Marine Propulsion Engine Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 37.96 Billion |
| Market Size (2029) | USD 43.23 Billion |
| CAGR (2024 - 2029) | 2.63 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Marine Propulsion Engine Market Analysis
The Marine Propulsion Engine Market size is estimated at USD 37.96 billion in 2024, and is expected to reach USD 43.23 billion by 2029, growing at a CAGR of 2.63% during the forecast period (2024-2029).
The COVID-19 outbreak hindered the growth of the marine propulsion engine market with continuous lockdowns and the subsequent economic slowdown across the world. Marine mobility declined by 13.77% during the COVID-19 pandemic across the world. The ships were stranded in the waters as they were not allowed to enter the ports and the shipping companies had to bear additional costs to keep their ships stranded in international waters. In 2020, the traveling restrictions also led to a decline of 42.77% in the cruise industry across the world. Such factors led to a huge drop in the demand for new ships, adversely impacting the shipbuilding and marine propulsion engine markets. The most significant near-term impact on marine engines was felt through supply chains. However, post-pandemic, as restrictions are beginning to ease, the market is expected to gain momentum during the forecast period.
- In June 2020, Hyundai Heavy Industries merged its shipbuilding and offshore businesses into a single entity to mitigate the impact of COVID 19.
The marine propulsion engine market is driven by the need for faster, cleaner, and fuel-efficient engines. The International Maritime Organization (IMO) drafted a new rule where the sulfur content in marine fuel will be reduced to 0.5% from 3.5%. This new regulation is expected to cut down emissions from ships by 77%. This development has caused the ship operators to lower sulfur content fuels, such as marine gas oil, thus driving the demand for the electrification of marine vessels.
The Asia-Pacific region is anticipated to observe rapid growth over the forecast period due to augmented international trade and export from the region. Both India and China have come up as major hubs of business in the region, with an increased pace of activities in the marine manufacturing sector and maritime trade due to the presence of ports like Shanghai, Hong Kong, Nhava Shava (India), and Singapore. Growth in the Asia-Pacific market will also be driven by new technology developmnets by key players.
- In September 2022, the Ministry of Oceans and Fisheries of South Korea awarded Daewoo Shipbuilding & Marine Engineering to build the country's first hydrogen powered tug boat by 2026, as a part of the country's efforts to develop eco-friendly, high value ships.
Thus, the aforementioned factors are projected to produce a decent growth in the marine propulsion engine market over the next five years.
Marine Propulsion Engine Market Trends
This section covers the major market trends shaping the Marine Propulsion Engine Market according to our research experts:
Marine Propulsion Engine Market is Expected to Grow at a Steady Rate During the Forecast Period
Currently, some 100,000 seagoing merchant ships sail in the seas and oceans, with an installed power ranging from roughly 1 to 100 megawatts (MW) per ship. With very few exceptions, all these ships are propelled by diesel engines, and the majority of these have a direct drive system while some have diesel-electric propulsion or hybrid system. Diesel engines are favored for marine propulsion applications because of their unmatched power and torque ratings. The major players in the market are planning and launching the latest products to attract more customers and gain market share.
- In September 2022, MAN Energy Solutions SE launched the new MAN 49/60 engine family at SMM Trade Fair in Hamburg, Germany. The engine is capable of running on LNG, diesel, and heavy fuel oil, as well as biofuels and synthetic natural gas. The engine is a four-stroke engine. The company claims that the dual-fuel engine is an important intermediate step in the transition to clean maritime transportation.
- In September 2022, Wartsila Corporation launched its first marine engine Wartsila 25, which runs on ammonia. It is a medium speed four stroke marine engine based on Wartsila's modular platform technology, which offers the twin benefits of increased fuel efficiency and reduced emissions to the owners and operators of marine vessels.
Another major factor anticipated to drive the market is the increasing orders for LNG carriers due to increased demand for LNG worldwide.
- In September 2022, 255 LNG carriers were ordered worldwide, an increase from 100 carriers ordered in 2021 (from January 2022 to Septermber 2022), representing the highest number of LNG carriers ordered in the past 22 years.
Thus, owing to such factors, diesel engines are expected to hold a considerable share in the marine propulsion engine market in the coming years.
Asia-Pacific Anticipated to Grow at a Significant Pace During the Forecast Period
Asia-Pacific is expected to hold a major portion of the marine propulsion engine market, and it is anticipated to maintain its dominance throughout the forecast period.
