Global Marine Propulsion Engine Market Growth is Driven by Rising Water Transportation and Increasing International Sea-borne Trade
The Global Marine Propulsion Engine Market is estimated to witness high growth owing to rising water transportation and increasing international sea-borne trade. The Global Marine Propulsion Engine Market is estimated to be valued at US$ 34.62 Billion in 2024 and exhibit a CAGR of 3.9% over the forecast period 2024-2031. Furthermore, growing adoption of fuel-efficient and low-emission engines is also driving the market growth.
Market Dynamics:
The growth of the global marine propulsion engine market is driven by increasing international seaborne trade activities as well as expansion of global fleet. International seaborne trade volumes have grown consistently over the past few decades on account growing globalization and international collaboration. Approximately 80-90% of global trade by volume is carried over international waters. This growing volume of international sea-borne trade is increasing the demand for ships and vessels, which is driving the demand for marine propulsion engines for new shipbuilding activities. Additionally, the aging global fleet also contributes to the replacement demand for marine propulsion engines. Stringent environmental regulations regarding emission from ships and vessels have also accelerated the replacement of old engines with new fuel-efficient and low-emission compliant engines. This is positively impacting the growth of the Global Marine Propulsion Engine Market.
Increasing Shipbuilding Activities Driving Demand for Marine Propulsion Engines
With expansion of global trade through sea routes and rising demand for transportation of goods through ships and vessels, shipbuilding activities have increased significantly worldwide in the past decade. The global order book of new commercial vessels reached historic high levels in 2017-2018, driven by container vessels, tankers, bulk carriers and other cargo ships. This increase in new ship construction is a major driver for demand of marine propulsion engines that are required to power these newly built vessels. Shipbuilding yards globally have recorded higher new orders from shipping lines to support their fleet expansion plans. As per industry estimates, over 2000 new ships are delivered annually which is driving the demand for efficient and reliable marine propulsion solutions.
Growth in Cruise Shipping Sector Augmenting Market Growth
The global cruise industry has grown tremendously over the past 10 years, attracting millions of passengers annually. Major cruise lines have expanded their fleet size as well as embarked on new capacity addition projects. For instance, top global operators Carnival Corporation and Royal Caribbean International have massive new build programs consisting of ultra-luxury cruise ships through 2025. Each new cruise ship has an average engine power requirement of 25-70 MW depending on size and propulsion technology. Therefore, the cruise shipping sector has emerged as a key growth avenue for marine propulsion engine manufacturers.
Stringent Emission Regulations Restricting Marine Engine Adoption
Marine engines have conventionally utilized heavy fuel oil (HFO) due to its availability and cost benefits. However, burning of HFO results in significantly higher harmful emissions such as sulfur oxides (SOx), nitrogen oxides (NOx) and particulate matter compared to standard diesel fuels used on land. In view of this, marine regulators such as IMO have imposed stringent emission control areas (ECA) to curb air pollution from ocean-going vessels. The new IMO 2020 global sulfur cap effectively bans the use of HFO and mandates a maximum 0.5% sulfur content in marine fuels worldwide. This major policy shift has challenges around availability and higher pricing of compliant fuels. Ship owners face significant compliance costs which discourage fresh investments in marine engines currently.
Lack of Infrastructure Hindering Alternative Fuel Uptake
While strict emission norms are promoting the use of cleaner marine fuels, lack of adequate infrastructure remains a key challenge. Alternative fuels like liquefied natural gas (LNG), liquefied petroleum gas (LPG), biofuels and others require development of bunkering terminals, storage facilities and refueling infrastructure globally. Only a handful of ports currently offer LNG bunkering and biofuel supply is limited. Setting up infrastructure for alternative fuels at scale demands massive long-term investments from both public and private sector players. This infrastructure gap is restricting the widespread adoption of advanced emission-compliant fuel technologies, thus limiting marine engine sales as well.
Emergence of LNG as Marine Fuel Presenting Lucrative Opportunities
LNG is gaining prominence as a cleaner marine fuel alternative with lower or zero sulfur content. It emits less carbon, NOx and particulate emissions compared to conventional fuels. The global LNG bunkering infrastructure is expanding with new terminals coming up in major ports across Europe, Asia and Americas. Ship owners are increasingly opting for LNG fueled vessels to comply with stringent norms. Major classification societies have approved dual-fuel engine designs running on LNG. Engine makers are launching specialized LNG engine portfolio to tap into new shipbuilding demand. In future, LNG is projected to account for over 30% of global marine fuel demand, creating vast prospects for gas-compatible marine propulsion systems.
Rising Adoption of Hybrid and Scrubber Systems Opening New Avenues
In response to tightening emission norms, ship owners are turning to advanced solutions like battery hybrid propulsion systems and exhaust gas scrubbers. Hybrid systems integrate energy storage such as battery packs to boost main engine efficiency while reducing emissions. They are gaining popularity for short-sea cargo vessels, ferries and offshore supply vessels where frequent stop-start operations occur. In contrast, scrubber installations clean the exhaust fumes of sulfur pollutants, allowing ships to continue burning cheaper HFO complaint with ECA regulations.
Link: https://www.coherentmarketinsights.com/market-insight/marine-propulsion-engine-market-5262
Key Developments:
- In October 2022, Volvo Penta, a leading global manufacturer of engines for marine and industrial applications, announced a partnership with CMB.TECH, a cleantech firm specializing in hydrogen solutions. This collaboration seeks to develop dual-fuel hydrogen-powered solutions for both marine and land applications, emphasizing pilot projects and small-scale industrialization to improve access to technologies that lower greenhouse gas emissions.
- In September 2022, MAN Energy Solutions SE, a leading provider of large-bore engines and marine solutions, launched its new MAN 49/60 engine family at the SMM Trade Fair in Hamburg, Germany. This four-stroke dual-fuel engine is engineered to run on LNG, diesel, heavy fuel oil, biofuels, and synthetic natural gas. The company highlights that this engine marks a significant advancement towards achieving cleaner maritime transportation.
- In September 2022, Wärtsilä Corporation, a global leader in smart technologies and lifecycle solutions for the marine and energy sectors, unveiled its inaugural ammonia-powered marine engine, the Wärtsilä 25. This medium-speed, four-stroke engine is built upon Wärtsilä's modular platform technology and provides vessel owners and operators with enhanced fuel efficiency and substantially lowered greenhouse gas emissions.
- In May 2021, Hindustan Aeronautics Limited (HAL), a state-owned aerospace and defense company in India, and Rolls-Royce, a British multinational engineering firm known for its power systems, signed a Memorandum of Understanding (MoU) to enhance support for the installation, packaging, marketing, and servicing of Rolls-Royce's MT30 marine engines in India. This collaboration marks the first occasion that both companies will partner in the marine applications sector.
Key Players:
ABC Marine, Caterpillar Inc., Cruise Automation, Doosan Engine, GE Marine, MAN Energy Solutions, Mitsubishi Heavy Industries, Rolls-Royce Holdings plc, Samsung Heavy Industries, Wärtsilä Corporation, MTU Friedrichshafen GmbH, Hyundai Heavy Industries, Kawasaki Heavy Industries, Siemens Marine, and Yanmar Holdings Co., Ltd.
