Marine Engine Market Size was valued at USD 10,916.0 million in 2022. The Marine Engine Market industry is projected to grow from USD 11,418.1 million in 2023 to USD 15,642.8 million by 2030, exhibiting a compound annual growth rate (CAGR) of 4.6% during the forecast period (2024 - 2030). A marine engine, also known as a ship's engine or boat engine, is an internal combustion engine or a propulsion system specifically designed and used for powering watercraft such as ships, boats, submarines, and other vessels that operate in water bodies like oceans, rivers, and lakes. These engines are specialized to operate in the challenging and often harsh marine environment.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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.
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.
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. Specifically, the figure is 30 out of 111 in Korea Shipbuilding & Offshore Engineering, 24 out of 24 in Daewoo Shipbuilding & Marine Engineering, and 14 out of 19 in Samsung Heavy Industries. In addition, most of the single-fuel vessels are supposed to be equipped with a scrubber for SOx reduction or can be altered to use LNG, ammonia or hydrogen as a fuel. As the dual-fuel vessel orders are increasing after the low-sulfur fuel oil price hit an all-time high recently. This is expected to create new opportunities for companies manufacturing dual fuel engines.
The Marine Engine Market segmentation, based on fuel has been segmented as Diesel, Gas, Others. Among these, the Diesel type is projected to dominate the Marine Engine Market revenue through the projected period. Diesel engines occupy the largest share in the marine engine market as they provide fuel efficiency and longer life expectancy. In addition, they are built to tighter tolerances and can stand much more abuse than their gasoline counterparts. Furthermore, diesel engines when maintained properly can give upto 6,000 to 8,000 hours of good use before needing a major overhaul. Caterpillar, Cummins, MAN, and Volvo Penta are some of the major diesel engine vendors for marine applications. The rising demand for economically viable engines, which are reliable, durable, and fuel efficient further complements the marine diesel engines market penetration.
The Marine Engine Market segmentation, based on power rating, the market is segmented as Upto 1000 kW, 1000-4000 kW, Above 4000 kW,. Out of which the Upto 1000 kW segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. Marine engines up to 1000 kW are used in yachts and in commercial ships. They are suitable for sea areas as draining water ship, tugboat, fishnet ship, freighter and digging-ship and are also used in ferries, windfarm service vessels (WSV), inland waterway vessels, passenger and pilot boats, rescue and patrol boats, tugs, dredgers, trawlers, and fishing boats. MAN Engines offers a wide range of high-speed four-stroke diesel engines that provide a power spectrum from 147 kW to 735 kW in heavy-duty operation. In medium-duty operation, the power range extends from 412 kW to 1,066 kW.
The Marine Engine Market segmentation, based on type, the market is segmented as auxiliary and propulsion. Out of which the propulsion segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. Marine propulsion is the system or mechanism used to generate thrust that allows a small boat or even a ship to move across waterways. The marine propulsion systems/engine market is gaining significant traction because they power massive ships that transport cargo globally.
The Marine Engine Market segmentation, based on speed, the market is segmented as low-speed, medium-speed, and high-speed. Out of which the medium-speed segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. Medium-speed marine engines consists of speed ranging from 500 rpm to 1200 rpm. They are installed in ships and boats with very low lead time. Medium-sized boats and ships use medium-speed engines.
The Marine Engine Market segmentation, based on stroke, the market is segmented as 2-stroke and 4-stroke. Out of which the 2-stroke segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. Two-stroke engines are generally slow-speed engines. They are most commonly used on ships as two-stroke drive can burn low-grade heavy fuel oil which are most commonly used in large ship. In addition, due to slow speed and less vibration 2 strokes design have an edge over 4 strokes when it comes to ease of maintenance. Although they have a high initial cost, it requires only low maintenance and fuel cost.
The Marine Engine Market segmentation, based on application, the market is segmented as cargo ship, cruise ship, and others. Out of which the cargo ship segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. Marine engines are used extensively in cargo ships such as feeder ship, general cargo vessels, container ships, tankers, dry bulk carriers, and reefer ships. Moreover, Cargo ships are the major users of marine engines accounting for 49% of the market. With the number of merchant ships in trading increasing rapidly, the demand for marine engines from the cargo ship makers are only expected to rise in the coming years.
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.
February 2021:Caterpillar completed the acquisition of varying equity interests and assets of the Weir Group PLC, collectively known as SPM Oil & Gas (SPM). Headquartered near Fort Worth, Texas, SPM Oil & Gas produces a full line of pumps, flow iron, consumable parts, wellhead and pressure control products that are offered via an extensive global network of service centers. This acquisition, included in the Energy & Transportation segment, is consistent with the company’s strategy of providing the customers expanded offerings and services.
February 2022:Deere & Company has acquired majority ownership in Kreisel Electric Inc., a leading pioneer in the development of immersion-cooled battery technology. The Austrian company manufactures high-density, high-durability electric battery modules and packs for high-performance and off-highway applications and has created a battery-buffered, high-powered charging infrastructure platform (CHIMERO).
June 2022:Volvo Penta is expanding its capabilities, experience, and range by becoming the majority shareholder of Norwegian marine battery and electric driveline solutions supplier ZEM AS.ZEM is a supplier of both marine battery systems and complete electric drivelines and a strong track record in Norway, the most mature marine e-mobility market in the world.
February 2024 saw a partnership between Caterpillar and Solstad Offshore ASA (Solstad) and Cat® dealer Pon Power AS, wherein the Marine Division of Cats is highly committed to assisting ship owners to increase their fuel efficiency while at the same time lowering GHG emissions with a view of offering alternatives for fuel options as well as powertrain integrations which will assist in supporting such operational and sustainability goals.
December 2023, MAN Energy Solutions made an agreement with Alfa Laval (Swedish industrial company) to develop a solution for methanol supply for MAN four-stroke engines and injection technology. This enables the ability to convert all four- stroke types of engines into methanol operation by 2025.
In August 2022, Leisure, The Silent Yachts Company(i.e., "Leiser"), partnered with Volvo Penta to manufacture silent running zero-emission motor yachts. These innovations combine Leisers' elegant designs with Volvos' hybrid electric motorings that help cut down on its emissions footprints. The project pushes boundaries in sustainability yachting, giving us an insight into what is expected in the future.
In March 2023, Strategic Marine joined forces with Trakindo, a Caterpillar dealer to buy one hundred Cat C32 engines .These have been designed so that they can be easily converted into IMO III-compatible systems by adding selective catalytic reduction equipment.
In April 2022, Cummins Inc. launched the X15 marine engine, which meets ABS requirements and is cost-effective as it has RINA, BV, and DNV certifications. This machine's power rating is from 450-600 HP(336 -447 kW) and offers the highest continuous rating power density within its class at about 1724 kg (3800 lbs).
In July 2023, Cummins introduced Marine Overhaul Service Solutions in Singapore, Malaysia, Philippines, and Indonesia from Papua New Guinea, Australia, New Zealand, and the Pacific Islands. This service solution is aimed at boosting their fleet's performance while remaining competitive in this thriving maritime industry. To cater to the varied budgets of vessels fitted with Cummins Model K19M/D, K38M and K50M engines, this new product offers comprehensive engine overhaul services.
In July 2023, Hyundai HD Heavy Industries announced that by the end of next year, it will have developed a mid-sized ammonia-fueled ship engine using its own technology and know-how. These engines will be developed and produced in partnership with MAN Energy Solutions from Germany as well as Winterthur Gas & Diesel – WinGD (China).
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 10,916.0 million |
| Market Size 2023 | USD 11,418.1 million |
| Market Size 2030 | USD 15,642.8 million |
| Compound Annual Growth Rate (CAGR) | 4.6% (2024-2030) |
| Base Year | 2023 |
| Forecast Period | 2024-2030 |
| Historical Data | 2019 & 2022 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Fuel, Power Rating and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
| Countries Covered | The U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, Brazil, Saudi Arabia, UAE, Argentina, |
| Key Companies Profiled | 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) |
| Key Market Opportunities | Rising demand of dual-fuel engines. |
| Key Market Drivers | Growth in international marine freight transport. |
Marine Engine Market Highlights:
Frequently Asked Questions (FAQ) :
Marine Engine Market was US$ 10,916.0 Mn in 2022
The growth rate of the Marine Engine Market was 4.6% in 2022.
Asia Pacific held the largest market share in the Marine Engine Market
Key players in Marine Engine Market included 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)
Diesel led the Marine Engine Market
Upto 1000 kW had the largest market share in the Marine Engine Market
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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