Get In Touch

Abundant Deep Water Reserves to Create Heightened Demand for Offshore Lubricants, reports TMR

The global offshore lubricants market is led by large MNCs, making for an expansive arena marked by intense competition. Companies such as Royal Dutch Shell, Total, Chevron, ExxonMobil, and Castrol have established strong brand equity over the years. This has resulted in a difficulty for new players to penetrate the market. For new entrants to gain a higher market share, creating a reliable distribution channel becomes a crucial factor, states a new report by Transparency Market Research (TMR). Since creating a good distribution channel requires time and capital, it is difficult for new entrants to survive in the market. 

The threat of substitutes in the offshore lubricants market is low as lubricants are essential for every machine or moving part and there are no external substitutes for them. However, there does exist competition among different types of lubricants such as bio-based, synthetic, and semi-synthetic. Since the use of bio-degradable lubricants has been mandated by the EIA, there has been increased R&D into the production of cost effective bio-based lubricants. This is expected to increase the competition in the market.

Need to Improve Operational Life of Mechanical Parts Boosts Demand for Offshore Lubricants

The rise in the demand for energy is increasing by 1.5% per year, as per the BP Energy Outlook. Thus, there is a rise in the use of floating production storage and offloading (FPSOs) and offshore rigs in offshore exploration and production (E&P) activities. This in turn is increasing the demand for lubricants as they are extensively used in these activities. Constant developments in offshore lubricants are enhancing the operational life of mechanical parts, which in turn reduces unnecessary capital investments. This will further the demand for offshore lubricants.

It is expected that many E&P activities will take place in Brazil and Africa. Thus, the demand for offshore rigs is steadily increasing and around 220 offshore rigs are under construction. These rigs are expected to be installed in various offshore fields across the globe and accelerate the growth of the offshore lubricants market.

Environmental Regulations Prohibit Use of Certain Lubricants

The growing environmental concerns over lubricant spills and leakages into the sea are forcing various government agencies to come up with new legislations compelling the use of eco-friendly lubricants. Guidelines set by the IMO state that seals, main propulsion, and stern tube bearings of ships operating in the ice covered waters in the Arctic, should not leak pollutants. Similarly, the Vessel General Permit regulation by the EPA has compelled ship owners to use environmentally acceptable lubricants (EAL). Oil companies are facing difficulty in the use of EALs as the many conventional rubber seal materials used are not compatible with the new EALs, says a TMR analyst. This, prohibits the use of EAL in these applications.

Offshore Fields in West Africa, Brazil, and Gulf of Mexico to Create Heightened Demand for Lubricants  

High investments by major oil and gas exploration and production companies are creating a continuous demand for FPSOs and offshore rigs. There are many offshore fields in the Golden Triangle (West Africa, the Gulf of Mexico, and Brazil), which will result in large scale exploration and production activities. These fields have an average depth of around 1890 feet, thus requiring a large number of offshore rigs and FPSOs. This in turn is expected to create a heightened demand for offshore lubricants.

According to the report, the global market opportunity in offshore lubricants is expected to rise from US$134.67 mn in 2015 to US$183.50 mn by 2020. By end user, the offshore rigs segment led in the past and will continue to retain its leading position in the coming years. On the basis of application, the engine oil segment is expected to lead and account for 61.95% of the global offshore lubricants market by 2020. The Rest of the World, followed by Asia Pacific is anticipated to lead in the market in the coming years. The Rest of the World is expected to account for 32.49% of the global offshore lubricants market by 2020.

This information is based on the findings of a report published by Transparency Market Research titled “Offshore Lubricants Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 - 2020.”

The global offshore lubricants market is segmented as follows:

End User

  • Offshore rigs
  • FPSO


  • Engine oil
  • Hydraulic oil
  • Gear oil
  • Grease
  • Others (turbine oil, compressor oil, circulating oil, etc.)


  • North America
  • Europe
  • Middle East
  • Asia Pacific
  • RoW (Rest of the World)

About Us

Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.

Each TMR syndicated research report covers a different sector - such as pharmaceuticals, chemicals, energy, food & beverages, semiconductors, med-devices, consumer goods and technology. These reports provide in-depth analysis and deep segmentation to possible micro levels. With wider scope and stratified research methodology, TMR’s syndicated reports strive to provide clients to serve their overall research requirement.

US Office Contact

90 State Street, Suite 700
Albany, NY 12207
Tel: +1-518-618-1030
USA - Canada Toll Free: 866-552-3453
Email: [email protected]

7 of 10 large enterprizes view our ToC to take the right decision.

View Report ToC