Marine Propulsion Engine Market Size and Share
Marine Propulsion Engine Market Analysis by Mordor Intelligence
The Marine Propulsion Engine Market size is estimated at USD 38.71 billion in 2025, and is expected to reach USD 43.93 billion by 2030, at a CAGR of 2.54% during the forecast period (2025-2030). Demand is anchored in the commercial cargo fleet’s capacity renewal cycle, yet momentum increasingly shifts toward alternative fuels as the IMO Net-Zero Framework pushes owners to cut greenhouse-gas intensity by 80% before 2050. Early adoption of LNG and methanol dual-fuel engines, fueled by robust Asia-Pacific orderbooks and European policy incentives, is reinforcing the technology transition.
Key Report Takeaways
- By engine type, diesel commanded 66.12% of the marine propulsion engine market share in 2024, while fuel-cell systems are projected to grow at 2.76% CAGR to 2030.
- By application, commercial cargo held 57.37% of the marine propulsion engine market size in 2024; passenger shipping is set to expand at 2.41% CAGR through 2030.
- By ship type, bulk carriers led with 31.28% revenue share in 2024; offshore support vessels are poised for a 3.12% CAGR during the forecast window.
- By fuel type, HFO accounted for 73.25% share of the marine propulsion engine market size in 2024, whereas methanol is forecast to advance at a 2.88% CAGR to 2030.
- By power range, 10,001-20,000 kW engines captured 37.11% of the marine propulsion engine market size in 2024; units above 20,000 kW will post the fastest 3.24% CAGR to 2030.
- By geography, Asia-Pacific controlled 43.36% of the marine propulsion engine market share in 2024; the Middle East and Africa is on track for a 3.37% CAGR through 2030.
Global Marine Propulsion Engine Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
IMO Tier III & EEXI Mandates | +0.6% | Global, with early adoption in EU and North America | Medium term (2-4 years) |
Surge in Asia-Pacific New-Build Orders | +0.5% | APAC core, spill-over to MEA | Short term (≤ 2 years) |
Rapid Uptake of LNG/Methanol Dual-Fuel | +0.5% | Global, led by Europe and Asia-Pacific | Medium term (2-4 years) |
Port-Entry Zero-Emission Auxiliary Propulsion Zones | +0.3% | EU, California, Norway | Long term (≥ 4 years) |
Digital-Twin Predictive-Maintenance | +0.2% | Global, concentrated in developed markets | Medium term (2-4 years) |
Defense CODAD/CODAG Procurement Boom | +0.1% | North America, Europe, APAC | Long term (≥ 4 years) |
Source: Mordor Intelligence
IMO Tier III & EEXI Compliance Push Retrofits
Shipping companies face mandatory 75% nitrogen-oxide cuts inside Emission Control Areas, a requirement that now applies to the Mediterranean as of May 2025. The new rules intersect with EEXI energy-efficiency thresholds, triggering a retrofit opportunity that covers roughly 35% of global tonnage. SCR and EGR packages dominate near-term procurement, illustrated by MAN’s methanol retrofit kits slated for 2026 roll-out. Owners without compliant engines risk restricted port access, making retrofit timelines a boardroom priority. Capital allocation, therefore, increasingly shifts toward upgrade programs rather than pure maintenance budgets, reshaping the aftermarket revenue mix.
Asia-Pacific Container & LNG New-Build Boom
Chinese, South Korean and Japanese shipyards secured a torrent of container and LNG carrier contracts, pushing regional yard utilization to multi-year highs. Evergreen’s USD 3 billion order for eleven LNG-fueled 24,000 TEU vessels typifies the volume surge. First-quarter 2024 data recorded 78 LNG new-building orders, up 129% year on year. Engine makers are therefore juggling capacity constraints alongside heightened demand for dual-fuel platforms. This pipeline supports long-run visibility for the marine propulsion engine market as Asia-Pacific yards convert design slots into deliveries through 2028.
