Marine Engine Market

Marine Engine Market Size (2023 - 2028):

The Global Marine Engine Market is predicted to grow from USD 12.34 billion in 2022 and is projected to reach a valuation of USD 15.3 billion in 2028, growing at a compound annual growth rate (CAGR) of 3.80% between 2023 and 2028.

Market Overview:

Market Drivers

Shipping is considered the backbone of international trade. According to data published by the International Chamber of Shipping (United Kingdom), around 90% of the worldwide volume of merchandise trade is carried out by sea, since this channel is cheaper than rail and road transport. The countries of Asia and the Pacific have become the main suppliers of manufactured products. Thus, the call for container ships is significantly high in this region, due to the increase in exports of goods. Most shipbuilding companies, including powertrain and engine manufacturers, are located in the Asia Pacific. Therefore, the call for shipping services and the expansion of the shipping industry in Asia-Pacific have contributed to the growing call for marine engines.

Market Restraints

Environmental subsidy regulations, policies, and systems vary from country to country depending on the intensity of emissions caused by harmful gases such as SOx, NOx, and CO2. For example, MARPOL Annex VI guidelines published by the International Maritime Organization (UK) in 2005 set limits for NOx emissions and mandated the use of low-sulfur fuels. These guidelines apply to ships and vessels operating in US waters and within 200 nautical miles of the North American coast, also known as the North American Emission Control Area (ECA). Ship component manufacturers are focused on developing marine propulsion systems that comply with various environmental regulations issued by governments of countries around the world.

Market Opportunities:

Today, many companies are investing in engine research and development to achieve maximum mileage and power at the lowest cost. Alternative fuel is also required to run an engine due to the higher cost and low availability of petroleum fuel (diesel and gasoline). Many engines are developed that can run on alternative fuel. It uses gaseous fuel as the main fuel and diesel fuel as the pilot fuel. Heavy fuel oil and marine gas/diesel are the 2 most employed fuels simultaneously. In general, when sailing offshore, heavy oil is employed due to its low cost. On the other hand, marine diesel is employed when sailing close to land. Almost all new engines are made to handle both fuels. This hybrid system provides an economical option for boat operators to meet emission standards.

Market Challenges

Excess shipping capacity refers to the excess supply of ships over call. The anticipation of a continuous expansion of commercial activities, for which new vessels are ordered to meet the predicted calls, is one of the main factors that has led to excess navigation capacity. New energy-efficient vessels are being developed to replace the old ones. However, some of the older ships were not scrapped due to their low scrap value. These vessels are sold on the market, adding more tonnage to the already surplus market. Overcapacity in the shipping industry has led to a drop in the number of new ship orders, despite the expansion in international maritime freight traffic. Therefore, the reduction in new shipbuilding orders is predicted to be a major challenge for the expansion of the marine engine market.

Market Recent Developments:

• Caterpillar Marine launches a new C32B engine. The company noted that the new C32 largely retains the same footprint and connection points as the existing C32 engine.
• Mahindra Powerol launches a new line of Seahawk marine engines. Mahindra Powerol, a business unit of the $ 20.7 billion Mahindra Group, announced its debut in the marine engine segment with its new Seahawk series.

MARINE ENGINE MARKET REPORT COVERAGE:

Market Segmentation:

Marine Engine Market - By Power:

• <1K
• 1K-5K
• 5K-10K
• 10K-20K

The 5,001-10,000 segment is predicted to lead the marine engine market from 2022 - 2027. This segment is driven by use in mid-size commercial passenger ferries, military patrol boats, and marine tourism.

Marine Engine Market - By Vessel:

• Commercial
• Offshore

The commercial segment is likely to represent the largest size of the marine engine market in 2021, and this trend is predicted to continue throughout the foreseen period. This expansion is attributed to the increase in international freight trade and cargo movements thanks to the installation of advanced electrical appliances due to ageing infrastructure.

Marine Engine Market - By Fuel:

• Heavy
• Intermediate
• Marine Diesel
• Gasoline

The heavy fuel oil segment of the marine engine market accounted for the largest share in 2019, and this trend is predicted to continue over the foreseen period. The expansion of the heavy fuel oil segment is attributed to its use in medium and low-speed engines in the marine engine market.

Marine Engine Market - By Engine:

• Propulsion
• Auxiliary

Market Regional  Analysis:

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa 

Asia-Pacific is predicted to be the largest marine engine market during the foreseen period. Asia-Pacific includes China, Japan, South Korea, India, Australia, and the rest of Asia-Pacific. Asia-Pacific is predicted to dominate the marine engine market during the foreseen period. Countries in the region such as China, Japan, and South Korea are considered major marine engine manufacturing centres and offer great expansion opportunities for the marine engine market. Escalating investments in shipbuilding and commercial cargo transportation in key markets provide great expansion opportunities for the marine engine market in the Asia Pacific.

Impact of COVID-19 on the Marine Engine Market

The most significant short-term impact on marine engines will be felt through supply chains. Industry executives anticipate a slowdown in delivery and construction, either because countries have shuttered industries to slow the spread of the coronavirus, or because workers tested positive. With the combined effects of the pandemic and falling world oil prices, investment is predicted to contract dramatically this year, especially in offshore support vessels. With the ongoing economic recession, production shutdowns, and lockouts, the call for commercial vessels is facing a slowdown. Also, the cancellation of cruise ships and the slowdown in international commercial investment in commercial vessels are also predicted to affect the call for marine engines. A recovery is predicted in the second half of the year, provided that a new wave of the epidemic does not emerge and countries can quickly control the spread and return to normalcy.

Market Key Players:

1. Hyundai Heavy Industries (South Korea)
2. Caterpillar (US)
3. MAN SE (Germany)
4. Volvo Penta (Sweden)
5. Rolls-Royce (UK)
6. Mitsubishi Heavy Industries (Japan)
7. Cummins (US)
8. Wartsila (Finland)
9. GE Transportation (US)
10. Deutz AG (Germany)