Marine Diesel Engine Market Growth, Size, Share, Trends, and Forecast 2030

Marine Diesel Engine Industry Prospective:

The global marine diesel engine market size was worth around USD 9.36 billion in 2022 and is predicted to grow to around USD 14.56 billion by 2030 with a compound annual growth rate (CAGR) of roughly 5.73% between 2023 and 2030.

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Marine Diesel Engine Market: Overview

A marine diesel engine is a type of reciprocating internal combustion engine specially designed for marine applications onboard vessels. These engines run either on dual fuel or diesel. As compared to traditional petrol engines, marine diesel engines are more complex and bulkier but they also offer improved operational efficiency. A diesel engine creates energy by the addition of fuel, in this case diesel, to high-temperature compressed air resulting in a safe and controlled explosion that powers the crankshaft leveraging linkages. Marine diesel engines are used for multiple purposes on a marine vehicle and some of the applications include creating electricity, powering propellers, or rotating motors. They offer several advantages over other engine variants since they are more affordable and are not as explosive as other fuels. Owing to the generation of higher energy per unit, marine diesel engines offer better mileage. When onboard, these engines are broadly classified into two groups. The primary is the marine propulsion engine and the second is the diesel generator which is coupled with an alternator for generating electric power.

Key Insights:

• As per the analysis shared by our research analyst, the global marine diesel engine market is estimated to grow annually at a CAGR of around 5.73% over the forecast period (2023-2030)
• In terms of revenue, the global marine diesel engine market size was valued at around USD 9.36 billion in 2022 and is projected to reach USD 14.56 billion, by 2030.
• The marine diesel engine market is projected to grow at a significant rate due to the growing investments in the construction and use of recreational or cruise ships
• Based on application segmentation, merchant was predicted to show maximum market share in the year 2022
• Based on power segmentation, 1000 to 5000 HP was the leading segment in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Marine Diesel Engine Market: Growth Drivers

Growing investments in construction and use of recreational or cruise ships to drive market growth

The global marine diesel engine market is expected to grow owing to the rising investments in construction and demand for recreational and cruise ships. Some of these vessels are extremely huge and are powered by marine diesel engines. In the commercial world, there has been a significant rise in demand for cruise ships accommodating thousands of travelers while providing them with luxurious amenities on board. As per official reports, currently, there are 322 cruise ships at sea. In June 2023, it was reported that the construction of the world’s largest cruise ship has been completed and the vessel will be open for service in 2024. It is called Icon of the Seas and is owned by Royal Caribbean International. With a length of 365 meters, it will weigh around 250,800 tons and will be able to hold around 8000 people onboard including crew and passengers. Furthermore, the rising rate of international tourism has resulted in greater revenue registered by companies providing recreational boat services. Although they are smaller than cruise ships, the demand for recreational boats has significantly improved. They are either personally bought or rented on an everyday basis by users. Most vessels are powered by diesel marine engines.

Rising applications in naval ships to assist in delivering promising results

The marine diesel engine industry caters to the needs of naval ships. As regional governments continue to improve their maritime presence in the backdrop of rising political tensions, the demand for marine diesel engines will continue to grow. An October 2023 report published by the Federation of American Scientists claims that the US Navy has requested a USD 32.8 billion budget in fiscal year 2024 for shipbuilding funding. The country’s defense team is expected to procure 9 new ships in the coming years including class attack submarines and destroyers. In a similar request, Japan’s defense ministry has requested USD 52.67 billion in the next fiscal year as the country prepares for future national threat concerns.

Marine Diesel Engine Market: Restraints

Impact of marine diesel engines on marine ecosystems may lead to growth restrictions

The global marine diesel engine market growth is likely to be restricted owing to the impact of marine diesel engines on aquatic life and marine ecosystems. These engines are powered by diesel and its burning leads to the release of several harmful chemicals such as particulate matter and ground-level ozone. In recent times, emissions caused by marine diesel engines have garnered attention and severe scrutiny from regional and international environmental-regulating bodies. To curb the emission rate, the International Maritime Organization has initiated a cap on fuel sulfur content on fuel used in marine environments. As per research, a large cruise ship can produce around 54,000 to 110,000 liters of black water per day.

