The marine engine market size was valued USD 8.1 billion in 2019 and is expected to register a growth at a 4.2% of CAGR between forecast period 2020 and 2027, driven by rising seaborne trade along with growing investment from manufacturers toward improving product design.
The global marine engines market revenue is projected to hit USD 8.9 billion by 2027.
Utilization of renewable sources such as LNG to meet main and auxiliary power requirements is projected to augment the market growth. Growing trend of modernizing existing vessels coupled with rising demand for energy efficient ships is set to propel the business scenario.
Trade activities have become an integral part of the economy of a country. Improving global relations and agreements have given rise to an increase in the number of trade activities across the world. The growing trade activities will have a direct impact on the world economy. A primary factor of all trade activities is the mode of transport and distance. A cost-effective transport will enable enhanced trade activities, all within lesser time. Marine trade activities are gaining rapid popularity on a global scale due to its advantages over other modes. Low time for transport, lesser traffic and congestion, and the ability of marine automobile to carry larger weights are some of the benefits offered by marine transport.
The demand for marine automobile will have a positive impact on the marine engines market. Several factors have contributed to the increasing demand for marine engines in recent years. Moreover, technological advancements and cost-effective transportation have aided market growth. The report identifies a few of the primary factors that have constituted an increase in the global Marine Engine Market size in recent years and highlights leading growth drivers. Additionally, the report discusses a few of the factors that have restrained market growth. Besides this, the report labels leading companies in the market.
Marine engines industry is projected to witness significant growth on account of 80% of all international trade by volume being transported via maritime transport. Growing global population along with rising demand from developing economies will stimulate the product installation. Additionally, technological advancements in design, swift shift from traditional fuel to low sulfur oil along with stringent government mandates to adopt green fuel is projected to drive the business scenario.
The global economy has come to a standstill owing to the COVID-19 pandemic, with the entire maritime supply chain facing significant challenges. Resuming production on scaled down capacity has provided some respite, although shortages across the board are hampering revenue streams. However, increasing demand for the minimal production coupled with increasing investments being diverted towards stabilizing the maritime industry will positively influence the product demand.
The marine engines market value is set to witness major surge owing to the technological development, reliability and high efficiency. Rising emission rates from vessels along with increasing awareness among authorities and individuals toward installation of sustainable technologies will propel the product demand. International marine tourism on account of improving standard of living allow for leisure time will further strengthen the industry landscape.
U.S. marine engines market is anticipated to grow at a CAGR of 4.9% through 2027. Rising trade of container cargo along with increasing exploration and subsequent drilling activities will stimulate the market forecast. Furthermore, rising investments toward technological advancement and product design owing to the rise in demand for cleaner alternatives will augment the product installation. Ongoing trade practices, high-end technology adoption implementation of environmental standards is further projected to augment the regional market outlook.
Global Supply Chains of Manufacturing and Resource Production to Provide Impetus for Market Growth
The increasing resource production and improved raw material production will aid the demand for trade activities across the world. The increasing number of supply chains will create more trade opportunities, which in turn will have a direct impact on marine automobile and marine engine. The involvement of industrial expertise and experienced examination in manufacturing of marine automobile will benefit the overall industry. These factors have a significant influence on the export activities of a country. The advancements in marine carriage ships such as high fuel efficiency, improved stability, and larger spaces will provide platforms for growth of the global Marine Engine Market in the coming years.
By Ship Type Analysis
Based on ship type, the global marine engine market is segmented in oil tankers, bulk carriers, general cargo ships, container ships, gas carriers, chemical tankers, support vessels, ferries, and passenger ships, etc. The market trend of shipping and boating industry has shifted to reduce emissions of GHGs mainly due to environmental factors. The gas carriers use natural gas as fuel and emit the least amount of sulfur oxides and nitrogen oxides.
Gas carriers are mostly used to transport natural gas. The oil tankers, bulk carriers, general cargo ships, and container ships are the lifeline of world trade and economy. Any disruption in the operations of these ships adversely affects the trade and economy. The number of oil tankers, bulk carriers, general cargo ships, and container ships is steadily increasing and boosting the marine engine markets.
