Market Trends of Europe Marine Lubricants Industry
Increasing Maritime Trade in Europe
- Water-based transportation is the most efficient way of moving large quantities of cargo over long distances. According to a report published by the European Maritime Transport Environment, maritime transport plays and will continue to play an essential role in global and European trade and economy.
- The European marine cargo handling market is anticipated to expand significantly due to increased marine traffic. The emerging nations in Europe are investing in new marine port construction activities. Cargo operators are capitalizing on advanced technologies and equipment to reduce loading and discharging timelines and improve operating efficiency. This situation is likely to boost the market during the forecast period.
- The Port of Rotterdam is the largest container-handling port in the European Union. As per the statistics revealed by Eurostat, in 2022, sea transportation accounted for 46% of the total volume of goods traded between the European Union and the rest of the world.
- The Russia-Ukraine war and the related economic restrictive measures have been negatively affecting maritime transport not only in the European region but also across the world. This outcome negatively impacted the demand for marine lubricants in the region in 2022.
- All the aforementioned factors are likely to impact the demand for marine lubricants in Europe in the coming years.
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Germany to Dominate the Market
- Germany is among the largest sea-faring nations in the world. The country has the fourth-largest merchant fleet, and it is also the third-largest exporter via sea routes. The maritime economy in Germany is known for its modern shipbuilding industry, specializing in innovative developments. However, the German maritime industry has been struggling since the onset of COVID-19.
- In 2022, the condition of the shipbuilding industry gradually improved, owing to active government support. In August 2022, the German government announced its plans to allocate nearly USD 1.3 million for the development of zero-emission vessels and support digitization in the shipbuilding industry. This grant was proposed in line with the goal of making shipbuilding a smarter, more cost-efficient, and more sustainable field.
- The increasing interest of Germany in political tensions of the countries in the Asia-Pacific region, as the country aims to support the rule-based international order and protect maritime passages, has also been economically helping its maritime industry. In June 2023, Germany revealed its plans to deploy two warships, a frigate, and a supply ship to the Indo-Pacific region in 2024.
- Investments in cruise ships, which are among the most crucial assets of the maritime industry, were postponed till 2023-2024 due to pandemic-related distortions. As one-third of all container ships are owned by German companies, the production of and advancements in environment-friendly maritime technologies represent a major opportunity for the revival of the market in the coming years.
- All the aforementioned trends and investments are expected to boost the demand for marine lubricants in Germany in the coming years.
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