LNG/Methanol Dual-Fuel Uptake
Alternative fuels broke through mainstream ordering in 2023, when 45% of global contracts specified non-conventional energy sources. Methanol led with 138 orders, closely trailed by LNG at 130. Container majors such as Maersk are moving ahead with methanol-powered 17,000 TEU classes to meet internal decarbonization targets. Technology suppliers like WinGD have secured close to 30 ammonia-ready engine orders, signaling the next wave of zero-carbon momentum. Infrastructure gaps and methane slip concerns temper LNG’s outlook, yet dual-fuel flexibility keeps owners insulated from price shocks, supporting broader adoption.
Port-Entry Zero-Emission Zones
California’s expanded At-Berth rule, effective January 2025, obliges tankers and car carriers to connect to shore power or use certified abatement systems. Norway will enforce fjord clean-ship rules by 2026, and the EU FuelEU Maritime package demands on-shore power connections by 2030. These mandates have turned hybrid and fuel-cell auxiliary power into indispensable design features. Wärtsilä’s HY solution delivers fuel savings up to 25% by smart load balancing.[1]“HY Hybrid System Performance Data,” Wärtsilä, wartsila.com Operators now specify propulsion layouts that can toggle seamlessly between conventional and zero-emission modes inside restricted zones, safeguarding schedule reliability.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Fuel-Price Volatility | -0.4% | Global, acute in developing markets | Short term (≤ 2 years) |
High Capex for SCR, EGR Systems | -0.3% | Global, concentrated in retrofit markets | Medium term (2-4 years) |
Limited Green-Methanol Network | -0.2% | Global, severe in emerging markets | Long term (≥ 4 years) |
Rare-Earth Magnet Supply Risk | -0.1% | Global, concentrated in Asia-Pacific | Medium term (2-4 years) |
Source: Mordor Intelligence
Fuel-Price Volatility Complicates Engine Choice
VLSFO averaged USD 630 per ton in 2024 but EU-ETS fees can lift European voyage costs to an effective USD 795 per ton by 2025. Bio-blend mandates inflate fuel budgets further, while e-methanol trades above USD 1,300 per ton, undermining near-term parity with fossil alternatives. Owners hedge risk through dual-fuel installations, accepting higher upfront expenditure for operational flexibility. Yet volatility discourages smaller operators from long-horizon capex, causing uneven fleet modernization across size classes. Analysts warn that misaligned regional regulations could push compliance costs above fuel spend by 2031, eroding competitiveness for aging tonnage.
High Capex for SCR/EGR After-Treatment
Retrofit packages cost EUR 250-650 per kW, a burden that can eclipse residual vessel value for pre-2010 builds.[2]“mtu Series 8000 Emissions Compliance Guide,” Rolls-Royce Power Systems, rolls-royce.com Modern solutions such as the mtu Series 8000 slash NOx by 75% but introduce maintenance complexity and spare-parts dependencies. Typical payback periods stretch to five years on tramp-trade routes, extending refinancing risk for owners with tight cash flow. Financing costs therefore rise, particularly in developing regions where interest rates remain elevated. Some operators instead retire non-compliant tonnage, contributing to accelerated scrapping and opening capacity for cleaner newbuilds.
Segment Analysis
By Engine Type: Diesel Reliance Meets Fuel-Cell Momentum
Diesel engines retained 66.12% of the marine propulsion engine market share in 2024, underscoring their entrenched support network and cost competitiveness. Dual-fuel designs that accept LNG, methanol and ammonia are bridging technology gaps, allowing shipowners to comply with new emission standards without abandoning diesel baselines. Fuel-cell systems, although a niche at present, record the highest 2.76% CAGR and attract pilots in ferries, cruise yachts and auxiliary power modules. The marine propulsion engine market size for dual-fuel units is forecast to rise in tandem with bunker infrastructure roll-outs, especially in Northern Europe and East Asia.
Rapid innovation defines the premium end of the segment. TECO 2030’s high-speed hydrogen ferry prototype proves that fuel cells can reach 35 knots while supporting 160 nautical-mile range, a benchmark for coastal passenger services.[3]“Hydrogen-Powered High-Speed Craft Concept,” TECO 2030, teco2030.no Luxury yacht builders are experimenting with cryogenic storage and methanol reformers to extend zero-carbon cruising. Yet hydrogen handling rules remain in flux, and insurance premiums for gaseous fuel cargoes are still elevated. These barriers protect diesel’s majority share in deep-sea trades where global availability, simplicity and decades of operating data continue to outweigh environmental penalties.
