Global marine diesel engines market is poised to witness profitable growth as a significant rise has been observed in the number of overseas trade and shipping activities. The increasing scale of seaborne trade has resulted in the adoption of economically viable and high-performance engines. Diesel engines are so far, the best fit to fulfill the demand for highly reliable, economical, and durable engines that power several kinds of vessels, generators, propulsion systems, and other auxiliary equipment. These diesel engines operate at a mean efficiency of 40% to 50% depending upon the load, size, and age of the engine, and diesel is one of the widely available fuels in the world. Moreover, easy availability of spare parts, repair networks and trained repairing personal have also stimulated the adoption of marine diesel engines. Phasing out of steam engines from several applications has also given marine diesel engines market a significant push.
Fuel cost is a vital factor which can directly impact the trade profitability. However, the current price fluctuations are favorable for ship operators and are thus boosting marine diesel engines industry trends. According to Global Market Insights, marine diesel engines market is set to register a CAGR of 5% over the period of 2016-2024.
Europe Marine Diesel Engines Market Size, By Application, 2016 & 2024 ($Mn)
Rising seaborne trade has provided considerable traction to the global marine diesel engines industry share. As per 2015’s report presented by the UNCTAD, there has been a substantial increase in the seaborne trade (4%) between 2012 to 2014, owing to the significant rise in dry bulk trade and the positive outlook toward China’s economic development. China being one of the most progressive nations across the globe, has ambitious plans to strengthen its navy by introducing nuclear missiles carriers, submarines, and aircraft carriers. Also, the U.S. Navy increased its naval ships from 288 in 2014 to 308 by 2015. Such examples of increasing government spending toward deployment of navy ships for strengthening the security have displayed a positive impact on marine diesel engines market size.
Accounting for more than 25% of Asia Pacific marine diesel engines industry share in 2016, China is showing promising growth prospects with its expanding shipbuilding and transport network. Growing import activities in this nation have augmented the import of marine diesel engines, which was worth more than USD 1.05 billion in 2015. This escalating growth has prompted rigorous business activities to uplift the regional marine diesel engines market. For instance, in 2015, MAN Diesel & Turbo penned a 10-year contract with CSSC and CISC to start a production of low speed diesel engines in China.
The global low speed marine diesel engines market is set to grow at a rate of 4% over the period of 2016-2024. Growing demand for merchant vessels and cargo ships will further provide a positive thrust to overall marine diesel engines industry over the coming years.
Merchant vessels basically include bulk carriers, roll on/roll off, container vessels, tankers, and gas carriers. Rise in seaborne trade with growing preference toward LNG have provided a significant impetus to marine diesel engines market from merchant vessels. As per estimates, this market is projected to grow at an annual growth rate of 5% over 2016-2024. As per data reported by Shell, the demand for LNG increased from 250 MTPA in 2015 to 265 MTPA in 2016.
Europe marine diesel engines market led by Germany, has witnessed an increase in government spending on military ships and specialized ships. Germany accounted for 20% of the total industry share of Europe in 2016 and further aims to amplify its revenue share.
A notable rise in the disposable incomes along with high profile living standards have pushed the demand for cruise and ferry ships. The Florida-Caribbean Cruise Association (FCCA) provides an evidence for the same – a report by this organization states that the number of passengers on cruise ships increased by a significant 1 billion within a short span of 1 year. That is to say, the number of passengers cruising in ships was 22 billion in 2014, and this number increased to 23 billion by the end of 2015. This segment accounted for more than 20% of overall marine diesel engines industry share in 2016 and depicts a clear-cut growth over the coming seven year to 2016.
The prominent players of marine diesel engines industry are focusing on the design and development of cleaner and fuel efficient engines. Growing concerns over the carbon emissions have triggered several governments to impose stringent emission control regulations to curb harmful GHG, as this industry is also a major contributor to carbon emissions pertaining to that fact that more than 80% of trade is carried out by seaborne vessels. Nevertheless, many companies operating in marine diesel engines industry are actively investing in research to power these engines with cleaner fuels. The research projects embracing solar and wind power and as well LNG have gained prominence in the recent years, which has in a way benefited the growth of marine diesel engines market. Some of the key players operating in the global marine diesel engines industry include Rolls Royce, Cummins Engines, Caterpillar Inc., Wartsila Corporation, and GM Powertrain.