Published On: January 2018
Global Marine Fuel Optimization Market Forecast till 2023
The marine fuel optimization market is currently dominated by a few players. Many organizations, especially in Europe and Asia Pacific region have their own manufacturing units, while, some organizations outsource their facility of manufacturing to other organizations. Asia Pacific is one of the fastest growing markets, and the companies, here are grabbing opportunities while being keen on expanding their units in this region. Moreover, there are other small and medium scale players that are able to generate revenue from the local markets. DNV-GL AS (Norway), ABB, Ltd. (Switzerland), Siemens AG (Germany) and the Emerson Electric Company (U.S). have been recognized as the global leaders with a broad range of products serving marine sector for marine fuel optimization systems. These companies contributed a major share of more than 50% of global marine fuel optimization market, in 2016. A marine fuel optimization system allows the ship owner to monitor, measure, and display the exact amount of fuel oil used by the ship. Fuel optimization systems not only provide the amount of fuel used but also gives additional data related to fuel usage. Marine fuel optimization systems provide statistical information on various other parameters such as the amount of fuel used by specific engine or generator while travelling at sea or at port. They also help compare fuel usage between voyages, and the amount of fuel used by particular crew. Besides providing a detailed analysis of all fuel oil using systems on board a ship, they allow the ship’s crew to track each and every drop of fuel oil. This reduces fuel consumption, thus improving overall efficiency.
Product Development, a Key to Sustain
Extensive research in this market brought to light that product launch is a key strategy adopted extensively by the players with a share of more than 40%. This had majorly been decided upon to expand their product’s geographical presence, achieve operational efficiencies and also to stay updated in the marine fuel optimization. Partnerships and collaborations are also major strategies adopted by the major players in the global marine fuel optimization market. This strategy is widely adopted to increase the number of offerings to the customer. New technologies and chemicals for marine fuel optimization projects, lead to new product developments.
Recently, DNV GL launched a new application on its My DNV GL portal – the Port State Control (PSC) Planner. The PSC planner has been designed to help ship owners, managers and operators, improve their operational efficiency by giving them an overview of the vessel’s or fleet’s PSC performance and to benchmark that performance against the IACS classed world fleet. It also helps the crew on board by showing them particular areas to focus on when they are preparing for their next inspection.
Stringent Government Regulation to curb carbon emission, is promoting marine fuel optimization market, across the globe
The seas have always been subject to human activities. To a varying extent, these activities have an adverse impact on the state of marine environment. As far as threats to the marine environment are concerned, pollution is, by far, the most significant. Marine fuel optimization is a fuel management system which provides the exact amount of fuel oil burnt for any marine vessel. The vessel owner, through marine optimization system, can keep a track of the actual fuel consumption in correspondence with the operations of the vessel. A complete analysis of marine fuel optimization systems, effective operating strategies, and a clear understanding of how the vessel uses the fuel, can be achieved.
The most familiar hydrocarbon compounds are petroleum hydrocarbons, commonly referred to as oil. Crude oil, which constitutes the original form oil before it is refined to yield, is primarily used as a fuel in marine vessel. The environmental impact of oil comprise physical and chemical alterations, and the toxicity of marine habitats. According to the third international maritime organization greenhouse gas study report 2014, shipping contributed 2.8% of global CO2 emission and 15% and 13% of global NOx and SOx emission from anthropogenic sources, respectively. Maritime transport CO2 emissions are projected to increase by 50% to 250% in the period to 2050. Currently, International Maritime Organization (IMO) with major economies draft regulations to curb the carbon emission at sea level through expanding emission control areas across major sea area. They also ensure reduction of SO2 & PM by revising legislation on sulphur content of fuel and cut emission of NOx by establishing mandatory NOx emission standards for all ships across the globe.
Analysis of Future Trends of the Marine Industry
Seaborne trade activities continue to expand, internationally as shipping is the lifeline of the global economy. International trade, bulk transport of raw materials, and the import/export of food and manufactured goods are essential in any economy. The international shipping industry is responsible for carrying out around 90% of world trade. According to The United Nations Conference on Trade and Development (UNCTAD), merchant ships operations contribute close to USD 380 billion in freight rates within the global economy, which is equivalent to about 5% of total world trade. The expanding seaborne trade has widened the scope of marine fuel optimization systems, across the globe. It is expected that growth in the sea borne trade in near future will create a fruitful market for marine fuel optimization system manufacturers, across the globe due to its wide application in shipping industry.