Global Statistics Representing Marine Lubricant Market Scenario
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 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, relaxation of freight tax in Asia Pacific is expected to boost international trading activities, which, in turn, is projected to fuel the demand for marine lubricants.
The global marine lubricant market was valued at USD 6.25 billion in 2018 and is projected to reach a value of USD 9.05 billion by 2026, registering a CAGR of 4.2% during the forecast period, 2019–2026.
The global marine lubricant market can be segmented by oil type, ship type, and application. On the basis of oil type, the market can be segmented into mineral, synthetic, and bio-based. The bio-based lubricants segment is expected to register the highest CAGR during the assessment period. 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 ship type, the marine lubricant market can be segmented into commercial, industrial, and others. The industrial ships segment is expected to hold a considerable share of the global marine lubricants market. Industrial ships are ships that carry out an industrial process at sea; they are generally designed for cargo transport.
Growing seaborne trade is expected to positively impact the growth of the marine lubricant market. According to UNCTAD, global seaborne trade is projected to expand at a CAGR of 3.8% during 2018–2023.
In terms of application, the market can be segmented into the engine, hydraulic, compressor, and others. The hydraulic compressors segment is gaining traction in the global marine lubricant market, 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.
Geographically, the marine lubricant market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
Asia Pacific is expected to dominate the global market and register 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.
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.
The North America marine lubricant market is expected to witness remarkable growth during the forecast period, owing to the presence of large industries, advanced marine infrastructure, and significant export numbers.
The LAMEA region comprises underdeveloped and developing countries such as Brazil and South Africa and is expected to witness limited growth due to poor marine infrastructure and low international trade.
Some of the prominent players operating in the marine lubricants market are Aegean Marine Petroleum Network Inc., BP PLC, Chevron Corporation, Exxon Mobil Corporation, Idemitsu Kosan Co. Ltd., LUKOIL Marine Lubricants DMCC, Royal Dutch Shell Plc., Sinopec Corporation, Total S.A., and Valvoline LLC. Key players are observed to be focusing on expanding their geographical reach.
Marine Lubricant Market Segmentation
By Oil Type
By Ship Type