Military Marine Vessel Engines Market

Military Marine Vessel Engines Market Analysis

The Military Marine Vessel Engines Market is expected to register a CAGR of greater than 4% during the forecast period.

The global marine sector witnessed the mild impact of the COVID-19 pandemic. According to the United Nations Conference on Trade and Development (UNCTAD) Review of Maritime Transport Report 2021, the impact of the COVID-19 pandemic on maritime trade volumes in 2020 was less severe than initially expected. The report stated that maritime trade contracted by 3.8% in 2020, but it recovered later in 2020 and is projected to increase by 4.3% in 2021.

The deployment of a naval fleet is essential for safeguarding coastal bordering countries' interests and sovereignty in light of the rise in territorial disputes between them. To ensure that the fleet is operationally ready to neutralize any hostile craft encroaching on the nation's maritime borders, new naval vessels had to be purchased, and the existing fleet had to be upgraded. The market is being driven in focus by new procurement, which generates a parallel demand for military marine vessel engines.

Significant advancements in the fields of advanced electronic propulsion systems and hybrid turbochargers have resulted from the intensive R&D efforts put forth to improve the operational parameters of a marine vessel. The advancement in such technologies is anticipated to minimize the design and operational cost of the vessels featuring such propulsive technologies as they reach the maturity stage and are widely adopted by the global naval forces.

Military Marine Vessel Engines Market Trends

Gas Turbine Propulsion Systems to Dominate the Market During the Forecasted Period

The gas turbine propulsion systems segment held the highest share in the market, and continue its domination during the forecasted period due to their optimized fuel economy, higher efficiency, reduction in emission, and also as it decreases fuel consumption in naval vessels. Significant changes in gas turbine design, particularly in the design and complexity of engine control systems, have led to the need for systems-oriented treatment of gas turbine propulsion.

Naval engine manufacturers are rapidly adopting several alternate technologies, such as Liquefied Natural Gas (LNG) and hydrogen-based propulsion systems. While LNG-powered engines are more fuel-efficient, their market share growth is hindered by a lack of bunkering infrastructure for LNG ships. New sophisticated gas turbine propulsion systems are being designed for next-generation naval vessels that are due to be inducted in the future.

For instance, In February 2023, GE India Industrial Pvt Ltd (GEIIPL), the India unit of global engineering giant GE, has been awarded a contract by the Cochin shipyard for the marine gas turbine solutions work for INS Vikrant, India's first indigenously manufactured aircraft carrier commissioned in August 2022.Developments such as these are boosting the growth of the market during the forecasted period.

Asia-Pacific Anticipated to Grow at a Significant Pace During the Forecast Period

The Asia-Pacific region is expected to dominate the market during the forecast period. Emerging markets, such as China, South Korea, India, and Japan, are continuously increasing their defense budgets to strengthen their national security. The arms race in the region is evident through the lavish defense budget spending of regional superpowers such as China and India. China envisions becoming the second-largest navy in the world by 2030. Also, since 2000, China's annual defense budget has increased eightfold, and the country has been focusing on indigenous development of amphibious landing craft to reduce its dependence on imported vessels.

The availability of low-cost skilled and unskilled labor and required shipbuilding infrastructure has encouraged the global marine vessel engine manufacturers to set up production units in the region to satiate the demand for new engines that are driven by the procurement plans initiated by the regional naval forces. For instance, In September 2022, Wartsila Corporation announced orders for its newly launched Wartsila 20 engines in China. These engines are equipped with Wartsila NOR NOX emmisions reducer to comply with China's stage II, popularly known as C2, emissions standards.

Military Marine Vessel Engines Industry Overview

The military marine vessel engines market is moderately consolidated due to the presence of a few players holding significant shares in the market. Some of the key players like Rolls-Royce Holdings PLC, General Electric Company, STX Engine Co. Ltd, STEYR MOTORS Betriebs GmbH, and Cummins Inc. Acquisitions of local players and companies in the supply chain may help the players to strengthen their presence in the market further. Moreover, for new players, the investment costs are expected to be high, as the size and complexity of the propellers for naval ships are far more extensive, compared to those for smaller boats.

Investments in R&D also tend to generate high demand for the market. For instance, GE's LM 2500 engines are so designed to operate in both littoral and deep-sea situations effectively. The companies are trying to expand their brand values in the market through joint ventures and new product launches. In September 2022, MAN Energy Solutions SE and Makita Corporation signed a three-year-long deal to provide MAN PrimeServ services on SCR-HP systems used in MAN two-stroke marine engines made by Makita under license.

Military Marine Vessel Engines Market Leaders

Military Marine Vessel Engines Market News

• In October 2022, Volvo Penta and CMB.TECH announced a tie-up for developing dual-fuel hydrogen-powered solutions aimed at both marine and terrestrial applications. The collaboration will focus on piloting projects of small-scale industrialization and ensuring access to greenhouse gas emission reduction technology.
• In February 2022, PT PAL Indonesia signed a memorandum of understanding (MoU) with the Naval Group to cooperate on the research and development of submarines, which will boost the maritime defense of Indonesia.