Marine Propulsion Engine Market

Executive Summary

The global marine propulsion engine market size is expected to grow from USD 8.13 billion in 2021 to USD 9.23 billion by 2027 at a CAGR of 2.1%.

A propulsion system means a machine that produces thrust to push an object forward. A marine propulsion engine is a fuel-efficient machine to creates thrust. This policy supports vessels in navigation. In recent years, there has been tremendous growth in the use of renewable energy sources such as wind and solar energy to meet growing energy needs, which are expected to further the growth of the global marine production engine market in the forecast period.

Increasing demand for efficient and reliable vessels is expected to increase the market demand for marine propulsion engines. In addition, the growing focus on rising diesel engine power is expected to accelerate the growth of the marine production engine market globally. Also, due to continued government investment and projects in inland waters and the shipbuilding industry, the market is expected to grow significantly in the forecast period. However, strict environmental laws and regulations and the huge investment needed to build new industrial areas are expected to hinder the market growth.

COVID-19 has caused serious damage to the global economy and the shipping sector, disrupting supply chains while reducing demand. The COVID-19 epidemic not only affects the global healthcare sector but also has an impact on the global economy. The epidemic has led to a sharp decline in maritime transport and related activities. It has disrupted international trade, created inefficiency, and delays, and disrupted the supply chain at an unprecedented rate. This also had legal consequences, and in shipping, led to courts raising complex international legal issues. However, there has been an increase, if asymmetric, recovers, and by the third quarter to 2021, volumes had been doubled in both boxed and dry goods in bulk. The epidemic has been a major obstacle that has created challenges but also opportunities in the sector. The impact of COVID-19 also highlighted the need for better disaster management and greater preparedness, and resilience.

Key Players

The major players in the global marine propulsion engine market are Mitsubishi Heavy Industries, Ltd. (Japan), Caterpillar (US), Wärtsilä (Finland), Volkswagen Group (MAN Energy Solutions) (Germany), Rolls-Royce Holdings (UK), Volvo Penta (Sweden), Cummins (US), Hyundai Heavy Industries Co., Ltd. (South Korea), Deutz AG (Germany), WinGD (Switzerland), Siemens Energy (Germany), Fairbanks Morse (US), Daihatsu Diesel Mfg. Co., Ltd. (Japan), Bergen Engines (Norway), Wabtec (GE Transportation) (US), Yanmar (Japan), Isotta Fraschini Motori (Italy), CNPC Jichai Power Company Limited (China), Doosan Infracore (South Kore), Mahindra Powerol (India), and IHI Power Systems (Japan).

Recent Developments

Market Overview

Definition

Marine propulsion is the mechanism or system used to generate thrust to move a ship or boat across water.

Currency

Market Dynamics

Driver

Increasing demand of international marine freight transport

Maritime transport is important for international trade. The main mode of international trade is sea transport, and according to UNCTAD, about 80 percent of the international trade volume is carried by sea, and the percentage is even higher in many developing countries. This mode of transport is cheaper and more viable for international trade than road, rail, and air transport. Global Maritime is expected to continue to grow at a moderate annual rate from 2022 to 2026. The growth of international shipping vessels has shown similar trends. The maritime trade resumed in 2021 due to the opening of the pent-up demand, as well as the recycling of goods and construction. The sudden increase in demand in 2021 after the catastrophic 2020 catastrophe caused by the epidemic caused a shortage of transport and containers and equipment forcing many shipowners to turn to buy new or used vessels to close the service delivery gap.

Restraint

Government Initiatives to decarbonize shipping

The Paris Agreement aims to reduce global warming to below 2 ° C and then to 1.5 ° C. However, despite the temporary immersion of carbon dioxide and other greenhouse gases caused by the COVID-19 epidemic, the earth is still experiencing temperatures above 3 ° C this century. Regarding the emission of CO2 per ton of goods per kilometer, transport is seen as the most effective means of commercial transport. The approach toward carbon dioxide removal from ships involves not only technological advances and improvements in shipbuilding but also the use of other fuels and the use of engines associated with those fuels. Due to new IMO release requirements, shipping companies face low pay and uncertainty about compliance with procedures and postponing orders for new ships. Also, the new rules will require the replacement of some of the existing vessels which will incur significant costs for pilots. This may affect orders for new vessels, which may affect and hinder the growth of the marine engine market.

