Transparency Market Research has published a new report "Offshore Lubricants Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020" to its report store.
Albany, NY -- (SBWIRE) -- 08/12/2016 -- The global offshore lubricants market is led by large MNCs, making for an expansive arena marked by intense competition. Companies such as Royal Dutch Shell, Total, Chevron, ExxonMobil, and Castrol have established strong brand equity over the years. This has resulted in a difficulty for new players to penetrate the market. For new entrants to gain a higher market share, creating a reliable distribution channel becomes a crucial factor, states a new report by Transparency Market Research (TMR). Since creating a good distribution channel requires time and capital, it is difficult for new entrants to survive in the market.
Complete Report with TOC : http://www.transparencymarketresearch.com/offshore-lubricants-market.html
The threat of substitutes in the offshore lubricants market is low as lubricants are essential for every machine or moving part and there are no external substitutes for them. However, there does exist competition among different types of lubricants such as bio-based, synthetic, and semi-synthetic. Since the use of bio-degradable lubricants has been mandated by the EIA, there has been increased R&D into the production of cost effective bio-based lubricants. This is expected to increase the competition in the market.
Need to Improve Operational Life of Mechanical Parts Boosts Demand for Offshore Lubricants
The rise in the demand for energy is increasing by 1.5% per year, as per the BP Energy Outlook. Thus, there is a rise in the use of floating production storage and offloading (FPSOs) and offshore rigs in offshore exploration and production (E&P) activities. This in turn is increasing the demand for lubricants as they are extensively used in these activities. Constant developments in offshore lubricants are enhancing the operational life of mechanical parts, which in turn reduces unnecessary capital investments. This will further the demand for offshore lubricants.
It is expected that many E&P activities will take place in Brazil and Africa. Thus, the demand for offshore rigs is steadily increasing and around 220 offshore rigs are under construction. These rigs are expected to be installed in various offshore fields across the globe and accelerate the growth of the offshore lubricants market.
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Environmental Regulations Prohibit Use of Certain Lubricants
The growing environmental concerns over lubricant spills and leakages into the sea are forcing various government agencies to come up with new legislations compelling the use of eco-friendly lubricants. Guidelines set by the IMO state that seals, main propulsion, and stern tube bearings of ships operating in the ice covered waters in the Arctic, should not leak pollutants. Similarly, the Vessel General Permit regulation by the EPA has compelled ship owners to use environmentally acceptable lubricants (EAL). Oil companies are facing difficulty in the use of EALs as the many conventional rubber seal materials used are not compatible with the new EALs, says a TMR analyst. This, prohibits the use of EAL in these applications.
Offshore Fields in West Africa, Brazil, and Gulf of Mexico to Create Heightened Demand for Lubricants
High investments by major oil and gas exploration and production companies are creating a continuous demand for FPSOs and offshore rigs. There are many offshore fields in the Golden Triangle (West Africa, the Gulf of Mexico, and Brazil), which will result in large scale exploration and production activities. These fields have an average depth of around 1890 feet, thus requiring a large number of offshore rigs and FPSOs. This in turn is expected to create a heightened demand for offshore lubricants.
According to the report, the global market opportunity in offshore lubricants is expected to rise from US$134.67 mn in 2015 to US$183.50 mn by 2020. By end user, the offshore rigs segment led in the past and will continue to retain its leading position in the coming years. On the basis of application, the engine oil segment is expected to lead and account for 61.95% of the global offshore lubricants market by 2020. The Rest of the World, followed by Asia Pacific is anticipated to lead in the market in the coming years. The Rest of the World is expected to account for 32.49% of the global offshore lubricants market by 2020.
The global offshore lubricants market is segmented as follows:
Others (turbine oil, compressor oil, circulating oil, etc.)
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