Marine Engine Market

• Growth in international marine freight transport to fuel the Marine Engine market.

Over 80% of the volume of international trade in goods is carried by sea, and the percentage is even higher for most developing countries. In 2020, maritime trade contracted by 3.8% reflecting an initial shock, but it rebounded later in 2021. IMO also forecasts that maritime trade could increase between 40% and 115% by 2050 in comparison to 2020 levels. Many factors influence this growth, including general economic conditions, rising population, increasing globalization. The continuous global economic growth is also spurring demand for shipments of energy products and other goods.

In addition, growth in the manufacturing and industry sectors and improved socio-economic standards in emerging markets may increase demand for goods. With rising maritime trade, the demand for efficient and environment friendly marine engines used in these cargo ships are also expected to rise. Thus, driving the growth of the market.

• Government initiatives to accelerate the development of the ship building industry to propel the Marine Engine market.

The shipbuilding industry has witnessed a period of unprecedented growth riding on the stimulus of global demand. China has become the world's leading shipbuilding industry, accounting for 44.9 percent of ship tonnage completed by the global shipbuilding industry and 51 percent of total new orders around the world during the first half of 2021. Further, Chinese and South Korean shipbuilders have grown through generous government subsidies and financial support. Presently, the Indian Government is also playing an important role in supporting the ports sector. The government has been undertaking several initiatives to accelerate the development of the shipping sector.

Similarly, the UK government provided a £200m government initiative to tap UK's green shipping heritage. With growing government initiatives, new programme aims to support the research and delivery of new technologies that can decarbonize maritime industries. Thus driving the growth of the market.

• Rising demand for dual-fuel engines surging the Marine Engine market.

The low-sulfur fuel oil price is continuing to rise and environmental regulations in the maritime industry are increasing, which means the global dual-fuel vessel demand is likely to keep rising. The fuel oil price per ton was US$535 on average last year but recently jumped to US$1,137 with regard to the war in Ukraine and the resultant limited supply of Russian crude oil. This year, the three major South Korean shipbuilders received orders for 154 vessels, and those include 68 ships in which LNG or methanol can be used as an alternative fuel.

The Global Marine Engine Market Industry is significantly influenced by the growth of the shipping industry, which remains a cornerstone of global trade. As international trade expands, the demand for efficient and reliable marine engines increases correspondingly. In 2024, the market is valued at 11.7 USD Billion, driven by the need for new vessels and retrofitting existing ones with advanced engines. The shipping industry is projected to continue its upward trajectory, with an increasing number of vessels being commissioned to meet global trade demands. This growth not only supports the marine engine market but also encourages further investments in engine technology and innovation.

Emerging markets are becoming increasingly influential in the Global Marine Engine Market Industry, driven by rapid economic growth and urbanization. Countries in Asia-Pacific and Latin America are expanding their shipping capabilities to support their growing economies. This expansion leads to increased investments in marine infrastructure and the commissioning of new vessels equipped with advanced engines. As these markets develop, the demand for marine engines is likely to rise, contributing to a projected CAGR of 4.82% from 2025 to 2035. The growth in these regions not only enhances the global marine engine landscape but also presents opportunities for manufacturers to tap into new customer bases.

The Global Marine Engine Market Industry is witnessing an increasing demand for sustainable and eco-friendly marine engines. This trend is driven by stringent regulations aimed at reducing emissions and promoting cleaner technologies. For instance, the International Maritime Organization has set ambitious targets to cut greenhouse gas emissions from shipping by at least 50 percent by 2050. Consequently, manufacturers are investing in research and development to create engines that utilize alternative fuels, such as LNG and hydrogen. This shift not only aligns with global environmental goals but also opens new market opportunities, potentially increasing the market value from 11.7 USD Billion in 2024 to 19.6 USD Billion by 2035.

Technological advancements play a pivotal role in shaping the Global Marine Engine Market Industry. Innovations in engine design, such as the incorporation of digital technologies and automation, enhance efficiency and performance. For example, the integration of IoT in marine engines allows for real-time monitoring and predictive maintenance, reducing downtime and operational costs. Furthermore, advancements in materials science lead to lighter and more durable engine components, contributing to improved fuel efficiency. As these technologies continue to evolve, they are expected to drive market growth, with a projected CAGR of 4.82% from 2025 to 2035, reflecting the industry's adaptability to changing demands.

Regulatory compliance is a critical driver for the Global Marine Engine Market Industry, as governments worldwide impose stringent environmental standards on marine operations. Regulations aimed at reducing emissions and enhancing fuel efficiency compel manufacturers to innovate and adapt their products. For instance, the implementation of the Sulphur Cap in 2020 has led to a surge in demand for compliant marine engines. This regulatory landscape not only influences the design and production of marine engines but also fosters a competitive environment where companies strive to meet or exceed these standards. As a result, the market is expected to grow, with projections indicating a value of 19.6 USD Billion by 2035.

By Region, the study segments the Marine Engine market into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The sizable Marine Engine industry in Asia-Pacific is likely to make the region the largest expanding global market for Marine Engine. Asia Pacific marine engine market size will grow at a significant rate as shipbuilding activities are rising at a commendable rate. The governments in the region are offering tax rebates to the shipbuilding industry.

The growth of the Asia Pacific market is primarily driven by the growth of the regional shipbuilding industry, development of efficient marine engine technologies, and an increase in maritime trade activities in the region. China maintained their position as a leading builder of bulk carriers, offshore vessels, and general cargo ships. The Republic of Korea manufactures gas carriers, oil tankers, and container ships; and Japan makes chemical tankers.

South Korea also houses four of the eight major shipbuilding businesses such as Ulsan-based Hyundai Heavy Industries; Seoul-based Daewoo Shipbuilding & Marine Engineering (DSME); Geoje-based Samsung Heavy Industries; and Jinhae-based STX Offshore and Shipbuilding. Furthermore, with rising contracts for high-value-added LNG carriers, the region is expected to witness higher demand for marine engines over the coming years.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Marine Engine Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Marine Engine Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global Marine Engine industry to benefit clients and expand the Marine Engine market sector is partnerships and acquisitions. The market for Marine Engine is recognized as being extremely competitive and fragmented. The market for Marine Engine offers considerable potential opportunities for domestic and unorganized companies.

Some of the key players operating in the market are GE Transportation (US), Caterpillar (US), Cummins Inc. (US), Rolls-Royce Power Systems (Germany), MAN Energy Solutions (Germany), Wärtsilä (Finland), Mitsubishi Heavy Industries (MHI) Group (Japan), Brunswick (US), Volvo Penta (Sweden), YANMAR (Japan), Scania AB (Sweden), Deere & Company (US), Deutz AG (Germany), Hyundai Heavy Industries Co., Ltd. (South Korea), STX Engine (Hong Kong). To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

STX Engine:STX Engine is a leading manufacturer in the world’s marine engine market and provides all services related to design, manufacture, sales, and after-sales services. The company occupies up to 40% of the local marine diesel engine market. It also manufactures engines that add up to 5 million horse power per annum, and the flagship products that it exports (200-15,000 horse power) are high output and low fuel consumption. The company has technology cooperation with Cummins Co of USA and MAN ENERGY SOLUTIONS Co of Germany.

Hyundai Heavy Industries Co., Ltd:Hyundai Heavy Industries Co., Ltd. is the world's largest shipbuilding company. HHI has four core business divisions: Shipbuilding, Offshore & Engineering, Industrial Plant & Engineering, and Engine & Machinery. Based on its leading position in engine production, HHI Engine & Machinery Business Unit is also a forerunner in the sector of engine power generation as well. The company has 12 work sites in five cities across Korea, and have a global network of 16 branches and 25 corporations across the world.