The Marine Lubricants Market is estimated to be valued at US$ 11,185.6 Mn in 2021 and is expected to exhibit a CAGR of 6.1% over the forecast period from 2021 to 2028, as highlighted in a new report published by Coherent Market Insights.
The marine lubricants market provides lubricants to reduce friction and wear on machinery parts that are subject to water, harsh temperatures, and physical stresses of commercial exposure. Marine lubricants are specialized lubricants designed to perform under extreme marine and off-shore conditions.
Market Overview:
Marine lubricants are essential products for ships and vessels. They enable smooth functioning of marine machinery such as main engines, auxiliary engines, hydraulic systems and other mechanical parts by reducing friction between metal surfaces. Marine lubricants provide excellent protection from wear and tear, protect machinery parts from corrosion and resist pressure and temperature variations encountered in marine applications.
Market key trends:
One of the key trends driving the growth of marine lubricants market is the increasing global seaborne trade and expansion of shipping fleets. According to the United Nations Conference on Trade and Development (UNCTAD), the total seaborne trade volumes crossed 11 billion tons in 2021 growing 4.3% compared to previous year. The high demand for transportation of goods via sea routes is necessitating more ships and vessels requiring marine lubrication. Furthermore, stringent maritime regulations regarding emission reductions from ships are prompting ship owners to use advanced environment-friendly marine lubricants. For instance, the International Maritime Organization's (IMO) regulations to reduce sulfur content in marine fuels to 0.5% by 2020 is boosting demand for low sulfur marine lubricants.
Porter’s Analysis
Threat of new entrants: High capital requirements for building rigs and platforms pose a barrier for new companies to enter the market. Effective utilization of new technologies also require huge investments which make the entry difficult.
Bargaining power of buyers: Large operators hold significant bargaining power over independent lubricant manufacturers as they can negotiate bulk purchase discounts and long term supply contracts. Buyers can also leverage alternate suppliers to negotiate better prices.
Bargaining power of suppliers: Few global players control the lubricant manufacturing market. Major suppliers possess significant bargaining power over buyers through product differentiation and proprietary formulations. Suppliers can influence prices according to demand-supply fluctuations.
Threat of new substitutes: New environment friendly bio-lubricants and synthetic esters pose a threat to conventional mineral oil based lubricants. However, substitutes are still in development phase with limited applications in marine industry.
Competitive rivalry: Presence of large multinational corporations increases competitive pressure. Industry players compete on product quality, consistent supply, value-added services and pricing.
SWOT Analysis
Strengths: Differentiated product offerings with specialized formulations. Established brands and relationships with major shipping companies ensure consistent demand.
Weaknesses: High research and production costs. Vulnerable to volatility in crude oil prices affecting raw material costs.
Opportunities: Expand into bio-lubricants and other green alternatives. Tap opportunities in emerging Asia Pacific markets with increasing maritime trade.
Threats: Stricter environmental regulations can render some products obsolete. Economic slowdowns may dampen demand from shipping industry.
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 expansion of global fleet. Growing Asian economies are heavily dependent on international shipping for trade, with key ports in China, Singapore and India. This makes Asia Pacific the dominant as well as fastest growing regional market.
Regional analysis North America and Europe account for sizable shares of the global marketCurrently, North America and Europe collectively account for over 45% of the global marine lubricants demand led by presence of large fleets and vendors in the regions. However, Asia Pacific is emerging as the hotspot exhibiting the highest CAGR during the forecast period with growth centered around China and India. These countries are major exporters & importers driving the growth of containers and dry bulk ships prompting lubricant consumption.
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.
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