Marine Lubricants Market

The global Marine Lubricants Market is valued at USD 9.17 Billion in 2023 and is projected to reach a value of USD 14.71 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 4.40% between 2024 and 2032.

The report is a comprehensive analysis of the global Marine Lubricants industry, highlighting trends, developments, challenges, and business opportunities.

Key Highlights

• Asia Pacific led the market in 2023, with 41.5% of the total market share
• In 2023, the Engine Oil segment dominated the market, with a market share of around 47.3%
• Based on Oil Type, the Mineral Oil segment took the lead in the global market in 2023
• Europe holds the second-largest share in the global market, following Asia Pacific. The region plays a crucial role in global trade, supported by numerous ports and dry docks, which drive the strong consumption of the market. Germany, Netherlands, & the UK are among the leading consumers in this market
• There is a growing trend towards bio-based and eco-friendly lubricants as environmental sustainability becomes a priority. These lubricants are biodegradable and have a lower environmental impact, making them attractive options for marine applications
• China, the Republic of Korea, and Japan collectively dominate approximately 93% of global shipbuilding activities based on deadweight tonnage (DWT), according to the United Nations Conference on Trade and Development (UNCTAD)
• To advance the "Make in India" initiative and bolster the shipbuilding industry, the Ministry has introduced the Shipbuilding Financial Assistance Policy (SBFAP). This scheme aims to help Indian shipyards secure orders from both domestic and international markets, enhancing competitiveness globally. Financial assistance is provided to Indian shipyards for shipbuilding contracts signed between April 1, 2016, and March 31, 2026, starting at a rate of 20% in 2016 and gradually reducing to 11% by 2026

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Thriving Marine Industries Propel Asia Pacific Market

In 2023, Asia Pacific market held a significant dominance with 41.5% of the total revenue. The Asia Pacific market is set for robust growth, driven by thriving marine industries in China, India, and Singapore. These nations benefit from substantial consumption of Marine Lubricants, supported by increasing manufacturing investments attracted by abundant labor and raw materials. Notably, Singapore plays a pivotal role as a global maritime hub, facilitating over 140,000 vessel calls annually. Its strategic location and efficient port infrastructure make it a preferred choice for more than 200 shipping lines, handling over 37.3 million TEUs in 2022 alone. The ports capability to refuel ships and handle large container volumes underscores its importance in global trade networks.

Product Type Overview

• The Engine Oil segment dominated the global market in 2023, with 47.3% of revenue share. Based on product type, the global market is segmented into Engine Oil, Cylinder Oil, System Oil, Hydraulic Fluid, Compressor Oil, and Others.
• Engine oil is essential for lubricating the internal components of internal combustion marine engines, ensuring they remain cool and protected from corrosion. With global trade volumes of bulk commodities such as oils, agricultural goods, consumer goods, and industrial products increasing through water transportation, there is a growing demand for engine oil in this segment.
• Hydraulic oil category is expected to experience rapid growth in the market over the forecast period. These oils are crucial for extending the life of pumps under challenging conditions, ensuring cleanliness, and providing reliable air release and filterability. Advanced technologies that meet environmental standards have significantly reduced toxicity levels, benefiting marine life.

Key Industry Trends

1. Governments & international bodies are imposing stricter environmental regulations, such as the International Maritime Organizations (IMO) sulfur cap, which limit the sulfur content in marine fuels. This drives the demand for high-quality, low-sulfur Marine Lubricants to ensure compliance and optimal engine performance.
2. The increase in global maritime trade & shipping activities, especially in emerging economies, is propelling the market demand. The expansion of the global fleet, including container ships, bulk carriers, and oil tankers, is boosting the market.
3. Advances in marine engine technology, such as the development of more fuel-efficient & environmentally friendly engines, require lubricants with enhanced performance characteristics. This trend is driving innovation in lubricant formulations to meet the specific needs of modern engines.
4. The adoption of digital technologies & smart shipping solutions, such as predictive maintenance and real-time monitoring, is influencing the market. Such technologies enable better lubricant management and optimization, improving efficiency and reducing operational costs.
5. The growth of offshore oil & gas exploration and production activities is boosting the market demand. These operations require specialized lubricants to ensure the reliability and longevity of equipment operating in harsh marine environments.
6. Companies are investing more in research & development to innovate and develop advanced lubricants that meet evolving industry standards and customer demands. This includes the development of lubricants that can perform well under extreme conditions and extend maintenance intervals.

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Market Outlook

Rising Demand for Bio-Based Marine Lubricants

The rising need for environmentally friendly and sustainable lubricants presents a significant opportunity for the global market. Bio-based and synthetic lubricants, derived from renewable sources like plant oils, offer distinct advantages over traditional petroleum-based counterparts. They are biodegradable and less harmful if released into the aquatic environment during ship operations or accidents. With tightening environmental regulations worldwide, shipping companies face mounting pressure to cut down on pollution & carbon emissions from their fleets. This demand for cleaner solutions extends beyond fuel choices to operational lubricants. Synthetic esters and bio-based formulations derived from plant oils are increasingly replacing conventional petroleum distillate oils that were once standard.

