MARINE ENGINEERING MARKET Challenges and Opportunities

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.