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The global marine propeller market size was valued at USD 3.48 billion in 2021. The market is projected to grow from USD 3.60 billion in 2022 to USD 5.68 billion by 2029, exhibiting a CAGR of 6.76% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with marine propellers witnessing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 21.84% in 2020 as compared to 2019.
A maritime propeller comprises a complex design containing radiating blades and a propeller shaft. The power-generated revolving blades are engaged to move a naval ship employing the central hub construction. Depending on the speed and maneuverability needs of the navy ship, a maximum of five to six radiating blades can be installed.
The market will benefit from technological advancements in real-time data tracking in marine propulsion systems. However, the market expansion is being hampered by variations in oil & gas costs. In March 2019, Rolls-Royce Holdings and Cantiere Navale Vittoria, an Italian shipbuilder, signed a marine propulsion system for offshore patrol vessels.
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Increasing Adoption of Fixed Propeller in Marine Propulsion Systems Boosts Market Growth
The market trends of adoption and implementation of the fixed propeller have increased in recent years. The fixed pitch marine propeller shaft and blades are firmly connected to the hub. The pitch position of fixed pitch propellers is permanently fixed and cannot be changed during operation as it is normally cast. Copper alloy is frequently used to make it. Fixed pitch propellers are chosen as the most durable and reliable as the system has no mechanical or hydraulic linkages. Compared to controllable pitch propellers, cheaper manufacturing, installation, and operational costs have encouraged the adoption of fixed propellers.
Growing Adoption of Rim Thruster in Marine Propulsion Systems to Strengthen Market Growth
The rim thruster has recently grown in popularity among major marine propeller rivals. It's an inexpensive and lightweight propulsion system. SCHOTTEL, a German-based company, has created a cutting-edge rim thruster. The thruster's primary goal is to reduce noise and vibration. The Schottel rim thruster improves the effectiveness of the maritime propulsion system while lowering maintenance expenses. Interchangeable blades and slide bearings, water-lubricated bearings, and cost-effective operation are all aspects of the rim thruster. The market is likely to develop due to the rising use of rim thrusters in naval vessels.
Adoption of Environment-friendly Propulsion Systems Will Drive the Market Growth
Marine propulsion systems propel ships across the water while ensuring that the marine ecosystem is safe. The International Maritime Organization (IMO) has set emission reduction targets in the maritime industry. The IMO has set a target of reducing carbon emissions in international shipping by at least 40% by 2030 and 70% by 2050.
Due to rising fuel costs, end customers that use wind power to propel commercial ships have become more interested in wind propulsion systems. It also serves as a substitute for systems that emit huge amounts of carbon dioxide (CO2). The International Windship Association (IWSA) launched a new initiative to accelerate decarbonization in the shipping industry in February 2021. The campaign is known as the ‘Decade of Wind Propulsion,’ which aims to support the adoption of blending wind, hybrid alternative propulsion methods, alternative fuels, and energy efficiency measures.
Increase in Demand for Electric Propulsion Technology in Shipbuilding Industry to Drive the Market Growth
The Electric Propulsion System (EPS) includes hybrid diesel and gas turbine engines. Maritime vessel propulsion uses diesel generator-powered energy to drive propeller blades. This propulsion technology makes the elimination of clutches and gearing systems possible.
Compared to the traditional system, this technology has a number of advantages. It offers great redundancy, improved mobility, and increased payload due to the variable arrangement of mechanical components, decreased pollutants, and lower fuel consumption. Daewoo Shipbuilding & Marine Engineering, a South Korean shipbuilder, created an electric propulsion system for the Republic of Korea Navy's KDDX destroyer and LPX-II LHD projects in May 2020.
Growth in International Seaborne Trade to Propel the Market Growth owing to Post-Pandemic Trade Resumption
According to the United Nations Conference on Trade and Development (UNCTAD), global maritime trade and transport have been severely impacted due to the pandemic-triggered global healthcare and economic crisis and supply chain issues. As per UNCTAD, the global seaborne trade dropped by 4.1% in 2020. In the UNCTAD maritime transport report 2018, the international maritime trade grew with a growth rate of 4%, the highest from 2014. The report showed 17.1% growth in containerized trade, 29.9% in dry bulk commodities, and 2.4% in crude oil shipments.
Furthermore, the share of developing countries in maritime imports rose to 65% in 2019, and seaborne trade reached 155 million tons. UNCTAD’s Maritime Transport Report 2020 estimated that the seaborne 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 rising international seaborne trade activities would propel the growth of the market.
Implementation of Stringent Environmental Regulations to Hamper Market Growth
Under the new IMO2020 requirements, sulfur content in fuel oil must be reduced from 3.50 percent m/m to 0.50 percent m/m (mass by mass). These new regulations will help reduce health problems in coastal areas and port cities and acid rain and lightning storms along trade routes. These severe environmental laws will considerably influence seaborne commercial activities, stifling business expansion.
In 2016, the International Maritime Organization (IMO) implemented stringent sulfur regulations known as IMO2020. The new environmental rules would affect international shipping costs. These regulations are directly related to the level of sulfur oxide (SOx) emissions produced by shipping vessels sailing around the globe. Modern commercial ships and container ships run their engines on traditional fossil fuels. These are also called the ‘bunker fuels.’ These fuels consist of marine gas oil (MGO), marine diesel oil (MDO), marine fuel oil (MFO), heavy fuel oil (HFO), and intermediate fuel oil (IFO).
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Propellers Segment Held Highest Shares in 2021 Backed by Increasing Usage in Merchant Ships
Based on type, this market is classified into propellers, thrusters, and others.
