Market Trends of China Controllable Pitch Marine Propeller Industry
This section covers the major market trends shaping the China Controllable Pitch Marine Propeller Market according to our research experts:
Growth in Marine Logistics
The shipping or logistics industry is considered the backbone of the global economy as it accounts for a large share of the goods transported across the world. In the logistics industry, seaways are the relatively budget-friendly mode of transporting parcels and goods. Growth in maritime logistics is expected to drive the demand for new ships, which in turn, will drive the demand for controllable pitch propellers.
Over the years, the number of goods transported via seaways has increased, and over 90% of the global trade is carried out by maritime transportation. The trade volumes are expected to triple by 2050. For instance, in 2019, 11,071 million metric ton of loaded freight was transported through seaways. Despite worldwide lockdowns, the number fell by just 3%. The trade volume is expected to increase during the forecasted period.
As China is the leading shipbuilding industry across the world, the demand for controllable pitch marine propellers is anticipated to witness growth. The country has a total of 1,200 registered shipyards that produce a wide range of fleets, including vessels of different sizes and capacities.
Two and Three Blades Propeller to Witness Significant Growth
Two- and three-blade propellers are primarily used in small passenger boats and ships. Two- and three-blade propellers have their own positives, such as lower manufacturing costs and high-speed operation, which is beneficial for small boats and vessels. Therefore, a significant number of controllable pitch propellers are three-blade propellers.
The two and three-blade propellers segment accounts for the majority of the market share, and the rise in demand for small boats and ships is expected to boost the Chinese controllable pitch marine propeller market. For instance, many countries are placing orders with Chinese ship manufacturers for LNG vessels that will aid in the growth of the market. For example,
- In January 2022, Hudong-Zhonghua Shipbuilding Group Co. received an order for six LNG carriers from Japan's Mitsui OSK Lines worth USD 1.18 billion.
- In October 2021, Qatar signed an agreement of USD 3 billion and placed an order for four LNG vessels with Hudong-Zhonghua Shipbuilding Group Co. (Hudong), a unit of China State Shipbuilding Corp.
