Marine propulsion engines are used in various marine vessels like cargo ships, tankers, passenger ships, defense vessels, and others. These engines offer advantages like high power capacity, low operation and maintenance costs, reliable performance in all weather conditions, fuel efficiency, and emission control.
The global marine propulsion engine market is estimated to be valued at US$ 34.62 Billion in 2024 and is expected to exhibit a CAGR of 3.9% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the marine propulsion engine market are Caterpillar Inc., Cummins Inc., Daihatsu Diesel Mfg. Co. Ltd, Hyundai Heavy Industries Co. Ltd, MAN SE (Man Diesel & Turbo), Mitsubishi heavy Industries Ltd, Rolls-Royce PLC, Scania and Wartsila and Yanmar Co. Ltd. These players are focused on developing advanced technologies to reduce emissions and improve fuel efficiency of engines.
Growing international trade has increased the demand for cargo ships and tankers which is driving the marine propulsion engine market. The rising seaborne trade volumes of petroleum products, LNG, iron ore, grains and other bulk commodities are fueling the demand for marine propulsion engines in commercial vessels.
Regional expansions and partnerships allow marine propulsion engine manufacturers to access new markets. For instance, in 2021, Caterpillar partnered with Keppel Offshore & Marine to supply marine engines to offshore vessel operators in Southeast Asia. Rolls-Royce also announced plans to expand its propulsion capabilities in South Korea through local partnerships.
Market key trends
One of the major trends in the Marine Propulsion Engine Market Demand is the shift towards lower carbon fuels. Strict environmental regulations aimed at reducing maritime emissions are pushing ship owners and operators to use cleaner fuels like liquefied natural gas (LNG), biofuels and hydrogen-based fuels. This is prompting engine manufacturers to develop dual-fuel and gas engines optimized for alternative fuels. The focus on utilizing renewable fuels supports the global decarbonization efforts and makes the shipping industry sustainable in the long run.
Porter’s Analysis
Threat of new entrants: The marine propulsion engine market requires high capital investments and has economies of scale, thereby posing significant barriers for new players to enter. However, new technologies are lowering entry barriers.
Bargaining power of buyers: Individual buyers in the marine propulsion engine market have low bargaining power due to the specialized nature and performance requirements of the engines. However, larger fleet owners have higher bargaining power.
Bargaining power of suppliers: The market has a concentration of suppliers, giving them moderate bargaining power over components and technologies. However, engine OEMs can choose from multiple component suppliers globally.
Threat of new substitutes: While alternative fuels are emerging, marine propulsion engines currently have no cost-effective substitutes. Hybrid engines are a potential threat but are yet to scale significantly.
Competitive rivalry: The market space is highly competitive with product differentiation and superior performance determining competitive advantage. Pricing wars are common among established brands.
Geographically, North America dominates the marine propulsion engine market in terms of value. This is attributed to the large commercial and offshore fleet sizes in countries like the US. Key application sectors driving demand include freight & passenger transportation, offshore oil & gas, and military & defense.
Asia Pacific is projected to be the fastest growing regional market during the forecast period. This is due to the rising maritime trade and coastal security spending in countries such as China, Japan, and India. Fleet modernization programs across domestic and international commercial vessel owners are further boosting the APAC marine propulsion engine market.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
About Author - Money Singh
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