"Smart Market Solutions to Help Your Business Gain Edge over Competitors"
The global marine vessel market size was USD 168.56 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with marine vessels witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market had shown a decline of 17.2% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 170.75 billion in 2021 to USD 188.57 billion in 2028 at a CAGR of 1.43% in the 2021-2028 period.
The market is dependent on the volume of the global maritime trade and the shipping demand. The performance of international markets influences both. The demand for ships increases during economic growth and decreases during the recession. As stated by the United Nations Conference on Trade and Development (UNCTAD), around 80% of the global trade by volume is carried out by the sea. Therefore, it is clear that maritime transport is an engine of the global trade and economy that closely follows the GDP growth of the nation. The market is anticipated to propagate at a slow but steady pace during the forecast period.
Reduced Maritime Trade & Transport amid COVID-19 Pandemic to Affect Demand for Marine Vessels
The demand for such vessels is directly related to the international trade and economic cycles. The pandemic has reduced maritime trades and transport, which, in turn, has lowered the demand for the procurement of new vessels. Owing to the decreasing demand for container transport, the orders for containerships were on hold during the first two quarters of 2020. Moreover, the lack of passengers and declining revenues of cruise operators during the pandemic led to the decommissioning of older cruise ships.
Thus, COVID-19 has had a negative impact on marine vessel market growth due to decreased maritime trade and transport.
A slow recovery in new shipbuilding contracts has been witnessed in 2021.
Request a Free sample to learn more about this report.
Shift from Conventional Propulsion to Hybrid Propulsion System is a Prominent Trend
Huge marine vessels consume a large amount of fuel and thus contribute to global warming. However, fuel is the main cost factor for many shipping companies. Hence, improving energy efficiency is the main driver for innovation in the shipping industry. The switch from the fuel-based conventional propulsion system to the environment-friendly hybrid propulsion is increasing owing to the efficiency and cost-effectiveness of the hybrid propulsion system. Many ship operators use renewable energy, such as solar energy, as a storage option in marine hybrid propulsion systems. In this system, the stored solar energy is utilized during peak hours or at night, reducing the 24X7 need for conventional marine fuel. Moreover, strict regulations associated with reducing harmful carbon emissions have increased the demand for hybrid propulsion systems.
Surge in Global Sea Trade is Expected to Increase Demand for Product
Maritime transport is the pillar of international trade and the global economy. A rise in seaborne trade across the globe is expected to fuel the growth of the market during the global marine vessel industry forecast period. According to Maritime Publications, around 80% of the global trade by volume and over 70% of the global trade by value are carried out by sea and are controlled by ports worldwide. Globalization and the rapid expansion of Asian economies, such as China and South Korea, would play a major role in maritime trade growth.
Stringent Environmental Regulations to Hinder the Market Growth
Although ocean transportation is seen as the least polluting mode of transport, governments and international organizations have introduced several regulations associated with environmental protection to moderate the negative effects of vessels on the environment. Implementing such regulations in the old fleet is challenging and may hamper the growth of the market. The ongoing global transition to a clean and green maritime sector is expected to affect the shipbuilding industry. An increase in the international maritime environmental regulations for greenhouse gas emission, Sulphur emission, ship recycling, and others is anticipated to restrain the market growth.
Following are some of the recent regulations:
Moreover, several governments are spending on research and development to minimize pollution.
To know how our report can help streamline your business, Speak to Analyst
Commercial Segment Expected to Lead the Market Due to Growing International Trade
Based on type, the market for marine vessels is classified into the commercial vessel, passenger ship, LNG/LPG carriers, and special purpose vessel.
The commercial segment was estimated to be the largest segment in 2020, owing to a rise in maritime trade. The commercial segment is further sub-segmented into bulk carriers, container ships, tankers, auto carriers, and roll-in/roll-out (RO-RO) carriers. The demand for bulk carriers, tankers, and container ships is expected to rise during the forecast period owing to the growing shipping demand.
Due to the increasing public transport, the passenger ship segment is predicted to be the fastest-growing segment during the forecast period. The passenger ship segment is sub-segmented into cruise ships and ferryboats. Growing demand for cruise vacationing is expected to drive the demand for cruise ships.
A ferry is a vessel type used to carry passengers and, at times, vehicles and cargo across a water body. Owing to the increasing tourism, the demand for ferryboats is rising. The segment is expected to drive the growth of the market. Europe is the leading region in terms of the passenger ship segment.
