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The global marine propeller market size was USD 4.84 billion in 2019 and is projected to reach USD 5.34 billion by 2027, exhibiting a CAGR of 4.69% during the forecast period (2020-2027).
A marine propeller is a combination of advanced architecture, which includes radiating blades and propeller shaft. This central hub architecture is used to propel a naval ship by using the power generated rotating blades. Based on speed and maneuvering requirements, the vessels can be equipped with a maximum of five to six radiating blades.
Increasing international seaborne trade activities will directly affect the growth of the overall market. Moreover, the increased demand for marine propellers from the new ship building & MRO/ aftermarket is anticipated to boost this market. Technological innovations in marine propulsion systems are an opportunity for the market. However, fluctuations in oil & gas prices are hampering the market growth. Rolls-Royce Holdings and Italian shipbuilder, Cantiere Navale Vittoria, has been signed a contract for the supply of a marine propulsion system for offshore patrol vessels.
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Fuel-Efficient Propulsion Systems in Naval Vessels to Boost the Market Growth
Fuel efficient propulsion systems are based on a highly adaptable mechanism. Globally renowned such as Rolls-Royce are adapting these mechanisms, and the company’s ‘Azipull’ thruster is a perfect example of one such product. It is low drag and highly efficient pulling thruster and designed for service speed up to 24 knots. This fuel-efficient propeller has excellent maneuverability, low noise, and vibration levels. Also, high hydrodynamic efficiency and fuel efficiency are some of the key characteristics of the Azipull thruster. An increasing number of fuel-efficient products will bode well for the market in the coming years.
Increasing Adoption of Rim Thruster in Marine Propulsion Systems Will Aid Market Growth
In recent years, rim thruster has been widely adopted by major players in the market. Rim thruster provides a lightweight and low-cost propulsion system. Moreover, exchangeable blades & slide bearings, water-lubricated bearings, and efficient operation are the main characteristics of the rim thruster. The SCHOTTEL is a German-based company that has been designed an advanced rim thruster that is majorly used to reduced noise and vibration. The rim thruster is effectively reduced the maintenance cost and improves the efficiency of the marine propulsion system. Accounting to the favorable properties of the product, the rim thruster is being used on a large scale, which in turn will affect the marine propeller market growth in the coming years.
Increased Demand of Electric Propulsion Technology from the Shipbuilding Industry is Projected to Boost the Market Growth
Marine propellers are primarily used in merchant ships, naval ships, and recreational boats. The electric propulsion technology is a combination of diesel generators and gas turbines. The three-phase electricity is generated by diesel generators. The three-phase electricity is majorly provided to electric power motors to rotate the propellers. This technology helps reduce the unwanted noise created by the marine engines and eliminates the need for clutches and gearboxes.
In May 2020, South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering was designed an electric propulsion system for KDDX destroyer as well as LPX-II LHD projects of the Republic of Korea Navy. Therefore, the increasing demand for electric propulsion technology from the new shipbuilding industry is expected to propel the market growth.
Rising International Seaborne Trade Activities Will Aid Market Growth
According to the United Nations Conference on Trade and Development (UNCTAD) maritime transport report (2018), the global seaborne trade is expanding at a rate of 4 percent, the fastest growth reported in the last five years. The report indicates a 17.1% growth in the containerized trade, 29.9% growth in the dry bulk commodities, and 2.4 % growth in crude oil shipments. The merchant ships are majorly used for seaborne trade. Countries such as China, the Republic of Korea, and Japan have emerged as the leading regions in the shipbuilding industry. These three countries were accounted for 90.5% of global deliveries of naval vessels in the year 2017. These propellers are an essential system of the naval vessels. Therefore the increasing demand for merchant vessels for seaborne trades is propelling the market.
