"Smart Market Solutions to Help Your Business Gain Edge over Competitors"
The global marine propeller market size was USD 3.87 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with marine propellers witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a huge decline of -20.0% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 3.48 billion in 2021 to USD 5.77 billion in 2028 at a CAGR of 7.48% in the 2021-2028 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.
A marine propeller is a combination of advanced architecture, which includes radiating blades and a propeller shaft. This central hub architecture is used to propel a naval ship by using the power-generated rotating blades. The ship can be equipped with a maximum of five to six radiating blades based on the naval ship's speed and maneuvering requirements.
Technological innovations in marine propulsion systems are an opportunity for the market. However, fluctuations in oil & gas prices are hampering the market growth. For instance, In March 2019, Rolls-Royce Holdings and Italian shipbuilder Cantiere Navale Vittoria has secured a contract to supply a marine propulsion system for offshore patrol vessels.
Low Trade Activities through Seas owing to Disruption of Supply Chain Network to Restrain Growth
In the financial year of 2020, due to the coronavirus (COVID-19) pandemic, the key players in the market across the globe were facing major supply issues, and this effect will continue to have a huge reverse impact on the naval industry. 90% of the global trade has occurred through seas. 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. For instance, in March 2020, more than twenty percent fall in commodity prices and a 7.5% fall in oil prices was observed. The direct effect of the COVID-19 pandemic on the naval industry is to slow down naval vessels' production due to their decreasing demand and reduced trade activity through the sea.
Request a Free sample to learn more about this report.
Increasing Adoption of Rim Thruster in Marine Propulsion Systems to Strengthen Market Growth
Recently, the rim thruster has been increasingly adopted by key players in the marine propeller market. It provides a lightweight and low-cost propulsion system. SCHOTTEL is a German-based company that has designed an advanced rim thruster. This thruster is majorly used to reduced noise and vibration. The Schottel rim thruster effectively minimizes the maintenance cost and improves the efficiency of the marine propulsion system. Exchangeable blades & slide bearings, water-lubricated bearings, and efficient operation are the rim thruster's main characteristics. The increasing use of rim thrusters in naval vessels is set to propel the market.
Adoption of Environmental Friendly Marine Propulsion Systems Will Spur Various Opportunities for the Market Growth
Marine propulsion systems are used to move ships through the water and ensure better safety standards for the marine ecosystem. Majorly, there are categories as controllable pitch propellers and fixed pitch propellers. International Maritime Organization (IMO) has set goals for emission reductions in the maritime sector. The IMO has set a goal for carbon reduction in international shipping by at least 40% by 2030 and by 70% by 2050 to improve the marine propeller technology.
Due to the increasing fuel costs, the wind propulsion system gained popularity among end users who use wind power to propel commercial ships. It also acts as an alternative to the systems that emit large quantities of carbon dioxide (CO2).
In February 2021, the International Windship Association (IWSA) launched a new initiative to accelerate decarbonization in shipping. The new campaign is known as the ‘Decade of Wind Propulsion,’ which aims to boost the adoption of blending wind, alternative fuels, hybrid alternative propulsion methods, and energy efficiency measures.
Increased Demand and Adoption Rate for Electric Propulsion Technology within Shipbuilding Industry to Boost Market Growth.
An electric propulsion system (EPS) is a combination of diesel generators and gas turbines. It utilizes diesel generator-powered electricity to drive propeller blades for marine vessel propulsion. This propulsion system facilitates noise reduction, the elimination of the clutches and gearing systems. This technology has various advantages over the conventional system. It provides high redundancy and improved maneuverability, increased payload due to the flexible location of machinery components, environmental benefits due to reduced emissions, and lower fuel consumption. In May 2020, South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering designed an electric propulsion system for the KDDX destroyer and LPX-II LHD projects of the Republic of Korea Navy.
Growth in International Seaborne Trade to propel Market Growth
According to the United Nations Conference on Trade and Development (UNCTAD), the scenario for maritime trade and transport has significantly hampered the growth prospects internationally owing to the pandemic-triggered global economic and healthcare crisis and the supply chain disruption. As per UNCTAD projections, the international seaborne trade dipped by 4.1% in 2020. The maritime trade volumes expanded by 0.5 percent in 2019 and reached a total of 11.08 billion tons. In the UNCTAD maritime transport report 2018, the global seaborne trade grew with a 4% growth rate, which was the highest from 2014-2018. The report indicated 17.1% growth in containerized trade, 2.4% growth in crude oil shipments, and 29.9% growth in dry bulk commodities.
