The global marine propulsion engine market size was valued at USD 36.04 billion in 2022. It is projected to reach USD 45.53 billion by 2031, growing at a CAGR of 2.63% during the forecast period (2023-2031).
Marine propulsion refers to the means by which a boat or ship is propelled across the water. Electrical motors are commonly used to turn propellers, pump jets, or impellers aboard modern ships. Their primary source of propulsion is internal combustion engines. To drive ships through the water, marine propulsion engines burn fuel. An engine's components include cylinder blocks and liners, valves, towers, casings, bearings, bedplates, crankcases, crankshafts, flywheels, generators, transformers, gearboxes, and bearings. It has generators that supply electricity to the motors, and it can run on heavy gasoline or diesel oil. It is now commonly used as a prime mover on modern commerce ships and offshore support boats worldwide.
The demand for container ships to transport various goods, including oil, natural gas, mineral ores, and consumer goods, is expanding due to the growing international trade due to globalization and industrialization. Additionally, the use of marine electric propulsion engines is expanding globally due to the increased focus on lowering fossil fuel usage and enhancing energy efficiency.
The expansion of international trade is one of the characteristics of the modern world economy, and maritime transit is the foundation of this growth. The market for marine propulsion engines is initially influenced by maritime trade. Global economic progress has been accelerated by maritime transport thanks to expanded supply chains and the introduction of new markets. Around 90% of all freight is transported by sea. To facilitate their transcontinental trade, nations rely substantially on ship port infrastructure, which is anticipated to fuel the expansion of the global marine propulsion engine market. Global imports and exports have increased due to the current demand for maritime transport. With globalization at the core of many economies, chances of international trade of goods are growing and providing a superior selection of accessible products at different prices.
The COVID-19 epidemic caused a temporary drop in carbon dioxide and other greenhouse gas emissions. However, the globe is still on track for a temperature rise of more than 3°C, which is expected to impede the expansion of the marine propulsion engine market globally. Shipping businesses delayed making orders for new vessels to IMO emission requirements due to low earnings and concerns about compliance. Additionally, some of the current fleets will need to be replaced due to the new conditions, which will come at a high cost to the operators. This is expected to restrain the market's expansion for marine propulsion engines.
As the market for marine propulsion engines expands globally, many businesses collaborate to develop new shipbuilding technologies, including artificial intelligence (AI), unmanned intelligent ships, and eco-friendly technology. For instance, China Shipbuilding Corporation and DNV signed a collaborative agreement in May 2020 to promote offshore engineering and new-generation ships. The combined company, Dalian Shipbuilding Industry Company (DSIC) of China Shipbuilding, may work on an R&D project to develop a new smart ship. The researchers are using cutting-edge technology to build autonomous ships and vessels that may be used to collect data in environments where humans are not as necessary. The market for marine propulsion engines is expected to develop due to this aspect.
The global marine propulsion engine market is segmented by engine type, application type, and ship type.
Based on engine type, the global marine propulsion engine market is bifurcated into diesel, gas turbine, natural engine, and other engine types.
The diesel segment is the highest contributor to the market and is estimated to grow at a CAGR of 2.73% during the forecast period. Approximately 100,000 seagoing merchant ships with installed powers ranging from 1 to 100 megawatts (MW) each ply the seas and oceans nowadays. With very few exceptions, all of these ships are propelled by diesel engines; the majority of these have direct drives, while others have a hybrid or diesel-electric system. The top market players are developing and releasing the newest items to win more clients and market share. However, the regulatory authority’s tighter pollution standards for marine engines could hinder the market's diesel section. But no other fuel type significantly matches diesel engines' power output and efficiency. However, the introduction of marine engines and the advancement and development of other engines may limit the future development of diesel engines.