Marine Diesel Engine Market: Opportunities

Surging rate of new environmentally less straining marine diesel engine launches expected to assist in market expansion

The marine diesel engine industry growth rate is expected to gain greater momentum during the projection period due to the increasing launch of new marine diesel engines by the world’s leading manufacturers. This trend also includes the launch of engines that can run on multiple fuel types thus improving application scope and reducing environmental impact. For instance, in September 2022, Wärtsilä, a leading technology group, launched the Wärtsilä 25 medium-speed 4-stroke engine. The company has used its successful modular technology platform for building the engine range. Associated offerings of Wärtsilä 25 are higher flexibility, fuel economy, and reduced emission rate since the engine can run on liquid carbon-neutral biofuels, diesel, gas, or liquified natural gas (LNG). It can also be upgraded to achieve operations using future carbon-free fuels when they become available. Such strides by marine diesel engine manufacturers will work in the favor of the market. During the same time, another player MAN Energy Solutions launched the MAN 49/60DF engine type. It is a four-stroke engine and an addition to the company’s existing portfolio of marine engines. MAN 49/60DF has a dual engine and can be powered using diesel, LNG, and heavy fuel oil (HFO) among other sustainable fuels such as synthetic natural gas and biofuel.

Marine Diesel Engine Market: Challenges

Rising competition from marine electric motors to challenge market expansion trend

The global marine diesel engine market growth projections also enlist the challenges that marine diesel engine manufacturers face from the growing popularity and adoption of marine electric motors. Just like their road counterparts electric vehicles (EVs), vessels powered by marine electric motors do not have any significant impact on the marine ecosystem and they also align with environment-oriented policies. In May 2023, Zparq, a Sweden-based startup, completed its lowest seed round worth EUR 2.5 million. The company manufactures the world's most compact electric marine motors with low carbon dioxide footprint and emission-free marine propulsion throughout the value chain.

Marine Diesel Engine Market: Segmentation

The global marine diesel engine market is segmented based on application, power, technology, and region.

Based on application, the global market segments are cruise & ferry, offshore, merchant, navy, and others. During the projection period, the merchant segment is projected to grow at a CAGR of 4.1% due to growing investments in the development of new water routes, especially between Western and Asian countries. The segmental growth will be fueled by the growing rate of freight transport through waterways.

Based on technology, the marine diesel engine industry divisions are high speed, medium speed, and low speed.

Based on power, the global market segments are >20,000 HP, 10,001 to 20,000 HP, 5001-10,000 HP, 1000 to 5000 HP, and <5000 HP. By the end of 2030, the 1000 to 5000 HP segment is expected to deliver around USD 1.98 billion in revenue. The growth of recreational vessels and cruise ships along with the rising use of merchant ships for transportation of cargo and other products may act as the segmental growth propellers.

Marine Diesel Engine Market: Report Scope

Marine Diesel Engine Market: Regional Analysis

Asia-Pacific to hold control over major market share in the near future

The global marine diesel engine market will be dominated by Asia-Pacific during the forecast period. In 2022, more than 55.1% of the global market share was led by Asia-Pacific. The presence of a comprehensive and robust shipbuilding industry in South Korea and China along with rising investments in the marine industry are the essential regional growth drivers. China is the owner of the largest fleet of cargo ships that sail the international ocean. The country is working on the expansion of its maritime presence by partnering with transcontinental nations to build new water transport routes. Additionally, Asian countries have access to raw materials required for building marine diesel engines. In September 2020, China-based Weichai Group launched the first heavy-duty, commercial, and high-speed diesel engine in the world boasting a break thermal efficiency of over 50%. Growth in Europe will be driven by the extensive presence of Germany in marine diesel engine production with a long list of in-house companies. However, the region is steadily focusing on the development of sustainable marine vessel propellers and power generators.

Marine Diesel Engine Market: Competitive Analysis

The global marine diesel engine market is led by players like:

• Caterpillar Inc.
• Deutz AG
• Volvo Penta
• MAN Energy Solutions
• Daihatsu Diesel Mfg. Co. Ltd.
• Rolls-Royce Power Systems AG (formerly MTU)
• Mitsubishi Heavy Industries Ltd.
• Fairbanks Morse
• Cummins Inc.
• Doosan Engine
• Yanmar Co. Ltd.
• Hyundai Heavy Industries Co. Ltd.

The global marine diesel engine market is segmented as follows:

By Application

• Cruise & Ferry
• Offshore
• Merchant
• Navy
• Others

By Technology

• High Speed
• Medium Speed
• Low Speed

By Power

• >20,000 HP
• 10,001 to 20,000 HP
• 5001-10,000 HP
• 1000 to 5000 HP
• <5000 HP

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa