Marine Fuel Management Market: Snapshot
Marine fuel management is an approach to measure, monitor, and report fuel usage of vessels/ships/boats in order to reduce fuel usage, improve fleet management, reduce emissions, and increase operational efficiency. Marine fuel management systems assist in providing accurate information about the amount of fuel oil used during combustion at any particular vessel speed or engine rpm. The ship’s crew can continuously measure and monitor the fuel. A continuous measuring system helps in measuring the fuel combustion rate or the amount of fuel required by an engine at a particular rpm in an hour or in one full day. Prime functions of marine fuel management systems include protection against fluctuations and shortages in fuel supply, fuel purchases in bulk quantity, closer visibility and control of fueling costs, reduced fuel theft through higher visibility, and increasing vessel efficiency.
Crude Oil to Make an Impact on Marine Fuel Management Market
The global marine fuel management market is estimated to expand at a rapid pace, driven by rise in fuel oil prices and stringent regulations imposed against vessel emissions and fuel usage. Under the MARPOL Protocol (1997), Sulphur Emission Control Areas (SECAs) or Emission Control Areas (ECAs) are defined, which were established to minimize marine vessel emissions. Amendments were made to this regulation in 2010, wherein the Baltic Sea, the North Sea, the North American ECA (U.S. and Canadian coast), and the U.S. Caribbean ECA were included in ECAs controlling SOx, NOx, ODS, and VOC emissions from marine vessels. Moreover, strict laws against the consumption of natural resources such as crude oil have compelled the fleet owners to use marine fuel oil conservatively. In order to make productive use of marine fuel oil, fleet owners prefer metering and monitoring solutions to gauge the quantity and quality fuel oil. Marine fuel oil prices directly depend upon the prices of crude oil. Fluctuations are observed in prices of crude oil due to imbalance in its supply and demand and the costs associated with its extraction and transportation. Increase in prices of crude oil would imply a rise in prices of marine fuel oil. Soaring prices of marine fuel oil would result in the necessity for efficient fuel management. Thus, escalation in prices of marine fuel oil and stringent regulations against emissions and usage of marine fuel oil are anticipated to drive the marine fuel management market in the near future. The total cost of marine fuel accounts for 60% to 70% of the vessel’s operating cost. Vessel operations include charts, navigational and communication systems, Safety of Life at Sea(SOLAS), MARPOL, and others. Marine fuel management system help compare the amount of fuel taken on board with the actual consumption of each engine or generator. The systems also actively include other factors such as fuel theft detection and illegal transfer, fleet management, viscosity control, and cargo delivery verifications. Monitoring, controlling, and reporting of marine fuel consumption is of key importance to control the total operating cost of a vessel. Adoption of marine fuel management systems results in reduction of overall operation cost of vessel. A paradigm shift in the attitude of fleet owners toward the adoption of marine fuel management systems is anticipated to boost the marine fuel management market. Technological upgrades in marine fuel management solutions are projected to provide lucrative opportunities in the marine fuel management market during the forecast period. However, inconsistent accuracy and security concerns are major restraints in the marine fuel management market. Illicit activity such as fuel theft may result in ecological damage, depriving governments of customs and tax revenues, and active funding of criminal activities. Marine fuel oil that is stolen, adulterated, or fraudulently transferred at some point in its supply chain affects and destabilizes markets and economies. Ineffective security features and imprecise marine fuel management solutions are likely to hamper the marine fuel management market.
Role of International Maritime Organization
Under the International Maritime Organization (Regulation 14), a review was undertaken to assess fuel oil availability, and the fuel oil standard was decided to be 0.50% m/m (effective from 01/01/2020). Henceforth, ship vessels that operate both outside and inside the ECA will operate on different fuel oils in order to comply with the respective limits. Under these circumstances, prior to entering the ECA, the vessel needs to completely operate on ECA compliant fuel and has to undergo a complete change-over to ECA compliant fuel oil while exiting the ECA.
Under International Maritime Organization (Regulation 18), actual sulfur content of the fuel oil that is bunkered is to be monitored and measured. There are methods by which equivalent levels of SOx and particulate matter emissions can be controlled. The primary method avoids the formation of the pollutant and the secondary method removes some degree of pollutants prior to discharging the exhaust gas stream to the atmosphere.
