Marine Propulsion Engines Market Size, Share & Trends Analysis Report By Fuel Type (Diesel, Heavy Fuel Oil, Natural Gas, Other Fuels), By Application, By Power Range, By Region, And Segment Forecasts, 2023 - 2030

Marine Propulsion Engines Market Size, Share & Trends Analysis Report By Fuel Type (Diesel, Heavy Fuel Oil, Natural Gas, Other Fuels), By Application, By Power Range, By Region, And Segment Forecasts, 2023 - 2030

Marine Propulsion Engines Market Growth & Trends

The global marine propulsion engines market size is expected to reach USD 22,218.5 million by 2030 registering a CAGR of 4.4%, according to a new study by Grand View Research, Inc. The increasing trends toward globalization and industrialization owing to the growth of international commerce are likely to increase the adoption of commercial ships to transport various items such as oil, natural gas, mineral ores, and consumer goods to meet global demand. The introduction of nuclear propulsion and the growing popularity of liquefied natural gas is contributing to the market development. Nuclear propulsion offers the advantage of very long intervals of operation before refueling, compared to oil- or coal-fueled ships.

In 2022, Asia Pacific accounted for the largest share of the global marine propulsion engines market. Asia Pacific's output of diesel propulsion has increased over the preceding five years, which is likely to continue to increase over the forecast period. Being dependable, efficient, and affordable primary propulsion and auxiliary power production technique, diesel-powered machinery has developed into the dominant mode of marine propulsion engines. Stringent environmental regulations and limitations of renewable energy sources have led North America to account for a limited market share in the global marine propulsion engines market.

Ongoing government investment in shipbuilding and inland waterways supports strong development in the marine propulsion engines sector. However, the strict environmental regulations and large capital investment needed to set up new industrial facilities are likely to challenge the growth of the market.

COVID-19 has severely affected the world economy and transportation industry by disrupting supply chains and adversely affecting demand. The pandemic caused a significant drop in marine traffic and related activity. It disrupted worldwide trade on an unprecedented scale, causing inefficiencies, delays, and supply chain disruptions. Marine engine production witnessed a slowdown during corona pandemic owing to a decline in shipbuilding activities and the shipyard's declarations of force majeure. The new shipbuilding activities were suspended, and the majority of orders were planned to be fulfilled post COVID-19 restrictions were removed. Additionally, limited access to entering the waterways owing to lockdown regulations imposed during COVID-19 led the ships to remain port stranded and the shipping companies had to bear additional costs to keep their ships in international waters. These factors affected the growth of the market in 2020.

Marine Propulsion Engines Market Report Highlights

• By fuel type, the diesel segment is leading the market, as diesel engines are more reliable for maritime trade, preferred by companies for sailing. Additionally, diesel fuel-based marine engines require less maintenance than other fuel-based engines.
• Commercial application of marine propulsion engines gaining momentum as commercial ships have high- powered engines as they have to carry tons of loads and have lesser time to reach their destination.
• The above 20,000 HP power range of engines is largely being used by naval ships and container/cargo ships for sailing fully loaded ships, as the engine becomes more reliable and has a longer lifespan.
• Asia-Pacific is anticipated showcase rapid growth during the forecast period due to the augmented international trade and export from the region. India and China become major hubs of business in the region, which increased the pace of activity in the marine manufacturing sector.