Note: Segment shares of all individual segments available upon report purchase
By Application: Commercial Cargo Dominance and Passenger Upside
Commercial cargo vessels accounted for 57.37% of the marine propulsion engine market size in 2024, buoyed by a surge in container and bulk demand after pandemic disruptions. Fleet owners prioritized dual-fuel engines to secure CII-compliant operations on Asia-Europe loops. Passenger categories, covering cruise ships and ferries, outpace overall growth at 2.41% CAGR as governments impose fjord and port emission caps that favor electric or hybrid packages. The marine propulsion engine industry also benefits from spill-over orders in the defense segment where silent running and multi-fuel readiness are operational must-haves.
Cruise lines now embed battery modules and methanol capability as standard on newbuilds to meet corporate ESG targets. Norway’s fjord rule alone spurred orders for electric fjord ferries, while California’s At-Berth extension pushes North American operators toward shore-power compliance. These developments raise auxiliary power requirements, inflating market value even as engine counts per hull decline. Cargo owners, by contrast, invest in fuel flexibility to hedge both price and availability risk, cementing a two-track investment pattern that splits the market between efficiency-driven freighters and regulation-driven passenger craft.
By Ship Type: Bulk Carrier Scale vs Offshore Support Agility
Bulk carriers held 31.28% share in 2024 thanks to iron-ore and coal trade flows that demand standardized propulsion and predictable schedules. Container ships follow closely, yet face looming overcapacity that could curb new orders beyond 2026. Offshore support vessels, which span crew transfer, anchor handling and SOVs, deliver the fastest 3.12% CAGR as offshore wind installations proliferate across Europe, China and the United States. The marine propulsion engine market size for this class benefits from high-cycle usage and premium pricing on hybrid-ready units that can station-keep with minimal emissions.
Design complexity rises for offshore support hulls operating under dynamic positioning, necessitating multi-engine arrays and energy-storage integrations. Damen’s multipurpose shallow-draft builds showcase this versatility with modular decks that swing between dredging and renewable maintenance roles. Meanwhile, bulk carriers lean on scale economics, favoring mid-range engines in the 10,000-20,000 kW band. Container ships migrate toward 20,000 kW plus installations to preserve service speeds on ultra-large hulls. Tanker activity remains stable as petroleum product movements persist even under the energy transition, though LNG carrier demand ties directly to Qatar and United States export project timelines.
By Fuel Type: HFO Cost Edge and Methanol Breakout
HFO retained 73.25% share in 2024 despite its sulphur content, sustained by its unbeatable price advantage in non-ECA routes. Methanol captures the fastest 2.88% CAGR as engine makers deliver drop-in retrofit kits and as renewable production prospecting accelerates. The marine propulsion engine market size for methanol-ready models stands to climb once green supply reaches commercial scale. LNG continues incremental growth on the back of a 4.7 million m³ bunkering network, although methane slip penalties under EU legislation could dent adoption curves.
Ammonia and hydrogen projects remain at pre-commercial stages, constrained by toxicity handling rules and storage density hurdles. Cummins secured DNV Approval in Principle for methanol-ready QSK60 platforms, with full conversions slated for post-2028 schedules. Maersk’s lineup of methanol dual-fuel mega-ships further legitimizes the option, while shore tank investments in Rotterdam, Singapore and Fujairah inch forward. Yet, green-fuel pricing swings inhibit broad take-up, embedding a multi-fuel landscape where owners balance cost, compliance and range considerations across voyage profiles.

Note: Segment shares of all individual segments available upon report purchase
By Power Range: Mid-Range Leadership, High-Power Upshift
Engines rated 10,001-20,000 kW occupied 37.11% of the marine propulsion engine market size in 2024, serving Panamax bulkers, midsize container ships and MR tankers. Above-20,000 kW units post a robust 3.24% CAGR, powered by demand for ultra-large container vessels and LNG carriers that need sustained 22-knot transits. Lower brackets up to 5,000 kW grow via ferry electrification that couples smaller diesel generators with sizable battery interfaces.
