Marine Propulsion Systems Market Size - By Product (Diesel, Wind & Solar, Gas Turbine, Fuel Cell, Steam Turbine, Natural Gas, Hybrid), By Technology (Low Speed, Medium Speed, High Speed), Application, Power, Propulsion & Global Forecast, 2024 – 2032

Marine Propulsion Systems Market Size

Marine Propulsion Systems Market was valued at USD 26.4 billion in 2023 and is estimated to expand at a CAGR of 3% CAGR from 2024 to 2032. A marine propulsion system refers to the equipment or mechanism responsible for generating and transmitting the power to drive marine vessels through water. It is the mechanism or system used to generate thrust to move a watercraft through water. The system consists of engines, propulsion units including propellers or water jets, transmission systems, and control systems. They play a critical role in enabling ships to move efficiently, maneuver effectively, and maintain speed and direction while navigating on water.
 

The global economic growth and merchandise trade have been driving the growth of the marine propulsion systems market. The increase in maritime trade and fleet size will positively sway the business growth. The rising demand of high-performance engines for heavy load transportation along with growing focus on developing propulsion systems that offer higher fuel efficiency to reduce operating costs and minimize environmental impact will foster the industry potential.  

COVID– 19 Impact

The COVID- 19 pandemic will have considerable impact on overall marine propulsion systems market growth. The ongoing impact has resulted into decline in the capital expenditure across expansion & upgradation considering the revenue hit witnessed by the vessel operators, which in turn, will affect the industry outlook. However, best favorable conditions including measures to continue manufacturing, construction and infrastructure development operations along with the rising demand for automation to replace labor shortages has complemented the product demand. The continuous demand for new projects to respond to the crisis including rise in demand for healthcare equipment has positively stimulated the business landscape.

Marine Propulsion Systems Market Trends

Rising global seaborne trade primarily across the developing economies coupled with positive outlook toward the shipbuilding industry will institute a favorable business scenario. The marine industry has witnessed a significant turnaround owing to advancements in technology and design. There has been a gradual shift from traditional to alternate fuels due to growing environmental concerns among individuals and rising emission rates, accelerating the industry potential.

Marine Propulsion Systems Market Analysis

The low speed marine propulsion systems market will witness growth rate of 3.3% through 2032. The increasing long voyage trade across the globe along with utilization of low-cost fuel will stimulate the demand for these units. The growing adoption of products in merchant vessels and container vessels will further strengthen the product demand.

The wind & solar marine propulsion systems market is set to surpass USD 1.8 billion by 2032. Rising concerns toward environmental protection along with increasing seaborne trade activities will positively sway the business outlook. Shipowners have shifted toward the adoption of cost-efficient technologically advanced engines with an aim to comply with IMO norms, stimulating the industry landscape. The expansion of ECA zones along with a positive outlook toward the shipbuilding industry will fuel the product penetration.

The 1,000 - 5,000 HP marine propulsion systems industry holds over 35% of the revenue share in 2022.  Increasing applicability across bulk carriers, container, tanker vessels, and cargo ships will stimulate the industry growth.

The 2-stroke marine propulsion systems market will witness an appreciable momentum till 2032, owing to its key benefit to develop higher power at lower rotational speed and using heavy fuel oil with their thermal efficiency as high as approximately 50%. The ability to use inexpensive quality fuels reduced wear and tear resistance, high load sustainability, and uniform turning moment are some of the imperative parameters that will boost the industry landscape.

The cruise & ferry application is set to show tremendous growth through 2032, on account of rising disposable income and the increasing popularity of maritime tourism. Rising demand for luxury and comfort, leading to increased spending on cruise ships will foster the marine propulsion systems market outlook. The introduction of advanced marine propulsion units equipped with emission control systems and scrubbers will play a significant role in expanding the deployment reach of these systems.

The Europe marine propulsion systems market dominated around USD 4.4 billion revenue in 2022. The growing demand for ships that offer reliable operation will drive the product adoption. Increasing emphasis on diesel-engine capacity for powering new generation and advanced tanks will escalate the business growth. Rising demand for comfort and luxury, reliable engines, expansion of the seaborne transport industry, and overall economic stability contribute significantly to the installation of these systems.

Marine Propulsion Systems Market Share

The key companies operating across the marine propulsion systems market include:

• IHI Power Systems Co.
• Anglo Belgian Corporation
• HHI Engine & Machiner
• Kawasaki Heavy Industries
• MAN Energy Solutions
• Rolls-Royce
• STX ENGINE
• Wärtsilä
• Caterpillar
• Cummins
• DEUTZ AG
• DAIHATSU DIESEL MFG.CO.
• Deere & Company
• Scania
• AB Volvo Penta
• Weichai Holding Group Co.
• YANMAR HOLDINGS CO.
• Yamaha Motor Co.
• Mitsubishi Heavy Industries
• ABB
   

Marine Propulsion Systems Industry News

• In July 2023, Rolls-Royce has acquired the Team Italia/Onyx Marine, one of the key specialists of marine automation tools. The acquisition aimed to ensure a consistent high level of continuity and growth that will safeguard the future of the company. This strategic move will help the company to become a global provider of integrated solutions for the yacht industry.
   
• In February 2022, Wärtsilä announced its collaboration with Solstad Offshore for fleet decarbonisation with an aim to achieve a 50% reduction in CO2 emissions by 2030 for the vessel fleet. The objective of the agreement is to identify, evaluate, and implement solutions that will enhance fuel efficiency and substantially decrease greenhouse gas (GHG) emissions from offshore vessels. A comprehensive assessment will be conducted on each vessel to determine suitable solutions, potential operational enhancements, and considerations for extending their lifespan.
   

The marine propulsion systems market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD” from 2019 to 2032, for the following segments:

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Market, By Product

• Diesel
• Wind & Solar
• Gas Turbine
• Fuel Cell
• Steam Turbine
• Natural Gas
• Hybrid
• Others

Market, By Power

• < 1,000 HP
• 1,000 - 5,000 HP
• 5,000 - 10,000 HP
• 10,000 - 20,000 HP
• > 20,000 HP

Market, By Technology

• Low Speed
• Medium Speed
• High Speed

Market, By Propulsion

• 2-Stroke
• 4-Stroke

Market, By Application

• Merchant 
  • Container Vessels
  • Tankers
  • Bulk Carriers
  • Roll On/Roll Off 
  • Others
• Offshore 
  • Drilling RIGS & Ships
  • Anchor Handling Vessels
  • Offshore Support Vessels
  • Floating Production Units
  • Platform Supply Vessels
• Cruise & Ferry 
  • Cruise Vessels
  • Passenger Vessels
  • Passenger/Cargo Vessels
  • Others
• Navy
• Others

The above information has been provided for the following regions and country:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • Italy
  • Norway
  • France
  • Russia
  • Denmark
  • Netherlands
  • Belgium
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Vietnam
  • Singapore
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Iran
  • Angola
  • Egypt
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Mexico