The Global "Offshore Lubricants Market" is expected to grow at a high CAGR during the forecasting period (2022-2029).
Increase in off shore exploration activities, growth in subsea installations, the growing global energy demand and increasing demand for oil and gas are key driving factors responsible for the growth of the global offshore lubricants market.
Increase in demand for oil and gas in the world is one of the primary factors promoting the growth of the global offshore lubricants market. According to the International Energy Agency (IEA), the global oil demand in 2018 is 6.9 mb/d and is expected to reach 104.7 mb/d by 2023. The demand is expected to rise at an average annual rate of 1.2 mb/d. Countries like China and India together contributing to more than 50% of the global oil demand. Owing to these factors, the global offshore lubricants market is anticipated to witness healthy growth in the future.
However, On the flip side, the high initial investments, lack of technical knowledge and harsh deep-sea environmental conditions will affect the growth of the market.
Based on the Application, the market is segmented as engine oil, hydraulic oil, gear oil, and grease.
The engine oil segment is expected to grow as the dominant segment of the global offshore lubricants market owing to the increasing usage of diesel engines to generate electricity and power. Floating, production, storage, and offloading vehicles employ highly efficient diesel engines to generate power which needs high amounts of lubricants to reduce the friction between the moving parts. These vessels are capable to weathervane and are capable of utilization in mild to extreme offshore conditions. Increasing usage of diesel engines is expected to rise the demand for engine lubricants which is likely to propel the market growth in the forecast period.
The Global Offshore Lubricants Market is segmented into North America, Europe, Asia Pacific, South America, and Middle East, and Africa. The Asia Pacific region is further segmented into the countries such as China, Japan, India, South Korea, Australia, and Rest of Asia-Pacific.
The North American region dominates the market due to the growing demand for energy, and production. According to the Global Energy Statistical Yearbook 2018, the overall energy consumption of North America increased from 2,465 Mtoe in 2015 to 2,473 Mtoe in 2016 finally reaching 2,489 Mtoe in 2017. Regulations imposed by the US is also an important factor propelling the offshore lubricants market. For instance, The U.S. EPA has formulated vessel general permit (VGP) guidelines for vessels operating in waters of the U.S. These VGP requirements are a set of guidelines established to reduce aquatic environment impact by prescribing a setlist of environmentally acceptable lubricants (EAL). Owing to these factors, the North American region is expected to dominate the global offshore lubricants market in the future.
New product launches, expansion of facilities, mergers, and acquisitions, and strategic partnerships are vital strategies adopted by most companies to contribute to the growth of the company and improve their market growth rate.
For instance, in April 2019, China’s state-owned Cosco Shipping Energy Transportation has inked a memorandum of understanding (MOU) with oil major ExxonMobil to deepen their cooperation on marine lubricants purchasing and ship leasing.
Moreover, in September 2018, as the run-up to stricter sulfur emissions standards continues, Chevron Marine Lubricants has developed a new range of cylinder lubricants compatible with virtually all available global sulfur cap 2020 compliance options as the operation of vessels
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