Furthermore, the share of developing economies in seaborne imports rose to 65% in 2019, and seaborne trade of developed economies reached 155 million tons. UNCTAD’s Maritime Transport Report 2020 projected that the maritime trade growth would expand by 4.8% in 2021. Propellers are the essential system of naval ships. Thus, the expansion of the naval sector due to the rising international seaborne trade activities would propel the marine propeller market growth during the forecast period.
Implementation of Stringent Environmental Regulations Worldwide to Hamper Market Growth
According to the new IMO2020 regulations, the content of Sulphur in fuel oil must be reduced from current regulations of 3.50% m/m, down to 0.50% m/m (mass by mass). These new regulations will help reduce health issues in coastal areas and port cities and lower the presence of acid rain and lightning storms along the trade routes. Due to these stringent environmental regulations, there is a huge impact on seaborne trade activities, which would hamper the market growth.
In 2016, the International Maritime Organization (IMO) announced implementing strict Sulphur regulations known as IMO2020. These regulations were implemented in January 2020. The new environmental rules will affect international shipping costs.
IMO2020 regulations are directly related to the level of Sulphur Oxide (SOx) emissions produced by shipping vessels that are sailing around the world. All modern container ships and commercial ships run their engines on traditional fossil fuels. These are known as the ‘bunker fuels’ throughout the industry. These fuels include marine diesel oil (MDO), marine gas oil (MGO), intermediate fuel oil (IFO), marine fuel oil (MFO), and heavy fuel oil (HFO).
To know how our report can help streamline your business, Speak to Analyst
Propellers Segment to Gain Highest Share Backed by Rising Usage in Naval & Merchant Ships
Based on the type, the market is classified into propellers, thrusters, and others.
The propellers segment is predicted to hold the largest market share during the forecast period, attributed to increased merchant ships, naval ships, and recreational boats. The other influencing factors, such as the market expansion of the key market players, the advent of 3D printing in the marine industry, and increased demand for naval vessels by different defense agencies, are anticipated to drive the market growth. For instance, in October 2020, the Naval Group, a French naval defense company, manufactured a next-generation propeller through additive manufacturing for Andromede, a French Navy tripartite minehunter vessel. In April 2021, Nakashima Propeller has announced the majority shares acquisition of Becker Marine Systems. The acquisition is anticipated to propel the market growth of the market owing to the wide range of portfolios both manufacturers possess, such as high-efficiency propellers and rudders and energy-saving marine devices.
Naval Ship Segment to Lead Market with a Significant Share
The market for Marine Propellers is classified into merchant ships, naval ships, recreational boats, and others by the application.
The merchant ships segment is predicted to have the fastest growth during the forecast period attributed to the increasing trade of imported goods and materials worldwide. According to the UNCTAD maritime transport report (2018), dry bulk carriers consist of the highest share of 42.5% of dead-weight tonnage.
The naval ship segment is predicted to hold the largest market share during the forecast period, attributed to the increasing demand for defense vessels worldwide.
The recreational boat segment is anticipated to grow owing to technological innovations in recreational boat-based propellers. These propellers improve efficiency up to 15% compared to the Wageningen B-series design with better handling and reduced vibrations.
High Demand for 5-blade Propeller in Merchant Ships to Drive the Segment
Based on the number of blades, the market segments include 3-blade, 4-blade, 5-blade, and others.
The rising number of the Merchant, Naval, and Coast Guard, and Recreational Vessels deliveries lead to the high demand generation for 5-blade propellers in the market. Rising shipbuilding activities in China, Japan, South Korea, and Greece, major shipbuilding countries, have witnessed market consolidation due to pandemic-led economic impact and weaker 2019 market growth. For instance, countries such as Singapore, Japan, and China seek mergers in the shipbuilding industry. The two largest shipbuilders Daewoo Shipbuilding and Marine Engineering and Hyundai Heavy Industries, are waiting for the market competition review from the shipbuilding industry and regional governments. It has led to market growth for marine propellers as marine propeller rebound has been witnessed in 2020 and 2021.