Emerging Economies Dominating the Marine Fuel Management Market
In terms of revenue, Europe and Asia Pacific are the leading regions of the marine fuel management market. Globally, oil and gas prices are expected to rise at a moderate pace. The Asia Pacific region is expected to exhibit highest growth of more than 4% CAGR for the forecast period. This trend is likely to be followed by the Middle East & African region during the forecast period. In terms of market capitalization, Europe and Asia Pacific region are market leaders and are expected to follow the trend during 2016-2025. The fuel monitoring segment is expected to expand at a rapid pace, especially in developing economies of APAC and MEA. The fleet management segment is projected to expand at a rapid pace due to rise in awareness among the fleet owners and increase in adoption rate of fuel management systems. In terms of country, the market in China, Singapore, Brazil, and Mexico are is expected to expand at a significant CAGR on account of movement of fleets, fleet size, fuel consumption, and trading activities in these regions during the forecast period.
Leading Players Focusing on Geographical Expansion
Key players profiled in the marine fuel management market include ABB, Aquametro AG, Banlaw Systems Ltd., Bergan Blue, BMT Group, DNV-GL AS, Emerson, Endress+Hauser Management AG, Eniram, Interschalt Marine Systems GmbH, Kaminco, Krill Systems, Inc., Marorka, Mustang Technologies, Nautical Control LP, and Siemens AG. Increase in production capacities and geographical expansion along with upgrades in their existing solutions and offering are the strategies implemented by major players.
Marine Fuel Management Market: Overview
Marine fuel management is an integrated approach to measure and monitor the consumption of marine fuel in vessels and ships. The primary functions of marine fuel management systems are optimizing fuel usage, improving fleet management, reducing emissions, and increasing the operational efficiency of the vessel. Asia Pacific and Europe are the major regions of the marine fuel management market. Asia Pacific is a rapidly expanding region on account of rise in demand for marine fuel management solutions due to significant movements of fleet, large fleet size, high fuel consumption patterns, and high trading activily in this region. The monitoring segment is anticipated to expand at a rapid pace owing to the increase in fuel oil prices and stringent laws imposed by the regulating bodies against vessel emissions and fuel usage.
This report analyzes and forecasts the market for marine fuel management at the global and regional level. The market has been forecast based on revenue (US$ Mn) from 2017 to 2025. The study includes drivers and restraints of the global marine fuel management market. It also covers the impact of these drivers and restraints on demand for marine fuel management during the forecast period. The report also highlights opportunities in the marine fuel management market at the global and regional level.
The report comprises a detailed value chain analysis, which provides a comprehensive view of the global marine fuel management market. Porter’s Five Forces model for the marine fuel management market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and general attractiveness.
Marine Fuel Management Market: Segmentation
The study provides a decisive view of the global marine fuel management market by segmenting it in terms of process and application. These segments have been analyzed based on present and future trends. Regional segmentation includes the current and forecast demand for marine fuel management in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers demand for individual process and application segments in all the regions.
The study includes profiles of major companies operating in the global marine fuel management market. Key players in the marine fuel management market include ABB, Aquametro AG, Banlaw Systems Ltd., Bergan Blue, BMT Group, DNV-GL AS, Emerson, Endress+Hauser Management AG, Eniram, Interschalt Marine Systems GmbH, Kaminco, Krill Systems, Inc., Marorka, Mustang Technologies, Nautical Control LP, and Siemens AG. Market players have been profiled in terms of attributes such as company overview, overall revenue, business strategies, recent developments, and SWOT analysis. The report comprises indications regarding the market position, offerings, R&D focus, top line growth, market share, segment growth, infrastructure facilities, and future outlook for top players in the market.
The report provides the estimated market size of marine fuel management for 2016 and forecast for the next eight years. The global market size of marine fuel management has been provided in terms of revenue. Market numbers have been estimated based on process and application segments of marine fuel management market. Market size and forecast for each major process and application have been provided in terms of global and regional market.
The report segments the global marine fuel management market as follows:
Marine Fuel Management Market: Process Analysis
Marine Fuel Management Market: Application Analysis
- Fuel Consumption
- Efficiency Level
- Fleet Management
- Viscosity Control
Marine Fuel Management Market: Regional Analysis
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa