MARINE LUBRICANT MARKET ANALYSIS

The marine lubricant Market size is valued at US$ 6 Bn in 2024 and is expected to reach US$ 6.7 Bn by 2031, growing at a compound annual growth rate (CAGR) of 1.6% from 2024 to 2031.

The global marine lubricants market has been growing rapidly over the forecast period. Marine lubricants are primarily used across the shipping industry in order to protect and improve the efficiency of equipment and engines. These are high-performance fuels that are specially designed to enhance performance in operations. They exhibit exceptional properties that help in increasing shelf-life and protect the components exposed to high temperatures. Inflatable boats, drill ships, outboard motorboats, tankers, cargo ships, passenger ships, and semi-submerged ships are some of the application areas of marine lubricants.

Global Marine Lubricants Market Regional Insights:

• Asia Pacific is expected to be the largest market for global marine lubricants, which is expected to grow at a CAGR of over 40 % during the forecast period. The growth of the market in Asia Pacific is attributed to the presence of a large number of ports, along with a rapidly expanding shipbuilding sector and increasing trade activities.
• Europe is expected to be the second-largest market for global marine lubricants, which is expected to grow at a CAGR of over 30 % during the forecast period. The growth of the market in Europe is attributed to the increasing number of ships using inland waterways, which is higher in Europe than in other regions due to France, Germany, the Netherlands, and Russia.
• North America is expected to be the fastest-growing market for global marine lubricants, which is expected to grow at a CAGR of over 15 % during the forecast period. The growth of the market in North America is attributed to rapid industrialization, rising international trade activities, and increasing adoption of seaborne trade.
• Latin America is expected to be the fastest-growing market for global marine lubricants, which is expected to grow at a CAGR of over 8% during the forecast period. The growth of the market in Latin America is attributed to increasing demand for marine lubricants in countries such as Brazil, Argentina, and Mexico.
• Middle East & Africa is expected to be the fastest-growing market for global marine lubricants, which is expected to grow at a CAGR of over 7 % during the forecast period. The growth of the market in the Middle East and Africa is attributed to the rising demand for marine lubricants in countries such as Turkey, Egypt, Saudi Arabia, South Africa, the UAE, Morocco, and Qatar.

Figure 1. Global Marine Lubricants Market Share (%), By Region, 2024

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Analyst’s Views:

The global marine lubricants market continues to grow steadily, supported by increasing seaborne trade volumes and the expansion of global fleets. Asia Pacific region, led by China, remains the dominant as well as the fastest-growing market globally owing to the presence of leading ship-owners and freight forwarders.

However, the implementation of stricter environmental regulations poses a challenge as ship operators are compelled to shift from conventional to advanced biodiesel and synthetic blends. At the same time, this also opens an opportunity for lubricant players to innovative environmentally acceptable products and solutions. Lubricant manufacturers are investing significantly in research and development to develop lower emission lubricants.

Along with the regulatory push, high bunker prices provide an incentive for ship owners to optimize operational efficiency through advanced lubricants. Growing competitiveness is prompting operators to carefully select high performance lubricants that enhance fuel economy and reduce maintenance downtime.

The global economic recovery is contributing to growth in seaborne trade, albeit unevenly across major commodity groups. Recovery in industrial sectors would have a positive impact on demand for dry bulk shipping and tankers, in turn benefiting lubricant sales. However, an oversupply situation in container shipping may limit the upside.

Geopolitical tensions and protectionist policies bring added uncertainty. Nevertheless, underlying growth drivers remain intact to sustain long term growth in the marine lubricant industry supported by increasing ton-mile demand and a regulatory push for carbon reduction.

Global Marine Lubricants Market Drivers:

Increasing seaborne trade: The growth in seaborne trade across the world is a key driver behind the increasing demand for marine lubricants globally. With over 80% of global trade being transported by sea, there has been a rise in shipping volumes and fleet size to support the growing transportation needs. According to data from the United Nations Conference on Trade and Development (UNCTAD), the total seaborne trade volumes crossed 11 Bn tons in 2021, growing at a rate of 4.3% from the previous year.

This surge in maritime trade volumes has directly resulted in larger shipping fleets. As estimated by UNCTAD, the global merchant fleet grew by 4.3% to 98,000 ships in 2022, compared to 2020 figures. With more ships plying the oceans every day, there is an accelerating requirement for special grade lubricants that can withstand tough marine conditions and ensure smooth operations of these vessels. Marine lubricants play a crucial role in reducing friction between machinery parts and the corrosion of engine components exposed to salt water. They aid in extending equipment life, improving fuel-economy, and minimizing maintenance downtime on ships.

Looking ahead, the demand trends are likely to strengthen further. According to forecasts by the United Nations Conference on Trade and Development, international seaborne trade is projected to increase by 3-4% per annum over the medium term until 2030. Multiple factors, such as rising globalization, increasing energy transportation, and the expansion of e-commerce are projected to sustain the growth momentum. This will translate to greater numbers of new ships delivered each year as shipping companies’ ramp up capacity. As fleet sizes increase, so will the consumption of marine lubricants across cruise ships, tankers, bulk carriers, and other vessel types. With larger requirements from the expanding maritime logistics industry, the global marine lubricants market is expected to grow steadily in the coming years.

Growth in the shipping industry: The shipping industry has been witnessing significant growth over the past few years, driven primarily by globalization and rise in international trade. As international commerce continues to accelerate with increasing globalization, there has been a substantial rise in seaborne trade volumes. Goods are increasingly being transported across borders via sea routes owing to their cost effectiveness as compared to other modes of transport. This surge in maritime logistics has led to a substantial expansion of the global commercial shipping fleet in recent times.

With large numbers of new cargo and passenger vessels being added to the worldwide shipping fleet each year to support the burgeoning trade flows, the demand for high-performance marine lubricants has risen tremendously. Marine lubricants play a vital role in ensuring smooth and efficient operations of the propulsion systems and other machinery on board ships. They help reduce friction and protect critical engine components from wear and tear caused by the harsh marine environment. The rigorous operational conditions at sea, varying climatic extremes, and stringent emission norms pose severe performance challenges for lubricants. This has driven shipping companies to rely on specialized bio-based and synthetic lubricant formulations that deliver enhanced lubricity and protect equipment better.

As per data from the United Nations Conference on Trade and Development (UNCTAD), the total number of container ships in the global fleet increased from around 6,000 vessels in 2015 to over 8,000 ships in 2021. Similarly, total dry bulk carrier fleet has grown from around 8,400 ships in 2015 to more than 11,500 vessels in 2021. This constant enhancement of international shipping capacity augurs well for the marine lubricant industry as it necessitates greater consumption of high-quality lubricants tailored for maritime applications. Lubricant manufacturers have also strengthened research and development efforts to formulate advanced lubricants compliant with the increasingly stringent emission regulations laid down by the International Maritime Organization (IMO). The marine lubricant market is expected to continue expanding steadily in the coming years on the back of robust growth projections for global seaborne trade volumes and international shipping infrastructure.

Global Marine Lubricants Market Opportunities:

Growing demand for bio-based marine lubricants: The growing demand for more environmentally friendly and sustainable marine lubricants presents a great opportunity for the global marine lubricants market. Bio-based and synthetic lubricants that are derived from renewable biological sources, like plant oils, offer several advantages over traditional petroleum-based lubricants. They are proven to be biodegradable and less toxic if released into the aquatic environment from ship operations or accidents. As environmental regulations steadily become more stringent worldwide, shipping companies are under increasing pressure to reduce pollution and carbon emissions from their fleets. This demand for greener solutions extends beyond just fuel choices to operational lubricants as well. Synthetic esters and bio-based formulations that are plant-oil derived are rapidly replacing conventional petroleum distillate oils that were previously the norm. According to the UN Conference on Trade and Development in 2020, an estimated 80% of global trade by volume is carried by ships, placing immense pressure on the marine industry to achieve ambitious emission reduction targets set by the International Maritime Organization.

The proliferation of international regulations incentivizing use of environmentally acceptable lubricants, spells opportunity for bio-based marine lubricant producers. EALs certified by organizations like the American Bureau of Shipping provide ship owners assurance of minimized impact on water quality and safety. Leading lubricant manufacturers have responded enthusiastically, developing a wide portfolio of bio-based and synthetic options targeting different engine and machinery applications. As per European Bio economy Statistics published in 2023, production of bio-based marine lubricants in Europe has grown by over 15% annually since 2020 pointing to sector-wide recognition of both regulatory compliance and marketing advantages offered by these greener solutions.

With ever-growing regulatory tailwinds and consumer preferences for sustainability, bio-based marine lubricants are set to capture a major share of the market in the coming years. Leading shipping firms and national navies have already begun pilot programs and commercial adoption will accelerate as supply chains strengthen to meet burgeoning demand for environmentally-preferable lubrication solutions. The global shift towards a low-carbon blue economy could not be a bigger opportunity for bio-based marine lubricant producers.

Advanced greases and fluids: Advanced greases and fluids present a significant opportunity in the global marine lubricants market. With increasing trade and transportation activities globally, the demand for vessels is rising rapidly. At the same time, regulatory bodies are enforcing stringent norms to reduce environmental pollution from ships. This is driving the need for advanced lubricants that improve fuel efficiency while meeting emission standards. Advanced greases help reduce friction between moving parts in the machinery on board ships and vessels. They are specially formulated to perform reliably under extreme pressures and temperatures encountered in marine engines and gears. Switching to high-performance greases can significantly reduce lubricant consumption and associated maintenance costs. They also facilitate longer service intervals by enhancing the load-carrying ability of lubricated components. Advanced lubricant fluids likewise aid fuel efficiency through improved viscosity control and antioxidant properties. This keeps engines clean from sludge and deposits that raise energy costs.

New product development is addressing technology and environmental sustainability together. Formulations with synthetic base oils and advanced additives can lower greenhouse gas emissions from ships by 2-3%. According to the International Maritime Organization, a drop of this magnitude would equivalent to taking over 10 million cars off the roads annually. Advanced lubricants thus play a key role in decarbonizing the shipping sector to meet emission targets for 2050 set by various countries and regulatory agencies like the European Union. This growing policy emphasis on green maritime operations will sustain demand for high-performance grease and oil technologies in both new builds and fleet modernization programs globally in the coming years.

Global Marine Lubricants Market Trends:

Shift towards environment-friendly lubricants: The marine lubricant industry is seeing a significant shift towards more environmentally-friendly and sustainable lubricant options. Growing concerns about pollution caused by conventional lubricants releasing into the ocean ecosystems are driving much of this change. Shipping and cruise lines are facing increasing pressure from environmental regulations and citizen groups to reduce their carbon footprint and use of chemicals that can harm marine life. As a result, there is a growing demand for lubricants that have improved biodegradability and lower toxicity. Many major manufacturers have invested heavily in research and development to formulate new low-sulfur and biodegradable marine lubricants made from natural and renewable base oils.

This shift is significantly impacting the competitive landscape and product innovation within the global marine lubricants market. Companies that do not adapt risk losing market share to rivals that offer greener lubricant solutions. Those leading the way in eco-friendly marine lubricants are seeing rising sales and partnerships with large customers aiming to improve their green credentials. For example, according to a 2020 report by the United Nations Conference on Trade and Development, over 25% of shipping lines involved in transoceanic routes signed agreements to exclusively use a new biosynthetic renewable lubricant for the next 5 years. The product reportedly reduces the risk of water contamination by over 90% if spilled compared to traditional petroleum-derived options.

As environmental regulations continue to tighten and consumer demand for sustainability grows, the transition towards greener marine lubricants looks set to massively disrupt and reshape the global marine lubricant production and supply chain in the coming years. Companies must dedicate significant focus towards developing advanced bio-based and low-impact lubricant technologies to stay competitive and avoid penalty costs associated with non-compliance to new rules.

Stringent fuel efficiency and emission norms: The stringent fuel efficiency and emission norms introduced by regulatory bodies around the world are significantly influencing the global marine lubricants market. The International Maritime Organization (IMO) has implemented several regulations in the past few years to reduce pollution from ships. This includes the Energy Efficiency Design Index (EEDI) for new ships, Ship Energy Efficiency Management Plan (SEEMP) for all ships, and reduction of sulphur content in marine fuels. Compliance with these IMO regulations necessitates changes in engine and lubricant design and formulations. Ship owners are exploring options to retrofit engines to meet efficiency benchmarks and switch to fuels with very low sulfur content. This is creating strong demand for advanced low viscosity marine lubricants that provide equivalent or better performance while lowering friction and improving fuel efficiency. Leading lubricant manufacturers are extensively researching and developing low friction lubricant solutions that can extend engine lifespan under severe operating conditions of low sulphur fuels.

The shift to low sulphur fuels is also raising concerns about potential increase in greenhouse gas emissions if the energy efficiency of vessels does not improve correspondingly. This has intensified the focus on digital solutions and bio-based and synthetic lubricants to drastically cut carbon footprint. The Marine Environment Protection Committee of the IMO has targeted 40% reduction in greenhouse gas emissions from ships by 2030 compared to 2008 levels. This is prompting lubricant formulators to incorporate novel low carbon additives and base oils derived from renewable sources like vegetable oils, animal fats, and waste greases. For instance, in 2021, TotalEnergies is a French multinational integrated energy and petroleum company founded in 1924. The company operates globally and is involved in various energy-related activities, including oil and gas exploration and production, power generation, transportation, refining, petroleum product marketing, and international crude oil and product trading. TotalEnergies developed biodegradable Esterex RS marine cylinder oil made from hydro treated esters and fatty acids to provide the same high performance as mineral oils. Such industry initiatives are likely to define the evolutionary pathway of marine lubricant technology in the coming years.

Global Marine Lubricants Market Restraints:

Environmental concerns regarding marine lubricant disposal: Environmental concerns regarding marine lubricant disposal are significantly restraining the growth of the global marine lubricants market. Strict environmental regulations around the world are pushing companies to develop greener and more sustainable lubricant solutions. International laws such as MARPOL Annex I regulate operational discharges of oil and oily waste from ships. Any unauthorized discharge of lubricants or bilge water contaminated with lubricants is prohibited under this convention. Violations can attract heavy penalties, thereby compelling ship owners and operators to adopt safer disposal practices.

The issue of marine pollution caused by the dumping of used lubricants into oceans has come under increasing scrutiny in recent years. Several reports by the United Nations Environment Program (UNEP) and the World Wildlife Fund (WWF) have highlighted the harmful effects of petroleum hydrocarbon pollution on marine ecosystems and biodiversity. For example, a 2022 UNEP assessment study found plastic micro pollution has increased by an order of magnitude since 1980 in some ocean habitats, with used lubricants being one of the major sources. Growing public awareness about such environmental damage is putting pressure on manufacturers to offer more sustainable lubricant solutions that can be safely disposed of without contaminating water bodies.

Moreover, stringent IMO regulations under the International Convention for the Prevention of Pollution from Ships (MARPOL) require separate collection and storage of bilge water and sludge containing lubricants. Ships need appropriate processing equipment approved by flag states to treat such oily wastes before discharge or disposal to land. Complying with such complex regulations increases operational costs for ship owners. This acts as a deterrent for the widespread adoption of conventional marine lubricants and promotes the need for environmentally acceptable lubricant technologies. The combined impact of tightening regulations and heightened environmental consciousness pose formidable challenges for the long-term growth prospects of the global marine lubricants market.

