Global Marine Propulsion Engine Market Report, published by Variant Market Research, forecast that the global market is expected to reach $15 billion by 2024 from $10 billion in 2016; growing at a CAGR of 4.6% from 2016 to 2024. By geography, Asia-Pacific and North America are expected to grow at a CAGR of 4.8% and 4.5%, respectively, during the forecast period.
The global marine propulsion engine market is majorly driven by rising innovations & rapid technical innovations coupled with expanding international trade among various countries. Increasing focus on renewable energy resources due to depletion of conventional reserves and the ever-increasing demand for crude oil also fuel the growth of the market. In addition, emphasis on the use of renewable energy resources, biofuel & synthetic fuels and rising budget for defense sector to strengthen their coastline security is expected to provide growth opportunities in the forecast period. However, stringent rules & regulations over the rising greenhouse gases & marine contamination, and high investment cost is expected to hinder the growth of the market.
The global marine propulsion engine market has been bifurcated into power source, ship type and geography. Power source segment includes gas turbine, diesel, steam turbine natural gas and others. Diesel accounted for the largest market share in 2016, whereas, natural gas is expected to witness fastest CAGR over the forecast period 2016-2024. Moreover, the market by ship type is segmented as bulk carrier, cargo ship, passenger ships, tanker, offshore vessels, and others. Cargo ship and tanker dominated the ship type segment with market share of 32.8% and 19.2% respectively in 2016.
Geographically, the marine propulsion engine market has been bifurcated into North America, Europe, Asia-Pacific and RoW. Asia-Pacific accounted for the largest market share in 2016 and it is anticipated to dominate the market during the forecast period 2016-2024, owing to increase in the number of import and export trades among countries. Europe accounted for the second largest market share of 26.1% due to increasing defense budgets and rising demand for ships and yachts.
Market players have used various strategies to increase their market share and global presence. For instance, Rolls-Royce has signed contract with Afai Southern Shipyard Ltd., in November 2016, for the supply of power and propulsion for a third Blue Sea Jet, fast ferry for the Zhuhai High-Speed Passenger Ferry Co., Ltd. Furthermore, the key players in the market are Caterpillar, Rolls-Royce plc., Cummins, Inc., Wartsila, Hyundai Heavy Industries Co. Ltd., MAN Diesel & Turbo, Mitsubishi Heavy Industries, Ltd., Daihatsu Diesel Mfg. Co. Ltd., and Scania, Yanmar Co. Ltd., among others.