Marine Internal Combustion Engines Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Marine Internal Combustion Engines Market is projected to expand significantly, rising from a valuation of USD 9.28 billion in 2025 to USD 16.54 billion by 2031, achieving a CAGR of 10.11%. These engines function as primary propulsion systems, converting chemical energy into mechanical power typically through diesel or dual-fuel cycles to operate both commercial and recreational vessels. The market's foundation is reinforced by the ongoing growth of international seaborne trade, which demands a larger fleet of bulk carriers and container ships, as well as increasing disposable incomes that boost the demand for leisure craft, ensuring a consistent need for reliable maritime propulsion.

According to the National Marine Manufacturers Association, total outboard engine sales in the United States reached 278,000 units in 2024, underscoring sustained demand within a vital regional sector. Despite this positive activity, the market encounters substantial hurdles arising from increasingly strict international environmental regulations concerning emissions. These mandates require manufacturers to commit significant capital toward compliance technologies and the development of engines compatible with alternative fuels, a process that escalates both development costs and technical complexity.

Market Drivers

The escalating volume of international seaborne trade acts as the principal driver for the global marine internal combustion engines market. Because global supply chains depend heavily on maritime transport for moving raw materials and finished products, shipping enterprises are forced to enhance their carrying capacity by expanding fleets and maximizing vessel utilization. This direct link between trade volume and propulsion needs guarantees a steady demand for heavy-duty diesel and dual-fuel engines to power tankers, container ships, and bulk carriers. According to the United Nations Conference on Trade and Development's 'Review of Maritime Transport 2024', released in October 2024, international maritime trade grew by 2.4 percent in 2023, totaling 12.3 billion tons, a trajectory that demands robust propulsion systems to handle increasing operational loads on major routes.

Simultaneously, the market is being transformed by the growing adoption of dual-fuel and LNG-powered engines. Rigorous environmental regulations are compelling shipowners to move away from traditional heavy fuel oil systems in favor of cleaner propulsion options that lower sulfur and nitrogen oxide emissions. This transition spurs significant investment in retrofitting engines and building new vessels with flexible fuel capabilities to meet decarbonization goals. As noted by DNV in 'Alternative Fuels Insight' from January 2024, orders for ships with alternative fuel propulsion reached 298 units in 2023, indicating a major shift in engine preferences. This technological shift coincides with general fleet expansion, as BIMCO projects a 9.5 percent growth in container fleet capacity in 2024, thereby securing a sustained pipeline of orders for engine manufacturers.

Market Challenges

Rigorous international environmental regulations focusing on emissions present a major obstacle to the expansion of the Global Marine Internal Combustion Engines Market. These regulatory mandates force manufacturers to allocate extensive resources toward researching and developing complex compliance technologies and ensuring compatibility with alternative fuels, which substantially increases production costs. The ensuing technical intricacy and elevated costs of advanced engines create a difficult scenario for shipowners, who are tasked with balancing regulatory compliance against financial feasibility. As a result, this pressure from regulations introduces market uncertainty, prompting hesitant investment strategies and delays in fleet renewal, which directly limits the volume of new engine orders.

This market stagnation is reflected in recent industry sentiment data. In 2024, the International Chamber of Shipping (ICS) released its Maritime Barometer Report, which identified political instability and regulatory uncertainty as primary concerns that have led to a tangible drop in confidence. Specifically, the survey indicated that 55% of maritime leaders preferred established liquefied natural gas (LNG) solutions rather than committing to newer, more complex zero-emission technologies. This reluctance to embrace advanced propulsion systems, driven by regulatory ambiguity, constrains the market's capacity for rapid revenue growth and technological advancement.

Market Trends

The commercialization of ammonia and methanol dual-fuel engines is emerging as a dominant trend, fundamentally shifting propulsion strategies beyond transitional liquefied natural gas solutions. Shipowners are increasingly favoring modular engine platforms that utilize these liquid fuels, allowing them to future-proof fleets against changing decarbonization rules without the need for the complex cryogenic storage systems required by gas carriers. This preference is evident in recent procurement figures; according to a January 2025 article by Ship & Bunker titled 'Over 500 Alternative-Fuelled Vessels Ordered in 2024', the global orderbook for methanol-fueled vessels expanded notably, with approximately 166 units ordered in 2024, marking a decisive industry shift toward this alternative fuel.

At the same time, there is a significant increase in retrofitting legacy vessels, with operators converting existing heavy fuel oil engines to dual-fuel capabilities to prolong the active lifespan of their fleets. This movement is motivated by the economic necessity to maximize asset utility and achieve immediate emission reductions without the high capital expenditures required for newbuilding programs. The environmental benefits of these engineering conversions are considerable; Hapag-Lloyd's March 2025 article, 'Powering up for a greener future', notes that the company's project to retrofit five container vessels for methanol propulsion is expected to reduce CO2 emissions by up to 50,000 metric tons per vessel annually, highlighting the effectiveness of this modernization strategy.

Key Players Profiled in the Marine Internal Combustion Engines Market

• Caterpillar Inc.
• Wartsila Corporation
• Rolls-Royce PLC
• Cummins Inc.
• Mitsubishi Heavy Industries, Ltd.
• Hyundai Heavy Industries Co., Ltd.
• Deutz AG
• General Electric Company

Report Scope

In this report, the Global Marine Internal Combustion Engines Market has been segmented into the following categories:

Marine Internal Combustion Engines Market, by Product Type:

• Low-Speed Engines
• Medium-Speed Engines
• High-Speed Engines

Marine Internal Combustion Engines Market, by Fuel Type:

• Diesel
• Gas
• Dual-fuel
• Others

Marine Internal Combustion Engines Market, by Application:

• Commercial Shipping
• Cruise & Ferry
• Offshore Support
• Others

Marine Internal Combustion Engines Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Marine Internal Combustion Engines Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.