Opportunity

Growing market of Ecommerce and online trade

The epidemic saw a change in consumer spending. The epidemic has accelerated from retail to digital stores in about five years. Consumers are looking for a safer way to meet their needs, which has led to a dramatic increase in online retail activity. Commercial growth is welcome, but it is growing at such a rate and scale that shipping facilities and port operations are often unsustainable, leading to planning problems. The whole industry is facing a shortage of transport power, boxes, and other equipment. Reducing performance bottles and supply chain uncertainties is essential for retailers to keep additional inventory in hand. As a result, the realization of e-commerce offers new business opportunities in offshore trading, including shipping, storage, and distribution services at ports. Maritime transport, especially worldwide, is more affordable and cheaper than air, rail, and road transport. This growing trend of online commerce has also accelerated digital production in the maritime industry. The rise of e-commerce and online commerce, therefore, is expected to increase maritime trade and the demand for ships, which will create an opportunity for the growth of the marine propulsion engine market.

Challenge

Structural factors increasing maritime transport costs

Prices for ships and ports are expected to be driven by structural factors such as port infrastructure, economy, trade inequality, trade facilitation, and shipping over time. Developing countries, especially those with poor shipping and naval infrastructure, may have higher shipping costs in the coming years. Such developing countries will also need help to reduce the cost of change and the lower connectivity that can result from carbon offsets in maritime transport. Therefore, improving infrastructure such as port infrastructure, trade incentives, and shipping communications will significantly reduce shipping costs.

Smaller economies, such as Suriname, Guyana, and Romania, often have no ports, poor port infrastructure, and insufficient commercial aid measures. These shortcomings hamper the growth of maritime trade in such countries. The development of ports to make better shipping services and allow larger vessels to have a shorter waiting time before entering ports will reduce transportation costs, which will improve maritime trade in these countries. Trade inequality between the two countries also affects costs and trade as a whole. For example, with a ship traveling from a high-demand country to a low-demand country, most ships have to return empty containers that have a negative impact on shipping costs. Such factors hinder the growth of international maritime trade, thus challenging the growth of the marine propulsion engine market.

By Product

Introduction

Diesel

Wind & Solar

Gas turbine

Fuel cell

Steam turbine

Natural gas

Others

By Power

Introduction

< 1,000 HP

1,001-5,000 HP

5,001-10,000 HP

10,001-20,000 HP

> 20,000 HP

By Technology

Introduction

Low speed

Medium speed

High speed

By Propulsion

Introduction

2-stroke

4-stroke

By Application

Introduction

Commercial

Container vessels

Tankers

Offshore

Recreational

Company Profiles

Mitsubishi Heavy Industries, Ltd.

Company Overview

Headquartered in Tokyo, Japan, Mitsubishi Heavy Industries, Ltd. is a Japanese multinational engineering, electrical equipment and electronics corporation. MHI is one of the core companies of the Mitsubishi Group and its automobile division is the predecessor of Mitsubishi Motors.

MHI's products include aerospace and automotive components, air conditioners, elevators, forklift trucks, hydraulic equipment, printing machines, missiles, tanks, power systems, ships, aircraft, railway systems, and space launch vehicles. Through its defense-related activities, it is 23rd-largest defense contractor in the world measured by 2019 defense revenues and the largest based in Japan.

Product Overview

Marine High Speed Engines

FAQs

What is meant by marine propulsion?

Marine propulsion is the mechanism or system used to generate thrust to move a ship or boat across water.

Which countries are covered under the European region?

The key countries studied under the European region are Germany, the UK, France, Spain, Italy, and Russia.

Which different applications are covered in the research report?

The applications covered in the report are commercial, container vessels, tankers, offshore, and recreational.

What are the key drivers of the marine propulsion engine market?

The marine propulsion engine market is driven by the demand for faster, fuel-efficient, and cleaner, engines.

What is the market size of global marine propulsion engine market and CAGR for next five years?

The global marine propulsion market size is expected to grow from USD 8.13 billion in 2021 to USD 9.23 billion by 2027 at a CAGR of 2.1%.

Who are the prominent vendors of the marine propulsion engine market?

The major players in the global marine propulsion engine market are Mitsubishi Heavy Industries, Ltd. (Japan), Caterpillar (US), Wärtsilä (Finland), Volkswagen Group (MAN Energy Solutions) (Germany), Rolls-Royce Holdings (UK), Volvo Penta (Sweden), Cummins (US), Hyundai Heavy Industries Co., Ltd. (South Korea), Deutz AG (Germany), WinGD (Switzerland), Siemens Energy (Germany), Fairbanks Morse (US), Daihatsu Diesel Mfg. Co., Ltd. (Japan), Bergen Engines (Norway), Wabtec (GE Transportation) (US), Yanmar (Japan), Isotta Fraschini Motori (Italy), CNPC Jichai Power Company Limited (China), Doosan Infracore (South Kore), Mahindra Powerol (India), and IHI Power Systems (Japan).

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