Brazil Marine Lubricant Market Size, Share & COVID-19 Impact Analysis, By Product Type (Marine Cylinder Oil, Piston Engine Oil, System Oil, and Other), By Ship Type (Bulk Carrier, Oil Tankers, General Cargo, Container Ships, and Others), Forecast, 2024-2032

The Brazil marine lubricant market size was USD 14.17 million in 2019 and is projected to reach USD 15.01 million by 2027, exhibiting a CAGR of 1.9% during the forecast period.

Marine lubricants are organic chemicals used to reduce friction, wear, corrosion, and heat in the moving parts of machines that are in contact with each other and may cause abrasion and damage to the machine. As stated by the United Nations Conference on Trade and Development (UNCTAD) in the Review of Maritime Transport 2018, Brazil is one of the top 35 ship-owning countries and had 390 vessels in 2018. The vessels such as general cargo ships, ferries, and offshore vessels account for a major share of the overall vessels in the country. Therefore, there is a huge demand for marine lubricants from owners of these ships. Additionally, Brazil was one of the main iron ore exporters to China in the same year. This has further increased the demand for marine lubricants from bulk ship owners.

The new regulation imposed by the International Maritime Organization (IMO), which came into effect on 1st January 2020, limits the amount of sulfur content in ship fuel to 0.5%. This has led to a severe impact on the market as the marine lubricant products need to meet the regulatory standards. To minimize the effect, the producers are designing marine lubricants according to the composition of ship fuel. 

Demand for Lubricants from Ships Transporting Essential Goods to Soften the Impact of COVID-19 on Market

In March 2020, Brazil announced a nationwide lockdown, restricting the transportation of men and material alike, which had severely affected the supply chain of marine lubricant manufacturers. Both oil extraction and manufacturing activities were affected. Despite the uncertainties caused due to COVID-19, transportation of essential goods was active. Export and import of necessities, such as pharmaceutical and food products, were taking place to meet the basic demand of citizens. Moreover, in June 2020, Brazil took initiatives to bring the economic value chain on track by extending support to the lubricant manufacturers to resume their operations. The ports have also started functioning, with stated preventive measures. The crews operating on the vessels and ports have to undergo regular examination in order to curb the spread of the virus.

LATEST TRENDS

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Rising Demand for Environment-Friendly Marine Lubricants to Boost Market Growth

Increasing demand for environment-friendly lubricants from the marine industry will create new opportunities for lubricant manufacturers to develop sustainable products. Synthetic oils and bio-based lubricants are sustainable lubricants derived from synthetic esters, polyalkylene glycols, vegetable oils, and animal fats, respectively. These are biodegradable and offer high performance with excellent thermal stability, low volatility, and resistance from oxidation, heat, and temperature. These properties of both the lubricants make them a preferred choice when compared to petroleum-based lubricants.

DRIVING FACTORS

Low-cost Operations and Enhanced Fuel Efficiency Offered by Lubricants to Drive Market Growth

Lubricant is an important part of the marine industry and offers low-cost operations and enhances fuel efficiency. The increase in prices of fuel oil has made the shippers run engines at slow steaming levels in order to reduce fuel utilization. However, the marine engines cannot run efficiently at reduced rates and could lead to detrimental effects such as corrosion to the engine, and components associated with it. Marine lubricants are a suitable solution for the above concerns, and hence its adoption is expected to increase with rising fuel prices.

RESTRAINING FACTORS

Fluctuating Prices of Crude Oil to Curb the Market Growth

Crude oil is a key raw material for the production of marine lubricants. It undergoes various purification steps such as sedimentation, fractional distillation, filtration, and solvent extraction to obtain base oil. This base oil is further used to produce lubricants, metal processing fluids, and motor oil. The lubricants obtained are mixed with additives to employ it with desired properties. For the past few years, crude oil prices have been fluctuating owing to uncertain political scenarios in the Middle East and other oil-producing countries. This has caused the manufacturers to spend extra overhead costs as fluctuation in the availability of raw material affects the cost structure of the products.