Compared to reciprocating engines, gas turbines have a higher power density, fewer pollutants, and ease of maintenance. Piston engines have continued to be the technology of choice for commerce ships because of the ease of direct propulsion and the better efficiency reciprocating engines provide in that configuration. Several industry participants are creating the most modern gas turbines for marine vessels to improve market share and revenue. Automobile manufacturers ensure that their vehicles are emission-free and that their automobiles are transported in an emission-free manner. For instance, the big Pure Car and Truck Carrier (PCTC) SAKURA LEADER of NYK Line is powered by a Daihatsu Diesel dual-fuel engine, "6DE28DF," that went into service in October 2020. One of the largest car carriers in the world, this ship is the first large-scale LNG-fueled vessel built in a Japanese shipyard and has a capacity of about 7000 automobiles. It will deliver finished automobiles from manufacturers, including the Toyota Motor Corporation.
Based on application type, the global marine propulsion engine market is bifurcated into passenger, commercial, and defense.
The passenger segment owns the highest market and is estimated to grow at a CAGR of 2.8% during the forecast period. Diesel-electric is the most popular option for ship propulsion, particularly for passenger ships. Even though diesel engines have many benefits, their main drawback is the pollution they emit. The need for an ideal replacement for diesel-electric gas turbines and natural engine propulsions may develop as environmental regulations tighten. Even though LNG is less common as a fuel for commercial vessels, it operates in an environmentally friendly ferry, tug, and other PSV activities, causing a drastic shift for passenger ships.
The sale of new ships can be proportionally correlated with the expansion of particular ship classifications, which in turn refers to the expanding propeller market. Even though the global shipbuilding industry continues to struggle with a sharp decline in orders in 2020, South Korea's shipbuilding sector obtained the majority of new orders. Levels of sulfur emissions must be lower than those now possible when burning HFO to comply with updated rules that call for establishing Sulfur Emission Control Areas (SECA). The commercial sector is placing orders with numerous companies for cutting-edge engines. For illustration, Maersk placed an order with MAN Energy Solutions in July 2021 to supply a methanol engine for the container segment.Additionally, Hyundai (HMD) intended to construct a 2,100 TEU ship. HHI-EMD proposed MAN B&W 6G50ME-LGIM construction. The ship will start operating in the European region in 2023.
Based on ship type, the global marine propulsion engine market is bifurcated into container ships, tankers, bulk carriers, offshore vessels, naval ships, and passenger ships.
The container ship segment is the highest contributor to the market and is estimated to grow at a CAGR of 3.01% during the forecast period. Globally, container needs have been rising in the transportation and logistics industries. The market for shipping containers worldwide showed the largest market share for dry containers. The global container fleet grew by 5% in 2019 and is anticipated to continue expanding steadily. Numerous changes are occurring in the market due to the growing commerce in container items. For instance, Durban, in Africa, handles up to 31.5 million metric tons of cargo annually, making it the largest cargo port in Southern Africa and the fourth largest in the Southern Hemisphere. It is situated near the Nile Delta's westernmost point. One of the most important ports in North Africa, Damietta serves as a crucial crossroads for African exporters trying to enter the Mediterranean market. The EU's top three marine freight ports are located on the North Sea Coast: Rotterdam, Antwerp, and Hamburg. Rotterdam topped the ranking for handling freight in the EU with 441 million tons. Over 69% of the freight held in Rotterdam was inward, highlighting Rotterdam's crucial function as an EU hub.
Oil tankers, known as "tankers," primarily transport crude oil and its byproducts. As a result, the developments in the oil business have had a significant impact on ships. With nearly 20% of the total gross tonnage, oil tankers accounted for the second-highest level of ship deliveries in 2019. Companies search for more significant synergies or collaboration between organizations rather than ordering new ships. Seven Trafigura Maritime's tankers were transferred to Navig8, which owns, runs, and maintains shipping pools, in June 2020. Tanker sales and purchases decreased.However, there were still a lot of transactions involving used ships. As a result, it is anticipated that tanker ship sales will increase. Two of the world's biggest owners/operators of product tankers will be brought together commercially thanks to a strategic alliance launched by Diamond S Shipping Inc. and NORDEN. According to the arrangement, Diamond S supplies 28 medium-range tankers to the Norient Product Pool, which is controlled by NORDEN and is one of the largest in the world, with around 90 such vessels.
