The marine lubricant market has been predicted to grow at a compound annual growth rate (CAGR) of 3.6 percent between 2014 and 2020, according to a study carried out by Grand View Research Inc.
The report, entitled 'Marine Lubricants Market Analysis By Product (Mineral, Synthetic, Bio-Based), By Application (Engine Oil, Hydraulic Oil, Grease) And Segment Forecasts To 2020', says the growth of the global shipping industry - owing to increasing demand for cargo fleets and voyages - is anticipated to drive lubricant demand.
The collaboration of manufacturers with biotechnology companies and tax incentives offered by governments for the development of eco-friendly technologies are expected to provide new opportunities for market growth over the forecast period, says the report.
Product innovation coupled with manufacturing bio-based substitutes is anticipated to bolster the demand for major industry participants in the near future. Additionally, technological innovations have helped increase the shelf life of mechanical components, which is anticipated to boost the marine lubricants market in the near future.
According to trade statistics, seaborne trade was the most used mode of trade, and accounted for over 90 percent of overall global trade in 2013. High purchasing power among consumers in emerging countries such as Brazil, China, and India has led to a rise in sea voyages over the past few years, and is cited as being a key factor in the expansion of the shipping industry - and subsequently the growth of the marine lubricants market.
According to the Grand View Research report, global marine lubricant demand is expected to reach a value of USD 10.94 billion by 2020, growing at a CAGR of 3.6 percent from 2014 to 2020.
Mineral oil accounted for 88% of overall market demand in 2013. Easy availability and the low cost of mineral oils coupled with increasing expenditure for R&D are likely to be major driving factors for market growth in the coming years, the report says. Mineral oil is expected to record a CAGR of 3.6 percent from 2014 to 2020.
Hydraulic oil is projected to grow at a CAGR of 3.4 percent from 2014 to 2020. The increasing application of hydraulic shipping parts is anticipated to drive demand over the projected period. Marine lubricant was widely used as engine oil, accounting for 46.3 percent of the overall volume in 2013. Increasing engine efficiency and capacity is expected to drive the demand for engine oils in the near future.
Europe was the leading market, accounting for 46.2 percent of total market demand in 2013. The European marine lubricants market is driven by increasing investment for marine lubricants along with the rise in seaborne trade. Asia-Pacific is anticipated to witness significant gains over the forecasted period. The growing shipping industry, along with favourable governmental support in terms of freight tax relaxation - particularly in China and India - is expected to propel the marine lubricants market demand in the region, says the report.
