|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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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).
|Other Engine Types|
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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China is Expected to Dominate the Asia-Pacific Market
Asia-Pacific accounts for a major portion of the marine propulsion engine market, and it is anticipated to maintain its dominance throughout the forecast period. This is primarily because of the key nations, China, Japan, and South Korea, that have become manufacturing powerhouses as they are heavily dependent on external trade.
China is already the world’s largest exporter and would naturally require a greater number of commercial ships, thus having a positive impact on the demand for marine propulsion engines. In addition to trade, countries across the world have begun beefing up their navies to combat ocean piracy. Asian navies, in particular, are rapidly building their defense capabilities, which may increase the size of the marine propulsion engine market across the Asia-Pacific region.
Rising investments in shipbuilding and commercial freight transport in the key markets offer high-growth opportunities for the marine engines market in Asia-Pacific. China’s ambitious One Belt One Road initiative will open new trade routes with existing geographies in Africa and South America and increase the transit rate from China to different countries. Currently, there are shipments of 26.57 million TEU (twenty-foot equivalent) between Asia and North America and 15.1 million TEUs between Asia and North Europe. These figures are expected to rise during the forecast period.
In order to compete within the autonomous technology space in China, European developers are working on a similar technology and are planning to commercialize it by 2030. The maritime engineering firm MacGregor and engine maker Rolls-Royce signed an MoU in 2017 to explore the ways that autonomous technology can help ship navigation and cargo systems on container ships.
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The marine propulsion engine market is fairly consolidated. The key industry players contributing to the marine propulsion engine market share include MAN Diesel & Turbo, Wartsila, Hyundai Heavy Industries Co. Ltd, Daihatsu Diesel Mfg. Co. Ltd, and Caterpillar. These companies continuously innovate to provide environmentally sustainable, flexible, economically sound, and efficient solutions to customers. The companies are trying to expand their brand values in the market by acquisitions and mergers. For instance-
Recently, Hyundai Heavy Industries formally took over Daewoo Shipbuilding & Marine Engineering (DSME) with a 55.7% stake in the company, which would be worth USD 1.08 billion. This acquisition is expected to further strengthen the market position of Hyundai Heavy Industries.
Helsinki-based Wartsila Oyj Abp, a renowned technology group, acquired UK-based Transas, a leading company in ship and fleet operations solutions. This strategic move is likely to speed up the expansion of Wartsila toward the vision of a smart marine ecosystem.
Other participants include Mitsubishi, Rolls-Royce, Yamaha, Volvo Penta, Sinopec, Shell, Idemitsu, Hydrosta BV, Hydraulic Marine Systems, Exxon Mobil Corp., and Cummins.
In June 2020, VIGOR FAB AND ABB signed a contract with Washington States Ferries to provide the hybrid-electric propulsion system for Olympic Class Naval Vessels.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Engine Type
5.1.1 Diesel Engine
5.1.2 Gas Turbine
5.1.3 Natural Engine
5.1.4 Other Engine Types
5.2 Application Type
5.3 Ship Type
5.3.1 Container Ship
5.3.3 Bulk Carrier
5.3.4 Offshore Vessel
5.3.5 Naval Ship
5.3.6 Passenger Ship
5.4.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.4.4 Rest of the World
188.8.131.52 Other Countries
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.2 Cummins Inc.
6.2.3 Daihatsu Diesel Mfg Co. Ltd
6.2.4 Hyundai Heavy Industries Co. Ltd
6.2.5 MAN SE (Man Diesel & Turbo)
6.2.6 Mitsubishi Heavy Industries Ltd
6.2.7 Rolls-Royce PLC
6.2.10 Yanmar Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Marine Propulsion Engine Market market is studied from 2018 - 2026.
What is the growth rate of Marine Propulsion Engine Market?
The Marine Propulsion Engine Market is growing at a CAGR of 3.18% over the next 5 years.
What is Marine Propulsion Engine Market size in 2018?
The Marine Propulsion Engine Market is valued at 35 Billion USD in 2018.
What is Marine Propulsion Engine Market size in 2026?
The Marine Propulsion Engine Market is valued at 41 Billion USD in 2026.
Which region has highest growth rate in Marine Propulsion Engine Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Marine Propulsion Engine Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Marine Propulsion Engine Market?
Caterpillar, YANMAR, Hyundai Heavy Industries CoLtd, MAN SE (Man Diesel &Turbo), Wartsila are the major companies operating in Marine Propulsion Engine Market.