This trend is attributed to the presence of the world's top three shipbuilding countries - China, South Korea, and Japan - in the region. Some of the world's busiest ports, Shanghai, Hong Kong, and Singapore, are also in Asia Pacific, making the region the largest hub for maritime transportation in the world. Bangladesh, India, Vietnam, and the Philippines are also seeing considerable growth in their shipbuilding industries. Some of the world's largest shipping companies, like COSCO, NYK Line, and Evergreen Marine Corporation, are based in the region. These factors ensure healthy demand for ships and marine propulsion engines in Asia-Pacific.
The Chinese authorities have made emission requirements even stricter than the International Maritime Organization (IMO) regulations. The China GB15097 regulation, which is commonly known as C1 and C2, includes limits for particulate matter (PM). Thus, key players are launching new engines that meet these stringent emission norms, which are further driving the market in Asia-Pacific.
- In September 2022, Wartsila Corporation announced orders for its newly launched Wartsila 20 engines in China. These engines are equipped with Wartsila NOR NOX emmisions reducer to comply with China's stage II, popularly known as C2, emissions standards.
The major share of the Asia-Pacific marine propulsion engine market is held by South Korean, Chinese, and Japanese players. However, over the past few years, local companies have been launching new products to gain some share of the market. For instance,
- In July 2022, the Governemnt of India announced to make diesel engines for Indian Navy locally. The initiative will likely see major participation from the private sector in the country.
- In May 2021, Hindustan Aeronautics Limited (HAL) and Rolls-Royce signed an MoU to support installation, packaging, marketing, and services for Rolls-Royce MT30 marine engines in India. Under the umbrella of this MoU, both Rolls Royce and HAL will be working together for the first time in the area of marine applications.
Such developments in the region are anticipated to ensure the domination of Asia-Pacific as the leading region for marine propulsion engines over the next five years.
Marine Propulsion Engine Industry Overview
The marine propulsion engine market is moderately consolidated due to the presence of key players like MAN Energy Solutions SE, Wartsila Corporation, Hyundai Heavy Industries Co. Ltd, Yanmar Co. Ltd, and MaK, a subsidiary of Caterpillar Marine. These companies continuously focus on innovating products to provide environmentally sustainable, flexible, economically sound, and efficient customer solutions. The companies are trying to expand their brand values in the market through joint ventures and new product launches.
- In October 2022, Volvo Penta and CMB.TECH announced a tie-up for developing dual-fuel hydrogen-powered solutions aimed at both marine and terrestrial applications. The collaboration will focus on piloting projects of small-scale industrialization and ensuring access to greenhouse gas emission reduction technology.
- In September 2022, MAN Energy Solutions SE and Makita Corporation signed a three-year-long deal to provide MAN PrimeServ services on SCR-HP systems used in MAN two-stroke marine engines made by Makita under license.
- In December 2021, Caterpillar Marine launched the new 2025 mhp Cat C32B engine.
Marine Propulsion Engine Market Leaders
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Caterpillar Marine (MaK)
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Hyundai Heavy Industries Ltd.
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Yanmar Co. Ltd.
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MAN Energy Solutions SE
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Wartsila Corporation
*Disclaimer: Major Players sorted in no particular order
Marine Propulsion Engine Market News
- November 2022: Volvo Penta received an order for two D16-650 IMO III engines from the Swedish maritime administration, Sjöfartsverket, for their replacement patrol vessels. These engines are certified to comply with IMO (International Marine Organisation) Tier III emissions regulations.
- October 2022: MAN Energy Solutions SE won an order for six methanol-powered MME-LGIM engines from the Hyundai Heavy Industries shipbuilding division (HHI-SBD). The engines are destined to be installed in six 17,000 TEU container vessels being built for A.P. Moller - Maersk.
- October 2022: Rolls-Royce MTU premiered new methanol, hybrid, and hydrogen fuel systems for naval propulsion at Euronaval Trade Fair held in Paris, France.
- September 2022: Wider in Italy announced two MAN 12V175D-MEV marine variable-speed Genset engines for its new Moonflower 72 Project, consisting of two 1860 kW-rated variable speed engines and 1 MWh battery pack.
- September 2022, Wartsila Corporation secured propulsion machinery orders for four fishing vessels being buit at Kartsensens Shipyard in Denmark. Two of these vessels will be delivered to Icelandic fishing companies while the remaining two will be delivered to individual Norwegian owners.
- September 2022: Wartsila Corporation announced an order to supply and integrate the elctrical systems package for a German research vessel being constructed under Meteor IV project by Meyer-Fassmer-Special Shipbuilding Division consortium.
