Marine Lubricants Market size is set to reach USD 5.9 billion by 2024

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Boasting of a sufficiently long history in supporting the maintenance of marine machinery including marine diesel engines and others, marine lubricants still continue to have had a drastic impact on the smooth running of sea transits.

The world, of late, is observing a substantial rise in seaborne and international trade activities which is providing an impetus to marine lubricants industry. The shipbuilding industry has witnessed a gradual expansion in not only the developed economies, but also across various developing economies worldwide.

Considering the 2018 report of UNCTAD, nearly 90 per cent of global shipbuilding occurred in the states of China and also in the Republic of Korea and Japan. Indeed, China has been heftily investing in shipbuilding since the last few decades.

Claims have been made that the synthetic lubricants lead to hazardous effects on the environment which has prompted the lubricant manufacturers to shift to the consumption of bio-based lubricants. A paradigm shift such as this is likely to help marine lubricants industry players experiment further with their product portfolios while simultaneously providing an impetus to the industry outlook.                

Marine lubrication includes the use of auxiliary grade lubricants such as hydraulic oils, engine oil, grease, etc. In essence, the use of engine oils is likely to grow potentially in the upcoming years owing to their effectiveness in facilitating four and two stroke engines in vessels. Additionally, engine oil usage is also affected by the expanding marine tourism across the Asian countries including India and China.

Studies published in the CSC Journal reveal that China is expected to witness a massive rise in cruise tourism, i.e., the number of cruise immigration passengers is likely to reach a mammoth of over 4.5 billion people by the end of 2020.

Speaking in terms of the regional landscape, Asia Pacific has emerged as a lucrative ground for the global marine lubricants market. APAC is marked as one of the rigidly transforming continents across the globe in terms of marine lubricant usage. This can be aptly credited to the mounting developments in marine infrastructure across the region. China, a major driving force in the APAC shipbuilding ecosystem, is likely to garner noteworthy gains in the regional marine lubricants market over time. What drives the industry in the nation is the subsidy policy brought to action in 2018 by the government.

Concurrently, the predominance of large scale marine lubricant manufacturers across the region has stimulated the business growth. The region is remnant of rigorous business activities, that are also responsible for enhancing the market outlook.

One of the major marine lubricant giants, Indian Oil Corporation, an Indian company, has potentially marked its niche in the production and distribution of marine lubricants. The company has bunkering operation in approximately 15 Indian ports along with fulfilling over 100 per cent bunker requirement of the Indian navy. Moreover, the company had in October 2019 unveiled two of its new marine fuel grades at an International Bunker meet 2019. These products are in line with new International Maritime Regulation restricting the Sulphur content from 3.5 per cent to 0.5 per cent.

Not only APAC, the U.S. has also been home to successful marine lubricant providers, Exxon Mobil being one of the significant ones. The company is headquartered in Texas and currently deals with the export of oil and gas. As per reliable reports, Exxon had recently announced supplying its Mobilgard ADL 40 engine oil for the largest plug-in hybrid ship, Color Hybrid. Apparently, the lubricant has specifically been designed to reduce the piston ring grove deposits, liner lacquering, and bore polishing in high and medium speed diesel engines.

Despite the irrefutable fact that some lubricants are environmentally inviable, majorly due to the toxic carbon emissions, the industry conglomerates are leaving no stone unturned to render a positive impact on the market expansion. This is being achieved through the development of more environment friendly lubricants that can easily be used for marine machine management.

(Source: Global Market Insights)

Sea News Feature, February 5

Baibhav Mishra
Author: Baibhav Mishra