Analysis by Product (Marine Cylinder Oil, Piston Engine Oil, System Oil, and Others); and by Ship Type (Bulk Carrier, Oil Tankers, General Cargo, Container Ships, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global marine lubricants market is estimated to garner a revenue of ~USD 11 Billion by the end of 2033 by growing at a CAGR of ~4% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 9 Billion in the year 2022. The major factor that can be attributed to the market growth is the rapid expansion of the chemical industry across the world. Chemicals are required for the production of virtually any product in mass manufacture in today’s age. From marine lubricants to all types of lubricants to oils and greases, they are the backbone of many important products. For instance, the Indian chemical industry accounted for nearly USD 170 billion in the year 2019 and is anticipated to reach around USD 300 billion by 2025.
Marine lubricants are considered to be specially manufactured lubricants that are produced to meet the rough performance required in marine vessels for optimized operations. High-quality marine lubricants are helpful for machinery components in marine systems that require lubricants for better functioning, protection, and prolonged life cycles. As a result, the adoption rate of marine lubricants is forecasted to increase in the shipping industry. Through recent reports published by United Nations Conference on Trade and Development (UNCTAD) in 2022, it was calculated that around 80% of the world’s trade is carried through maritime transport. As the world is highly dependent on seaborne trade, it is very imperative to enhance the performance and extend the life of machinery components and systems of marine vessels to ensure uninterrupted and cost-effective propagation of trade throughout the world. This trend is expected to increase the sales of marine lubricants in the marine industry in the upcoming years.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~4% |
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Base Year Market Size (2022) |
~ USD 9 Billion |
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Forecast Year Market Size (2033) |
~ USD 11 Billion |
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Regional Scope |
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Growth Drivers
High Dependence on Seaborne Trade – With industrialization taking its peak, the trading sector has swelled exponentially. As a result, the seaborne trade carries a major market share owing to its easiness and other advantages. Thus, the rising seaborne trade is expected to rise the need for ships and sea vessels which in turn is expected to increase the utilization of marine lubricants in the marine sector. The International Trade Administration showed the valuation of export through maritime in the U.S. to be USD 586 million and the valuation of imports to be USD 1,176 million in 2018.
Increasing Expansion Rate of Construction in the Marine Industry – With the growing industrialization, the construction processes in the marine industry are also rising to generate the need for marine lubricants for varied purposes. According to estimates, by the end of 2025, the construction industry in India is expected to reach a total value of USD 1.3 trillion.
High Number of Ships present in the World - As per the government of the UK, the total number of vessels in the world trading fleet rose from 62,100 vessels in 2020 to 63,000 vessels in 2021.
Rising Government Support to Expand the Chemical Industry – Within the Union Budget 2022-23, the Indian government allocated approximately USD 27 million to the Department of Chemicals and Petrochemicals.
Growing Marine Economy – The statistics of the U.S. Bureau of Economic Analysis show the marine economy of the United States accounted for 1.7 percent, or USD 361.4 billion of the total gross domestic product (GDP) in 2020.
Challenges
The global marine lubricants market is segmented and analyzed for demand and supply by product into marine cylinder oil, piston engine oil, system oil, and others. Out of these segments, the marine cylinder oil segment is expected to hold the highest growth by the end of the year 2033 owing to its crucial role in protecting the engine components and enhancing the performance of the engine, and increasing the production of crude oil. As of July 2022, the United States had generated 365,785 thousand barrels of crude oil. Further, the easy availability of marine cylinder oil and its low cost it is expected to boost the segment growth in the next few years. Also, the mixture of several mineral oils, marine cylinder oil has various properties and advantages that can be used in luxury and cruise ships.
The global marine lubricants market is also segmented and analyzed for demand and supply by ship type into the bulk carrier, oil tankers, general cargo, container ships, and others. Out of these, the bulk carrier segment is attributed to holding the largest share during the assessment period. Bulk carrier vehicles are being heavily used for the transportation of bulk unpackaged cargo that includes steel, grains, cement, coal, and others. Furthermore, the high consumption of marine lubricants in bulk carrier vehicles owing to its demand in systems and components such as lifeboat launch systems, engine and davit, shaft bearing, mooring winch, main engine, and others is estimated to fuel the growth of the segment. Moreover, the rising global trade and the need to transport carriers from one place to another requires bulk carriers which subsequently expands the segment size.
Our in-depth analysis of the global marine lubricants market includes the following segments:
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By Ship Type |
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By Product |
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The North America marine lubricants market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033, on the back of the increasing production of crude oil and increasing value of import and export of oil products in the region. It was observed that, as of July 2022, the import and export of crude oil accounted for 6352 thousand barrels per day of crude oil in the United States. Also, the high dependency on maritime trade in the region is expected to increase the utilization rate of ships and cargo, which in turn, is projected to bring positive sales in the marine lubricants market.
On the other hand, the market in the Asia Pacific is also estimated to remain a major consumer of marine lubricants during the forecast period. The presence of major sheep fleet companies along with the high number of dry docks is the major factor estimated to fuel the market growth in the region. In addition, the increasing sea trade in emerging economies such as India, China, and Taiwan and their trade activities are anticipated to fuel market growth. Moreover, the high number of naval combat vessels in the region is also projected to support market growth in the region.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The expansion of the chemical industry worldwide, the growing automotive industry, and rising governmental support are some major factors driving the growth of the market.
Ans: The market is anticipated to attain a CAGR of ~4% over the forecast period, i.e., 2023 – 2033.
Ans: Lack of expert professionals along with high production costs and rising restrictions imposed by governments are estimated to be the growth hindering factors for the market expansion.
Ans: The market in North America region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Royal Dutch Shell Plc, Exxon Mobil Corporation, BP p.l.c., Total SA, Chevron Corporation, The PJSC Lukoil Oil Company, Croda International Plc, Repsol S.A., Gazprom Neft PJSC, AvinOil S.A., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by product, ship type, and by region.
Ans: The marine cylinder oil segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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