The propellers segment held the largest marine propeller market share in 2021. The dominance is due to the increased use of naval ships, recreational boats, and merchant ships. Furthermore, the market expansion of the key players, the advent of 3D printing in the marine sector, and increased demand for naval vessels are projected to drive the marine propeller market growth.
In April 2021, Nakashima Propeller announced the majority shares acquisition of Becker Marine Systems. The acquisition is projected to drive the market growth due to a wide range of portfolios that both manufacturers possess such as high-efficiency propellers & rudders and energy-saving marine devices.
Naval Ships Segment Will Showcase Remarkable Growth Due to Rising Demand for Defense Applications
By application, the market is divided into merchant ships, naval ships, recreational boats, and others.
The merchant ships segment will grow with the highest CAGR during the forecast period. The growth is attributed to the growing trade of imported goods and materials worldwide. According to the UNCTAD report (2018), dry bulk carriers have the highest share of 42.5% of dead-weight tonnage.
The naval ship segment will showcase remarkable growth during 2022-2029. Rising demand for defense vessels from China, the U.S., Russia, and others will boost the segmental growth. The recreational boat segment is projected to grow with significant CAGR due to recreational boat-based propellers' technological innovations. For instance, in May 2020, Sharrow Propeller introduced the MX-1 model, a recreational boat-based propeller with an innovative design, high performance, and improved fuel efficiency.
Increasing Demand for 5-blade Propeller in Merchant Ships to Drive the Market Growth
By number of blades, the market is classified into 3-blade, 4-blade, and 5-blade.
The rising number of merchant, naval and coast guard, and recreational vessels deliveries is leading to the high demand generation for 5-blade marine propellers. An increase in shipbuilding activities in China, Japan, South Korea, and Greece and rise in major shipbuilding countries have witnessed market consolidation, owing to pandemic-led economic impact and weaker 2019 market growth.
For instance, China, India, and Singapore seek mergers in the shipbuilding industry. The two largest shipbuilders, Marine Engineering and Hyundai Heavy Industries and Daewoo Shipbuilding are waiting for the market competition review from the regional governments and shipbuilding industry.
Growing Use of Sterndrive in Naval Vessels to Boost the Segment Growth
Based on propulsion, the market is divided into inboard, sterndrive, outboard, and others. The inboard propulsion system will showcase remarkable growth during 2022-2029. Vessels with advanced inboard systems are mounted inside the boat's hull. The inboard system is widely used in watersports boats. A driveshaft is connected to the propeller and used to run the boat.
The sterndrive segment held the largest shares in the market in 2021. It is the most powerful propulsion system. The system can generate more horsepower to boost the naval vessel than inboard and outboard.
Growing Adoption of Stainless Steel in Propulsion Systems Drives the Market Growth
By material, the market is segmented into aluminum, stainless steel, nickel aluminum bronze, bronze, and others.
Marine propellers are made up of corrosion-resistant alloys such as aluminum and stainless steel. The stainless steel segment held the largest shares in 2021. The growth is due to the growing use of stainless steel material in the propulsion system. It provides higher strength and more reliability than other materials. Other popular materials used are aluminum alloys, bronze, nickel-aluminum bronze, and others. The increasing adoption of corrosion-resistant alloys material in the propulsion system would drive the market growth.
Growing Merchant Vessel Deliveries to Support Growth of the OEM Segment
Based on 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 the increasing demand for maritime trade for merchant vessels from China, India, and Australia. These merchant vessels are equipped with an advanced marine propeller to propel a vessel. The aftermarket segment is estimated to show significant growth during 2022-2029. The growth is attributed to the increased upgrades of merchant vessels for enhanced maritime trade across the globe. The aftermarket segment includes the maintenance of propeller components.
Asia Pacific Marine Propeller Market Size, 2021 (USD Billion)
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This market is segmented into North America, Europe, Asia Pacific, and the Rest of the World. The market size in Asia Pacific stood at USD 1.21 billion in 2021. This is attributed to the growing demand for frigates and corvettes from emerging economies, such as India and China, to improve the coordination in the naval fleet, several procurement initiatives, and demand for modern amenities in the cruise ship. South Korea is the largest supplier of merchant ships in Asia Pacific. The rising upgrade of marine propeller design systems for older vessels is helping to propel the market growth.
The market in Europe will witness significant growth during the forecast period. The presence of many marine interior players in France, Germany, the U.K., and Russia increases the demand for passengers for cruise ships' yachts.
North America will witness significant growth from 2022 to 2029. This growth is attributed to the upgrade of dry cargos for real-time data exchange in the U.S. due to the region's flourishing marine industry, presence of the largest marine lines, rise in investment in the marine sector, and increase in the number of marine propeller manufacturers. Furthermore, the high demand for specialized vessels in maritime tourism in Canada is expected to boost the market.
The market will witness significant growth in the rest of the world from 2022 to 2029. The market development is due to high net worth in the region, rise in travel and business opportunities, changing passenger preference, demand for modern amenities, and increase in the number of shipbuilding industries.
Technological Trends Implemented by Key Players to Propel Market Growth
The market's forthcoming trends include fuel-efficient propulsion systems, improved materials, rim thrusters, and anti-fouling coatings. These leading market players, such as Hyundai Heavy Industries and MAN SE, can be attributed to their diverse product portfolios, innovative technology trends, and research & development activity. Brunswick Corporation debuted its newly improved MerCruiser Bravo Four S front-facing drive with Smart Tow technology in August 2020. This system provides comprehensive control for two sports.
An Infographic Representation of Marine Propeller Market
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The 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 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
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.
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