Acumen research and consulting estimates that the global marine propulsion systems market is anticipated to reach market size of around US$ 12,000 Mn by 2027 and is anticipated to grow at a CAGR of around 3% in terms of revenue during the forecast period 2020 – 2027.
The demand of marine propulsion engines is gaining major momentum by driving the world's most large container ships. Over time, foreign trade has expanded enormously due to the cost-effectiveness of maritime transport. A fast, cleaner and fuel efficient engines are needed in the market for marine propulsion engines. The International Maritime Organization (IMO) has drawn up a new law that the sulfur level in marine fuel has fallen to 0.5%, compared with 3.5%. It is expected that this latest law will slash ship emissions by 77%. This has culminated in low-sulphur fuels like Marine Gas Oil by ship-owners and has motivated the need to electrify sea ships.
Global markets are increasing substantially and the foreign exchange is rising. Seaborne ships perform an significant part in foreign commerce by aiding in the shipment of bulk goods. The use of ships to carry commercial goods has several benefits, the most prominent being fuel consumption. In addition, this leads to a reduction in CO2 levels, CO2 emissions, arsenic oxides and nitrogen oxides. Furthermore, ships would be deemed a better option, since there are limited risks of serious crashes relative to lorries and trains. The growth, along with the rise of developed countries in ships construction and related operations, of commercial shipping demand and value for seaborne trading would therefore boost demand for marine propulsion motors during the forecast period.
IMO 2020 compliant fuels, alternate fuels and electrifications
IMO 2020 intends for ship oils to reduce sulphur from 3.5% to 0.5%. Ships must move to low-sulfur alternatives, including Marine gas oil (0.1% to 1% of sulfur), Marine diesel oil (0.1% to 1.5% of sulfur), Low-sulphur fuel oils (0.55% of very-low sulphur fuel oil (VLSFO) and 0.10% of Ultra-low sulphur fuel oil (ULSFO)), among others. For ships with double generators, methanol can be used as substitute gasoline. While methanol represents nearly 0 percent of SOx emissions, high greenhouse gases can be generated. Methanol, because of its low energy content, is a corrosive fuel that requires more room to transport. In the rail, passenger and ferries market, methanol provides a strong potential prospect.
Growing Requirement for Water Transport to Push Marine Propulsion Systems Market Forward
One of the key factors contributing to the growth of the marine propulsion systems market is anticipated to be the growing use of heavy duty ships for logistic transportation, especially following a rapid growth in the e-commerce industry. High development is also anticipated in post-market services like repair and servicing due to the ongoing maintenance needs of heavy duty engines. The demand of marine propulsion systems is also projected to dramatically improve the increasing maritime security requirements of countries around the world. The fact that shipping by sea is not always possible for international shipping is becoming important for trade as a transport option. However, higher shipping costs of air freight are projected to lead in the short term to the development of marine shipping and the demand for marine propulsion systems.
Europe, the USA, and Asia-Pacific, owing to its good infrastructure and proximity to high levels of technological competence within these countries, are projected to be the main suppliers of the marine propulsion systems. The North American demand for maritime propulsion systems is projected to grow at a slightly higher pace as the number of millionaires and billionaires is dramatically expanded by over 100 percent over the next five years. The rising demographic of incredibly rich people is expected to buy luxury yachts and vessels, thereby improving the North American maritime propulsion systems. One of the key reasons contributing significantly to the markets of marine propulsion systems across Asia Pacific and North America are the steady increase in modernization and foreign trade due to comparatively decreased marine transport costs in comparison to air transport systems.
Major players included in this report are Volvo Penta, Wärtsilä, Man Energy Solutions, Rolls Royce, Caterpillar, GE Transportation, Cummins, Dresser-Rand Group, John Deere, Brunswick Corporation, and others. In order to satisfy the globally negotiated requirements, continuing R&D, product growth, inventions and partnerships foster industry developments. Manufacturers participate in M&As and partnerships to create opportunities with regional and global vendors. In addition, key players in the sector emphasize retroactively applied technology , which enables quality standards to be preserved and the business landscape to achieve a competitive benefit.
The global marine propulsion systems market is segmented as below:
Marine Propulsion Systems Market By Product
Wind & Solar
Marine Propulsion Systems Market By Power
Below 1,000 HP
Above 20,000 HP
Marine Propulsion Systems Market By Technology
Marine Propulsion Systems Market By Propulsion
Marine Propulsion Systems Market By Application
Marine Propulsion Systems Market By Geography
Middle East & Africa
The market value of marine propulsion systems is anticipated to be around US$ 12,000 Mn in 2027.
It is anticipated to grow around 3% CAGR amid the forecast period 2020 to 2027
Asia Pacific held maximum share in 2019.
Asia Pacific is projected to grow at a fast pace during forecast period from 2020 to 2027
Technological advancement is expected to drive the growth of the marine propulsion systems market.
Stringent government regulations is a major factor expected to restraint the growth of the market.
Volvo Penta, Wärtsilä, Man Energy Solutions, Rolls Royce, Caterpillar, GE Transportation, Cummins, Dresser-Rand Group, John Deere, Brunswick Corporation, and others are the prominent players in the marine propulsion systems market.