Fuelled by rising demand from the APAC region, global marine lubes will reach 2.9kt in 2022
A well-lubricated passage down the Yangtze River? Image: Skype Nomad |
According to a new report from Transparency Market Research, global marine lubes demand was 2,321 kilo tons (KT) in 2013, and is set to reach 2,902 kilo tons by 2022, which makes a Compound Annual Growth Rate (CAGR) of 2.5%.
Revenues are set to fare slightly better, growing at 3.6% from 2014 to 2022.
The marine lubes market is being advanced by significant technological improvements enhancing the shelf life of mechanical parts, as well as the growth of the shipping industry and demand for higher quality, synthetic and bio-lubes.
While fears of a global slowdown abound, and in particular concerns around a sharp downturn in Chinese trade, the shipping industry is likely to continue to thrive in an increasingly globalised world according to the report. The ASEAN region has become increasingly open to trade, which will also further benefit the marine lubes segment.
However, production of Group I base oils is slowing, which could hamper global marine lubes growth. Mineral oil marine lubes enjoyed an 87% market share in 2013 and are likely to be the product of choice through to 2022.
Engine oil marine lubes comprised 46% of the market in 2013, followed by hydraulic oil and grease segments.
The Asia Pacific region is expected to grow exponentially over the next few years as shipbuilders flourish and rising domestic consumption in China, Singapore and Japan drives more inbound trade.