Asia-Pacific Dominates the Global Market
The global marine propulsion engine market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 2.76% during the forecast period. Previously, domestic brands produced the majority of diesel engines used in the marine industry. The International Maritime Organization (IMO) restrictions are already strict, but the Chinese authorities have recently increased their pollution standards. Particulate matter (PM) limitations are included in the China GB15097 rule, often known as C1 and C2. The Chinese inland-and-coastal segment has granted MAN Energy Solutions' Chinese licensing partner CMP several new small-bore, four-stroke orders. MAN 21/31, 27/38, and 23/30H kinds make up the orders. The business secured a further order for engines and generators for a 15,000 dwt shuttle tanker, including a 6S35ME-B9.5 IMO Tier II main engine.
Due to its advantageous strategic location, Japan is now hosting several significant projects. Its maritime sector is receiving and meeting the demands of several ship-operating firms around the globe. Throughout the forecast, such innovations are anticipated to increase market demand. Pan is constructing two FFM or 30FFM Future Multi-Mission Frigates at two local shipyards. For the Japan Maritime Self-Defense Force, it is a next-generation, multi-mission frigate (JMSDF). The force is expected to acquire a total of 22 frigates. The frigate is equipped with a CODAG propulsion system, which consists of one Rolls Royce MT-30 gas turbine and two MAN 12V28/33D diesel engines, to enable it to travel at a high speed of over 30 knots.
North America is expected to grow at a CAGR of 2.55% during the forecast period. Even though the government's trade and travel restrictions caused a decline in the US market, the situation worsened due to the US-China trade disputes. However, the market is anticipated to speed up after the epidemic and trade war. Marine engine producers are expected to be forced to provide engines that can comply with the U.S. EPA New Source Performance Standards due to rising CO2 emissions and the country's ensuing strict restrictions (NSPS). Additionally, expanding the seaborne trade will motivate market participants to introduce new items to attract more customers. Numerous manufacturers of marine propulsion engines, including Caterpillar, Cummins Inc., and others, dominate the US market. The maritime technology market in the nation is one of the biggest in the world.
The Canadian government has been providing the Royal Canadian Navy (RCN) with the cutting-edge, made-in-Canada ships and equipment they need to perform their vital duties both now and in the future through the National Shipbuilding Strategy (NSS). Each year, the NSS makes about USD 1 billion in contributions to the nation's GDP. The shipbuilding industry is one of the country's key contributors to the manufacturing sector's GDP. There will be an anticipated USD 13 billion contribution to the gross domestic product from 2012 to 2022 from all contracts associated with the National Shipbuilding Strategy between June 2012 and June 2019.
Germany has a robust and globally competitive maritime sector focused on foreign commerce. Additionally, demand will be further fueled throughout the projected period by active shipbuilding activities, government R&D expenditure, and player spending to develop environmentally friendly marine engines. HSD Engine, a Korean engine manufacturer, said in January 2021 that it would provide shipowners using its two-stroke and four-stroke marine engines with Tekomar XPERT, ABB's diagnostics and advising software. These factors suggest that the market will grow optimistically during the coming years. The French government is taking action to ensure that ships in the Mediterranean Sea cause little pollution.
By 2022, the International Maritime Organization must reduce the allowed sulfur level in the fuel used by ships in the Mediterranean to 0.1%, as agreed upon by all Mediterranean States. Rolls-Royce received its first order for the brand-new sixteen-cylinder engines in its famous Series 8000 line in March 2020. Starting in 2023, they were to be mounted aboard the five new FTI-type frigates built for the French Navy. Between 2020 and 2027, the engines are scheduled for delivery. Given the trends and developments described above, the market is anticipated to expand significantly throughout the projected period.
Brazil maintained a marine trade surplus of USD 19.7 billion in the first four months of 2020, even during the epidemic, as exports of agricultural products remained robust and imports decreased in value as the real currency declined. Despite the catastrophe brought on by the new coronavirus, which has crippled transport systems worldwide, the surplus is 14.56% wider than in 2019. The Middle East Branch of Yanmar has opened in the United Arab Emirates, close to Dubai Airport. Yanmar Asia Co. Ltd., a subsidiary of Yanmar and its regional headquarters for Asia, will run the office, which will help dealers in Yanmar's middle east market with sales and service.
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