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Asia-Pacific Marine Cylinder Lubricant Market - Forecast(2023 - 2028)
Asia-Pacific Marine Cylinder Lubricant Market Overview
Asia-Pacific
Marine Cylinder Lubricant Market size is forecasted to grow at a CAGR of 2.1%
during 2022-2027. Marine
cylinder lubricant is utilized to facilitate the operation of a two-stroke
crosshead engine and ensures smooth operations. The increasing oceanic
pollution due to improper engine function and growing demand for fuel-efficient
engines are driving the growth of the Asia-Pacific marine cylinder lubricant
market. A rise in seaborne trade is estimated to increase the high revenues for
marine cylinder lubricants and an increase in the demand from the shipping
industry, surges the demand for the Asia-Pacific marine cylinder lubricant market.
Moreover, the rise in infrastructural activities has increased the demand for
marine cylinder lubricant applications such as marine greases, hydraulic oil
and hydrostatic lubrication, for the protection of marine equipment and engines
and for their smooth functioning. Furthermore, evolving emission control
technologies are anticipated to upsurge the growth of the Asia-Pacific marine
cylinder lubricant industry in the forecast period. The global economic downturn caused by the COVID-19 pandemic resulted in
a huge drop in demand for marine cylinder lubricants, in APAC, a reduction in
ship movement was seen from South Asian countries and this lowered the demand
for fuels and marine lubricants in the region, which
had a significant impact on the growth of the Asia-Pacific marine cylinder
lubricant market size.
Asia-Pacific Marine Cylinder Lubricant Market Report Coverage
The “Asia-Pacific Marine Cylinder Lubricant Market Report – Forecast (2022 -
2027)” by Industry ARC, covers an in-depth analysis of the following
segments in the Asia-Pacific marine cylinder lubricant industry.
Key Takeaways
- India dominates the Asia-Pacific Marine Cylinder Lubricant market owing to the rising growth of the marine industry. For instance, according to Invest India, during January 2021, a total of 161 projects in the marine industry, for US$12 billion have been completed and 178 projects for INR 1,96,578 Crores (US$26,595 million) are under implementation.
- Rapidly rising demand
for bio-based marine
cylinder lubricants in the marine industry to protect the environment from greenhouse gases has driven the growth
of the Asia-Pacific
marine cylinder lubricant market.
- The increasing demand
for new technologies
in the marine sector,
due to their usage in the reduction of emissions of toxic gases, has been a critical
factor driving the growth of the Asia-Pacific marine cylinder
lubricant market in the upcoming
years.
- However, the regulatory guidelines issued by the governing bodies for the protection of the environment can hinder the growth of the Asia-Pacific marine cylinder lubricant market.
The synthetic oil segment held the largest Asia-Pacific
Marine Cylinder Lubricant Market share in 2021 and is
growing at a CAGR of 2.3% during
2022-2027. Synthetic oils are utilized as
a substitute for petroleum-based oils and are required to function in extreme
temperatures. These oils have many advantages over conventional mineral-based
marine cylinder lubricants such as reduced friction at start-up, extended oil
life, stable viscosity for a wide range of temperatures, better viscosity
index, high shear stability and chemical resistance. Since marine lubricants
such as synthetic oils are thermally stable, therefore, they require viscosity index improver additives. Thus, the increasing demand for synthetic
oils in the shipping industry due to their excellent characteristics is
forecasted to drive its
segmental growth.
Asia-Pacific Marine Cylinder Lubricant Market Segment Analysis – by Application
The engine oils segment held the largest Asia-Pacific Marine Cylinder Lubricant Market share in 2021 and is growing at a CAGR of 2.6% during 2022-2027. The engine oils are applied in the ship engines for better lubrication, effective cooling, and cleaner engine, to protect the engine from corrosion and other applications. The engines are classified into two types, propulsion engines and auxiliary engines. The engine oil used in these engines plays an important role in the service life and the operating conditions of the ship, preventing wear and tear of the engine parts. The marine industry is growing, for instance, according to the government of Canada, in 2020 the marine industry in Atlantic Canada, Halifax Shipyards won a contract of US$25 billion from the Department of National Defense, to build 21 combat ships over the next 30 years. Thus, the rising usage of marine cylinder lubricants in the growing marine industry will drive the Asia-Pacific marine cylinder lubricant market growth in the forecast period.
Asia-Pacific Marine Cylinder Lubricant Market Segment Analysis – by Country
India dominated the Asia-Pacific Marine Cylinder Lubricant Market share by 32% in 2021, due to being the key consumer and supplier of marine cylinder lubricant. Marine cylinder lubricants are applied such as in marine greases, hydraulic oil and hydrostatic lubrication, due to the characteristics such as durability, resistance to extreme temperature and high shear stability. The marine industry is growing, for instance, as per Union Budget 2020-2021, the total allocation for the Ministry of Shipping stood at Rs 1,800 crore (US$257.22 million). Moreover, the Indian government sanctioned financial assistance of US$20.13 million (Rs1.55 billion) for 47 ships under the Shipbuilding Financial Assistance Policy (SBFA). The combined contract value of these vessels stands at US$110.39 million (Rs8.5 billion). Thus, the marine industry is growing due to rising government investments in the sector. Therefore, the demand for marine cylinder lubricants to lubricate cylinder and engine parts will also substantially rise, which is proving to be a market booster for the Asia-Pacific marine cylinder lubricant market size in this country.
