Marine Lubricants Market

The global Marine Lubricants Market is valued at USD 6.75 Billion in 2023 and is projected to reach a value of USD 9.64 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 4.06% between 2024 and 2032

Key Highlights

• In 2023, the Asia Pacific dominated the market, accounting for 41.5% of the total revenue, driven by the booming marine industries in China, India, and Singapore
• In 2023, the Engine Oil segment dominated the market, with a market share of around 47.3% due to the growing global trade and maritime activities that necessitate efficient and dependable marine engines
• In 2023, the Mineral Oil segment was the largest in the global market by value, primarily due to its cost-effectiveness compared to synthetic oils and other alternative base oils
• 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

Premium Insights

The adoption of Marine Lubricants is crucial for the shipping industry. According to the International Maritime Organization (IMO), approximately 90% of the global trade is conducted via maritime transport. 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 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.

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.

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 prompted 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.

The global market is experiencing significant growth driven by key factor, prominently highlighted by Chevron Marine Lubricants innovative DOT.FAST® & FAST services. These services provide comprehensive on-board and on-shore analysis of drip oil, delivering precise measurements of total iron wear, including corrosive wear. This capability is crucial as it allows for the adoption of higher BN (Base Number) lubricants, which offer substantial cost savings by potentially reducing feed rates. Such lubricants often lead to decreased corrosion and improved wear rates in cylinder applications. As global shipping transitions towards lower sulfur emissions, the demand for advanced lubrication solutions that enhance efficiency and environmental compliance continues to rise.

However, the fluctuations in crude oil prices and tightening supply are expected to hinder the market growth during the forecast period. Excessive vessel construction, coupled with slowing economic growth, has led to an oversupply of ships competing for a limited number of cargoes, which is obstructing the market's growth.

Top Market Trends

1. Governments & international bodies are imposing stricter environmental regulations, such as the International Maritime Organization's (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.

Market Segmentation

The global Marine Lubricants market can be categorized into Product Type, Oil Type, Ship Type, and Region. Based on Product Type, the market can be categorized into Engine Oil, Cylinder Oil, System Oil, Hydraulic Fluid, Compressor Oil, and Others. Additionally, based on Oil Type, the market can be split further into Mineral Oil, Synthetic Oil, and Bio-Based Oil. Based on Ship Type, the market can be divided further into Bulk Carriers, Tankers, Container Ships, and Others. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Product Type

The Engine Oil segment dominated the global market in 2023, with 47.3% of revenue share due to the increasing global trade & maritime activities, which demand efficient and reliable marine engines. As shipping companies strive for better performance and longer engine life, the need for high-quality engine oils that provide superior lubrication, reduce wear and tear, and enhance fuel efficiency is growing. Moreover, the stringent environmental regulations are pushing the adoption of cleaner & more sustainable Marine Lubricants. Engine oils with lower sulfur content and better biodegradability are becoming essential to meet these regulatory standards, particularly in emission control areas (ECAs). Enhanced additives & synthetic lubricants are being developed to improve thermal stability, oxidation resistance, and overall engine protection.

Hydraulic fluid segment is projected to be the fastest-growing segment in the global market, with a compound annual growth rate (CAGR) of 4.3% during the forecast period. Such oils enhance pump longevity under extreme conditions, ensuring cleanliness and effective air release filterability. Advanced technologies now offer low toxicity levels, adhering to environmental standards. Hydraulic lubricants offer robust protection for pumps, incorporating anti-wear additives, corrosion and oxidation inhibitors, foam and aeration suppressants, and shear-stable viscosity index improvers. Key hydraulic components include vane pumps, piston pumps, and gear pumps. Typically, available in multiviscosity grades such as ISO 15, 22, 32, 46, 68, and 100, these lubricants facilitate smooth power transmission with minimal shudder and high precision.

Based on Oil Type

In terms of value, the Mineral Oil segment was the largest segment in the global market in 2023 owing to its affordability compared to synthetic oils and other alternative base oils. The demand for mineral oil-based Marine Lubricants is high for applications such as stern tubes, engines, turbines, and compressors. Given the availability of both light and heavy grades, mineral oil is widely used in Marine Lubricants. In the maritime industry, where large quantities of lubricants are needed for various types of equipment & engines, cost is a critical factor. The relatively low price of mineral oil makes it a cost-effective choice for many vessel owners and operators. Furthermore, mineral oil can be enhanced with various additives to boost performance and are compatible with a wide range of grease thickener systems. However, mineral oil flows more slowly through engine circuits compared to synthetic oil, leading to higher fuel consumption and reduced performance.

Synthetic Marine Lubricants, composed of modified chemicals and artificially synthesized petroleum components, offer superior performance and features, and can operate under extreme temperatures. They are often considered higher quality than mineral oil-based greases. Due to their enhanced properties, synthetic lubricants can extend the average drain interval in sectors such as marine, automotive, and industrial. Although synthetic lubricants are more expensive than mineral oil-based options, the increasing use of synthetic and bio-based lubricants is expected to phase out mineral oil-based lubricants over time, reducing the volume of Marine Lubricants used per ship.

Based on Region

In 2023, Asia Pacific market held a significant dominance with 41.5% of the total revenue 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 port's capability to refuel ships and handle large container volumes underscores its importance in global trade networks.

The increase in population, industrialization, low labour cost, enhanced living standards and accessibility of raw materials also drives the Asia Pacific market. This region is a significant center for shipbuilding and repair activities. Nations like China, Japan, and South Korea are renowned for their shipbuilding expertise and have numerous commercial vessels either being built or in service. The need for Marine Lubricants during the construction and maintenance of these ships further fuels the regional demand.

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.

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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.

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 Singapore's 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 key players in the global Marine Lubricants market include - Exxon Mobil Corporation, BP p.l.c., Shell plc, Chevron Corporation, TotalEnergies SE, China Petroleum & Chemical Corporation (Sinopec), Idemitsu Kosan Co. Ltd., ENEOS Holdings Inc., Gazprom Neft, PETRONAS, Lukoil among others.

Recent Market 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 bp's 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 Zealand's 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).

Frequently Asked Questions (FAQ’s)?

1. What are Marine Lubricants?

Marine lubricants are extensively utilized in the shipping industry to safeguard and enhance the efficiency of engines and equipment.

2. What is a marine lubrication system?

The engine's lubrication system circulates oil to minimize friction between its numerous moving components. Primarily, it forms an oil layer between these moving parts, reducing friction and wear.

3. How big is the Marine Lubricants market?

The global Marine Lubricants market size was valued at USD 6.75 billion in 2023 and it is expected to hit USD 9.64 billion by 2032, registering growth at a CAGR of 4.06% from 2024 to 2032.

4. What is marine oil used for?

Marine engine oils are designed to withstand higher levels of strain, corrosion, and moisture compared to automotive engine oils. They have exceptionally strong film strength to protect engine parts during continuous shear and load, and they also include antioxidants that are crucial for extending engine lifespan.

5. Which oil is used in lubrication system?

Mineral lubricating oils are the most frequently used type due to the low cost of extraction from crude oil. Moreover, they can be produced with different viscosities, making them versatile for various applications.