Impact of COVID-19 on the Global Marine Engine Market
The COVID-19 outbreak has negatively affected the global economy as the operations of various sectors have come to a standstill. The World Trade Organization (WTO) stated that the global economy is expected to fall by approximately 13% to 32% in 2020 due to the disruption of normal economic activity. The marine industry is also facing adverse effects as personnel have been advised to refrain from traveling. This has also led to an increasingly negative impact on global trade due to a delay in exchanging containers. Due to this, the installation of a marine engine is affected. Moreover, organizations are suspending production temporarily at the major propulsion facilities.
FIGURE: NUMBER OF SHIPS IN THE WORLD AS OF JANUARY 2019, BY TYPE
Most companies in the marine engine supply chain have stopped operations to ensure the safety of employees. However, some companies are operating at minimum capacity to support essential industries, such as power generation and manufacturing companies. Numerous marine facilities across the globe are dependent on marine engines for converting heat into energy. As the demand for marine operations has declined globally, the demand for new marine engines has also declined. Furthermore, the revenue generation of numerous manufacturing companies across the globe has declined due to reduced demand for manufactured goods. Manufacturing companies across the globe have shut down operations and are facing numerous difficulties in restarting business operations. Some of the common difficulties faced by manufacturing companies across the globe include disruptions in the supply chain, reduced revenue generation due to low sales, inability to operate at 100% due to social distancing norms, and lack of human resources.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Secondary Source: World Trade Organization