The Global Marine Auxiliary Engine Market size is projected to be worth USD 2,807.4 million by 2030, registering a CAGR of 3.9% during the forecast period (2022–2030).
Marine auxiliary engines are engines utilized to provide power to ships or boats. These engines consist of crankshaft, liner, pistons, bedplate, and head. These components are constructed with corrosion-inhibiting materials, and their seals and bearings are specifically designed for operating in sea environments. Marine auxiliary engines have advantages, such as operational flexibility and high efficiency while supplying power to the vessels. Such engines are also efficient in terms of speed, weight, and reliability in harsh climatic conditions.
COVID-19 Impact on the Global Marine Auxiliary Engine Market:
The pandemic's global health and economic crisis has disrupted the maritime transport and trade landscape and has had a significant impact on growth prospects. According to UNCTAD, the volume of international maritime trade will decrease by 4.1% in 2020. A twin supply and demand shock severely impacted the global economy as a result of supply chain disruptions, demand contractions, and global economic uncertainty caused by the pandemic.
Moreover, several equipment manufacturers of engines have halted their production as the spread of COVID-19 forced them to shut manufacturing plants and production assemblies. The impact was in terms of a slight decline in revenues and a challenging situation with managing the cash flow of the Marine Auxiliary Engine market players. Furthermore, the producers of industrial machines experienced challenges in procuring raw material as most of the industry depends on shipping, which was impacted due to national restrictions.
Marine Auxiliary Engine Market Dynamics
There have been rising investments in shipbuilding due to the extensive research and development activities to develop environment-friendly technologies for auxiliary engines. Moreover, developing countries such as India, Bangladesh, and Indonesia, and developed countries such as the US, Germany, and the UK realize the strategic importance of building and maintaining robust ships with the latest technologies, leading to the growth of the marine auxiliary engine market.
In 2018, the International Marine Organisation (IMO), a part of the United Nations, implemented new regulations to achieve a 50% reduction in carbon emission to protect the environment. Countries across the globe are taking steps for decarbonization by significantly investing in research and development activities. The shipping industry is also investing in battery-powered ferries, which would require efficient engines and low carbon fuels. Thus, the rising investments in the shipping industry and the increase in the use of energy-efficient motors components in ships would drive the marine auxiliary engine market globally.
Ships typically use a variety of fuel oils with various viscosities, which are generally residual products of crude oil refining. The lighter distillate products are used to make gasoline, diesel, and jet fuel, a familiar part of everyday life. The issue with residual fuel oil is that it emits a variety of harmful pollutants when it is burned. Large amounts of sulfur can be found in residual fuel oil, which oxidizes to form SOX compounds, which cause acid rain. Nitrogen oxidizes to form NOX compounds, which cause smog and acid rain due to the high combustion temperatures found inside most ship engines. Furthermore, CO2 emissions are relatively high, resulting in the release of greenhouse gases (GHG) into the atmosphere. Finally, particulate matter (PM) emissions are high, lowering air quality and causing respiratory problems in humans and animals. As a result, marine engines are subject to a slew of environmental regulations.
Developed countries such as the US, Germany, and China are implementing hybrid engine technology in marine engines. These engines can deliver significant efficiency by running on optimal load and absorbing many load fluctuations through batteries. In rural and remote areas, the availability of crude oil is less. Therefore, marine auxiliary engines play an important role in transporting products and services through waterways. A report published by Siemens and Bellona in 2016 stated that around 70% of Norwegian ferry ships could be converted to battery or hybrid propulsion, which would be an opportunity for marine auxiliary engine market. Countries such as India, China, and Korea are implementing hybrid engine technology in their ships, eventually reducing fuel consumption and maintenance costs.
Key manufacturers have showcased various development in the dual-fuel engine segment. Shell, for example, agreed to charter ten new crude tankers powered by dual-fuel liquefied natural gas (LNG) engines with AET Tankers, a maritime energy logistics company, in March 2021. MAN Energy Solutions was awarded the contract to supply the world's first low-speed, dual-fuel engine that runs on methanol in the container segment in July 2021. Thus, the growing demand for dual-fuel engines is likely to create lucrative opportunities for the marine auxiliary engine market in the forecast period.
Marine Auxiliary Engine Market Supply Chain Analysis
In the design & development stage, the dimensions of the marine auxiliary engines are calculated. Then, for designing, the overall layout of equipment is chosen according to the specific requirements of the applications. Auxiliary engines are classified into type of strokes (2-stroke and 4-stroke) and type of power (diesel and gas). After finalizing the designs of the marine auxiliary engines, the raw materials are procured from the suppliers. An uninterrupted supply of high-quality raw materials in the required quantities ensures the product's durability and enhances its efficiency. The efficiency of the marine auxiliary engines is entirely dependent on the quality of raw material used for manufacturing them.
After the raw material is procured in the required quantities, manufacturers produce marine auxiliary engines according to the dimension and requirements of the clients. Once the marine auxiliary engines are manufactured, they undergo certain quality checks to ensure high strength properties, often exceeding industry standards for quality and durability.
