High Speed Engine Market Size, Share, and COVID-19 Impact Analysis, By Speed (1,000 – 1,500 RPM, 1,500 – 1,800 RPM, and Above 1800, RPM), By Power Output (0.5-1 MW, 1-2 MW, 2-4 MW, and Above 4 MW), By End-user (Power Generation, Marine, Oil & Gas, Railways, and Others), and Regional Forecast, 2021-2028

The global High Speed Engine market size was USD 34.60 billion in 2020 and is expected to grow from USD 36.17 billion in 2021 to USD 51.38 billion in 2028 at a growth rate of 5.2% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with the power industry witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market will exhibit a decline of -7.6% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

High Speed Engines can be defined as wide applications in the marine, power generation, and other sectors. These are majorly found in small craft such as tugs, high-speed ferries, fishing vessels. These engines have rated power between 900-1800 revolutions per minute. 

COVID-19 IMPACT

Lockdowns and Travel Restrictions to Hamper Market Expansion

The COVID-19 pandemic has been spread in more than 200 countries worldwide. The pandemic has impacted several business sectors, such as power generation, manufacturing, oil & gas, mining, railway, construction, and others. The government across many countries had to impose nationwide lockdowns & various restrictions due to the pandemic outbreak. The supply got immensely disrupted, which had adverse effects on the manufacturing of such engines. The industries are facing severe raw material shortages globally, which delays the delivery of equipment to the end-user industries. As the majority of industries were closed during the lockdown, this declined the demand for new engines has declined from such industries. The manufacturing and end-user industries have also faced issues with the availability of the workforce. 

LATEST TRENDS

Rising Growth in Maritime Tourism to Augment Market Development

Water is a cheap and effective way of transportation. Earlier, the road and railways are preferred for moving from one place to another. However, these days the trends for using boats, ships, cruises, ferries are increasing immensely across the world. People worldwide are communicating from one place to another using these ways a lot these days. Water adventure sports are also rising across various countries of the world. This increases the demand for High Speed Engines in the market.   

DRIVING FACTORS

Rising Demand for Backup Power Generation to Augment Market Growth

The demand for uninterrupted power supply is widely increasing in the market, along with the demand for reliable power supply worldwide. The increasing demand for uninterrupted electricity increases the need for backup power generation so that people can have access to electricity even at the time of the outage. Developing regions such as China, Australia, India, GCC, and others. face more power outages and blackouts, whereas the developed region faces more voltage fluctuations. High Speed Engines are majorly used for backup power solutions in the power sector, as they are more reliable and effective. Thus, drives growth in the market during the forecast period. 

Rising International Marine Freight Transportation to Propel Market Growth

Transportation across the world is changing and shifting towards marine transportation due to the low cost of maintenance of water transportation than another mode of transportation. The use of maritime transportation is increasing worldwide as it is cheap and bulky goods can be transported easily with a little cost. This increases the demand for marine transportation across various parts of the world. These further drives growth in the High Speed Engine market forecast period.

RESTRAINING FACTORS

High Operation Costs & Maintenance of High Speed Engines May Hinder the High Speed Engine Market Growth

The use of these engines involves preventive maintenance for the optimal and efficient working of the equipment containing these engines. These engines run on fuel such as diesel which is costly compared to other fuels. This engine runs for a long duration, requiring large volumes of diesel, adding to the cost. The equipment requires preventive maintenance and servicing regularly lubrication, fueling, and cooling the engine system. This increases the cost and may restraints the growth of the market during the forecast period. 

SEGMENTATION

By Speed Analysis

To know how our report can help streamline your business, Speak to Analyst

1,000 – 1,500 RPM Segment Dominated the Market in 2020

Based on speed, the market is segmented into 1,000 – 1,500 RPM, 1,500 – 1,800 RPM, and above 1,800 RPM. The 1,000 – 1,500 RPM segment will likely dominate the market in 2020. The demand and installation of such engines are high in the market as these engines have large applications in power generation and the oil & gas sector. The increased demand for backup power generation growth of the worldwide drive in the 1,000 – 1,500 RPM segment.

The 1,500 – 1,800 RPM segment is anticipated to grow significantly during the forecast period due to increasing demand for various applications, including railways, road transportation, etc. These engines have various benefits and are well-suited in railways and other applications.

By Power Output Analysis

1-2 MW Segment is Likely to Dominate the Market

Based on power output, the market is segmented into 0.5-1 MW, 1-2 MW, 2-4 MW, and above 4 MW. The 1-2 MW segment is likely to dominate the market. The growth in this power output engine is highly attributable to the increasing use of such engines in the power generation sector. The demand from marine industries is also increasing for such a power output range as the use of ferries boats are increasing. The demand for water sports is also increasing in various parts of the globe. During the forecast period, this drives growth in the 1-2 MW power output range segment.

