With no clear leader, the global market for marine lubricants demonstrates a fragmented landscape, states a new research report by Transparency Market Research (TMR). In 2015, the top seven companies, namely, Royal Dutch Shell plc, ExxonMobil Corp., LUKOIL Marine Lubricants DMCC BP Plc, Chevron Corp., FUCHS, and Total Lubmarine, collectively, accounted for only 49.4% of the overall market. The increase in the profit margin, together with, the high growth potential in the coming years is attracting new local and international entrants towards this market, which is likely to intensify the competition within this market, notes the research study.
According to the research report, the opportunity in the global market for marine lubricants, which was worth US$2.32 bn in 2015, is anticipated to rise at a CAGR of 4.17% during the period from 2016 to 2024 and attain a value of US$3.33 bn by the end of the period of the forecast. Mineral oil has been enjoying a much higher demand among consumers than the other types of marine lubricants. Researchers expect this trend to continue in the years to come.
Strong Demand for Engine Oil to Ensure its Dominance
Marine lubricants are majorly find application as engine oil, gear oil, hydraulic oil, turbine oil, heat transfer fluids (HTFs), and compressor oil, and grease. As per the study, engine oil is garnering a substantial demand all across the world and is expected to continue to do so over the next few years due to its efficiency in protecting the engine from friction wear and tear. Apart from engine oil, hydraulic oil is also anticipating to attract a significant demand of consumers in the near future, thanks to the reliable air release filterability and cleanliness it offers. Its assistance in extending pump life even under highly severe conditions is also projected to support its demand in the years to come.
In terms of region, the worldwide market for marine lubricants has been categorized into Asia Pacific, the Middle East and Africa, Europe, North America, and Latin America. In 2015, Asia Pacific led the global market with a share of more 51%. Researchers anticipate this regional market to maintain its dominance throughout the period of the forecast on the grounds of the increasing need for marine lubricants in various industries in this Asia Pacific.
The presence of ports in a large number is also projected to boost the Asia Pacific market for marine lubricants in the years to come. Various countries, such as Japan, China, India, Singapore, Philippines, Indonesia, and Australia, are anticipated to drive this regional market remarkably during the forecast period, reports the study.
Advancements in Maritime Transport and Structural Changes in International Trading to Boost Demand
“The global market for marine lubricants is mainly being driven by the exponential rise in the shipping industry,” says an analyst at TMR. According to the Department of Transport and Supply Chain Management at the University of Johannesburg, South Africa, the shipping industry is considered as the catalyst for economic development of a country and is projected to hold almost 90% of the world trade in the near future.
The advancements in maritime transport and the structural changes in international trading activities are having a profound impact on development of ports, which is likely to impact the shipping industry over the next few years. This, in turn, is anticipated to fuel the need for marine lubricants substantially in the years to come. However, the decrease in the production of group I base oil may hamper the market’s growth during the forecast period, states the report.
The study presented here is based on a report by Transparency Market Research (TMR), titled “Marine Lubricants Market (Product Type - Mineral Oil, Synthetic Oil, and Bio-based Oil; Application - Engine Oil, Hydraulic Oil, Gear Oil, Turbine Oil, Heat Transfer Fluids (HTFs), Compressor Oil, and Grease; Operation - Inland and Offshore Operation) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
The global marine lubricants market has been segmented as follows:
By Product Analysis
- Mineral oil
- Synthetic oil
- Bio-based oil
- Engine oil
- Hydraulic oil
- Turbine oil
- Gear oil
- Heat Transfer Fluids (HTFs)
- Compressor oil
By Operation Type
- North America
- Latin America
- Rest of Latin America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa