Marine Lubricant MarketSize and Trends

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.

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 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.