Market Trends of Marine Propulsion Engine Industry
This section covers the major market trends shaping the Marine Propulsion Engine Market according to our research experts:
Marine Propulsion Engine Market is Expected to Grow at a Steady Rate During the Forecast Period
Currently, some 100,000 seagoing merchant ships sail in the seas and oceans, with an installed power ranging from roughly 1 to 100 megawatts (MW) per ship. With very few exceptions, all these ships are propelled by diesel engines, and the majority of these have a direct drive system while some have diesel-electric propulsion or hybrid system. Diesel engines are favored for marine propulsion applications because of their unmatched power and torque ratings. The major players in the market are planning and launching the latest products to attract more customers and gain market share.
- In September 2022, MAN Energy Solutions SE launched the new MAN 49/60 engine family at SMM Trade Fair in Hamburg, Germany. The engine is capable of running on LNG, diesel, and heavy fuel oil, as well as biofuels and synthetic natural gas. The engine is a four-stroke engine. The company claims that the dual-fuel engine is an important intermediate step in the transition to clean maritime transportation.
- In September 2022, Wartsila Corporation launched its first marine engine Wartsila 25, which runs on ammonia. It is a medium speed four stroke marine engine based on Wartsila's modular platform technology, which offers the twin benefits of increased fuel efficiency and reduced emissions to the owners and operators of marine vessels.
Another major factor anticipated to drive the market is the increasing orders for LNG carriers due to increased demand for LNG worldwide.
- In September 2022, 255 LNG carriers were ordered worldwide, an increase from 100 carriers ordered in 2021 (from January 2022 to Septermber 2022), representing the highest number of LNG carriers ordered in the past 22 years.
Thus, owing to such factors, diesel engines are expected to hold a considerable share in the marine propulsion engine market in the coming years.
Asia-Pacific Anticipated to Grow at a Significant Pace During the Forecast Period
Asia-Pacific is expected to hold a major portion of the marine propulsion engine market, and it is anticipated to maintain its dominance throughout the forecast period.
This trend is attributed to the presence of the world's top three shipbuilding countries - China, South Korea, and Japan - in the region. Some of the world's busiest ports, Shanghai, Hong Kong, and Singapore, are also in Asia Pacific, making the region the largest hub for maritime transportation in the world. Bangladesh, India, Vietnam, and the Philippines are also seeing considerable growth in their shipbuilding industries. Some of the world's largest shipping companies, like COSCO, NYK Line, and Evergreen Marine Corporation, are based in the region. These factors ensure healthy demand for ships and marine propulsion engines in Asia-Pacific.
The Chinese authorities have made emission requirements even stricter than the International Maritime Organization (IMO) regulations. The China GB15097 regulation, which is commonly known as C1 and C2, includes limits for particulate matter (PM). Thus, key players are launching new engines that meet these stringent emission norms, which are further driving the market in Asia-Pacific.
- In September 2022, Wartsila Corporation announced orders for its newly launched Wartsila 20 engines in China. These engines are equipped with Wartsila NOR NOX emmisions reducer to comply with China's stage II, popularly known as C2, emissions standards.
The major share of the Asia-Pacific marine propulsion engine market is held by South Korean, Chinese, and Japanese players. However, over the past few years, local companies have been launching new products to gain some share of the market. For instance,
- In July 2022, the Governemnt of India announced to make diesel engines for Indian Navy locally. The initiative will likely see major participation from the private sector in the country.
- In May 2021, Hindustan Aeronautics Limited (HAL) and Rolls-Royce signed an MoU to support installation, packaging, marketing, and services for Rolls-Royce MT30 marine engines in India. Under the umbrella of this MoU, both Rolls Royce and HAL will be working together for the first time in the area of marine applications.
Such developments in the region are anticipated to ensure the domination of Asia-Pacific as the leading region for marine propulsion engines over the next five years.
