Marine Engine Market Size (2024 – 2030)

The Marine Engine Market was valued at approximately USD 12.49 billion in 2023 and is projected to reach a market size of USD 16.27 billion by the end of 2030. Over the forecast period of 2024-2030, the market is estimated to grow at a CAGR of 3.85%. 

A Marine Engine is a heat engine utilized to transform the heat produced by burning fuel into useful work, that is, to develop thermal energy and transform it into mechanical energy. These engines are extensively set up in numerous applications, such as cruise and ferries, marine ships, offshore, industrial & small-scale fishing tasks, military and government boats, and more. Maritime transport vessels are one of the primary sources of Greenhouse Gas (GHG) emissions. Furthermore, the development of several technological modernisations over the past few years has led to the creation and development of special engines, majorly improving the market for these engines. Additionally, the market is also observing huge demand for clean and efficient electricity generation technology, which is further dedicated to the overall development of the market. Hence, these elements will add to promoting market growth in the future years.

Key Market Insights:

• Maritime transport is significant for international trade. The key transport mode for global trade is ocean shipping, and according to the UNCTAD, approximately 80% of the volume of international trade in goods is carried by ocean, and the percentage is even greater for most developing nations. This channel of transport is cost-effective and more feasible for international trade than road, rail, and air transport.

• The IMO facilitated amendments to Annex VI of the MARPOL Convention, which initiated new compulsory regulations to further lower the greenhouse gas emissions from shipping and need owners to set energy efficiency goals

• As per the United Nations Conference on Trade and Development (UNCTAD), merchant ship operations contribute roughly USD 380 billion in freight charges within the world economy, which is equivalent to about 5% of total world trade. The widening seaborne trade has expanded the scope of shipping containers across the world.

Marine Engine Market Drivers:

Modern Marine Engine facilitates flexibility in fuel source

The flexibility in the fuel type utilised for marine propulsion is a major advantage of modern engine systems for the marine industry. This fuel acts as a budget-friendly measure for marine propulsion, lowers greenhouse gases, and keeps them within restrictions. Dual-fuel or tri-fuel marine engines are gaining significance in newly built vessels. Such engines are future-ready and can rapidly adapt to the modifications in rules and regulations relating to marine emissions.

The trend in the shipping and boating sector has transformed toward minimising GHG emissions, mainly owing to environmental factors. The gas carriers use natural gas as fuel and give out the least amount of sulfur oxides and nitrogen oxides. The number of oil tankers, bulk carriers, usual cargo ships, and container vessels is steadily rising and boosting the growth of this market.

Gas-based Marine Engine getting enhancing demand

Natural gas is one of the purest types of fuel available to boost ships and boats. Natural gas-based engines are applied dominantly in gas carriers. Even though the storage and handling of on-board natural gas are tough, the burning of natural gas gives out lower quantities of sulfur oxides and nitrogen oxides, which come under the emission norms. Propane-based marine gas engines are becoming more famous for small vessels, yachts, and others. To restrict sulfur emissions, from 1 January 2020, the International Maritime Organization (IMO) controls the use of fuel that constitutes less than 0.5% sulfur or the installation of scrubbers or equivalent technology to decrease net sulfur emissions. The market dynamics have influenced the research, development, and demonstration of substitute technologies for marine.

Marine Engine Market Restraints and Challenges:

Transformation to Clean Energy Technologies coupled with Strict norms

Several regional governments and organizations have put up vast objectives to invest in green energy technologies, such as solar, hydro, wind, and many others, to lower dependency on fossil fuels. For example, MARPOL Annex VI guidelines established the limits for NOx emissions and mandated the usage of fuels with low sulfur components. These guidelines are to be applied to vessels and ships trading in U.S. waters as well as within 200 nautical miles of North America's coast. The adherence of various countries to exceed the needed objectives is likely to affect the market pace.

Additionally, stringent norms launched by numerous administrations to reduce the usage and emission of harmful substances from different sources may disturb the industry's size. These laws can additionally result in surplus expenditure as they may throw away the usage of prevailing metals and demand for a replacement in machinery components.

Marine Engine Market Opportunities:

Growth of E-Commerce and Online trade

The pandemic saw a transformation in the way consumers bought goods. The pandemic has escalated the shift away from physical stores to digital shopping by around five years. Consumers sought a secure way to cater to their requirements, which resulted in a sharp spike in online retail sales activity. The demand for trade is welcome, but it is expanding at such a rate and scale that shipping services and port operations are usually not able to keep up, resulting in logistical bottlenecks. The whole industry is facing shortages of shipping capacity, containers, and other devices. Lowering logistical challenges and supply chain uncertainties is important for retailers to hold more inventory in hand. Resultantly, e-commerce fulfillment is offering new business opportunities to maritime trade, consisting of shipping, warehousing, and distribution facilities at seaports. Maritime transport, especially at a world scale, is more feasible and cost-effective compared to air, rail, and road transport. This trend of development in e-commerce has also escalated digitalization in the marine sector. The growth of e-commerce and online trade is, therefore, anticipated to boost maritime trade and the demand for vessels, which, in turn, will offer an opportunity for the growth of the marine engines market.

MARINE ENGINE MARKET REPORT COVERAGE:

Marine Engine Market Segmentation: By Ship Type Analysis

• Oil tankers

• Bulk carriers

• General cargo ships

• Container ships

• Gas carriers

• Chemical tankers

• Support Vessels

• Ferries & Passenger ships

• Others

The Gas carrier segment is estimated to dominate at the greatest CAGR during the future period. The Shipping industry is aiming at minimising GHGs, and gas carriers result in the least amount of sulfur oxides and nitrogen oxides, which is leading to segment growth.

