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

Marine Engineering Market Size and Trends

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.

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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.