High-power demand dovetails with naval and offshore projects where mission profiles stipulate redundancy and burst speeds. RENK’s propulsion sets top 100,000 kW on naval capital ships, integrating diesel, gas turbine and electric modules for flexible sprint and cruise regimes. Hybrid architectures blur class lines, letting operators fine-tune load sharing to cut emissions during maneuvering without compromising peak output capacity. Digital control layers optimize dispatch, dispatching stored energy to shave top-load demand and prolong engine overhaul cycles.
Geography Analysis
Asia-Pacific commanded 43.36% of 2024 revenue, anchored by China’s near-monopoly on high-volume commercial shipbuilding and South Korea’s LNG carrier specialization. Regional support extends from policy incentives, such as China’s VAT rebates on export tonnage, to supply-chain depth that includes foundries, crankshaft forges and a dense vendor ecosystem. Dual-fuel capability adoption accelerates here because owners can marry low-cost hull production with the latest propulsion packages before delivery, shortening payback periods. Advanced R&D clusters in Japan propel ammonia-ready designs that promise gradual emission abatement without immediate bunkering network overhauls.
Europe remains the crucible for regulatory innovation, shaping technology demand through instruments like FuelEU Maritime, the EU Emissions Trading System and expanding Emission Control Areas. Norwegian fjord zero-emission mandates create an immediate retrofit and new-build pipeline for electric and hydrogen solutions, while Mediterranean ECA designation extends compliance pressures to bulk and tanker traffic that historically skirted Northern rules. Engine suppliers leverage European yards’ specialist focus to test fuel-cell and carbon-capture prototypes under commercial voyage conditions, learning that subsequently informs Asia-Pacific volume deployments.
The Middle East and Africa, though only around one tenth of the revenue contributor in 2024, charts the fastest 3.37% CAGR as QatarGas and ADNOC invest in LNG and methanol infrastructure to anchor export chains. Sovereign-backed shipbuilding expansions, such as Hanwha Philly Shipyard’s scale-up to ten vessels per year, pull global best-practice know-how into the region. North America’s growth centers on defense procurement, reinforced by the Jones Act cabotage shield that drives domestic yard backlog even at higher cost. South America and Africa progress in spurts linked to port modernization and offshore energy investment, but financing hurdles and limited technical clusters slow technology uptake.

Competitive Landscape
Wärtsilä, MAN Energy Solutions (now Everllence) and Rolls-Royce Power Systems headline a field where cumulative sales, service networks and integration skills protect market share. Everllence’s June 2025 rebrand highlights a pivot from pure engine supply to decarbonization ecosystems encompassing carbon capture and hydrogen electrolyzers. Wärtsilä’s HY concept gives it an edge in hybridization projects that demand tight control integration. Rolls-Royce leans on premium naval pedigree while spinning off propulsor units to Fairbanks Morse Defense to sharpen segment focus.
Tier-two challengers include WinGD and Mitsubishi Heavy Industries, which aim for early mover status in ammonia-fueled platforms. Digitalization specialists such as ABB are tilting the playing field with biomimetic propulsors like Dynafin that promise 22% energy savings, drawing competitors into unconventional design territory. Fuel-cell start-ups, from TECO 2030 to PowerCell, exploit niche ferry and offshore segments where policy deadlines offer protected beachheads.
Merger activity is likely to intensify as incumbents seek technology portfolios that span internal combustion, hybrid drives and zero-emission options within turnkey packages. The industry’s service-heavy revenue model favors players that can deploy global technicians 24/7 and sustain parts pipelines to isolated routes. Consequently, market entry barriers remain high for single-product firms lacking after-sales breadth. Subsidy-backed disruptors may breach these defenses, yet maintaining class approvals, warranty structures and global support footprints still tilts advantage toward established consortiums.
Marine Propulsion Engine Industry Leaders
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Hyundai Heavy Industries Ltd.
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Yanmar Co. Ltd.
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MAN Energy Solutions SE
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Wartsila Corporation
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Rolls-Royce Power Systems
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- June 2025: MAN Energy Solutions completed its rebranding to Everllence, broadening its portfolio to heat pumps, carbon capture and electrolyzers.
- May 2025: Hanwha Group unveiled plans to upgrade Hanwha Philly Shipyard to output up to ten vessels a year, targeting USD 4 billion revenue within a decade.
- April 2025: Everllence won a contract to supply ten 20V32/44CR engines for the Indian Navy’s Fleet Support Ships, reinforcing the ‘Make in India’ doctrine.
Global Marine Propulsion Engine Market Report Scope
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. They use reciprocating engines as the main source of power.
The market is segmented by engine type, application type, ship type, and geography. By engine type, the market is segmented into diesel, gas turbine, natural engine, and other engine types. By application type, the market is segmented into passenger, commercial, and defense. By ship type, the market is segmented into container ships, tankers, bulk carriers, offshore vessels, naval ships, and passenger ships. By geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World.
By Engine Type | Diesel | ||
Dual-Fuel (LNG, Methanol, Ammonia ready) | |||
Gas Turbine | |||
Hybrid-Electric | |||
Fuel-Cell | |||
Nuclear (Naval) | |||
By Application | Passenger | ||
Commercial Cargo | |||
Defense / Coast Guard | |||
By Ship Type | Container Ship | ||
Tanker | |||
Bulk Carrier | |||
Offshore Support Vessel | |||
Naval Ship | |||
Passenger / Cruise | |||
By Fuel Type | Heavy Fuel Oil (HFO) | ||
Marine Diesel/Gas Oil | |||
LNG | |||
Methanol | |||
Ammonia/Hydrogen | |||
By Power Range (kW) | Up to 1 000 kW | ||
1 001 kW to 5 000 kW | |||
5 001 kW to 10 000 kW | |||
10 001 kW to 20 000 kW | |||
Above 20 000 kW | |||
By Geography | North America | United States | |
Canada | |||
Rest of North America | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Spain | |||
Russia | |||
Rest of Europe | |||
Asia Pacific | China | ||
Japan | |||
South Korea | |||
India | |||
Rest of Asia Pacific | |||
Middle East and Africa | Saudi Arabia | ||
UAE | |||
Turkey | |||
South Africa | |||
Nigeria | |||
Rest of Middle East and Africa |
Diesel |
Dual-Fuel (LNG, Methanol, Ammonia ready) |
Gas Turbine |
Hybrid-Electric |
Fuel-Cell |
Nuclear (Naval) |
Passenger |
Commercial Cargo |
Defense / Coast Guard |
Container Ship |
Tanker |
Bulk Carrier |
Offshore Support Vessel |
Naval Ship |
Passenger / Cruise |
Heavy Fuel Oil (HFO) |
Marine Diesel/Gas Oil |
LNG |
Methanol |
Ammonia/Hydrogen |
Up to 1 000 kW |
1 001 kW to 5 000 kW |
5 001 kW to 10 000 kW |
10 001 kW to 20 000 kW |
Above 20 000 kW |
North America | United States |
Canada | |
Rest of North America | |
South America | Brazil |
Argentina | |
Rest of South America | |
Europe | Germany |
United Kingdom | |
France | |
Spain | |
Russia | |
Rest of Europe | |
Asia Pacific | China |
Japan | |
South Korea | |
India | |
Rest of Asia Pacific | |
Middle East and Africa | Saudi Arabia |
UAE | |
Turkey | |
South Africa | |
Nigeria | |
Rest of Middle East and Africa |
Key Questions Answered in the Report
What is the marine propulsion engine market size in 2025?
The market is valued at USD 38.71 billion in 2025.
What is the projected CAGR for the marine propulsion engine market through 2030?
The market is forecast to expand at a 2.54% CAGR between 2025 and 2030.
Which engine type currently holds the largest market share?
Diesel engines lead with 66.12% of the marine propulsion engine market share as of 2024.
Which fuel is growing the fastest in new vessel orders?
Methanol is the fastest-growing fuel type, advancing at a 2.88% CAGR over 2025-2030.
Which region shows the highest growth rate over the forecast period?
The Middle East is the fastest-growing region, projected at a 3.37% CAGR through 2030.
What regulation is most influential in driving retrofit demand?
IMO Tier III and EEXI rules, requiring 75% NOx cuts in Emission Control Areas, are the primary retrofit catalysts.
Page last updated on: June 26, 2025