Marine Fin Stabilizer Market Size, Share & Trends Analysis Report By Type (Retractable Fin Stabilizer, Non Retractable Fin Stabilizer),  By Application (Fishing Vessels, Passenger Vessels, Navy and Coast Guard Vessels, Merchant Vessels) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The market is expected to catapult further with the growing number of fishing and merchant vessels and increased globalization.

The function of a fin stabilizer, found at the bottom part of the ship's hull, is to provide resistance to the excess rolling of the ship in either direction. Fin stabilizers at present are universally recognized as the most efficient system for marine technology. In case of severe sea conditions, rolling can force a ship to deviate from the planned course to avoid the rough sea or bring it ahead, resulting in a loss of time and money.

The marine fin stabilizer market revenue was valued at USD 443.1 Million in 2019 and is poised to grow with a CAGR of 5.46 percent during the forecast period.

Market Dynamics

The developing countries are witnessing an upward trend in the e-commerce trade, strongly backed by the rising disposable income and availability of a wide variety of products and services. Globally, the online spending of consumers is growing rapidly, leading to more demand for goods. Online marketing and the strong presence of shopping platforms for consumers are significant driving factors for the shipping industry. Consumers are exposed to many online platforms that enable them to purchase products that can be shipped easily from international markets.

In the last few years, the upswing in the world economy has added to the seaborne trade while gathering momentum and fuelling the shipping industry. As per the United Nations Conference on Trade and Development (UNCTAD), in 2017, the total trade volume reached 10.7 billion tons, mirroring an additional 411 million tons.

Figure 1: Seaborne Trade of Developing Economies, 2010–2019

Source: United Nations Conference on Trade and Development (UNCTAD)

This increase in trade is predominantly driven by megatrends, such as growing digitalization, the rise of electronic commerce, and government schemes, resulting in an increase in the trade of containerized and dry bulk commodities. For instance, in 2017, global containerized trade increased by 6.4%. This growth of the seaborne trade creates a lucrative growth opportunity for the shipping industry and the marine fin stabilizer market. 

Rising Consumer Spending on Cruising Holidays to Fuel the Market Growth

Today, the increase in the per capita income of people worldwide has resulted in a significant rise in consumer spending on luxury holidays like cruises. People are stressed out from fast-paced lives and travelers are seeking ways to rejuvenate more than ever before. Additionally, the vacationers are setting sights on destinations that were earlier out of reach, some of them now accessible only by cruise ship.

The global growth in the number of cruise passengers represents a positive impact on the demand for cruise ships and vessels. The rise in the demand for cruise ships is expected to uplift the demand for marine fin stabilizer during the forecast period.

Figure 2: Global Ocean Cruise Passengers, 2009–2019 (Millions)

Source: Florida-Caribbean Cruise Association (FCCA)

As per the figures published by the Florida, Caribbean Cruise Association (FCCA), the number of global ocean cruise passengers was 28.2 million in 2018 and is projected to reach 30 million in 2019. Moreover, Gen Z is set to become the largest consumer generation for cruise traveling in the next five years, outpacing millennials. The generation is willing to spend more on unique experiences, eventually fostering the demand for cruise ships. This is anticipated to further propel the growth of the marine fin stabilizer market.   

Volatile Economy and Declining Shipbuilding Industry to Hamper the Market Growth

The global economy is undergoing turmoil due to various economic changes between the prominent trading partners in the world. The U.S.-China trade war has affected all the economies since they were the dominant partners in global trade. The dispute between the two largest economies resulted in higher import tariffs on billions of dollars’ worth of goods.

In 2018, the U.S. government imposed tariffs on more than USD 360 billion Chinese goods and China retaliated with higher tariffs on more than USD 110 billion of the U.S. goods. The significant escalation in the raw material prices left the domestic companies with no choice but to redirect sourcing options. This has significantly hampered the demand for marine fin stabilizer for retrofits as well as from the shipbuilding industry.

Brexit happened in February that separated one of the largest trading partners from the European Union (EU). The companies present in the region and the trading partners have been facing a looming crisis over the separation and are planning for future operations. This means there will be a considerable slowdown in the British economy before it gains ground.

However, the recent outbreak of the pandemic across the world has stalled economic activities. According to the statistics presented by the Association of China’s National Shipbuilding Industry (CANSI), the output of the shipbuilding industry for the period Jan-May in 2020 was 13.32m dwt, highlighting a decline of 5.3%. These factors have overall reduced the production capacities and global trade which will impede the demand for marine fin stabilizer in the global market.