The LNG/LPG carrier segment is expected to grow at a steady pace throughout the forecast period, owing to the rising demand for fuel and oil.
The special-purpose vessel segment of this market includes research vessels and others. Research vessels carry out various research, such as oceanographic research, fisheries research, naval research, polar research, etc. The demand for research vessels is anticipated to rise during the forecast period. The growth can be attributed to the increasing investment by emerging economies, such as China, India, and countries in Latin America to expand their oceanographic research fleets.
Rising Demand for MRO of Old Fleet will Boost the Aftermarket Segment
Based on the end-user, the market for marine vessels is divided into Original Equipment Manufacturer (OEM) and aftermarket.
In 2020, OEM was estimated to be the largest segment in the market due to growth in shipbuilding activities. The aftermarket segment is expected to be the fastest-growing segment during the forecast period owing to a rise in the demand for MRO of the old fleet.
Marine Engine Segment to Dominate Market Due to Increasing Development of Eco-Friendly Engines
By system, the market for marine vessels is segmented by marine engine, sensor system, control system, electrical system, auxiliary system, and communication system.
The marine engine segment is expected to dominate during the forecast period due to the growing demand for natural gas-based engines to reduce sulfur emissions. Moreover, increasing investment by key players to develop low emission, fuel-efficient, and eco-friendly engines is expected to support segment growth.
North America Marine Vessel Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Based on region, the global market is segmented into North America, Europe, Asia-Pacific, and Rest of the World.
North America marine vessel market size stood at USD 8.80 billion in 2020. The dominance of North America is due to the increase in shipbuilding in the U.S. OEMs based in the U.S. provides components and systems to the shipbuilding companies around the world. This factor is estimated to drive the market in the region.
Asia-Pacific held the largest market share in 2020 and is anticipated to continue its dominance throughout the forecast period. The growth of the market in this region is attributed to key shipbuilding companies such as Hyundai Heavy Industries Co. Ltd., Daewoo Shipbuilding & Marine Engineering Co., and Imabari Shipbuilding Co. Ltd. in countries such as South Korea and Japan. China, Japan, and the Republic of Korea have sustained their leadership in the shipbuilding industry, representing 92.5% of new vessel deliveries in 2019.
Europe is estimated to be the second-largest market for marine vessels. The Fincantieri S.P.A. is the largest shipbuilder in the western region. The European shipbuilding industry is a leader in innovation and sustains its position as a technology provider and cleaner and safer ship provider. With its diverse fleet of commercial vessels, the European Union (EU) shipping industry contributes USD 165 billion to the EU’s annual GDP growth.
In the Rest of the World Region, sub regions such as Latin America, and the Middle East & Africa hold a lower share in the market owing to comparatively low demand for marine vessels in the region.
Major Players are Investing in Development of Ship Designs to Reduce Sulphur Emissions
The competitive landscape of this market depicts the domination of selected market players, such as Daewoo Shipbuilding & Marine Engineering Co., Ltd, Hyundai Heavy Industries Co., Ltd., Imabari Shipbuilding Co. Ltd., and Fincantieri S.P.A., among others. Various organizations have invested in the research and development of such vessels to reduce the harmful effect of Sulphur emissions from ships. Moreover, fleet expansions and the replacement of older vessels are some of the other strategies used by key players to sustain their positions in the global market.
An Infographic Representation of Marine Vessel Market
To get information on various segments, share your queries with us
The market report provides a detailed analysis of the industry and focuses on key aspects, such as key players, type, system, and end-user of marine vessels. Moreover, it offers insights into market trends, competitive landscape, market competition, product pricing, market status, and key industry developments. In addition to the factors mentioned above, the market report encompasses several direct and indirect factors contributing to the market sizing over recent years.
Value (USD Billion)
The global market size was USD 168.56 billion in 2020, and it is projected to reach USD 188.57 billion by 2028, growing at a CAGR of 1.43% during the forecast period (2021-2028).
In the market, the commercial vessel segment is set to lead.
The rising public transport owing to the increased tourism and the surging demand for the global sea trade are the key driving factors for the growth of the market.
Some of the top players are Daewoo Shipbuilding & Marine Engineering Co., Ltd, Hyundai Heavy Industries Co. Ltd., Imabari Shipbuilding Co. Ltd., and Fincantieri S.P.A.
“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