The rising utilization of recreational boats to avoid the pandemic spread has seen an optimistic growth in the three-blade propeller market.
Increasing Use of Sterndrive in Naval Vessels to Aid the Segment’s Growth
Based on the propulsion, the market segments include inboard, outboard, sterndrive, and others.
Boats with advanced inboard propulsion systems are mounted inside the hull of the boat. A driveshaft is connected to the propeller and used to run the boat. The inboard system is majorly used in watersports boats. Outboard propulsion systems are mounted externally to the rear of the naval boat.
Sterndrive is the most powerful propulsion system. It can generate more horsepower 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.
The other segment consists of pod drives. A pod drive is a system where the propeller units extend down directly beneath the engine through the boat's bottom hull.
Surging Adoption of Stainless Steel Material in Propulsion Systems to Support the Segment’s Growth
By material, the market is segmented into stainless steel, aluminum, bronze, nickel-aluminum bronze, and others.
Marine propellers are made from corrosion-resistant alloys, such as an alloy of aluminum and stainless steel. It is designed by sections of helicoidal surfaces, which is 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 rising adoption of stainless steel in the propulsion system. It can provide 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 surging adoption of corrosion-resistant alloys material in the propulsion system would support the growth of the market.
Rising Merchant Vessel Deliveries to Support Growth of the OEM Segment
By end-users, the market is segmented into OEM and aftermarket.
The OEM segment is predicted to register the fastest growth during the forecast period. This growth is attributed to the increasing demand for merchant vessels from emerging economies, such as China, India, and Australia, for maritime trade. These merchant vessels are equipped with a technologically advanced marine propeller to propel a ship.
The aftermarket segment consists of the maintenance of propeller components. This segment is projected to register the largest market share during the forecast period. This growth is attributed to the increased up-gradation of merchant vessels for enhanced maritime trade across the globe.
North America Marine Propeller Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world.
Asia-Pacific is expected to hold the largest marine propeller market share during the forecast period. This growth is attributed to the increasing demand for corvettes and frigates from emerging economies, such as China and India, to improve the coordination in the naval fleet. South Korea is a major supplier of merchant ships in Asia-pacific. The rising up-gradation of propulsion systems for older vessels is helping to propel the market growth.
North America is projected to exhibit significant market share during the forecast period. This growth is attributed to the up-gradation of dry cargos for real-time data exchange in the U.S. Furthermore, the high demand for specialized vessels in maritime tourism in Canada is expected to boost the market.
Europe is expected to be the fastest-growing market during the forecast period. In Germany, ship equipment up-gradation is propelling the demand for naval ships. The introduction of automation technologies in naval ships is projected to boost the market in the U.K.
The rest of the world would 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 Players to Propel Market Growth
Fuel-efficient propulsion systems, advanced materials, rim thrusters, and anti-fouling coatings are the upcoming trends in the market. Key players focus on business expansion through mergers and acquisitions, agreements, and the development of advanced products. In June 2020, Gula Skrinet AB entered into an agreement with Caterpillar to acquire Caterpillar Propulsion AB and its subsidiaries. Caterpillar Propulsion AB is a manufacturer of electrically and mechanically driven marine controls and propulsion systems for ships. In August 2020, Brunswick Corporation launched its newly developed MerCruiser Bravo Four S forward-facing drive with a Smart Tow system that delivers total control for tow sports.
An Infographic Representation of Marine Propeller Market
To get information on various segments, share your queries with us
The market research report offers qualitative and quantitative insights on this market. It offers a detailed analysis of the market size & growth rate for all possible segments. It also provides an elaborative analysis of dynamics, COVID-19 effect, emerging trends, UNCTAD maritime transport report, and competitive landscape in the market.
Key insights offered in the report are the adoption trends of the 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
Fortune Business Insights says that the global market size was USD 3.87 billion in 2020 and is projected to reach USD 5.77 billion by 2028.
In 2020, North America stood at USD 1.07 billion.
Registering a CAGR of 7.48%, the market will exhibit steady growth in the forecast period (2021-2028).
The propellers segment is estimated to lead this market during the forecast period.
Increased demand for electric propulsion technology from the shipbuilding industry is the key factor driving the market.
SCHOTTEL Group is the leading player in the global market.
North America dominated the market in terms of share in 2020.
“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