Shaft Generator Market - Forecasts from 2023 to 2028

The global shaft generator market is estimated to grow at a CAGR of 4.53% during the forecast period.

A shaft generator is a type of electrical generator directly connected to the shaft of a rotating machine such as a steam turbine, gas turbine, or diesel engine, and the rotation of the machine's shaft drives the generator, which then converts the mechanical energy into electrical energy. The advantage of a shaft generator is that it eliminates the need for a separate engine-driven generator, reduces the weight and space requirements of the system, and is more efficient. Shaft generator is commonly used in the marine industry, power generation systems, and industrial applications. The shaft generator market is expected to be driven by the increasing demand for electricity with more efficient and cost-effective power generation solutions, expansion of marine activities, and increasing focus on reducing emissions.

The growing demand for electricity in the marine sector is boosting the demand for shaft generators.

The marine industry relies heavily on electrical power for various operations, such as navigation, communication, and cargo handling. Using traditional engine-driven generators for power generation results in high fuel consumption and emissions. Shaft generators are considered a more efficient alternative to conventional generator systems as they can utilize the existing rotating machinery, reducing fuel consumption and emissions. Cargo vessels, container ships, and bulk carriers are used in marine transportation to transport large quantities of goods from one place to another. Generating electricity using a shaft generator is generally similar for different types of vessels. In these vessels, the shaft generator is usually connected to the main engine via a gearbox, which enables the generator to produce electricity as the engine turns the shaft. The use of shaft generators in new ships and retrofitting of existing ships is expected to increase, boosting the shaft generator market growth. According to the United Nations Conference on Trade and Development (UNCTAD) in 2020, global seaborne trade was expected to grow 3.6% in 2021. The seaborne trade was projected to grow at an average annual rate of 3.4% between 2021 and 2025. According to the International Chamber of Shipping (ICS), in 2020, the global shipping industry transported around 11 billion tonnes of goods in 2019, and the global fleet of ships grew by 4.1% in 2019. According to the International Maritime Organization (IMO), in 2020, the global shipping industry's total freight volume increased by 2.8% in 2019 compared to 2018, demonstrating the huge potential of shaft generators from the marine industry.

The Asia Pacific region is expected to hold a significant market share throughout the forecast period.

With its rapidly expanding marine industry in China, Japan, South Korea, and Singapore, the Asia-Pacific region is expected to witness increasing demand for shaft generators as shipowners and operators seek to adopt more sustainable and cost-effective technologies. In 2021, the Chinese government issued a new plan to promote the development of the marine industry in the Guangdong-Hong Kong-Macao Greater Bay Area, which includes developing the maritime economy, improving marine ecological protection, and enhancing marine technological innovation. In 2020, the Japanese government announced a plan to invest 2 trillion yen in the maritime sector over the next five years. This includes investments in the development of autonomous ships, the promotion of smart shipping technology, and the modernization of port infrastructure. In 2020, the Korean Register of Shipping (KRS) and Hyundai Heavy Industries (HHI) announced plans to jointly develop a new shaft generator system for ships to improve fuel efficiency and reduce emissions. The project received a grant of KRW 1.5 billion (approximately USD 1.3 million) from the Korean government's Ministry of Oceans and Fisheries. These factors all add to the shaft generator market growth in the Asia Pacific region.

Market Developments:

• June 2021: Wartsila, a leading power solutions provider for the marine industry, launched its new Shaft Generator system, designed to provide shipowners and operators with a more efficient and reliable electrical power source.
• May 2021: ABB announced that it had won a contract to supply its Azipod propulsion system and shaft generators to newbuild vessels for the Norwegian ferry operator “Norled.”
• March 2021: Hyundai Heavy Industries (HHI), a leading shipbuilder based in South Korea, introduced a new shaft generator system on board a 300,000 dwt very large crude carrier (VLCC) to provide electrical power to the ship's propulsion system and onboard systems.

Market Segmentation:

By Engine Type

• MC Engine
• ME Engine

By Mounting

• Front-End Mounting
• Aft-End Mounting

By Vessel Type

• Cargo Vessel
• Container
• Bulk Carrier
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• UK
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Others