SEGMENTATION

By Product Type

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Marine Cylinder Oil Segment to Dominate the Market during the Forecast Period

Based on product type, the market is segmented into marine cylinder oil, piston engine oil, system oil, and others.

The marine cylinder oil segment dominated the market in 2019 owing to its use in protecting the engine components from corrosion and wearing out due to continuous abrasion. This also helps in improving the performance of the engine.

The piston engine oil segment is expected to grow at a faster rate as it offers alkalinity that helps in controlling acidic corrosion caused due to combustion of fuel. Moreover, the piston engine oils make direct contact with the combustible fuel while lubricating the piston and liner. Hence, they are in high demand from the shipping industry.

The demand for system oil is driven by its use in the lubrication of various components of the crankcase. This oil offers corrosion inhibition, excellent water tolerance and separation, and helps to keep crankcase and circulation tanks clean.

By Ship Type

General Cargo Segment Expected to Grow at Faster Rate

Based on ship type, the market is segmented into the bulk carrier, oil tankers, general cargo, container ships, and others.

The general cargo segment is anticipated to be the fastest-growing segment during the forecast period owing to the high adaptability of the cargo ships. These ships are designed to carry a variety of packaged products such as foods, chemicals, machinery, and military vehicles. Hence, the rising marine trade activities in the country are expected to raise the demand for marine lubricants used in cargo ships.

Brazil owns several cruises as compared to other ships. The others segment that includes ships such as cruises, ferries, and offshore vessels held the largest market share in 2019. The rising tourism activities and the increasing offshore activities in the country, are the factors driving the consumption of marine lubricants from others segment.

The increasing demand for crude oil and its derivatives is anticipated to raise transportation activities by oil tankers. This will increase the demand for marine lubricants from the oil tankers segment. Furthermore, the rising trade of bulk materials such as metals, coal, grain, bauxite/alumina, and phosphate will drive the demand for marine lubricants from bulk carrier vessels in Brazil.

The container ships are specially designed to transport large quantities of goods that are stored in different types of containers. The rapidly growing e-commerce activities will drive the demand for marine lubricants from these ships.

KEY INDUSTRY PLAYERS

Product Innovation and Partnership are the Growth Strategies Adopted by the Companies in the Market

Product innovation and partnership are essential growth strategies adopted by companies to maintain their position in the market. ExxonMobil and Total Brasil are the key players in the market. ExxonMobil is a global oil & gas corporation involved in energy trading and chemical manufacturing. This company is one of the leading companies in the Brazil marine lubricant market and has established its presence in Rio de Janeiro, São Paulo, Paulínia, and Curitiba. It provides lubricants and services in around 400 ports located around the globe. Total Brasil, a subsidiary of Total SE, provides lubricants for diverse segments including automobiles, motorcycles, agricultural, and nautical. The company has a production capacity of 70 KT of lubricants per annum.

LIST OF KEY PLAYERS PROFILED:

• TOTAL Brasil (Brazil)


• ExxonMobil (U.S.)


• Repsol (Spain)


• Royal Dutch Shell plc (Netherlands)


• UniMarine (Singapore)


• Cockett Group (Singapore)


• Chevron Marine Lubricants (U.S.)


• Idemitsu Kosan Co.,Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• June 2019 – ExxonMobil introduced Mobilgard™ M420 to its advanced marine lubricants range. The company has designed this advanced lower BN oil to help deep-sea and coastal vessels safely comply with IMO 2020 Sulfur cap.


• January 2019 – Repsol extended its partnership with Total Lubmarine for further three years. The Total Lubmarine network comprises partners with the ability to manufacture at strategic locations and enable lubricants to deliver to over 1,000 ports.

REPORT COVERAGE

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The brazil marine lubricant market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, product types, and ship types. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.

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