MARINE ENGINEERING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Marine Engineering Market Size and Forecast – 2024-2031

The Global Marine Engineering Market is estimated to be valued at USD 165.10 Bn in 2024 and is expected to reach USD 250.90 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.

Key Takeaways from the Marine Engineering Market Report:

• Mechanical engineering is expected to contribute the highest share of 61.2% market share in 2024.
• Boats contribute the highest share of 39.3% in 2024.
• Asia Pacific is expected to dominate and account for 41.8% market share in 2024.

Market Overview:

The marine engineering market is expected to witness a positive trend over the forecast period. There is an increased demand for ship repair and maintenance services due to the rise in maritime trading activities across the globe. Additionally, the international seaborne trade of important commodities and raw materials is increasing significantly.

Major players in the market are focusing on adopting advanced technologies like automation, digitalization and IoT solutions to improve productivity and efficiency. Growing environmental concerns are also compelling ship manufacturers to focus on developing fuel-efficient and low emission ships, which is supporting the demand for marine engineering services. However, the supply chain disruptions caused due to the COVID-19 pandemic negatively impacted the growth of the market in the short term.

Segmental Insights

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Type Insights, Complex Systems in Mechanical Engineering Require Expertise

By type, mechanical engineering is expected to contribute the highest share of 61.2% market share in 2024 due to the complexity of marine vessel systems that require expert mechanical design. Ships and boats integrate dozens of intricate mechanical components and machinery to keep vessels functioning properly at sea. Their propulsion, navigation, hull integrity, cargo handling, and onboard operations like power generation all rely on advanced mechanical engineering.

Mechanical engineers design, fabricate, install, operate and maintain these complex shipboard systems. They must understand fluid mechanics, material strength, vibration analysis, and manufacturing techniques to ensure vessel components can withstand punishing ocean conditions. Propulsion systems present unique mechanical challenges, as marine diesel and gas turbine engines must operate reliably regardless of weather or sea state. 

Application Insights, Recreational Boating Fuels Continued Product Innovation

By Application, boats contribute the highest share of 39.3% in 2024 due to strong growth in recreational boating worldwide. Whether for fishing, watersports or cruising, leisure boat ownership is rising markedly in developed economies and increasingly in emerging markets as discretionary incomes rise. This expanding customer base spur product advances across different boat categories. Design engineers introduce performance enhancements, comfort features, automated functions and customized internal layouts. 

Regional Insights

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Asia Pacific Marine Engineering Market Trends

Asia Pacific is expected to dominate and account for 41.8% market share in 2024. The growth can be attributed to the large presence of shipbuilding yards and ports in countries such as China, South Korea, and Japan. Supportive government policies boosting international trade have also contributed to the growth of the shipping industry in the region. Key players like SHIPYARD and COMPANY have established extensive operations across Asia Pacific, undertaking new shipbuilding contracts and servicing existing vessels.

Fastest-Growing Region: Middle East and Africa

The Middle East and Africa is poised to exhibit the fastest growth of 31.4% market share in 2024 driven by infrastructure investments around major ports and expansion of domestic shipping fleets. Increased oil and gas exploration activities have also raised demand for specialized vessels. Leading regional companies have strengthened their positions by partnering with global marine engineering firms.

Marine Engineering Market Outlook for Key Countries

China Marine Engineering Market Trends

The Chinese market is led by both domestic firms and foreign players operating locally. Strict regulations regarding emissions reductions have spurred technological advancements. technological innovations such as advanced digitalization solutions are also influencing marine engineering trends in China. There is a growing focus on developing smart ships equipped with the latest technologies to improve efficiency and reduce costs. This includes greater integration of technologies like automation, AI, IoT and data analytics solutions within new marine vessel designs as well as upgrading existing fleets.

South Korea Marine Engineering Market Trends

Shipbuilders have been investing heavily in research and testing facilities to develop fuel-cell powered ships, battery-electric propulsion systems and autonomous navigation solutions. For example, Hyundai Heavy Industries has partnered with several national research institutes to open a new tech center dedicated to designing zero-emission cargo vessels. This push towards environmental-friendly vessels is a direct response to stricter emissions regulations laid out in international treaties like the Paris Climate Agreement and IMO's Energy Efficiency Design Index.

