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LNG Marine Engine Market Size
LNG Marine Engine Market is set to experience sizable growth throughout 2024 to 2032, driven by the increasing need for less polluting fuels for maritime shipping. Additionally, rising intervention by regulatory bodies such as International Convention for the Prevention of Pollution from Ships is encouraging maritime operators to shift to LNG based marine engines.
According to OECD, global shipping contributes to about 30% of the world's total nitrogen oxide (NOx) emissions, leading to thousands of premature deaths in coastal regions. Additionally, ships are responsible for approximately 2.5% of global greenhouse gas (GHG) emissions. LNG is considered a cleaner alternative to traditional marine fuels such as diesel and heavy fuel oil, as it emits lower levels of sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter. This has led to an increasing number of ship owners and operators opting for LNG-powered vessels to comply with stringent emission regulations imposed by international maritime organizations.
LNG Marine Engine Market Trends
As LNG engines deliver affordable propulsion systems that strictly adhere to all safety guidelines and emission legislations, they are being adopted at a higher rate in commercial power generation. The market is further witnessing a notable demand from the booming maritime tourism sector. Tourists are increasingly flocking to cruise vacations as the relatively more affordable nature of LNG is comparatively driving down ticket prices, which is slated to boost the industry outlook in the long run.
LNG Marine Engine Market Analysis
The diesel-fired LNG engines type segment is projected to record notable rise till 2032, fostered by their large sizes and ability to operate at higher efficiencies. Marine shipping extensively uses four-stroke marine diesel engines, specifically in bulk carrier and smaller container ships. Rising emphasis on exhaust gas emissions and fuel consumption will favor the adoption of diesel-fired LNG engines.
The naval application segment is expected to grow steadily till 2032 as naval vessels, including military ships and submarines, are increasingly opting for LNG as a fuel source due to its environmental benefits and cost-effectiveness. LNG-powered naval vessels offer enhanced operational efficiency and reduced environmental footprint, making them a preferred choice for defense agencies around the world. Additionally, the strategic advantages offered by LNG-powered naval vessels, such as extended range and operational flexibility, further drive their adoption in naval application.
North America is estimated to account for a notable share of the global LNG marine engine market by 2032. The revenues are likely to be led by the mounting of crude oil exports within the region. As per estimates, the US, on average exported nearly 5.97 million barrels per day in 2022, which is 405,000 bpd more than it did in 2021. Stringent environmental regulations, such as the International Maritime Organization's (IMO) sulfur emissions regulations, are prompting shipowners to adopt cleaner fuel alternatives. Additionally, the abundance of natural gas in North America and the region's well-developed LNG infrastructure contribute to the market growth.
LNG Marine Engine Market Share
Cummins, IHI Corporation (Dai-ichi Life), Yuchai, John Deere, Caterpillar, Scania (Volkswagen Group, Traton), Yanmar, Volvo Penta (AB Volvo), Brunswick Corporation, Anglo Belgian, Turbo, and Deutz are among the leading providers of LNG marine engines in the world. These companies are adopting tecnhiquses of collaboration, partnership and product innovation.
LNG Marine Engine Industry News
In 2023, Shell and Hapag-Lloyd have inked a long-term deal for providing LNG to Hapag-Lloyd’s ultra-large container ships, with each vessel surpassing 23,500 twenty-foot equivalent units (TEU).