The marine propulsion engines market is poised for steady growth over the forecast period owing to the increase in the demand for financially efficient and operationally dependable ships. The need for operationally dependable and financially efficient ships is expected to drive the marine propulsion engines market. As several countries lack their natural resources and are unable to produce consumer goods, they rely heavily on the presence of a reliable shipping industry for carrying out global trade. There has been an emphasis on increasing the capacity of diesel marine propulsion engines to propel new-generation tankers with larger cargo holding capacity.
Global marine propulsion engines market by product (USD Million), 2012 - 2020
With the advent of nuclear propulsion and the growing popularity of LNG, the marine propulsion engine market is expected to witness considerable growth over the forecast period. Nuclear power for propulsion with its key operating characteristics poses to be of key interest to vessel designers. Considerably, a small percentage of nuclear fuel is also engaged in providing energy equivalent to a relatively high weight in coal or oil. With the decrease in demand for large fuel bunkers, nuclear propulsion provides more cargo space and allows the vessel to operate more efficiently at a faster rate without refueling. Nuclear marine propulsion engines also prove to be beneficial to the icebreakers for exploring the frozen waterways in the Arctic.
The depleting conventional and shale gas reserves have led to an increase in the demand for LNG, especially as a marine fuel. For the utilization of natural gas, dual-fuel diesel (DFD) marine propulsion engines have been introduced on LNG carriers as prime movers. Previously, steam turbine systems were the preferred choice as prime movers, but they have been increasingly substituted by DFD marine propulsion engines.
Stringent emission norms and limitations of renewable energy sources for primary propulsion are the factors expected to inhibit the marine propulsion engine market growth. The international maritime community operates in both, international as well as territorial waters globally and requires adherence to a stringent regulatory regime, which can properly serve this level of international complexity.
On the basis of propulsion method, the marine propulsion engines market has been segmented into diesel propulsion, the wind & solar propulsion engine, gas turbine propulsion engine, fuel cell propulsion engine, steam turbine propulsion engine, natural gas, and others.
During the last decade, diesel propulsion machinery has emerged as the preferred propulsion medium in the shipping industry. With the advancement in technology and increasing awareness pertaining to environmental conservation, the development of propulsion systems that run on alternate fuels and with minimal emissions has garnered special importance. Significant improvements in brake mean effective pressure, firing pressures, fuel injection technology, and turbo-charging efficiency have radically reduced fuel oil consumption in medium-speed four-stroke marine propulsion engines.
Although wind and solar energy have gained prominence as auxiliary marine propulsion engines, they are inadequate to suffice the power requirements for primary propulsion purposes. Wind-based solutions are limited to propulsion augmentation applications unless the full sail propulsion method is adopted, which may give rise to adverse financial and commercial implications in terms of the number of ships required and voyage times. Additionally, wind power systems rely on a uniform and effective wind strength along with the installation of adequate control system technology onboard. Wind energy and solar energy have gained prominence as auxiliary power sources as they do not emit harmful pollutants.
However, they do not provide enough power to suffice the primary propulsion needs of large vessels. Methods that use the wind to provide energy to drive ships include a variety of techniques. Typically, these embrace Flettner rotors, kites or spinnakers, soft sails, wing sails, and wind turbines. Moreover, partial propulsion benefits and dual fuel hybrid methods can be implemented through wind-based methods. Solar power can also be utilized as an auxiliary power source using photovoltaic cells to generate enough electricity for propelling vessels.
The Asia Pacific accounted for the majority of the overall marine propulsion engine market revenue share in 2013. Asia Pacific’s diesel propulsion production has experienced a high growth rate over the last five years which is projected to continue over the forecast period. Diesel propelled machinery has developed into a principal means of marine propulsion engines. Diesel engine technology is a reliable and well-understood form of primary propulsion as well as auxiliary power generation. North America has experienced a low market share on account of the stringent emission norms and limitations of renewable energy sources for primary propulsion.
The marine propulsion engine market is characterized by mergers and acquisition activities to gain a competitive advantage. For instance, In July 2013, Caterpillar announced to acquire Berg Propulsion, significantly expanding customer options for advanced marine power solutions. In July 2013, LUKOIL Group-owned LLK-International acquired OMV Refining & Marketing GmbH subsidiary’s a lubricants business, including OMV blending plant in Austria with 35 kilo-tons per annum capacity as well as sales and distribution organizations in Central and Western Europe.
There has been a growing emphasis on the development of marine propulsion engines using alternative fuels such as bio-methane and algal oils. The development of the dual-fuel (DF) marine propulsion engines using LNG for addressing stricter emissions and regulations has gained much importance. For the utilization of natural gas, dual-fuel diesel (DFD) marine propulsion engines have been introduced on LNG carriers as prime movers. Previously, steam turbine systems were the preferred choice as prime movers, but they have been increasingly substituted by DFD marine propulsion engines. Key players in the marine propulsion engine market players include Aegean, BP, Caterpillar, Cummins, Ingeteam, Wärtsilä, Yamaha, and Rolls-Royce.
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