United States Marine Engineering Market Trends

The significant trend in the US highlights the advancement in automation and digitization technologies. Marine engineers are increasingly adopting systems like autonomous navigation, remote access equipment monitoring, and predictive maintenance enabled by technologies like artificial intelligence, internet of things, and cloud computing. For example, several large vessel owners have partnered with technology companies to digitally connect their global fleets and monitor engine performance in real time. This allows for faster issue identification and resolution.

Brazil Marine Engineering Market Trends

Brazil has a large offshore oil and gas sector. However, aging production platforms and discoveries of new reserves in deepwaters are compelling oil companies to invest in marine engineering services for refurbishment and installation of new facilities. Petrobras' 2021 contract worth USD 1.4 billion for construction of an FPSO is a representative project. This has stimulated growth within specialized marine engineering domains like offshore platforms and pipelines engineering. Localization policies by Petrobras and new entrants have also boosted domestic capabilities. For instance, more than 75% of the overall investment in pre-salt oilfields during 2020-2023 is projected to remain within Brazil through local content requirements, thus fostering provincial marine engineering enterprises.

Market Players, Key Devlopment, and Competitive Intelligence

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Top Strategies Followed by Marine Engineering Market Players

• Established Players: Established players in the marine engineering market focus heavily on research and development to introduce innovative technologies. Industry leaders like Wartsila, Cummins, and Caterpillar invest over 5% of their annual revenue in R&D. This allows them to launch high-performance marine engines that improve fuel efficiency and comply with stringent emission norms. These companies also form strategic alliances with major shipbuilding yards to gain early insights into new ship designs. This helps them customize marine engine systems as per evolving ship requirements.
• Mid-sized Players: Mid-sized marine engineering companies focus on providing cost-effective solutions to price-sensitive customers. They develop generic marine engine models that are affordable and reliable. These players often collaborate with small component manufacturers to gain expertise in specific technologies like sensor integration at a lower cost. Some mid-level brands also partner with digital platform providers to offer predictive maintenance services and remote diagnostics tools along with their engines.
• Small Players: Small engine manufacturers rely on niche specialization and localized partnerships for business growth. They target niche maritime verticals like fishing trawlers, patrol vessels etc. with specialized features. Some niche players leverage advanced technologies like 3D printing to develop lightweight engines with unique designs. They also form strategic supply partnerships with regional shipyards to gain orders for engine packages customized for local ship types.

Emerging Startups in the Marine Engineering Market

• The marine engineering space is witnessing growth of innovative technology startups. Companies like Eniram, Adnanes, and Cleancat develop smart sensor systems and IoT solutions that digitally monitor engine performance. They provide predictive maintenance capabilities which help fleet owners achieve significant fuel savings and downtime reductions.
• Several startups are working on sustainable engine technologies and eco-friendly fuels. Biofuel producer GoodFuels develops bio-methanol from forestry waste while Hylron builds prototype hydrogen fuel cell engines. RecondOil collects used lube oils from ships which are recycled into new base oils, helping reduce environmental impact. These solutions offer greener alternatives to traditional bunker fuels if adopted on a larger scale.
• Startups also address gaps in niche markets. ZeroNorth develops small cargo vessel designs tailored for arctic shipping lanes while Estay offers hybrid-electric outboard engines for fishing boats. They collaborate with research institutions on specialized projects. Some receive seed funding and technical support from larger industry players looking to explore new areas through new partnerships.

