Marine Propulsion Engine Market - By Product (Diesel, Wind & Solar, Gas Turbine, Fuel Cell, Steam Turbine, Natural Gas), Growth Drivers, Regional Insights & Global Forecast, 2023 - 2032

Marine Propulsion Engine Market - By Product (Diesel, Wind & Solar, Gas Turbine, Fuel Cell, Steam Turbine, Natural Gas), Growth Drivers, Regional Insights & Global Forecast, 2023 - 2032

Marine Propulsion Engine Market size is projected to exhibit 3.3% CAGR from 2023-2032, driven by the ongoing military naval expansion worldwide.

Of late, several naval forces are modernizing their fleets to meet the evolving security challenges leading to the surging demand for advanced marine propulsion engines. The trend towards modernization coupled with the higher need for increased fuel efficiency and reduced emissions is fueling the adoption of advanced marine propulsion technologies. For instance, in May 2022, Bharat Heavy Electricals Limited and GE Power Conversion signed an MoU for the development of an integrated full electrical propulsion system for the Indian Navy.

Furthermore, the ongoing innovations in engine design and efficiency improvements have resulted in more powerful, reliable, and fuel-efficient propulsion systems. The development of hybrid and electric propulsion systems is also offering cleaner and more sustainable alternatives. Thus, industry leaders are combining their extensive experience and expertise in the marine industry for the development of innovative concepts, augmenting the industry outlook. To cite an instance, in May 2023, ABB launched ABB Dynafin™, a new concept featuring innovative propulsion system for breaking new ground for efficiency in the marine sector.

The marine propulsion engine market is segmented based on product, application, and region.

With respect to product, the marine propulsion engine market from the natural gas segment may expand at over 2.5% CAGR through 2032. With the growing focus on environmental sustainability and emissions reduction in the maritime industry, natural gas has emerged as cleaner and more eco-friendly alternative fuel. The influx of stricter regulations worldwide has compelled shipbuilders and operators to increasingly shift towards cleaner energy sources, further contributing to the segment growth.

The industry size from the steam turbine application segment is poised to observe over 2% CAGR through 2032. Steam turbines offer optimum power output and efficiency, making them suitable for specific maritime applications to offer higher reliability and performance. The ongoing innovations in steam turbine design, materials, and automation will further drive the segment expansion.

Regionally, Asia Pacific marine propulsion engine market is set to expand at more than 3% growth rate through 2032. Rapid industrialization, booming maritime trade, and economic expansion in China, Japan, and South Korea have surged the demand for commercial vessels, subsequently driving the need for propulsion engines. The thriving shipbuilding sector, both for commercial and military purposes will contribute also significantly to the regional market growth. For instance, In November 2022, China announced plans to build more advanced surface combatants to strengthen its aircraft carrier and logistics force by expanding its naval dominance farther from shore.