"Actionable Insights to Fuel Your Growth"
The global marine engine market size was USD 12.49 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with marine engines witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market will exhibit a huge decline of -15.6% in 2020. The market is projected to grow from USD 10.54 billion in 2020 to USD 14.51 billion in 2027 at a CAGR of 4.7% in the 2020-2027 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Trade is one of the most critical economic factors for the development of a country. It is the backbone of the world economy. The trade growth 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 global supply chain and trade are majorly dependent on ships.
The marine engines are the heart of ships. They are used to propel the ship across the water. Apart from ships, these engines are also used in boats, yachts, luxury ships, etc. Traditionally, these engines are used as internal combustion engines that use Compression Ignition (CI) technology to burn fuel.
The shipping industry is one of the top emitters of Greenhouse Gases (GHGs). In order to reduce the emission of these gases, restrictions have been brought on sulfur content in fuel, and the use of equipment for post-processing of exhaust gases has been made mandatory. From 1st January 2020, under the new sulfur limit, ships will have to use fuel oil on board with a sulfur content of not more than 0.50% m/m against the current limit of 3.50%, which has been in effect since 1st January 2012. For the ships operating in the emission control areas, there is an even lower limit for sulfur content in the fuel.
COVID-19 Pandemic to Severely Affect the Marine Engine Market
The COVID-19 pandemic has caused chaos and panic all over the world, ceasing all normal daily activities. The implications of this pandemic have affected numerous industries in different ways, such as the shutdown of domestic industrial operations, disruptions in value chains, no international transactions to market the products, unavailability of new orders, inaccessibility to raw material, shortage of operating staff, and many others. Among industries, shipping and maritime has witnessed a significant impact due to this pandemic. This industry has faced the worst circumstances as the workforce in these sectors has been shut down for the safety and prevention of workers. Another major impact is seen on the zero movements of all kinds of cargos via water or air during this lockdown period. This widespread pandemic has launched a major brunt on the industry.
The United Nations Conference on Trade and Development (UNCTAD) estimates in its Review of Maritime Transport 2020 that the global maritime trade will plunge by 4.1% in 2020 due to the unprecedented disruption caused by COVID-19. The pandemic also had a significant impact on the manufacturing segments of the maritime supply chain. In February 2020, deliveries from China fell to their lowest level in 15 years, with only four ships delivered.
Request a Free sample to learn more about this report.
Flexibility in Fuel Source in Modern Marine Engine to Augment Growth
The flexibility in the fuel type used for marine propulsion is a vital advantage of modern marine engine systems. This acts as a cost-effective measure for marine propulsion, reduces greenhouse gases, and keeps them within limits. Dual fuel or tri-fuel marine engines are gaining importance in newly constructed ships. Such engines are future-ready and can quickly adapt to the changes in rules and regulations regarding marine emissions.
The trend in the shipping and boating industry has shifted toward reducing 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. The number of oil tankers, bulk carriers, general cargo ships, and container ships is steadily increasing and boosting the marine engine market growth.
High Growth in Seaborne Trade to Drive the Market
Seaborne trade continues to expand internationally as shipping is the lifeblood of the global economy. Shipping brings benefits for consumers across the world through low and decreasing freight costs. International trade, the bulk transport of raw materials, and import/export of food and manufactured goods are essential in any economy. The international shipping industry is responsible for carrying out around 80% of world trade. According to UNCTAD, merchant ship operations contribute close to USD 380 billion in freight rates within the global economy, which is equivalent to about 5% of the total world trade. The expanding seaborne trade has widened the scope of shipping containers across the globe.
Increasing Demand for Gas-based Marine Engine to Augment Market Growth
The natural gas is one of the cleanest types of fuel available to propel the ship and boats. Natural gas-based engines are used dominantly in gas carriers. Even though the storage and handling of onboard natural gas are complicated, the burning of natural gas emits minimal quantities of sulfur oxides and nitrogen oxides, which fall under the emission norms. Propane based marine engines are becoming more popular for small boats, yachts, and others. To limit sulfur emissions, from 1st January 2020, International Maritime Organization (IMO) has regulated the use of fuel, which contains sulfur less than 0.5%, or installation of scrubbers or equivalent technology to reduce net sulfur emissions. The market dynamics have boosted the research, development, and demonstration of alternate technologies for marine propulsion. The global market scenario is favorably inclined toward LPG as fuel and investigations are underway for the same.
Rising Adoption of Clean Energy Technologies Along with Stringent Emission Norms May Hinder Market Growth
Different regional governments and organizations have implemented vast targets to deploy green energy technologies, such as solar, hydro, wind, and many others, to reduce dependency on fossil fuels. For instance, MARPOL Annex VI guidelines released by the International Maritime Organization (UK), in 2005, defined the limits for NOx emissions and mandated the use of fuels with low sulfur content. These guidelines are applicable to vessels and ships trading in the U.S. waters as well as within 200 nautical miles of the coast of North America. The adherence of various nations to exceed the required objectives is likely to hinder the market pace.
Furthermore, stringent norms introduced by numerous administrations to cut the usage and emission of harmful substances from different sources may obstruct the industry size. These laws can additionally lead to surplus expenditure as they may discard the usage of prevailing metals and need a replacement in machinery components. For instance, the Directive 2011/65/EU of the European Commission enforced the Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS 2) legislature, limiting the usage of harmful materials in different tools. The law is likely to hamper the installation of these engines across the globe.