The 2-4 MW segment is likely to witness significant growth during the forecast period. The demand for such engines is highly increasing from the sector requiring a high power output range. The production of such a power output range of engines is increasing among the key players.

By End-user Analysis

Power Generation Segment is Likely to Dominate the Market

Based on end-user, the market is segmented into power generation, marine, railway, oil & gas, and others. The power generation segment will likely dominate the market during the forecast period. The demand for reliable and uninterrupted electricity is widely increasing among developing and developed nations. These factors increase the demand for power backup in the power generation industry. Rapid urbanization and industrialization also create high demand for power backup. This drives growth in the power generation segment in the market.

The marine segment is likely to foresee growth during the forecast period. The demand from the marine industry is highly growing due to increasing transportation from the waterways. Maritime tourism is also increasing across the world. Along with this, water sports and adventure activities are also increasing immensely across the world. Thus, increases the demand from marine end-users for a High Speed Engine in the market during the forecast period.

The oil & gas segment is likely to witness growth significantly during the forecast period. The demand for such engines is increasing from oil & gas industries due to increasing activities such as shale exploration, production, and drilling activities in this industry. There various equipment being used in this sector which runs on High Speed Engines. Thus, drives growth in the global market during the forecast period.

REGIONAL INSIGHTS

To get more information on the regional analysis of this market, Request a Free sample

Geographically, the global High Speed Engine market has been analyzed across five key regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. The Asia Pacific region dominated the global market in 2020. The demand for uninterrupted power supply is increasing abruptly within the region, and urbanization and industrialization are also increasing the requirement for power backup among the power industry. Developing countries such as China, India, Thailand, South Korea, and others often face power outages and blackouts for which power backup is required. The marine industry is booming in the countries such as South Korea, Japan, and China, which increases the adoption of such engines.

North America is the second-largest region for the global market owing to the increasing replacement of aging power infrastructure. The shale gas exploration and production activities are also increasing in this region, which drives growth in this market during the forecast period. Europe is another major region for the global market owing to the increasing demand from various end-user industries such as railways, oil & gas and, power generation. The power infrastructure in this region is aging, and it may cause voltage fluctuations and blackouts. Thus increasing demand for such engines in the market. 

Latin America region is estimated to foresee growth at a significant pace during the forecast period. The demand for reliable and uninterrupted power is high in this region, and the demand from railways and the oil & gas industry is also increasing significantly. These factors are expected to drive growth in this region. The Middle East and Africa region are expected to witness growth at a significant CAGR during the forecast period. The region is heavily increasing its investment in the power generation industry to overcome the outage and blackout issues, and the region is also undergoing rapid industrialization, which further increases the demand for power backup. The oil & gas industry is adopting efficient technologies in this region. This drives growth in the region in the market.

KEY INDUSTRY PLAYERS

Key Players Increasing their Concentration on New Contracts and Product Portfolio

This market is fragmented due to the presence of many companies in developed and developing countries. Currently, Caterpillar, Cummins, Volvo Penta, Rolls Royce, Mitsubishi Heavy Industries, and Wartsila Industries are leading the market. These companies are expanding their reach and focusing on securing new contracts. For instance, In May 2019, Cummins announced that the company is investing approx. USD 68 million for the expansion of its factory in the Columbus engine plant and announced investments in the Indianapolis and Greenwood.

In November 2020, Rolls Royce revealed that the company is investing approx. 13.9 million USD in its power system segments. The company will build a new R&D building and will also expand its MTU power generation manufacturing plant in multi-phase in the U.S.  

LIST OF KEY COMPANIES PROFILED:

• Caterpillar (U.S.)


• Cummins (U.S.)


• Rolls Royce (U.K.)


• Volvo Penta (Sweden)


• MAN SE (Germany)


• Weichai Power (China)


• Wartsila (Finland)


• Mitsubishi Heavy Industries (Japan)


• Doosan Infracore (South Korea)


• Yanmar Holdings (Japan)


• Kohler (U.S.)


• Deutz (Germany)


• Anglo Belgian Corporation (Belgium)

KEY INDUSTRY DEVELOPMENTS:

• In October 2021, Cummins Inc. announced to receive a contract worth USD 87 million by the U.S. Army to complete the development of the advanced combat engine, a scalable and modular diesel engine solution. This engine is capable of hybridization.


• In November 2020, Rolls Royce announced that the company signed agreements to deliver up to 1000 engines and also announced strategic partnerships at the China International Import Expo in Shanghai. Also, six other Chinese companies have signed agreements with the company to deliver up to 1000 MTU 2000 series and 4000 series engines.

REPORT COVERAGE

An Infographic Representation of High Speed Engine Market

View Full Infographic

To get information on various segments, share your queries with us

The global market research report includes a detailed industry analysis and focuses on key aspects such as leading companies, power output, and leading end-user of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several drivers that have contributed to the growth of the advanced market over recent years.

REPORT SCOPE & SEGMENTATION