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The global marine engine market size was at USD 12.05 Billion in 2018 is projected to reach USD 17.09 Billion by 2026, exhibiting a CAGR of 4.58% during the forecast period.
Trade is one of the most critical economic factors for the development of a country. It is the backbone of the world economy. Trade, as well as communication, is a major factor for the spread of globalization. Globalization has brought the people of the world together. The growth of trade has brought about a change in the supply chain for industries and has become truly global. Certain assemblies are fabricated in different countries, and the final product is assembled in different countries.
The industrial units follow this model to save costs on labor and import duties on finished goods. The countries have become specialized manufacturing hubs and raw materials required for manufacturing are sourced from these countries. The global supply chain and trade are majorly dependent on ships. The ships are majorly used for trade and transport of oil and gas commodities, which is the lifeline of the world economy and a primary energy source.
The marine engines are the heart of ships. Marine engines are used to propel the ship across the water. Marine engines are not only used in ships but also used in boats, yachts, luxury ships, etc. Traditionally, marine engines used as internal combustion engines that use compression ignition (CI) technology for the burning of fuel. Heavy diesel oil, intermediate diesel oil, marine diesel oil, marine gas oil, etc. are used as a fuel in the shipping industry.
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To reduce emissions of these gases, restrictions have been brought on sulfur content in fuel and the mandatory use of equipment for the post-processing of exhaust gases. From 1 January 2020, under the new sulfur limit, ships will have to use fuel oil on board with a sulfur content of no more than 0.50% m/m, against the current limit of 3.50%, which has been in effect since 1 January 2012. For the ships such as yachts, boats, ferries, etc. operating in the Emission Control Areas, there is an even lower limit for sulfur content in the fuel.
An alternative to the CI engines is the gas turbine engine, which can also be used for marine propulsion. The gas turbine marine engine is a newer technology and more clean technology. Natural gas is primarily used as fuel of gas turbine engines. Burning natural gas incurs a higher cost as natural gas costs more than the liquid fuel counterpart.
The exhaust of gas turbines majorly comprises carbon dioxide, carbon monoxide, oxides of nitrogen, and volatile hydrocarbons. Newer gas turbine engines run on both liquid and diesel fuels. These gas turbine marine engines more adaptable and flexible. Some of the CI engines can also use gaseous fuel for combustion. Some of the low-powered marine engines use spark ignition (SI) technology, which uses low-grade diesel as fuel. These low-powered marine engines are used in boats, luxury ships, yachts, etc.
“Increasing Global Trade And Global Supply Chains Of Manufacturing And Production Of Resources Is A Key Driver For The Marine Engine Market”
With increasing globalization, industrial and manufacturing activities are spread across the world. For example, to manufacture an aircraft the parts and sub-assemblies are sourced from all over the world and assembled at a single place. Countries have developed specialized manufacturing, and industrial expertise and such countries export the technology. Such exports majorly use ships or vessels as a mode of transport. Fresh fruits and vegetables, processed food products, beverages, etc. are traded extensively using ships and boats. Oil and gas which is the backbone of global economy are transported using large hydrocarbon vessels.
“The Flexibility In The Fuel Source In The Modern Marine Engine Will Augment The Growth Of The Global Marine Engine Market”
The flexibility in the type of fuel used for marine propulsion is the key advantage of modern marine engine systems. This acts as a cost-effective measure for marine propulsion and also reduces greenhouse gases and keep them within limits. Dual fuel or tri-fuel marine engines are gaining prominence in newly constructed ships. Such engines are future-ready and can quickly adapt to the changes in rules and regulations regarding marine emissions.
“Gas Carriers Have The Highest Market Growth During The Given Forecast Period”
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.
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The support vessels are used in every port and are key to the operations of several offshore oil and gas facilities. The number of chemical carriers is increasing as the usage of chemicals in advanced manufacturing and production methods in growing. The passenger and ferries segment is thriving as the number of cruise ships, yachts, boats, etc is increasing.
“The 0-10000 HP Marine Engines With The Advantage Of Modular Design Is Anticipated To Have A Positive Market Outlook During The Given Forecast Period”
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.
“Increasing Use And Trade Of The Natural Gas Has Augmented The Growth Of Gas Turbine-Based Marine Engine Market”
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.
“The Low-Speed Marine Engines Dominate The Marine Engine Market”
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.
“The Two-Stroke Variants Dominate The Marine Engine Market”
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 currently dominates the marine engine market size and is anticipated to lead during the given forecast period. The growth of the region can be seen with the increase in trade using ships and boats of the last years. The Asia Pacific has a large percentage of marine engines as the majority of oil and gas is imported using ships and tankers.
Asia Pacific is the manufacturing hub of the world, and a lot of machinery, electronics, etc. is exported to different places in the world via marine transportation. China, Republic of South Korea, and Japan are the world leader in shipbuilding, and the majority of ships are constructed in this region.
Asia-Pacific Marine Engine Market Size, 2018
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The European region is dependent on the import of several commodities, and this has boosted the marine engine market. Europe is also a dominant player in specialized and niche shipbuilding industries. In general, European ships are characterized by a high degree of specialization and high-tech qualities, complex production processes, in combination with limited numbers of vessels of the same type that are to be built.
Most of construction of cruise vessels, support vessels, and luxury yachts is being carried out in European countries. North America, Latin America, and Middle-East have a lower share in the marine engine market. North America dominates the use of marine engines required for defense applications. Africa region has the highest marine engine market potential.
“Innovative marine engine solutions from market players MAN, Caterpillar, Hyundai, etc., has ensured the growth of the marine engine market”
The marine engine market is highly fragmented with the presence of lots of competitive players around the world. Man Diesel & Turbo has one of the advanced technologies used in marine engines. This company has created a world record for the construction of the largest diesel engine in the world, which is one of the most powerful, rated engines worldwide.
The increased awareness regarding the emissions from marine engines and new product launches based on advanced technologies is expected to increase the global marine engine market growth.
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Along with this, the report provides an elaborative analysis of the global market dynamics and competitive landscape. Various key insights presented in the report are the prevalence of major trends by countries, recent industry developments such as mergers & acquisitions, the regulatory scenario in crucial countries, technological advancements, key strategies adopted by market leaders, competitive landscape, and company profiles.
Value (USD Billion)
By Ship Type
By Fuel Type
In 2018, the marine engine market was valued at USD 12.05 billion.
In 2026, the marine engine market was valued at USD 17.09 billion.
Growing at a CAGR of 4.58%, the market will exhibit steady growth in the forecast period
In 2018, the marine engine market of Asia-Pacific region was valued at USD 5.13 Billion.
Based on ship type, demand for marine engines from the oil tankers and Bulk carriers is expected to dominate the market during the forecast period.
Increasing global trade and global supply chains of manufacturing and production of resources is a key driver for the marine engine market. On the other hand, strict rules and regulations about fuel usage will act as a major restraint for the marine engine market.
Man Diesel & Turbo, Caterpillar, Hyundai Heavy Industries, Mitsubishi Heavy Industries, and Wartsila are among the top players in the market.
The flexibility in the fuel source in the modern marine engine will augment the growth of the global marine engine market.