Gas Carriers Segment to Grow at the Highest CAGR
Based on ship type, the global market is segmented into oil tankers, bulk carriers, general cargo ships, container ships, gas carriers, chemical tankers, offshore support vessels, ferries & passenger ships, and others. The gas carriers segment is expected to grow at the highest CAGR of this market during the forecast period. The shipping industry is focusing to reduce the GHGs, and gas carriers emit the least amount of sulfur oxides and nitrogen oxides.
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 offshore support vessels are used in every port and are key to the operations of several offshore oil & gas facilities.
The 0-10000 HP Segment to Hold the Major Share of the Global Market
Based on capacity, the global 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 0-10000 HP segment held the dominant marine engine market share of the global market as a result of the modularity of smaller capacity engines. They are readily available in stock and can be customized as per requirement.
The 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.
To know how our report can help streamline your business, Speak to Analyst
The LNG Is One of the Cleanest Fuels Available to Propel the Ship and Boats
Based on fuel, the global market is divided into heavy fuel oil, intermediate fuel oil, marine diesel oil, marine gas oil, LNG, and others. The marine diesel oil segment held the dominant share of the global market owing to oxidation & thermal stability characteristics and reduced costs. The LNG segment is expected to grow at the highest CAGR during the forecast period. The LNG is one of the cleanest fuel types available to propel the ship and boats. The burning of LNG emits minimal quantities of sulfur oxides and nitrogen oxides, which are under emission norms. Competitive pricing, coupled with reduced carbon emissions in commercially viable regions, is one of the key factors contributing to the market growth. The heavy fuel oil segment is expected to contribute significantly during the forecast period. The growth of the heavy fuel oil segment is attributed to its use in the medium-and low-speed engines in the marine engines market.
The Low-Speed Marine Engines to Dominate the Market
Based on speed, the market is classified as high-speed engines, medium-speed engines, and low-speed engines. Low-speed engines are dominantly used in large capacity ships. Low-speed engines provide 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 ships and boats with very low lead time. 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 are dominantly used for recreation and transport.
The Two-stroke Variants to Dominate the Market
Based on stroke, the market is segmented into two-stroke, four-stroke, and other engines. The two-stroke engines are large-sized and 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.
The four-stroke engines segment is expected to contribute significantly during the forecast period. These engines are used largely in small ships and boats, which are used as a means of transport and pleasure. The reduced noise levels, cost efficiency, high speed, and greater fuel proficiency are some major factors driving the demand for four-stroke engines.
Asia Pacific Marine Engine Market Size, 2019 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Asia-Pacific currently dominates the global market and is anticipated to lead during the forecast period. In 2019, 41% of the total goods loaded (exported) were sourced from Asia and 62% of total goods unloaded (imported) were received in the same region. Asia Pacific is the manufacturing hub of the world and a lot of items including machinery, electronics, etc. are exported to different places in the world via marine transportation. China, the Republic of Korea, and Japan maintained their traditional leadership in shipbuilding industries, representing 92.5% of the new building deliveries in 2019. Each country specializes in different shipping segments. China is the leading builder of bulk carriers, offshore vessels, and general cargo ships; the Republic of Korea manufactures gas carriers, oil tankers, and container ships; and Japan makes chemical tankers.
Europe is the second-largest market for marine engines. Europe is home to the world's largest shipping fleet. European shipowners operate one of the largest, youngest, and most innovative fleets in the world. With its diverse fleet of container ships, tankers, passenger ships, bulk carriers, offshore service vessels, and many other specialized ships, the EU shipping industry contributes a total of €147 billion to the EU’s annual GDP. The construction of cruise ships or vessels, support vessels, and luxury yachts is dominated by the European region.
North America, Latin America, and the Middle East have a lower share in the market. North America dominates the use of these engines for defense applications.
Innovative Marine Engine Solutions from Market Players has ensured the growth of the market
The global market is highly fragmented due to the existence of a huge number of players. Several players are increasingly participating in organic & inorganic developments to solidify their market position globally. MAN Energy Solutions has one of the advanced technologies used in these marine type of engines. The 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. Furthermore, in November 2020, MAN Energy Solutions launched a new proprietary exhaust gas recirculation system as an emissions solution for a low-speed ME-GA engine, the Otto-cycle variant of its established ME-GI dual-fuel engine. EGR is a NOx-emissions-reduction technique that ensures IMO Tier III-compliance in both diesel and gas mode.
LIST OF KEY COMPANIES PROFILED:
An Infographic Representation of Marine Engine Market
To get information on various segments, share your queries with us
The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies and leading ship type, and capacity of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.
Value (USD Billion)
By Ship Type
By Fuel Type
As per the Fortune Business Insights study, the global marine engine market was USD 12.49 billion in 2019.
The global marine engine market is projected to grow at a CAGR of 4.7% during the forecast period.
The marine engine market size of the Asia Pacific stood at USD 5.35 billion in 2019.
Based on the ship type, the bulk carrier segment is holding the dominant share in the market.
The global market size is anticipated to reach USD 14.51 billion by 2027, growing at a substantial CAGR of 4.7% during the forecast period (2020 – 2027).
Based on capacity, the 0-10,000 HP segment is holding the dominating share in the market.
Increasing global trade and global supply chains of manufacturing and production of resources is a key driver for the global market. On the other hand, strict rules and regulations about fuel usage will act as a major restraint for the market.
The top players in the market are Man Energy Solution, Caterpillar, Hyundai Heavy Industries, and Mitsubishi Heavy Industries among others.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry