Marine Lubricants Market Trends

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 marine lubricants 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

• High Production Cost - Base oils are essential for making lubricants and other fluids, therefore their scarcity has been a major problem. One of the main elements that affect base oil pricing is the price of crude oil, and lubricants have been particularly hard hit by rising crude oil and fuel prices.
• Restrictions Imposed by Government
• Lack of Expert Professionals