R&D Activities to Help Predict Changing Oil Prices

Continual advancements in technology within the market are anticipated to generate lucrative growth opportunities for manufacturers. Increased investment in research and development (R&D) activities by industry participants is poised to drive global market expansion. R&D is increasingly critical for forecasting fluctuations in oil prices, which are influenced by organizations such as OPEC (Organization of the Petroleum Exporting Countries).

Enforcement of International Maritime Regulations

Stringent international maritime regulations governing lubricant use are presenting challenges for the global market. Organizations such as the International Maritime Organization (IMO) have introduced rigorous standards for Marine Lubricants to reduce pollution and safeguard marine ecosystems. The IMO 2020 regulations, for instance, mandate a significant reduction in sulfur content in marine fuels from 3.5% to 0.5% to mitigate sulfur oxide emissions from ships. This requirement has spurred the development of advanced low-sulfur Marine Lubricants that offer enhanced performance. However, the transition to new low-emission lubricant technologies within specified deadlines has increased compliance burdens for ship owners and operators.

Booming Demand for Bio-Based Marine Lubricants Driven by International Regulations and Market Recognition

The increase in global regulations promoting the use of environmentally friendly lubricants presents opportunities for producers of bio-based lubricants. Environmentally Acceptable Lubricants (EALs), certified by organizations such as the American Bureau of Shipping, assure ship owners of minimal impact on water quality and safety. Leading lubricant manufacturers have responded by developing a diverse range of bio-based and synthetic options tailored for various engine and machinery uses. According to the 2023 European Bioeconomy Statistics, production of bio-based Marine Lubricants in Europe has grown by more than 15% annually since 2020, indicating widespread industry recognition of the regulatory compliance and marketing benefits offered by these sustainable solutions.

Competitive Landscape

• The industry is dominated by a few multinational companies that meet the majority of global demand. Fluctuating crude oil prices, which mostly trend upwards, necessitate companies to explore new avenues for revenue generation. This has led to increased mergers and partnerships as firms strive to bolster their market positions.
• Cepsa and ExxonMobil Petroleum & Chemical BV (ExxonMobil) have extended their partnership for manufacturing, distributing, and supplying ExxonMobil Marine Lubricants in Spain, Portugal, and Gibraltar until 2032. The renewed agreement also includes an expansion into Morocco, marking a geographical extension of their collaboration.

News and Developments

TotalEnergies Acquires Tecoil: Advancing RRBO Technology

• In July 2024, TotalEnergies announces the acquisition of Tecoil, a Finnish company specializing in the production of Re-Refined Base Oils (RRBOs), renowned for its highly efficient used oil regeneration technology. Situated in Hamina, eastern Finland, Tecoil operates a facility producing 50,000 tons of RRBOs annually.

FPT Industrial and PETRONAS Lubricants Introduce Innovative Fluids

• In May 2024, FPT Industrial and PETRONAS Lubricants International (PLI) introduce a new collaborative line of fluids designed for marine, on-road, off-road, and power generation engines and vehicles. These innovative products are characterized by precise formulations, high quality, and reliable performance across diverse operational environments.

bp Marine Secures Long-Term Biofuel Supply Agreement with StraitNZ

• In July 2023, bp Marine, a division of bps trading and shipping operations, has signed a lasting supply contract with integrated transport provider StraitNZ. This agreement encompasses the provision of marine biofuels at Wellington Port. StraitNZ operates a network that includes the Bluebridge Cook Strait Ferries, facilitating 50 weekly voyages for both passengers and freight between Wellington and Picton, linking New Zealands north and south islands.

ExxonMobil Supplies Hapag-Lloyd with B30 Marine Biofuel

• In May 2023, ExxonMobil has entered into an agreement to supply Hapag-Lloyd with B30 marine biofuel oil in the Amsterdam-Rotterdam-Antwerp (ARA) region. This marine biofuel, based on a 0.50% sulfur residual fuel (VLSFO), was blended with waste-derived fatty acid methyl esters (FAME).

Shell and Hapag-Lloyd Ink LNG Supply Deal for Container Vessels

• In Feb 2023, Shell Western LNG B.V (Shell) and Hapag-Lloyd have inked a multi-year deal for the provision of liquefied natural gas (LNG) to Hapag-Lloyd’s advanced dual-fuel container vessels, each with a capacity exceeding 23,500 twenty-foot equivalent units (TEU).
• In November 2022, Chevron has introduced a new environmentally acceptable lubricant tailored for marine vessels. These lubricants and greases are crucial for ensuring smooth machinery operation, enhancing performance, and preventing corrosion. This is particularly vital for seaborne vessels navigating oceans, where components come into contact with water.
• In October 2022, ExxonMobil achieved a successful commercial bunkering of bio-based marine fuel oil at Singapores port on September 26th. Tata NYK Shipping utilized its Sagar series vessel, MV Sagar Moti, transporting salt from Mundra, India to Vietnam. The vessel received ExxonMobil’s marine biofuel via ship-to-ship transfer in Singaporean waters before proceeding to its discharge port.

The global Marine Lubricants market can be categorized as Product Type, Oil Type, Ship Type, and Region.