By Capacity Analysis
On the basis of capacity, the global marine engine market is segmented into 0- 10000 HP, 10000 - 20000 HP, 20000 - 30000 HP, 30000 - 40000 HP, 40000 - 50000 HP, 50000 - 60000 HP, 60000 - 70000 HP, 70000 - 80000 HP, 80000 - 90000 HP, 90000 - 100000 HP, 100000 - 110000 HP and greater than 110000 HP. The modular marine engines make it easier and flexible for customization according to customer. The smaller range engines of 0-10000 HP capacity dominate the market as a result of their modularity. The smaller capacity marine engines are readily available in stock and can be customized as per requirement. The marine engine capacity of 50000 - 60000 HP, 60000 - 70000 HP, 70000 - 80000 HP, 80000 - 90000 HP, 90000 - 100000 HP, 100000 - 110000 Hp and greater than 110000 HP are used for large vessels or fleets. These large capacity engines are made to order and not available readily in stock. The large ships upgrade their engines to increase efficiency and reduce operating costs. The engine capacity of 20000 - 30000 HP, 30000 - 40000 HP, and 40000 - 50000 HP can be used for medium-sized ships, cruises, yachts, etc.
By Fuel Type Analysis
Based on fuel, the global marine engine market is divided into heavy fuel oil, intermediate fuel oil, marine diesel oil, marine gas oil, natural gas, and others. The natural gas is one of the cleanest fuels available to propel the ship and boats. The natural gas-based marine engines are used dominantly in gas carriers. Although storage and handling of onboard of natural gas are complicated, the burning of natural emits minimal quantities of sulfur oxides and nitrogen oxides, which are under emission norms. Propane based marine engines are becoming more popular for small boats, yachts, etc. To limit sulfur emissions from 1st January 2020, International Maritime Organisation (IMO) has regulated the use of fuel, which contains sulfur less than 0.5% or install scrubbers or equivalent technology to reduce net sulfur emissions. The use of heavy fuel oil and intermediate fuel oil is going to drastically reduce with partial compliance of the norms. Irrespective of the level of compliance, use of marine gas oil and marine diesel oil is going to increase in 2020. The alternative technologies based on rechargeable batteries used along with solar systems or fuel cells are also gaining traction. The marine engine market dynamics have boosted the research, development, and demonstration of alternate technologies for marine propulsion. The marine engine market scenario is favorably inclined towards LPG as fuel and investigations are underway for the same.
By Speed Analysis
Based on speed, the marine engine is classified as a high-speed engine, medium-speed engine, and low-speed engine. The low-speed marine engines are mainly used in large capacity ships because it provides high torque and power to propel the ship forward. These low-speed variants are custom made to order and not readily available in stock. Few variants of medium-speed engines are readily available in stock and can be installed in the ships and boats with very low lead times. Medium-sized boats and ships use medium-speed engines. The high-speed variants are used in motorboats, yachts, ferries, cruises, etc. which cover the distance quickly and widely used for pleasure and transport.
By Stroke Analysis
Based on stroke, the marine engine is segmented in two-stroke, four-stroke, and other engines. The two-stroke marine engines are large-sized engines and are low-speed engines. The two-stroke engines power the supertankers and ultra-large vessels used for trade. The two-stroke engines are not preferred for small capacity installations as they increase emissions of GHGs as compared to four-stroke engines. Some countries have banned the use of two-stroke engines under specific capacities. The four-stroke engines are used largely in small ships and boats, which are used as a means of transport and pleasure.
Asia Pacific to Emerge as the Leading Region
The growing trade activities in several countries across the Asia Pacific has led to a huge demand for marine engines in this region. The growing adoption of ships and boats for entertainment and travel purposes will contribute to market growth. The enormous oil and gas industry in Asia Pacific has led to an increase in export activities. The growing population has created an overall increase in the demand for resources across diverse industries. Asia Pacific generated an engine market revenue of USD 5.19 billion in 2019.
List of leading companies that are operating in the global Marine Engine Market are:
By Ship Type
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
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