Marine Propulsion Engine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The marine propulsion engine market was valued at USD 33.82 billion in 2020, and it is expected to reach USD 41.08 billion by 2026, registering a CAGR of 3.18% during the forecast period (2021 - 2026).

The outbreak of COVID-19 has hindered the growth of the marine propulsion engine market with continuous lockdowns and the subsequent economic slowdown across the world. The most significant near-term impact on marine engines will be felt through supply chains. With the combined effects of the pandemic and slump in global oil prices, investments are likely to contract sharply this year, especially in offshore support vessels. However, recovery is expected during the forecast period, provided there is no emergence of another wave of the epidemic as governments are working to control the spread of the virus.

Maritime transport is considered to be the backbone of international trade. According to data published by the International Chamber of Shipping (United Kingdom), approximately 90% of the global volume of merchandise trade is carried out via sea, as this channel is cheaper than rail and road transport. Other factors such as rapid industrialization, expanding global population, and the liberalization of economies have increased the trade volume between countries over the years. These factors are expected to increase the demand for cargo ships and containers for the transportation of goods and raw materials between countries.

Asia-Pacific is anticipated to observe rapid growth over the tenure of assessment due to augmented international trade and export from the region. Both India and China have come up as major hubs of business in the region, with an increased pace of activities in the manufacturing sector. Such an increased volume of international business is likely to propel the demand for seaborne vessels in the region. North America is likely to emerge as another important region in the global marine propulsion engine market. The increasing demand for ships and boats for warfare, fishing, and entertainment is likely to propel the demand in the region.

Scope of the Report

Marine propulsion is the system or mechanism used to generate thrust that allows a small boat or even a ship to move across waterways. Modern ships are usually equipped with mechanical systems consisting of an electric motor turning a propeller, or even pump-jets or an impeller, and they use reciprocating engines as the main source of power. The marine propulsion engine market report covers the latest trends, COVID-19 impact, and technological developments in the market.

The market is segmented by engine type (diesel engine, gas turbine, natural engine, and other engine types), application type (commercial, passenger, and defense), ship type (container ship, tanker, bulk carrier, offshore vessel, naval ship, and passenger ship), and geography (North America, Europe, Asia-Pacific, and Rest of the World). For each segment, the market sizing and forecasts have been done on the basis of value (USD billion).

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Key Market Trends

Increasing Focus on Renewable Energy to Boost the Market

A growing need for dependent and fuel-efficient ships is anticipated to be the main driver of the marine propulsion engine market. The use of renewable energy sources such as solar and wind energy to meet auxiliary power requirements is expected to increase, thereby augmenting the marine propulsion engine market growth. The increasing need for efficient and operationally dependable ships may lead to the modernization of marine propulsion engines over the forecast timeline. Rising emphasis on increasing diesel engine capacity to drive new generation tankers with large cargo holding capabilities is expected to propel the market.

The second major factor that is likely to impact the market is the focus on renewable energy sources. Global warming and an impending energy crisis are some of the biggest challenges faced by the world in the 21st century. Depletion of conventional and shale gas reserves will increase LNG demand, especially as a marine fuel. LNG adoption requires the availability of specialized insulated tanks and a safe area, which drives the demand for larger storage space.

However, several alternative tank arrangements are adopted, along with numerous system alternatives, through which LNG can be utilized. The advent of nuclear propulsion systems acts as a key interest for vessel designers as a small percentage of nuclear fuel is engaged in providing energy, which is equivalent to a relatively high weight in coal or oil. It also proves to be beneficial for icebreakers while exploring frozen waterways in the Arctic. Increasing CO2, NOX, SOX, volatile organic compounds, and particulate matter emissions could focus on non-conventional energy sources such as wind and solar energy.

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