Implementation of international maritime laws: The implementation of stringent international maritime laws and regulations regarding the use of lubricants is posing challenges for the growth of the global marine lubricants market. Various international agencies, like the International Maritime Organization (IMO), have introduced strict norms around the quality and specifications of marine lubricants to reduce pollution and protect the marine environment. The IMO 2020 regulations have mandated a reduction in the sulphur content in marine fuels from 3.5% to 0.5% in order to curb the emission of sulphur oxides from ships. This has necessitated the development of advanced low-sulphur marine lubricants offering better performance.

However, transitioning to new low-emission lubricant technologies within stipulated timelines has increased the compliance burden for ship owners and operators. It has pushed up the overall operational costs due to expenses involved in evaluating the compatibility of existing systems with new lubricants, replacing lubricant inventories, and sourcing appropriate lubricants compliant with geographic restrictions. For example, data from the International Chamber of Shipping shows that complying with IMO 2020 regulation resulted in 30-50% additional costs for an average ship per year. Similarly, various regional marine protection acts, like European Union MRV regulation, have imposed strict restrictions on sulphur content in marine fuels used in EU waters as of 2021. Such regulations diverge from global norms and add to compliance complexities for shipping companies operating internationally.

Moreover, the short timelines provided by regulatory bodies to shift to new standardized low-emission lubricant formulations have hampered orderly transition for ship operators. It has disrupted lubricant inventory management and postponed fleet operator decisions to purchase and install equipment upgrades. Given the capital intensive nature of the shipping industry, with long owning periods of over 20 years for ships, delays in regulatory roadmaps impact the commercial viability of investments. Therefore, the disproportionate impact of frequent changes in norms has slowed replacement and retrofitting practices and hampered higher demand for specialized marine lubricants.

Counterbalance: To overcome this restraint, the key market players need to follow all other international maritime laws, which might increase the global marine lubricants market.

Recent Developments:

• In March 2022, Shell plc, formerly known as Royal Dutch Shell plc, is a British multinational oil and gas company headquartered in London, U.K. The company operates as an integrated oil and gas company, with a primary listing on the London Stock Exchange (LSE) and a significant global presence. Shell plc signed an agreement to acquire the Environmentally Considerate Lubricants) business of PANOLIN, a Switzerland-based lubricant manufacturer. The acquisition includes the PANOLIN brand, ECL product formulations, intellectual property, technical expertise, and technology. The global market for ECLs is expected to grow significantly over the coming years, and the acquisition is expected to strengthen Shell's presence in the mining, construction, agriculture, renewable power, hydropower, and offshore wind sectors.
• In August 2021, Wilhelmsen Holding ASA (a multinational maritime group) entered into a partnership with Klüber Lubrication (a U.S.-based lubricant manufacturer). Wilh. Wilhelmsen Holding ASA is a Norwegian multinational maritime group, headquartered in Lysaker, Norway. The company operates as a fully owned subsidiary of Wilh. Wilhelmsen Holding ASA Under the partnership Wilhelmsen will exclusively sell and distribute Kluber’s maritime lubricant range.

Figure 2. Global Marine Lubricants Market Share (%), By Application, 2024

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Top Companies in the Global Marine Lubricants Market

• Lubmarine (Total Group)
• Royal Dutch Shell Plc.
• BP Marine
• Chevron
• ExxonMobil Corporation 
• Sinopec Corporation
• Castrol
• Gulf Marine and Industrial Supplies Inc.
• Lukoil Marine Lubricants
• Quepet Lubricants
• JX Nippon Oil & Energy Corporation
• Idemitsu Kosan Co., Ltd.
• IKO Marine Lubricant Supply Co. Ltd

Definition: The Marine lubricants are specialized substances designed to reduce friction, heat, noise, or wear between moving parts in marine equipment and engines. These lubricants play a crucial role in ensuring the efficient and reliable operation of various components within the marine industry, such as ship engines. They help to minimize the impact of friction, corrosion, and wear and tear, thereby contributing to the overall performance and longevity of marine machinery.