Regional Analysis

South Korea: Largest User of Fin Stabilizer Due to Robust Shipbuilding Industry

Asia-Pacific is at the forefront of the marine fin stabilizer market as the shipbuilding and shipping industry is a vital part of economies in Asian countries on account of the presence of notable ports, shipbuilding companies, and high growth rate. South Korea is considered the world’s top shipbuilder, accounting for over 40% of global ship orders. With the flourishing demand for various types of ships and vessels, South Korea accounted for around 35% of the global ship order in 2019. China and Japan are showing similar signs of growth in the shipbuilding industry.

As per the figures published by UNCTAD, in 2019, more than 93% of the global shipbuilding, in terms of tonnage, was situated in China, the Republic of Korea, and Japan. The merger of South Korea’s two key players Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. and the merger of China Shipbuilding Industry Corp. and China State Shipbuilding Corp are expected to control over 45% of the global market. The large production of ships and vessels in the region is prompting a higher sales market for marine fin stabilizer in the region.

Figure 3: World Top Shipbuilding Countries, 2019 (%)

Source: UNCTAD

The region enjoys the presence of top ports, such as Shanghai, Singapore, Shenzhen, Ningbo-Zhoushan, and many others, and is gaining traction from the key players in the fin stabilizers market. To meet the continuously increasing demand in China and South Korea, the marine fin stabilizer manufacturers are expanding production capacities to get closer to the customers.

The global economic shift towards Asia is expected to rise its share in the world’s GDP by more than 30% in the future. Asia's dominance in the world shipping industry is anticipated to grow due to higher investments coming from the developed economies, under the backdrop of favorable government policies.

Segmental Analysis

Retractable Fin Stabilizer Segment to Grow with a CAGR of 5.60%

The retractable fin stabilizers segment is expected to grow with a CAGR of 5.60% during the assessment period. Retractable fin stabilizers provide resistance to the excess rolling of the ship and are an essential component for operational efficiency. The stabilizers are specifically designed for motor yachts and cruise vessels and their stabilization needs at both zero speed and underway. They also help in achieving better fuel efficiency and speed performance of the ships on rough seas.

The primary advantage of retractable fin stabilizers over its counterpart is that the stabilizers can be stored when not in use. Retractable fin stabilizers are available in large fin range depending on the different size and performance requirements of the ships.

Fishing Vessel Segment to Witness Mushrooming Growth during the Assessment Period

The fishing vessel segment holds the largest share and is expected to reach a value of USD 268.6 Million by the year 2029. The fishing vessels or fleets are mobile floating objects of different sizes that are used for catching, harvesting, transporting, processing, and preserving fish and other aquatic organisms, plants, and other marine life.

The accelerations due to the waves negatively impact the performance of the fishing vessel by creating limitations in comfort, stability, workability, and safety. The retractable fin stabilizers have been considered the most effective technique for ships operating above certain speeds. The roll motion is reduced by controlling the mechanical angle of the fin according to the ship roll angle, thus enhancing the efficiency and productivity of the vessel.

Fin stabilizers allow fishing vessels to operate in the deep sea for a longer time and capture a variety of species. An increase in per capita seafood consumption and the expanding aquaculture across the world has mounted pressure on fishing vessels. Hence, today most fishing vessels are equipped with fin stabilizers for improved stability and capability.

Impact of covid-19

The COVID-19 pandemic has posed a severe threat to the global food system by disrupting its long supply chains and logistics. A diverse local agriculture network can help urban areas create a more resilient food system for its residents. Furthermore, the pandemic has impacted markets and farm prices, supply chain slowdowns and shortages, farmers' health, farm workforce, and worker safety, among other disruptions. The farming sector has witnessed a sharp dip in the business, including the dealership network, and the reluctance of farmers to purchase expensive high-powered farm equipment in light of the pandemic.

The governments are slowly lifting lockdowns after months of restrictions, which is anticipated to bring the farm equipment market opportunities to grow. The opening of manufacturing facilities, international borders, and favorable monsoon conditions in equatorial regions are expected to restore the global agriculture and farming industry. Government initiatives and support to farmers are also expected to encourage the farmer's morale. The U.S. government announced a USD 19 billion relief program to farmers, including USD 16 billion in direct payments to producers this year.

Recent Developments