Key Developments:

• In September 2024, French defense contractor Naval Group secured a €5 billion contract to supply the Netherlands with four Barracuda-class submarines. The agreement was formalized in September 2024, with the signing of the Delivery Agreement for the Replacement Netherlands Submarine Capability (RNSC) program. This contract underscores the growing demand for advanced naval vessels amid evolving geopolitical dynamics.
• In July 2024, Singapore's Energy Market Authority and Maritime and Port Authority shortlisted two consortia for an ammonia power and bunkering project on Jurong Island. This initiative explores ammonia's potential as a low- or zero-carbon marine fuel, reflecting a commitment to sustainable maritime energy solutions.
• In March 2023, BeHydro, a Belgian joint venture between CMB.TECH and ABC, introduced the Evolve 6EL23 hydrogen dual-fuel marine engine. This engine received Approval in Principle (AiP) from Lloyd’s Register, marking a significant step towards integrating hydrogen as a cleaner fuel alternative in marine propulsion.

Market Report Scope

Market Dynamics

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Marine Engineering Market Growth Factor - Growth in Offshore Oil and Gas Industry

The marine engineering market is greatly dependent on activities in the offshore oil and gas industry. As countries around the world look to explore new reserves in deeper waters, the demand for specialized offshore vessels and rigs continues to rise. Operation in deep sea comes with its challenges such as high-pressure environments and rougher sea conditions. This has prompted oil companies to invest heavily in technologically advanced floating structures, pipelines and subsea production systems that can withstand dynamic ocean forces. Developing offshore fields located far from shores requires deployment of sophisticated offshore production, exploration and storage units. Most of these units rely on marine engineering for their design, construction as well as maintenance.

Marine Engineering Market Challenge - Stringent environmental regulations

The marine engineering market is facing immense pressure to reduce emissions and adopt greener technologies due to stringent environmental regulations being introduced globally. Regulations such as IMO 2020 caps on sulphur require shipowners to install scrubbers or use more expensive low-sulphur fuels. This has increased operational costs substantially. Fines for non-compliance have also been increased. Further, regulations for ballast water treatment and recycling of ship waste have added to compliance complexity and cost. Technology developers are challenged to provide retrofitting solutions within tight timelines and budgets. High capital investment requirements for upgrades and newbuild specifications compliant with emission norms have constrained growth opportunities for ship operators.

Marine Engineering Market Opportunity: Demand for retrofitting of existing vessels

The need to upgrade large existing fleets to meet new emission regulations presents a major opportunity for the marine engineering market. Shipowners prefer retrofitting existing vessels over investing in new ships due to budget constraints. Over 55,000 merchant ships will require solutions for ballast water management alone in the coming years. Retrofitting demands for exhaust gas cleaning systems, scrubbers, and ballast water treatment plants are expected to surge. Leading manufacturers are collaborating with small companies to provide one-stop solutions for retrofits. New technologies such as battery hybrid systems, shore power connectivity, and digitization solutions are being integrated into retrofit packages. Emerging areas like air lubrication and air emissions monitoring also open up opportunities.

Analyst Opinion (Expert Opinion)

• The marine engineering market is expected to see steady growth in the coming years driven by increasing global seaborne trade and expansion of offshore oil and gas rigs. Rising shipbuilding activities around the world especially in Asia Pacific and Middle East will create substantial demand for marine equipment and solutions. Growing awareness about need for automation and unmanned vessels to enhance safety and efficiency presents opportunities for companies involved in development of autonomy and related technologies.
• Strict environmental regulations regarding emission cuts from marine engines open up prospects for manufacturers of eco-friendly engines, fuel systems and ballast water treatment systems. However, volatility in oil prices remains a key challenge affecting investment appetite in offshore exploration projects. Geopolitical tensions and protectionist moves by certain nations can dampen cross border movement of goods and services. The need for upgrading aging fleets provides opportunities for marine original equipment manufacturers and service providers. Ship owners' focus on reducing operational costs through optimization of fuel consumption and maintenance works in favor of digitalization solutions.

Market Segmentation

•  Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Mechanical Engineering
  • Electrical Engineering
  • Computer Science
• Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Boats
  • Ships
  • Oil Rigs
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Shell
  • Petrobas
  • Pttep
  • Conocophilips
  • Chevron
  • Samsung Heavy Industries
  • Exxon Mobil
  • Equinor
  • DSME
  • HUI