Asia-Pacific Marine Cylinder Lubricant Market Drivers
Increasing Demand for Bio-Based Marine Cylinder Lubricant:
The regulatory bodies, such as the International Convention for the Prevention of Pollution from
Ships (MARPOL), the U.S. Environmental Protection Agency (EPA) and Safety of Life at Sea (SOLAS), have mandated the regulations to limit the emission of
nitrogen oxide and sulfur oxide from ships to protect the environment from
greenhouse gases, emitted by the use of mineral and synthetic oils. Bio-based
oils are biodegradable and renewable and are primarily used in emission control
areas (ECA), to reduce sulfur levels. The shipping companies are using bio-based
marine cylinder lubricants in marine greases, hydraulic oil and
hydrostatic lubrication, instead of using mineral oil-based marine cylinder lubricants, that do
not affect the environment with the emission of toxic gases. This has increased
the usage of environment-friendly bio-based marine cylinder lubricants, as they
are partially biodegradable, non-bio-accumulative and non-toxic. The marine
industry is growing, for instance, according to Lloyd’s
Register, in 2030 China will play a key role as the emerging maritime
superpower in shipping, by building 40 cruise ships, for the domestic and
international market. Moreover, Maersk is launching a new dedicated New Zealand
coastal service – “Maersk Coastal Connect”, to enable a more resilient New
Zealand supply chain and improve vessel schedule reliability, increasing
domestic connection and providing sustainable and flexible supply chain
solutions for exporters, importers and domestic distributors. Thus, the growing marine
industry will require more bio-based marine cylinder lubricants,
for protecting the
environment from greenhouse gases and in turn, is anticipated to upsurge the Asia-Pacific marine cylinder lubricant industry.
Emerging Emission Subsiding Technologies:
The increasing emissions of toxic gases from ships
have made the government pass new regulations, creating new technologies in the
marine industry such as low sulfur fuel, exhaust gas scrubbers, slow steaming, exhaust
gas recirculation, selective catalytic reduction, blending-on-board and air
lubrication. The rising harmful nitrogen and sulfur oxide emissions into the water
bodies have forced shipping companies to embrace advanced technologies to
follow the new regulations. For instance, according to International Trade
Administration (ITA), in Japan, the Ministry of Land, Infrastructure, Transport
and Tourism (MLIT)-funded group offered a “Development of Zero Emission
Vessels” project for the marine industry, utilizing Green Innovation Funds
(over US$2 billion) awarded through 2030 by the New Energy and Industrial
Technology Development Organization (NEDO). The depletion in harmful
emissions from ships will lead to better durability and performance of marine
lubricants, creating longer service life for marine equipment. Moreover, the marine
industry is also growing, for instance, according to the United Nations
Conference on Trade and Development (UNCTD), China had 4,504 merchant ships in
2019, which reached about 4,603 merchant ships in 2020, with a growth rate of
about 2.2%. Thus, the rising marine
industry will drive the demand for newer technologies and technological
advancements, which are driving the Asia-Pacific marine cylinder lubricants
market growth.
Asia-Pacific Marine
Cylinder Lubricant Market Challenges
Regulatory Guidelines
Imposed by Governing Bodies:
The various regulatory guidelines passed by the governing
bodies such as Environmental Protection Agency (EPA) issued rules and regulations
for pre-treatment of pollutants by industries in their wastes, for protecting
the wastewater treatment plants. The industries dispose of marine lubricants
and other pollutants into the sewer lines locally, which leads to the discharge
of pollutants into the local waterbodies causing water pollution. The
Environment Protection Act of India necessitates the treatment of lubricants
and other pollutants, due to which the producers are obliged to invest in manufacturing
environment-friendly products. Thus, the several regulatory guidelines issued
by the different governing bodies for the increasing concern for the protection
of the environment may hamper the growth of the Asia-Pacific marine cylinder lubricant
market.
Asia-Pacific Marine Cylinder Lubricant Market Industry Outlook
Technology launches,
acquisitions and R&D activities are key strategies players adopt in the Asia-Pacific marine cylinder lubricant markets. The top 10
companies in the Asia-Pacific
marine cylinder lubricant market are:
- BP Plc.
- Chevron Corporation
- ExxonMobil Corporation
- Royal Dutch Shell Plc.
- Total Energies SE
- Valvoline
- Petronas
- Lukoil Marine Lubricants
- Idemitsu Kosan Co. Ltd.
- China Petrochemical Corporation
Recent Developments
- In April 2022, Shell Marine announced that it received a full No Objection Letter (NOL) from MAN Energy Solutions (MAN ES) for Shell Alexia 40 XC, its Category II (CAT II) 40BN cylinder oil.
- In June 2021, BP Plc. set up a digital hub in Pune, India, this expansion will help them grow their digital expertise on their marine lubricants through its downstream business segment and meet the changing demands by providing sustainable solutions.
- In May 2019, Royal Dutch Shell Plc. opened its first lubricant laboratory in India. The laboratory serves as a service provider for the growing demand for innovative lubricant products.
Relevant Reports
Report Code: CMR 0129
Report Code: CMR 0504
Report Code: CMR 1064
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