Global Azimuth Thrusters Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Azimuth Thrusters Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Azimuth thrusters are electric podded drive systems that the propeller can be rotated 360 degrees around the vertical axis, providing omni-directional thrust. These give ships better maneuverability than a fixed propeller and rudder system.

Market Overview:

The latest research study on the global Azimuth Thrusters market finds that the global Azimuth Thrusters market reached a value of USD 638.05 million in 2022. It’s expected that the market will achieve USD 713.4 million by 2028, exhibiting a CAGR of 1.88% during the forecast period.

Influence of COVID-19 Outbreak on Azimuth Thrusters Industry Development

The outbreak of the COVID-19 epidemic has caused chaos and panic around the world, resulting in all normal daily activities such as going to work, going for a walk or, in some countries, even stepping out of one's home. The maritime industry was also significantly affected due to the spread of this disease. The workforce in these industries was shut down because of safety and to prevent the escalation of COVID-19. This setback was also caused by the shutdown of various types of waterborne cargo during this quarantine period, as these cargoes were transported on ships that could have carried the virus from one port to another. Countries have also imposed entry bans on containers and vessels operating from other ports, particularly those transported from China. These operations were hindered, hampering logistics and operations in these sectors. Earlier this year there was a sharp slowdown in maritime shipping. By mid-June, the average weekly number of container ships arriving at ports around the world had sunk to 8,722, down 8.5 percent year-on-year. During this adverse period, many workers and staff are stranded on board due to quarantine or other mandated safety concerns. Ports are also operating at low capacity and storage facilities are already overcrowded.

According to UNCTAD report, while about 60 percent of seaborne trade by value is estimated to be carried in containers, other markets are important too, and have been affected differently by the pandemic. LNG, LPG and wet bulk carriers have recorded increases in port calls during the first quarter. In the second quarter, however, all vessel types saw a decline in port calls. The hardest hit were the RO/RO ships, which include ferries and other vessels that also carry passengers.

The stagnation of the maritime transportation industry, the disruption of the global supply chain, and the instruction to stop production due to the impact of the epidemic have all led to a decline in the growth of the Azimuth Thruster industry in 2020.

Risk of volatility in raw material prices

The upstream raw materials of the azimuth thrusters are mainly various high-quality metal materials and the raw materials account for an extremely high percentage of the production cost. Metal prices have an inverse relationship with the gross margin of the azimuth thruster industry. As a result, fluctuations in raw material prices can cause significant changes in the cost structure of azimuthal thrusters, thereby affecting product gross margins. If raw material purchase prices continue to rise in the future, the company will not be able to absorb the risk of raw material price increases, which will adversely affect its future operating results. In addition, human resource costs are also increasing year by year. In the future, as the azimuth thruster business continues to expand and the level of economic development continues to increase, human resource costs will continue to rise, thereby affecting the company's operating results.

High R&D costs and constant demand for expertise

The industry in which azimuth thrusters operate is capital and technology intensive, and the characteristics of the product and the industry dictate that the company must increase its investment in research and development. If the company cannot further expand the size of the company and increase investment in research and development, will put the company in a disadvantageous position when competing with large manufacturers. In addition, as a technology-based enterprise, the production of azimuth thrusters requires a number of experienced production management, quality control, technology development and sales personnel, which is the basis for the continuous development and growth of the company. Due to the growth of the maritime transportation industry, the development of the company is heavily dependent on the ability to achieve faster technological advancement, and therefore, there is a greater demand for highly qualified personnel such as senior managers, professional technicians and marketing personnel. The ability of the azimuth thruster manufacturer to continue to attract and retain high quality personnel is critical to the company's continued development and sustainability. Besides, high maintenance cost of the product is emerging as one of the restraints to the growth of the global market. Moreover, timely maintenance coupled with low product life are other factors that are expected to hamper the growth of the global market.

Continuous updating of technology

Continuous innovation is one of the enduring trends in the azimuth thruster industry. Due to the extensive use of azimuth thrusters in all types of vessels, buyers have high requirements for the quality and performance of azimuth thrusters. From passenger ships to icebreakers, azimuth thrusters have different details required. The azimuth thruster enterprises should take into account the all-round needs of buyers and continuously develop new products or new technologies. In addition, product differentiation is also one of the key points to improve competitiveness. In order to stand out in the fierce market competition, for those products that are different from other products, companies should construct barriers for other companies to enter the market, thus creating a competitive advantage.

Region Overview:

From 2023-2028, Europe is estimated to witness robust growth prospects.

Company Overview:

SCHOTTEL Group is one of the major players operating in the Azimuth Thrusters market, holding a share of 18.69% in 2020.

SCHOTTEL Group

The SCHOTTEL Group, with its headquarters in Spay/Rhine, is one of the world’s leading manufacturers of steerable propulsion systems for ships and offshore applications. Founded in 1921, the company has been developing and manufacturing azimuth propulsion and complete propulsion systems with power ratings of up to 30 MW for vessels of all sizes and types for 70 years. Around 100 sales and service locations worldwide ensure customer proximity.

Rolls-Royce

Rolls-Royce pioneers cutting-edge technologies that deliver clean, safe and competitive solutions to meet our planet’s vital power needs.

Rolls-Royce manufactures aero, marine, and industrial gas turbines for civil and military aircraft. The Company designs, constructs, and installs power generation, transmission, and distribution systems and equipment for the marine propulsion, oil and gas pumping, and defense markets.

Segmentation Overview:

Among different product types, 1.5MW-3.5MW segment is anticipated to contribute the largest market share in 2028.

Application Overview:

By application, the Tug segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Azimuth Thrusters market covered in Chapter 3:

IHI Power Systems Co., Ltd. (IPS).
Kawasaki
ABB Marine
ZF Friedrichshafen AG
Brunvoll
Wärtsilä Corporation
CaterPillar
Steerprop
GE
SCHOTTEL Group
Rolls-Royce

In Chapter 4 and Chapter 14.2, on the basis of types, the Azimuth Thrusters market from 2018 to 2029 is primarily split into:

Less than 1500KW
1500KW-3500KW
More than 3500KW

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Azimuth Thrusters market from 2018 to 2029 covers:

Offshore Support Vessel
Tug
Passenger Ship
LNG
Shuttle Tanker
Drill Ship
FPSO
FSO

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)