Covid-19 Pandemic to Halt Trade Activities and Subsequently Hamper Market Growth
The coronavirus outbreak has had an adverse effect on major businesses across the world. Several companies are facing major supply issues, and this effect will continue to affect the naval industry. 90% of the global trade activities have been carried out overseas. According to The United Nations Conference on Trade and Development (UNCTAD) report 2020, the coronavirus pandemic has led to a 3% drop in global trade in the first quarter of the financial year 2020. This indicates more than a twenty percent fall in commodity prices and a 7.5% fall in the oil prices in March 2020. The direct effect of the COVID-19 pandemic on the naval industry has slowed down the production of naval vessels due to the decreasing demand for naval vessels and also slowed down trade activities. The COVID-19 effect will delay the expected deliveries of these propellers, which are equipped in naval vessels.
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Increasing Focus on Improving Product Efficacies Will Aid Market Growth
Based on type, the market is classified into propellers, thrusters, and others. The propeller is a fan-like complex structure and is commonly used in naval ships. The product is made of different alloys. Marine propellers are made from corrosion-resistant materials such as an alloy of aluminum and stainless steel. The propellers segment is predicted to hold the largest market share during the forecast period. This growth is attributed to the increasing use of propellers in merchant ships, naval ships, and recreational boats. Marine propellers majorly improve the efficiency of naval vessels, thereby resulting in low maintenance costs.
Amarine thruster is an advanced mechanical device used to produce a hydrodynamic thrust, implemented on several parts of a marine propulsion system. The Rolls-Royce developed a contact type thruster system for merchant's vessels, combines the advantages of contra-rotating propellers along with steerable thrusters.
Naval Ship Segment to Account for a Significant Share
By application, the market is classified into merchant ships, naval ships, recreational boats, and others. The merchant ship segment consists of dry bulk carriers, liquid bulk, containerized, neo-bulk, and breakbulk. The merchant ship is predicted to have the fastest growth during the forecast period. This growth is attributed to the increasing trade of imported goods and materials across the world. According to the UNCTAD maritime transport report (2018), dry bulk carriers account for 42.5% share of dead-weight tonnage.
The naval ship consists of a commercial vessel and a defense vessel. The defense vessel is classified into an aircraft carrier, corvettes, frigates, destroyers, amphibious ships, and auxiliary vessels. The naval ship segment is predicted to hold the largest market share during the forecast period. The growth of this segment can be attributed to the increasing demand for defense vessels across the globe.
The recreational boat segment includes pontoon boats, sterndrive powerboats, jet boats, personal watercraft, propulsion systems, and cabin cruisers. The other segment consists of runabouts, towboats, fishing boats, and sailboats.
High Demand of 5-Blade Propeller in the Merchant Ship Drive the Market Growth
Based on the number of blades, the market segments include 3-blade, 4-blade, 5-blade, and others. The 3-blade is mostly made up of aluminum alloy and provides a high-speed performance to the naval vessels that have better acceleration as compared to other types.
The 4-blade uses stainless steel alloy that provides its better strength and durability. These propellers offer a better fuel economy as compared to all the other types. The manufacturing cost of 5-blade is higher than all the other types. The 5-blade segment is predicted to hold the largest market share during the forecast period. This growth is attributed to the increasing use of 5-blade propeller in the merchant ships. The other segment consists of 6-blade majorly used to minimize the vibration of the naval vessel.
Increasing Use of Sterndrive in the Naval Vessels to Aid the Growth of the Market
Based on the propulsion, the market segments include inboard, outboard, sterndrive, and others. Boats with advanced inboard propulsion systems. It is majorly used in the watersports boat, mounted inside the hull of the boat. In the inboard propulsion system, the driveshaft is connected to propel and run the boat.
The outboard propulsion systems are mounted on the external part of the rear end of the naval boat. It consists of all in one steering control setup along with a boat engine, gearbox, and propeller. Compare to the above two, a Sterndrive is the most powerful propulsion system, and it can generate more power to propel the naval vessel compared to inboard and outboard. The sterndrive segment is predicted to hold the largest market share during the forecast period. This growth is attributed to the deployment of advanced propulsion systems in naval vessels.
Growing Adoption of Stainless Steel Material in the Propulsion Systems to Support the Growth of the Market
By material, the marine propeller market is segmented into stainless steel, aluminum, bronze, nickel-aluminum bronze, and others. A marine propeller is designed by sections of helicoidal surfaces majorly used to rotate through the water with a screw effect. The stainless steel segment is predicted to hold the largest market share during the forecast period. This growth is attributed to the growing adoption of stainless steel in the propulsion system. Stainless steel provides higher strength than other materials. Other popular materials used are alloys of aluminum, bronze, nickel-aluminum bronze, and others are 15 % lighter than stainless steel. Therefore the growing adoption of corrosion-resistant alloys material in the propulsion system to support the growth of the market.
Growing Merchant Vessel Deliveries to Support the Growth of the OEM Segment
By end user, the market is classified into OEM and aftermarket. The OEM segment is predicted to register the fastest growth during the forecast period. This growth is attributed to increasing demand for merchant vessels from emerging economies such as China, India, and Australia. These merchants vessels are equipped with a technologically advanced marine propeller. The aftermarket segment consists of the maintenance of propeller components. This propeller aftermarket segment is projected to account for the largest market share during the forecast period. This growth is attributed to the increasing focus on the up-gradation of the conventional vessels for enhanced maritime trade across the globe.
North America Marine Propeller Market Size, 2016-2027 (USD Billion)
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The market has been segmented into North America, Europe, Asia Pacific, and the Rest of the World. North America is projected to account for a significant share during the forecast period. This growth is attributed to upgradation in the dry cargos for real-time data exchange in the U.S. Furthermore, high demand for specialized vessels in maritime tourism in Canada is expected to boost the market. The increasing demand for dry cargo and maritime tourism is supporting market growth.
Asia Pacific is expected to be the largest market during the forecast period. This growth is attributed to the increasing demand for corvettes and frigates in emerging economies such as China and India to improve the coordination in the naval fleet. South Korea is a major supplier of the merchant ship in Asia Pacific. The rise in the up-gradation of propulsion systems for older vessels is helping to propel the market growth.
Europe is expected to be the fastest-growing market during the forecast period. In Germany, ship equipment up-gradation is propelling the demand for the naval ship. The introduction of automation technology in naval ships is projected to boost the market in the U.K. The Rest of the World will also show significant growth in the market during the forecast period. This growth is attributed to a rise in the maritime trade in Latin America and the Middle East & Africa.
Technological Trends Implemented by Key Market Players are Propelling the Market Growth
Fuel efficient propulsion systems, advanced materials, rim thrusters, and anti-fouling coatings are the latest trends in the market. Innovative technology trends and research & development activity is the prominent factor responsible for the dominance of these key market players.
The marine propeller market research report offers qualitative and quantitative insights into this market. It offers a detailed analysis of the market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of dynamics, COVID-19 effect, emerging trends, UNCTAD maritime transport report, and competitive landscape in the market.
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Key insights offered in the report include the adoption trends of the marine propeller by individual segments, recent industry developments such as mergers & acquisitions, partnerships, consolidated SWOT analysis of key players, porter’s five forces analysis, business strategies of leading market players, micro and macroeconomic indicators, and the leading industry trends.
Value (USD Billion)
By Number of Blades
By End User
Fortune Business Insights says that the market value stood at USD 4.84 billion in 2019 and is projected to reach USD 5.34 billion by 2027.
Growing at a CAGR of 4.69%, the market will exhibit steady growth in the forecast period (2020-2027).
In 2019, the market value stood at USD 4.84 billion.
The propellers segment is estimated to be the leading segment in this market during the forecast period.
Increased demand for electric propulsion technology from the shipbuilding industry is the key factor driving the market.
AB Volvo (Sweden), Brunswick Corporation. (The U.S.) Caterpillar (The U.S.) and Hyundai Heavy Industries Co., Ltd. (South Korea) are some of the leading OEMs in the market.
Asia Pacific is projected to be the largest shareholder in this market.
Rim thrusters, anti-fouling coatings, and fuel-efficient propulsion systems are the new trends in this market.
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