- May 2022: Yanmar Co. Ltd delivered three marine engines to Chilean fishing company Naviera Orca Chile SA for its new fish carrying vessel MV Orca Yka. The fish carrying vessel measures 9.3m by 15m and has a capacity of 2,800 cubic meters.
Marine Propulsion Engine Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Engine Type
5.1.1 Diesel
5.1.2 Gas Turbine
5.1.3 Natural Engine
5.1.4 Other Engine Types
5.2 Application Type
5.2.1 Passenger
5.2.2 Commercial
5.2.3 Defense
5.3 Ship Type
5.3.1 Container Ship
5.3.2 Tanker
5.3.3 Bulk Carrier
5.3.4 Offshore Vessel
5.3.5 Naval Ship
5.3.6 Passenger Ship
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Spain
5.4.2.5 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 South Korea
5.4.3.5 Rest of Asia-Pacific
5.4.4 Rest of the World
5.4.4.1 Brazil
5.4.4.2 Other Countries
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Caterpillar
6.2.2 Cummins Inc.
6.2.3 Daihatsu Diesel Mfg Co. Ltd
6.2.4 Hyundai Heavy Industries Co. Ltd
6.2.5 MAN SE (Man Diesel & Turbo)
6.2.6 Mitsubishi Heavy Industries Ltd
6.2.7 Rolls-Royce PLC
6.2.8 Scania
6.2.9 Wartsila
6.2.10 Yanmar Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Marine Propulsion Engine Industry Segmentation
Marine propulsion is the system or mechanism used to generate thrust that allows a small boat or even a ship to move across waterways. Modern ships are usually equipped with mechanical systems consisting of an electric motor turning a propeller or even pump-jets or an impeller. They use reciprocating engines as the main source of power.
The market is segmented by engine type, application type, ship type, and geography. By engine type, the market is segmented into diesel, gas turbine, natural engine, and other engine types. By application type, the market is segmented into passenger, commercial, and defense. By ship type, the market is segmented into container ships, tankers, bulk carriers, offshore vessels, naval ships, and passenger ships. By geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World.
| Engine Type | |
| Diesel | |
| Gas Turbine | |
| Natural Engine | |
| Other Engine Types |
| Application Type | |
| Passenger | |
| Commercial | |
| Defense |
| Ship Type | |
| Container Ship | |
| Tanker | |
| Bulk Carrier | |
| Offshore Vessel | |
| Naval Ship | |
| Passenger Ship |
| Geography | |||||||
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Marine Propulsion Engine Market Research FAQs
How big is the Marine Propulsion Engine Market?
The Marine Propulsion Engine Market size is expected to reach USD 37.96 billion in 2024 and grow at a CAGR of 2.63% to reach USD 43.23 billion by 2029.
What is the current Marine Propulsion Engine Market size?
In 2024, the Marine Propulsion Engine Market size is expected to reach USD 37.96 billion.
Who are the key players in Marine Propulsion Engine Market?
Caterpillar Marine (MaK), Hyundai Heavy Industries Ltd. , Yanmar Co. Ltd. , MAN Energy Solutions SE and Wartsila Corporation are the major companies operating in the Marine Propulsion Engine Market.
Which is the fastest growing region in Marine Propulsion Engine Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Marine Propulsion Engine Market?
In 2024, the Asia-Pacific accounts for the largest market share in Marine Propulsion Engine Market.
What years does this Marine Propulsion Engine Market cover, and what was the market size in 2023?
In 2023, the Marine Propulsion Engine Market size was estimated at USD 36.99 billion. The report covers the Marine Propulsion Engine Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Marine Propulsion Engine Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Marine Engine Industry Report
The Marine Propulsion Engine Market report provides an in-depth industry analysis, offering valuable insights into the market size and market share across various segments. The industry report is segmented by engine type, application type, ship type, and geography, delivering a comprehensive market overview. The industry statistics reveal the market growth and market trends, highlighting the significant growth rate within the industry.
The market forecast outlines the expected market outlook, projecting future market growth and market value. The report also includes a detailed market segmentation, enabling a thorough market analysis and market review. Industry information is provided on the leading market leaders, showcasing their influence within the market.
This industry research is supported by extensive market data, offering a clear market prediction and market outlook. The market report includes an industry overview, presenting a holistic view of the industry trends and industry outlook. The industry reports and industry research companies provide additional insights, ensuring a well-rounded understanding of the market.
For those seeking more detailed information, the report example and report PDF are available for download, providing a comprehensive view of the industry sales and industry size. The market report is an essential resource for understanding the current market conditions and future market predictions.