Distribution channels form an important element in the supply chain for marine auxiliary engines. Marine auxiliary engines are manufactured according to industry standards, are distributed across the globe through a vast dealership network. Distributors are an essential part of the supply chain as they form the link between the manufacturers and end users. Marine auxiliary engines are distributed to end users, including commercial boats, security boats, recreational boats, and fishing boats. Moreover, rising international trade and shipbuilding activities globally drive the global demand for marine auxiliary engine market.
Marine Auxiliary Engine Market Segmentation
Based on fuel:
Diesel and gas are the segments based on fuel of the Global Marine Auxiliary Engine Market. The Diesel segment is expected to have the highest CAGR and dominate the marine auxiliary engine market share during the forecast period. Marine diesel refers to marine fuel composed of various distillates blends and heavy fuel oil containing very low heavy fuel oil content. Marine diesel contains a higher density as compared to diesel fuel. Marine diesel is available in various blending ratios that can be controlled by processes in the refinery or blending ready-made marine fuels. Their unique blending ratios make it suitable to use marine diesel oil in numerous engines.
Based on power:
Up to 350 HP, 350 TO 650 HP, and 650 HP TO 1000 are the segments based on power of the Global Marine Auxiliary Engine Market. The up to 350 HP segments lead the market during the forecast period. Marine auxiliary engines with a power range up to 350 HP are low-speed engines; they have a maximum operating speed of 300 RPM. These engines are powered mainly by two-stroke turbocharged engines, in which about 4 to 12 cylinders are arranged in an in-line formation. The marine auxiliary engines with power up to 350 HP can operate efficiently on low-quality fuels, which is a major driver for this segment in the global marine auxiliary engine market.
Based on application:
commercial boats, security boats, recreational boards, and fishing boats are the segments based on the application of the Global Marine Auxiliary Engine Market. The market is expected to be dominated by the commercial boat segment. The commercial boats of marine auxiliary engines are powerboats, center console boats, houseboats, lifeboats, and personal watercraft boats. The boats included in this segment use 4-stroke engines since their speed requirements are much higher than the cargo ships and cruise ships.
Marine Auxiliary Engine Market Regional Analysis
The regions are classified as North America, Europe, Asia-Pacific, Middle East & Africa and South America. Asia-Pacific accounted for the largest market share. The marine diesel engines market in Asia-Pacific has grown significantly in the last two decades and is expected to grow substantially during the forecast period. This is primarily on account of the rising seaborne trade in the countries such as China, South Korea, and India. Additionally, the introduction of regulatory norms by government authorities regarding maritime safety and prevention of pollution by ships has resulted in the growth in the demand for advanced marine auxiliary engines. This is the primary factor driving the marine auxiliary engine market.
Europe is the second-largest market for marine auxiliary engines globally, followed by North America. As the crude oil prices stabilize, trade in Europe is expected to grow during the forecast period. The region primarily imports cars and electrical equipment, and its primary imports include electrical equipment and dry bulk materials. These factors are expected to drive the marine auxiliary engine market in Europe during the forecast period. The shipping industry in the UK plays a vital role in the country’s economy as 95% of the total imports and exports in the country are moved through the oceans.
Marine Auxiliary Engine Market Competitive Landscape
The global marine auxiliary engine market is characterized by the presence of global, regional, and local players. The key manufacturers of marine auxiliary engines compete based on manufacturing cost, technology advancement, and power capacity. They are engaged in expanding their production capacity and investing in R&D activities to gain an edge over competitors.
List of Key Companies covered in the report:
Marine Auxiliary Engine Market Report Overview:
The Global Marine Auxiliary Engine Market is segmented based on fuel, power, and application in this report. The report is focused on various analytical aspects such as market dynamics, Supply chain analysis, Porter’s five forces, competitive landscape, recent developments, and company profiles. The insights in this report, comprise, discuss views and predict the emerging and fast-growing segments, regions, and countries with potential of development in the Global Marine Auxiliary Engine Market.
Marine Auxiliary Engine Market Segmentation Overview:
Objectives of the Study
|Market Size||2030: USD 2,807.4 Million|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Fuel, Application and Power|
|Geographies Covered||North America, Europe, Asia-Pacific, Middle East & Africa and South America|
|Key Vendors||Wabtec Corporation (US), Rolls-Royce Plc (UK), Yanmar Holdings Co. (Japan), MAN (Japan), Cummins Inc. (US), Caterpillar (US), Deere & Company (US), Hyundai Heavy Industries Co. (South Korea), Mitsubishi Chemical Corporation (Japan), STX Engine (South Korea), Kirloskar Oil Engines Ltd. (India), Deutz AG (Germany), AGCO Power Inc. (Finland), Volvo Penta (Sweden), Wartsila (Finland), Volkswagen (Germany)|
|Key Market Opportunities||Rising demand for dual-fuel engines|
|Key Market Drivers||Growth in the international marine trade Growth in shipbuilding industry|
The Global Marine Auxiliary Engine Market would register a growth of ~3.9% during the forecast period.
Stringent environmental regulations are a key restraining factor for the Global Marine Auxiliary Engine Market
Asia-Pacific would enjoy the upper hand in the Global Marine Auxiliary Engine Market