Marine Propulsion Engines Market Report 2025

The marine propulsion engines market size has grown steadily in recent years. It will grow from $26.29 billion in 2024 to $27.42 billion in 2025 at a compound annual growth rate (CAGR) of 4.3%. The growth in the historic period can be attributed to steam engine era, transition to diesel engines, advancements in engine design, emergence of gas turbines, globalization and trade expansion.

The marine propulsion engines market size is expected to see strong growth in the next few years. It will grow to $33.4 billion in 2029 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to hybrid and electric propulsion, digitalization and AI integration, green shipping initiatives, LNG infrastructure development, focus on sustainability. Major trends in the forecast period include fuel efficiency and emissions, shift towards alternative fuels, digitalization and connectivity, adoption of LNG as fuel, focus on decarbonization, size and power optimization.

The anticipated growth of the marine propulsion engine market is being propelled by the increase in international seaborne trade. Seaborne trade involves the transportation of goods across the sea using ships, which are powered by marine propulsion systems. These systems not only enhance the safety of the marine ecosystem but also prove to be cost-effective and environmentally friendly. In 2022, the United Nations Conference on Trade and Development (UNCTAD) reported a 1.4% increase in marine trade, with projections suggesting a further 2.1% increase from 2023 to 2027. Containerized trade also witnessed a 1.2% rise in 2022, expected to reach a 1.9% increase in 2023. This surge in international seaborne trade is a significant driver for the marine propulsion engine market.

The rise in geopolitical tensions is anticipated to drive the growth of the marine propulsion engines market in the future. Geopolitical tensions encompass political conflicts, rivalries, or disputes among nations or regions, often concerning issues like territory, resources, power, or ideology. These tensions result in a heightened demand for advanced propulsion systems to enhance naval presence, address security concerns regarding strategic shipping routes, and support military shipbuilding initiatives. Furthermore, geopolitical tensions can disrupt global supply chains, necessitating localized manufacturing and alternative sourcing strategies. For example, in July 2024, The Armed Conflict Location & Event Data Project (ACLED), a US-based non-profit organization, reported over 165,273 incidents of political violence globally, reflecting a 15% increase from July 2023 to June 2024. Consequently, the escalation of geopolitical tensions is propelling the growth of the airport and marine port security market.

A key trend gaining popularity in the marine propulsion engine market is product innovation. Major companies in the market are actively focusing on developing innovative products to enhance their market position. For instance, in September 2022, AB Volvo Penta, a prominent US-based manufacturer of engines and power systems for boats, vessels, and industrial applications, introduced variable-speed marine generator sets designed for marine electric propulsion. These sets feature smaller battery banks and the ability to charge them while in motion, making the transition to hybrid-electric marine propulsion more practical and affordable. Volvo Penta's product innovation is aimed at strengthening its position in the market.

Innovations in auxiliary engines are also a focal point for major companies in the marine propulsion engine market. Auxiliary engines serve as secondary power sources, providing additional energy for functions other than primary propulsion. In September 2023, Perkins Engines Company Limited, a leading UK-based marine engine manufacturer, launched the Perkins E44 and E70B auxiliary engines. These engines, designed for diverse marine applications, offer flexible and configurable power solutions for various vessels. The engines prioritize durability, boasting a 500-hour service interval and low maintenance features. Perkins Engines' focus on compact design, easy installation, and high uptime aims to provide end-users in various sectors with reliable and efficient auxiliary power solutions.

In April 2024, Yamaha Motor, a Japan-based automobile manufacturer, acquired Torqeedo for an undisclosed amount. This acquisition aims to strengthen Yamaha’s research and development initiatives in electric propulsion technology by leveraging Torqeedo's extensive expertise and patent portfolio in electric motors and systems. Torqeedo is a Germany-based company specializing in electric marine propulsion.

Major companies operating in the marine propulsion engines market include Caterpillar lnc., Daihatsu Diesel Mfg Co. Ltd, Hyundai Heavy Industries Co. Ltd., Mitsubishi Heavy Industries Ltd., Rolls-Royce Holdings Plc, Wärtsilä Corporation, Yanmar Holdings Co. Ltd., Scania AB, MAN Energy Solutions, Cummins Inc., AB Volvo Penta, Kawasaki Heavy Industries Ltd., Fairbanks Morse Defense, Anglo Belgian Corporation, Nigata Power Systems Co. Ltd., Deutz AG, WinGD, Siemens Energy AG, Yamaha Motor Co. Ltd., Torqeedo GmbH, China Shipbuilding Corporation, Mitsubishi Turbocharger and Engine Europe B.V.

Asia-Pacific was the largest region in the marine propulsion engines market in 2024. The regions covered in the marine propulsion engines market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the marine propulsion engines market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Marine propulsion engines are systems designed to propel ships across the water while prioritizing the safety of the marine environment. These engines offer advantages such as fuel and operational flexibility, high efficiency, low emissions, and cost-effectiveness.

The primary types of marine propulsion engines include 2-stroke engines and 4-stroke engines. A two-stroke engine is an internal combustion engine that completes a power cycle with two piston strokes in just one crankshaft rotation. Different types of ships utilizing these engines include cargo or container ships, tankers, bulk carriers, offshore vessels, passenger ships, and various other ship types. Power ranges vary from 0-1,000 HP, 1,001-5,000 HP, 5,001-10,000 HP, 10,001-20,000 HP, to above 20,000 HP. Fuel types for these engines encompass diesel, heavy fuel oil, natural gas, and other fuel variants. Marine propulsion engines find applications in diverse sectors such as commercial, defense, and passenger transportation.

The marine propulsion engines market research report is one of a series of new reports that provides marine propulsion engines market statistics, including marine propulsion engines industry global market size, regional shares, competitors with a marine propulsion engines market share, detailed marine propulsion engines market segments, market trends and opportunities and any further data you may need to thrive in the marine propulsion engines industry. This marine propulsion engines market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The marine propulsion engines market consists of sales of wind propulsion systems, nuclear propulsion systems and gas turbine propulsion systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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