily used on ships for the main air compressor, deck air compressor, refrigeration compressor, and air conditioning compressor. When it comes to air conditioning and refrigeration, refrigeration compressors are used, while air compressors are used to provide compressed air for engine combustion. Better cooling systems for ships and other vessels are increasingly in demand as demand for luxury and cruise ships rises.

The hydraulic segment is expected to grow at a significant rate, owing to the extensive use of lubricants in hydraulic compressors to reduce heat, friction, and others. Hydraulic compressors play a vital role in marine ships; they are used to convert hydraulic power into mechanical power and mechanical power to pneumatic power.

Impact of covid-19

The pandemic led to a temporary lockdown of the nations, which on a wide scale hindered the verticals of businesses and the industry. The automobile industry, which primarily involves outdoor jobs, has been poorly exposed to the challenges that have contributed to a dramatic decrease in car sales. Furthermore, the instability of the supply chain market mainly due to the closing of national and foreign borders and the adherence to the decision not to use Chinese produced products hampered the growth of the market. However, the considerable spike seen in the sale of the automotive vehicle to limit the usage of public and crowded places may positively affect the growth of the market in the upcoming years.

Recent Developments

• October 2022, Exxon Mobile announced two discoveries to its extensive portfolio at the Sailfin-1 and Yarrow-1 wells in the Stabroek block offshore of Guyana.
• July 2022, Idemitsu Kosan Co. Ltd partners with Umicore S.A to develop better-performing catholyte materials for solid-state batteries.