Asia Driving Growth in Marine Market

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Asia Driving Growth in Marine Market

Booming globalization has the worldwide marine lubes market growing at a rate of more than 4 percent per year in the next four years, and Asia – the largest geographical market – will be responsible for much of that increase, according to Technavio Research.

Around 90 percent of global trade now takes place on the seas, according to a recent Technavio report, Global Marine Lubricants Market 2016-2020. The ever-increasing trade in the marine sector is driving a 4-percent compound annual growth rate in the marine lubes market during the forecast period.

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The Asia-Pacific region held 42 percent of marine oil demand in 2015, thanks to its large number of significant ports and the major role of China and India in global trade.

The dominance of the global marine lubricants market is undergoing a shift to Asia from the European Union, said Anju Ajaykumar, lead analyst for Technavios heavy industry division. The rise of China as an export-oriented economy backed by a manufacturing-led domestic policy is the fundamental cause of this change. The amount of merchandise exports from China to the United States, Europe, and among countries within Asia is undergoing a rapid boom. This trend is expected to continue in the coming years as [the Chinese] ports of Tianjin, Shanghai, and Dalian play a vital role in the global automotive and electronics export trade.

Mineral oil-based lubricants dominate the marine market, accounting for 87 percent of demand volume in 2015, the report found. The cost-effective and versatile nature of mineral oil-based products plays a crucial role in the booming for this segment of the market, a press release for the report noted. The projected drop in the price of crude oil during in the coming years is expected to reflect positively in the global mineral oil-based lubricants market by 2020.

The report listed Chevron, Shell Marine Products, Castrol, ExxonMobil, and Total Lubmarine as leading suppliers in the segment, but noted that the playing field will open up to more independents in coming years. Marketers such as Lukoil, Aegean Marine Petroleum Network, and Gulf Lubricants International – through its Sealub alliance – have striven to make inroads in the segment in recent years.

Though large integrated oil companies dominate the market, the entry of newmarine lubricant manufacturerswill intensify the level of competition in the market. The market will also witness a number of [mergers and acquisitions], joint ventures, and collaborations over the next few years.

Photo: Igor Groshev / Fotolia