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Marine Propulsion Market – Snapshot

Marine propulsion is a mechanism or system used to generate thrust to move a ship or boat across water. The setup of a propulsion system depends on the vessel size, transport system, and type of operation. Diesel electric propulsion system is employed in specialized vessels such as offshore support vessels and some cruise vessels. Coastal waterways constitutes major share of the marine propulsion market. Offshore support vessels primarily use diesel oil during diving, crane, or other critical operations. Engines of offshore support vessels can operate on either heavy fuel oil or diesel oil. Diesel propulsion system is a commonly used marine propulsion system that converts mechanical energy from thermal forces. Diesel propulsion system is employed in almost all types of transports such as inland waterways and coastal waterways. These engines can operate on either heavy fuel oil or diesel oil.

Rise in investments in marine propulsion systems owing to increase in global seaborne trade

Marine ecosystems have become a viable route due to the year-on-year increase in cross-border trading activities. Demand for marine propulsion systems in inland as well as coastal/cross-border waterways has risen significantly. Growth in trade via the marine route and increase in demand for fuel-efficient systems are expected to propel the demand for marine propulsion systems in the next few years. Investment influx in the development of existing shipping facilities across the world is also driving the market for marine propulsion Rise in cross-border trade activities through marine sub-waters is likely to boost the demand for marine propulsion systems in the near future.

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Shift from low fuel efficient to better fuel efficient marine propulsion systems

Implementation of strict regulations around the Emission Control Areas (ECA) across the globe has triggered investment in marine hybrid propulsion systems. Stringent regulations pertaining to carbon emissions and oil spillage have augmented investments in the development of fuel-efficient marine propulsion systems. Better fuel-efficient marine propulsion components such as generator and motors are being developed by companies operating in the business. Various ship operators are utilizing renewable energy (including solar energy) as storage option in hybrid propulsion systems. Stored solar energy is used during peak hours or at night in marine propulsion systems. This eliminates the round-the-clock need for conventional marine fuel. Hence, a shift toward usage of hybrid propulsion units is estimated to take place in the near future. Furthermore, governments of several countries are funding and supporting development and adoption of the latest technology in marine propulsion systems.

Volatility in prices of crude oil coupled with stringent regulations related to marine fuel emissions would cause diesel-based marine propulsion to lose share

Diesel is the preferred fuel for marine transport. Its price is directly proportional to the price of crude oil. Volatility in prices of crude oil has resulted in a switch from diesel to other propulsion systems. The relatively low price of natural gas and LNG compared to diesel in North America and Europe has attracted investments in LNG infrastructure in these regions. Thus, diesel-based marine propulsion system is projected to lose share during the forecast period owing to the shift toward cleaner fuel and efficient marine propulsion systems. Hybrid and renewable power based new/converted marine fleet is likely to expand at a higher growth rate during the forecast period.

Developments & innovations in terms of product and technology in marine propulsion market

In January 2018, Fairbanks Morse Engine, an EnPro Industries company, was awarded a contract by the U.S. Navy Department for the manufacture and delivery of main propulsion diesel engines (MPDEs). It aims to power LPD 29, which is the U.S. Navy’s 13th San Antonio landing platform dock (LPD) class ship. In August 2017, AB Volvo Penta launched the Volvo Penta D13 1000 marine leisure engine. The newly manufactured leisure engine is highly powered and can also be installed in larger yachts with length of up to 120 feet. In July 2017, AB Volvo Penta acquired Seven Marine LLC, a Germany-based manufacturer of outboard motors. The move is anticipated to help AB Volvo Penta expand its business in the marine sector. In January 2018, Wärtsilä Corporation signed a memorandum of understanding (MoU) with Petrocity, the parent company of the new port facility under construction in São Mateus-ES, Brazil. The company has developed HYTug design with hybrid propulsion that can meet stringent environmental requirements of the new port. In March 2018, Rolls-Royce Plc.’s latest generation of MTU-series 4000 engines equipped with the SCR system for ships successfully completed IMO Tier-III certification tests. This is expected to enhance the company’s footprint in Europe and help reduce NOX emissions in the environment.

Asia Pacific to grow at a fast pace in terms of demand for marine propulsion systems

Currently, Europe and North America are the key markets for marine propulsion systems. However, Asia Pacific is estimated to emerge as one of the prominent markets for this technology. Highly environment-conscious Europe and North America are projected to lead the global marine propulsion market in the near future. On the other hand, the market for marine hybrid propulsion systems in Asia Pacific is still not as developed as that in North America and Europe. Towage and vessel operators providing services in these regions region are gradually shifting from conventional diesel to hybrid propulsion systems. Numerous attractive technologically advanced models are expected to be introduced in the near future. The marine propulsion market is projected to witness a large number of collaborations between vessel operators and technology developers during the next few years.

Highly competitive market with dominance of top players

The global marine propulsion market is a highly competitive. Leading players dominate the market. Key players operating in the marine propulsion market are Cummins Inc., Caterpillar Inc., AB Volvo Penta, BAE Systems, Wärtsilä Corporation, Rolls Royce Plc., Niigata Power Systems Co., Ltd., Fairbanks Morse Engine, Masson-Marine S.A.S., GE, STEYR MOTORS GmbH, MAN Diesel & Turbo SE, and Torqeedo GmbH.

Marine Propulsion Market – Overview

Marine propulsion is a mechanism or system used to generate thrust to move a ship or boat across water. The setup of a propulsion system depends on the vessel size, transport system, and type of operation. Diesel marine propulsion system is a common type of marine propulsion system. The segment constitutes more than 46% share of the global marine propulsion market. Diesel marine propulsion systems are used in almost all types of vessels such as mall boats, ferries, defense vessels, and recreational vessels. In full electric marine propulsion systems, the engine is directly connected to the generator. Full electric marine propulsion enhances the overall efficiency of the vessel and also reduces the carbon footprint. Full electric marine propulsion system consists of a series of motors and generators. Electric power is transmitted from the engine to the propeller shaft through the motor controller and electric motor.

Implementation of stringent regulations related to minimization of harmful carbon emissions has propelled the demand for advanced propulsion systems. Increase in seaborne trade has resulted in spillage of marine fuel in the marine ecosystem. Therefore, governments of several countries are funding and supporting development and adoption of the latest technology in marine propulsion systems.

Several firms are actively developing fuel-efficient marine propulsion systems. Rise in demand for small- and mid-size vessels with fuel-efficient propulsion systems used in inland waterways is expected to drive the global marine propulsion market during the forecast period. Developed as well as developing countries are investing significantly in the defense sector. Demand for marine propulsion systems in Asia Pacific is gaining momentum due to the rise in seaborne trade and increase in the manufacture of new vessels as well as upgrade of existing vessels.

This report analyzes and forecasts the marine propulsion market at the global and regional level. The market has been forecast based on revenue (US$ Mn) from 2018 to 2026, considering 2017 as the base year. The study includes drivers and restraints of the global marine propulsion market. It also covers impact of these drivers and restraints on demand for marine propulsion during the forecast period. The report also highlights opportunities in the marine propulsion market at the global and regional level.

The report includes detailed value chain analysis, which provides a comprehensive view of the global marine propulsion market. Porter’s Five Forces model for the marine propulsion market has also been included to help understand the competitive landscape. The study encompasses market attractiveness analysis, wherein products and application are benchmarked based on their market size, growth rate, and general attractiveness.

The study provides a decisive view of the global marine propulsion market by segmenting it in terms of propulsion type, transport, power rating, RPM, and region. In terms of propulsion type, the marine propulsion market has been classified into full electric, diesel, renewable, nuclear, gas turbine, fuel cell, hybrid, and others. Based on transport, the marine propulsion market has been divided into inland waterways (passenger ships, goods transport ships, fishing boats, pleasure boats/water sports, and others) and coastal/cross-border waterways (offshore vessels {offshore support vessels, i.e. OSV, offshore construction vessels, i.e. OCV, oil exploration & drilling vessels, i.e. OEDV, and offshore production vessels}, fishing vessels, ferries, tugboats, cruise, cargo ships, defense vessels, and others). In terms of power rating, the global marine propulsion market has been segregated into 0-300 KW, 301-500 KW, 501-800 KW, and above 801 KW. Based on RPM, the market has been split into 0-1000 RPM, 1001-2500 RPM, and above 2500 RPM. These segments have been analyzed based on present and future trends. Regional segmentation includes current and forecast demand for marine propulsion in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The report provides the actual size of the marine propulsion market for 2017 and estimated size for 2018 with forecast for the next nine years. The global marine propulsion market has been provided in terms of revenue. Market numbers have been estimated based on propulsion type, transport, power rating, and RPM of the marine propulsion market. Market revenue and size have been provided in terms of global, regional, and country level markets.

The report comprises profiles of major companies operating in the global marine propulsion market. Key players operating in the marine propulsion market include Cummins Inc., Caterpillar Inc., AB Volvo Penta, BAE Systems, Wärtsilä Corporation, Rolls Royce Plc., Niigata Power Systems Co., Ltd., Fairbanks Morse Engine, Masson-Marine S.A.S., GE, STEYR MOTORS GmbH, MAN Diesel & Turbo SE, and Torqeedo GmbH. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.

The global marine propulsion market has been segmented as follows:

Marine Propulsion Market, by Propulsion Type

  • Full Electric
  • Diesel
  • Renewable
  • Nuclear
  • Gas turbine
  • Fuel Cell
  • Hybrid
  • Others

Marine Propulsion Market, by Transport

  • Inland Waterways
    • Passenger Ships
    • Goods Transport Ships
    • Fishing Boats
    • Pleasure Boats/Water Sports
    • Others
  • Coastal/Cross-border Waterways
    • Offshore Vessels
      • Offshore Support Vessels
      • Offshore Construction Vessels
      • Oil Exploration and Drilling Vessels
      • Offshore Production Vessels
    • Fishing Vessels
    • Ferries
    • Tugboats
    • Cruise
    • Cargo Ships
    • Defense Vessels
    • Others

Marine Propulsion Market, by Power Rating

  • 0-300 kW
  • 301-500 kW
  • 501-800 kW
  • Above 801 kW

Marine Propulsion Market, by RPM

  • 0-1000 rpm
  • 1001-2500 rpm
  • Above 2500 rpm

Marine Propulsion Market: By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Norway
    • Netherlands
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Key Takeaways

  • In terms of RPM, the 1,001-2,500 RPM segment constitutes the major share of the marine propulsion market
  • Diesel-based marine propulsion systems are widely used vis-à-vis other propulsion systems. Diesel-based marine propulsion systems account for approximately 50% share of the market.
  • Market share of diesel-based marine propulsion systems is estimated to decline in the next few years due to the strong focus on highly efficient and hybrid technologies
  • Asia Pacific holds significant share of the market. This trend is projected to continue during the forecast period.
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