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Marine Propulsion Engine Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

  • ID: 4622383
  • Report
  • April 2021
  • Region: Global
  • 100 pages
  • Mordor Intelligence

FEATURED COMPANIES

  • Caterpillar
  • Cummins Inc.
  • Rolls-Royce PLC
  • Scania
  • Wartsila
  • Yanmar Co. Ltd
  • MORE
The Marine Propulsion Engine Market was valued at USD 33.82 Billion in 2020 and is expected to reach USD 41.08 Billion by 2026 registering a CAGR of about 3.18% during the forecast period (2021 - 2026).

The outbreak of COVID-19 has hindered the growth of the Marine Propulsion Engine Market with continuous lockdowns and the subsequent economic slowdown across the world. The most significant near-term impact on marine engines will be felt through supply chains. With the combined effects of the pandemic and slump in global oil prices, investments are likely to contract sharply this year, especially in offshore support vessels. However, recovery is expected during the forecast period provided there is no emergence of another wave of the epidemic as governments are working to control spread of virus.

Maritime transport is considered to be the backbone of international trade. According to data published by the International Chamber of Shipping (UK), approximately 90% of the global volume of merchandise trade is carried out via sea, as this channel is cheaper than rail and road transport. Other factors such as rapid industrialization, expanding global population, and the liberalization of economies have increased the trade volume between countries over the years. These factors expected to increase the demand for cargo ships and containers for the transportation of goods and raw materials between countries.

Asia Pacific is anticipated to observe a rapid growth over the tenure of assessment due to augmented international trade and export from the region. Both India and China have come up as a major hub of business in the region with increased pace of activities in the manufacturing sector. Such increased volume of international business is likely to propel the demand for seaborne vessels in the region. North America is likely to emerge as another important region in the global marine propulsion engine market. The increasing demand for ships, boats for warfare, fishing, and entertainment is likely to propel the demand in the region.

Key Market Trends

Increasing Focus on Renewable Energy To Boost The Market

A growing need for dependent and fuel-efficient ships is anticipated to be the main driver of the marine propulsion engine market. Use of renewable energy sources such as solar and wind energy to meet auxiliary power requirements will increase, thereby augmenting marine propulsion engine market growth. Increasing need for efficient as well as operationally dependable ships will lead to modernization of marine propulsion engine market over the forecast timeline. Rising emphasis on increasing diesel engine capacity to drive new generation tankers with large cargo holding capability will propel global marine propulsion engine market share.

The second major factor that is likely to impact the marine propulsion engine market is the focus on renewable energy sources. Global warming and an impending energy crisis are some of the biggest challenges faced by the world in the 21st century. Depletion of conventional and shale gas reserves will increase LNG demand, especially as a marine fuel. LNG adoption requires availability of specialized insulated tanks and a safe area which drives demand for larger storage space.

However, several alternative tank arrangements are adopted along with numerous system alternatives through which LNG can be utilized. Advent of nuclear propulsion systems act as a key interest for vessel designers as a small percentage of nuclear fuel is engaged in providing energy which is equivalent to a relatively high weight in coal or oil. It also proves to be beneficial for icebreakers while exploring frozen waterways in the Arctic. Increasing CO2, NOX, SOX, volatile organic compounds and particulate matter emissions could focus on non-conventional energy sources such as wind and solar energy.

China to dominate the Asia Pacific Market

The Asia Pacific accounts for a major portion of the marine propulsion engine market and is anticipated to maintain its dominance throughout the forecast period. This is primarily because of key nations China, Japan and South Korea that have become manufacturing powerhouses as they are heavily dependent on external trade.

China is already the world’s largest exporter and would naturally require a greater number of commercial ships, thus having a positive impact on the demand for marine propulsion engines. In addition to trade, countries across the world have begun beefing up their navies to combat ocean piracy. Asian navies, in particular, are rapidly building their defence capabilities and this should increase the size of the marine propulsion engine market across the Asia Pacific region.

Rising investments in shipbuilding, and commercial freight transport in the key markets offer high-growth opportunities for the marine engines market in Asia Pacific. China’s ambitious One Belt One Road initiative will open new trade routes with existing geographies in Africa and South America and increase the transit rate from China to different countries. Currently, there is shipment of 26.57 million TEU (Twenty-foot equivalent) between Asia and North America and 15.1 million TEUs between Asia and North Europe. These figures are expected to rise during the forecast period.

In order to compete within the autonomous technology space in China, European developers are working on a similar technology and are planning to commercialize it by 2030. Maritime engineering firm, MacGregor, and engine maker, Rolls-Royce, signed a MoU in 2017 to explore the ways that autonomous technology can help ship navigation and cargo systems on container ship.

Competitive Landscape

The Marine Propulsion Engine Market is fairly consolidated. The Key industry players contributing to the marine propulsion engine market share include MAN Diesel & Turbo, Wartsila, Hyundai Heavy Industries Co Ltd, Daihatsu Diesel Mfg. Co. Ltd and Caterpillar. These companies Continuously innovate in order to provide environmentally sustainable, flexible, economically sound, and efficient solutions to customers. The companies are trying to expand their brand value in the market by acquisitions and mergers. For instance,
  • Recently, Hyundai Heavy Industries formally took over Daewoo Shipbuilding & Marine Engineering (DSME) with a 55.7% stake in the company, which would be worth USD 1.08 billion. This acquisition is expected to further strengthen the market position of Hyundai Heavy Industries.
  • Recently, Helsinki based Wartsila Oyj Abp, a renowned technology group, acquired U.K based Transas, a leading company in ship and fleet operations solutions. This strategic move is likely to speed up the expansion of Wartsila along the path toward the vision of smart marine ecosystem.
Other participants include Mitsbushi,Rolls Royce,Yamaha, Volvo Penta, Sinopec, Shell, Idemitsu, Hydrosta BV, Hydraulic Marine Systems, Exxon Mobil Corp, and Cummins etc.,

Reasons to Purchase this report:
  • The market estimate (ME) sheet in Excel format
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Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Caterpillar
  • Cummins Inc.
  • Rolls-Royce PLC
  • Scania
  • Wartsila
  • Yanmar Co. Ltd
  • MORE
1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraint
4.3 Industry Attractiveness-Porter's Five Force Analysis
4.3.1 Bargaining power of suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry

5 MARKET SEGMENTATION
5.1 Engine Type
5.1.1 Diesel Engine
5.1.2 Gas Turbine
5.1.3 Natural Engine
5.1.4 Other type of engines
5.2 Application Type
5.2.1 Commercial
5.2.2 Passenger
5.2.3 Defence
5.3 Ship Type
5.3.1 Container Ship
5.3.2 Tanker
5.3.3 Bulk Carrier
5.3.4 Off shore vessel
5.3.5 Naval Ship
5.3.6 Passenger Ship
5.4 Geography
5.4.1 North America
5.4.1.1 United states
5.4.1.2 Canada
5.4.1.3 Rest of North america
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Spain
5.4.2.5 Rest of Europe
5.4.3 Asia Pacific
5.4.3.1 China
5.4.3.2 India
5.4.3.3 Japan
5.4.3.4 South Korea
5.4.3.5 Rest of Asia Pacific
5.4.4 Rest of the World
5.4.4.1 Brazil
5.4.4.2 Other Countries

6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Caterpillar
6.2.2 Cummins Inc.
6.2.3 Daihatsu Diesel Mfg Co. Ltd
6.2.4 Hyundai Heavy Industries Co. Ltd
6.2.5 MAN SE (Man Diesel & Turbo)
6.2.6 Mitsubishi Heavy Industries Ltd
6.2.7 Rolls-Royce PLC
6.2.8 Scania
6.2.9 Wartsila
6.2.10 Yanmar Co. Ltd

7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Note: Product cover images may vary from those shown
  • Caterpillar
  • Cummins Inc.
  • Daihatsu Diesel Mfg Co. Ltd
  • Hyundai Heavy Industries Co. Ltd
  • MAN SE (Man Diesel & Turbo)
  • Mitsubishi Heavy Industries Ltd
  • Rolls-Royce PLC
  • Scania
  • Wartsila
  • Yanmar Co. Ltd
Note: Product cover images may vary from those shown

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