The lifeline of world trade and economy are oil tankers, bulk carriers, general cargo ships, and container ships. Any disturbance in the function of these ships adversely affects the trade and economy. Support vessels are utilized in every port and are mainly for the operations of several offshore oil & gas facilities.

Marine Engine Market Segmentation: Based on Capacity

• 0 – 10000 HP

• 10000 – 20000 HP

• 20000 – 30000 HP

• 30000 – 40000 HP

• 40000 – 50000HP

• 50000 – 60000 HP

• 60000 – 70000 HP

• 70000 – 80000 HP

• 80000 – 90000 HP

• 90000 – 100000 HP

• 100000 – 110000 HP

• Greater than110000 HP.

The 0-10000 HP segment dominates the global market as an impact of the modularity of smaller-capacity engines. They are readily approachable in stock and can be personalized as per requirement. The large-capacity engines are manufactured to order and are not readily available in stock. Large ships modify their engines to increase efficiency and lower operating costs.

Marine Engine Market Segmentation: By Fuel Analysis

• Heavy fuel oil

• Intermediate fuel oil

• Marine diesel oil

• Marine gas oil

• LNG

• Others

The LNG segment is estimated to develop at the greatest CAGR during the future period. The LNG is one of the purest fuel types available to drive ships and boats. The burning of LNG emits the lowest quantities of sulfur oxides and nitrogen oxides, which are under emission regulations. Competitive pricing, integrated with lowered carbon emissions in commercially viable regions, is one of the primary factors adding to the segment growth.

The Heavy fuel oil segment is anticipated to be dedicated majorly during the estimated period. The development of the heavy fuel oil segment is credited to its usage in medium- and low-speed engines in this market.

Marine Engine Market Segmentation: By Speed Analysis

• High speed

• Medium speed

• Low speed

The low-speed engine segment holds a dominant market share and is anticipated to grow at the greatest CAGR over the future years. These engines are majorly used in large-capacity ships. Low-speed engines offer high torque and power to drive the ship forward. These variants are tailor-made to order and not readily obtainable in stock. Some variants of medium-speed engines are readily approachable in stock and can be set up in ships and boats with very low lead time.

Marine Engine Market Segmentation: Based on Stroke

• Two-stroke

• Four-stroke

• Others

Two-stroke engines held the dominant market share in 2023 and are estimated to dominate the market. These engines are large-sized with low speed. They power super-tankers and ultra-large ships involved in trade. Two-stroke engines are not chosen for small-capacity installations as they enhance emissions of GHGs as compared to four-stroke engines.

Marine Engine Market Segmentation: By Region

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Asia Pacific currently leads the world market and is expected to lead during the forecast period. Asia Pacific is the manufacturing hub of the world, and the majority of items, including machinery and electronics, are sent across to different places in the world through marine transportation. China, the Republic of Korea, and Japan maintained their traditional dominance in shipbuilding industries in 2023. Each nation specializes in different shipping segments.

COVID-19 Impact Analysis on the Marine Engine Market:

The COVID-19 outbreak compelled governments across the globe to implement strict lockdown measures and ban the import and export of significant raw materials for most of 2020 and a few months in 2021. This situation resulted in a sudden fall in supplies of important raw materials for this market. Owing to disturbances in supply chains and production schedules caused by the COVID-19 pandemic, vessel and engine manufacturers suffered major losses. Moreover, the nationwide lockdown forced component factories to partially or completely shut down their activities.

Latest Trends:

International marine freight transport is strengthening

International trade relies heavily on maritime transportation. Boats, engine-driven boats, and other like vehicles are all segmented as marine vehicles and utilize marine engines. Marine vehicles can be applied for commercial, security, or private objectives. Ocean shipping is the key form of transportation for international trade. As per the UNCTAD, roughly 80% of the volume of goods traded internationally are moved by water, with the percentage being much higher for most emerging countries. Compared to air, train, and road transportation, this means of transportation is more cost-effective and practical for international trade. From 2024 to 2030, the world's marine engines are expected to develop at a modest annual pace. As per the market dynamics, similar tendencies might be experienced in the strengthening of the world marine engines sector. Owing to the release of pent-up demand and restocking and inventory gathering, maritime commerce recovered in 2023.

Key Players:

1. Caterpillar Inc. (U.S.)

2. Cummins Inc. (U.S.)

3. Hyundai Heavy Industries (South Korea)

4. Man Energy Solutions (Germany)

5. Mitsubishi Heavy Industries (Japan)

6. Honda Motors Co. Ltd. (U.S.)

7. Wartsila (Finland)

8. Kongsberg (Norway)

9. Mahindra Powerol (India)

10. General Motors (U.S.)

Recent Developments

• April 2022: Cummins Inc. launched a new X15 marine engine, which is a fuel-efficient and budget-friendly engine to meet protection standards for the company's ABS, BV, RINA, and DNV certifications. This latest engine has a power varying 450– 600 HP (336 – 447 kW), providing the largest power density for continuous uses in its segment, with a weight of 1724 kg (3800 lbs).

• July 2023: Marine Overhaul Service Solutions was launched by Cummins Inc. in South Asia and other countries like Singapore, Malaysia, Philippines, and Indonesia, from Papua New Guinea, Australia, New Zealand, and the Pacific Islands. This service solution targets to better their fleet performance and keep up a competitive edge in this thriving maritime landscape. This latest product provides modern engine overhaul services with a flexible range and competitive costs to be apt to all budgets for vessels equipped with Cummins Model K19M/D, K38M, and K50M.

• July 2023: Hyundai HD Heavy Industries made it public about the growth of a mid-sized engine for ammonia-powered ships utilising its technology and know-how by the end of the upcoming year. The Organisation will develop, manufacture, and deliver such engines in collaboration with MAN Energy Solutions from Germany and Winterthur Gas & Diesel, also called as WinGD, from China.