Best Marine Engines
Marine engines are used for propelling marine vehicles and auxiliary power generators on vessels. The main generators are coupled with the main engine to power the main supply of the vessel. The marine engines market growth is highly dependent on the development of the shipbuilding industry, the commissioning of new ships would result in an increase in the number of orders for marine engines. Increase in seaborne trade has resulted in huge demand for commercial vessels, which, in turn, is boosting the demand for marine engines.
Top 10 Marine Engines Companies
- Hyundai Heavy Industries
- Caterpillar
- Mitsubishi Heavy Industries
- Man SE
- Volvo Penta
- Wartsila
- Yanmar
- Deutz AG
- John Deere
- GE Transportation (Wabtec Corporation)
Market Overview
Marine engines are the main source of power in ships, and therefore, play a vital role in the shipbuilding industry. According to data published by the International Chamber of Shipping (UK), approximately 90% of the global volume of merchandise trade is carried out via sea, as this channel is cheaper than rail and road transport.
A marine engine is an integral part of a ship’s propulsion mechanism. It is a heat engine used for converting heat, which is generated by burning fuel and developing thermal energy and transforming it into mechanical energy. The engines used in onboard ships are internal combustion engines, where the combustion of fuel takes place inside the engine cylinder, and the heat is generated after the combustion process. The marine engines market growth is highly dependent on the development of the shipbuilding industry, as the commissioning of new ships would result in an increase in the number of orders for marine engines for those ships/vessels. The major players in the marine engines market are Hyundai Heavy Industries, Caterpillar, Wartsila, MAN SE, Yanmar, and Mitsubishi Heavy Industries.
The two-stroke segment is expected to dominate the marine engines market as two-stroke engines can run on low-grade fuels, which helps to keep the overall running cost down; have better efficiency and higher power; and are more reliable compared to the four-stroke engines.
The existing players in the marine engines market such as Volvo Group, Rolls-Royce, Cummins, Wärtsilä, GE Transportation, John Deere, and DEUTZ AG have constantly been adopting organic and inorganic growth strategies to mitigate any decline in their market share. New product launches and contracts & agreements were the most widely adopted strategies by these players to ensure dominance in the market.
This section explains the competitive leadership mapping in which the companies are identified and placed on the best marine engines quadrant according to ratings given on the parameters such as product portfolio and business strategy.
This category of Marine Engines quadrant include companies such as Hyundai Heavy Industries, Caterpillar, Mitsubishi Heavy Industries, Man SE, Wartsila and Volvo Penta.
This category of Marine Engines quadrant includes companies such as Yanmar, GE Transportation (Wabtec Corporation), Cummins, and Rolls Royce.
This category of Marine Engines quadrant include companies such as Deutz AG and John Deere.
This category of Marine Engines quadrant will be updated soon.
Market Dynamics
Drivers
Growth in international marine freight transport
Maritime transport is considered to be the backbone of international trade. According to data published by the International Chamber of Shipping (UK), approximately 90% of the global volume of merchandise trade is carried out via sea, as this channel is cheaper than rail and road transport. Countries in Asia Pacific have become the leading providers of manufactured goods. Thus, the demand for container ships is significantly high in this region, owing to an increase in the export of goods. Most shipbuilding companies, including manufacturers of propulsion systems and engines, are located in Asia Pacific. Thus, the demand for maritime transport services and the growth of the shipping industry in Asia Pacific have contributed to the increasing demand for marine engines.
Penetration of smart engines for situational awareness and safety
The marine freight transport market is full of challenges and compels a ship owner to consider various elements such as regulatory changes and other cost increasing factors, besides freight rates. Ship operators and owners try to enhance a ship’s engine lifespan, reduce maintenance costs, and save significant sums in the future. This has encouraged the engine manufacturers to develop smart engines, which would be easy to monitor and repair even before they malfunction.
There is a great need for the development of engines that can adapt to the stringent emission standards, and meet the high demand for powerful, dependable, and smart engines incurring low operational costs. The main aim of creating intelligent engines is to decrease the operational cost of the propulsion plant along with high fluctuations in operations and to adapt to the stringent emission standards imposed by the respective authorities under the International Maritime Organization (IMO). Smart engines may help monitor the wear and tear of engines and provide alerts to take precautionary actions. They are equipped with IoT sensors that provide real-time data through the engine monitoring systems and control systems. This helps identify malfunctions in engine operations, and thereby reduce the operational cost of running marine engines.
Growth in maritime tourism
Growth in maritime tourism encourages the use of cruise ships, ferries, motorboats, and other passenger transport vessels. As coastal, maritime, cruise, and island tourism generates revenue for ship owners and offers employment opportunities, the governments of various countries worldwide have introduced policies and schemes to encourage maritime tourism activities. For instance, the governments of countries in the European region launched several funding programs such as Horizon 2020, the COSME Framework Program, the Creative Europe Program, the Erasmus+ Program, the LIFE+ Program, and the 7th EU Environment Action Program to support coastal tourism. In addition, the Natura 2000 and EMAS Easy MOVE-IT projects function as a part of the EU eco-management and auditing scheme to fortify eco-friendly practices on cruise and passenger transport vessels. Thus, growth in maritime, island, cruise, and coastal tourism is expected to lead to the high demand for ferries and cruise ships, which, in turn, are further expected to propel the demand for marine engines.
Restraints
Stringent environmental regulations worldwide
Environmental regulations, policies, and subsidy schemes vary country-wise based on the intensity of emissions caused by harmful gases such as SOx, NOx, and CO2. For instance, MARPOL Annex VI guidelines released by the International Maritime Organization (UK), in 2005, defined the limits for NOx emissions and mandated the use of fuels with low sulphur content. Ship components’ manufacturers are focused on the development of marine propulsion systems that comply with various environmental regulations formulated by governments of countries worldwide.
Dependence on heavy fuel as the primary fuel
Diesel engines are the most widely used engines. In marine engines, heavy fuel oil is preferred due to its economic feasibility. This oil is the residue left in the fractional distillation of crude. Thus, it is rich in sulfur and nitrox emissions. The emission norms are becoming more stringent with a focus on developing ECAs, where using a diesel engine is not permitted. This acts as a restraint for the diesel marine engine market. The engine type is selected according to the load that is to be transferred. Gas engines are used on vessels carrying natural gas, along with the boiled gas used in the engine. However, using gas as a fuel for long distances is not economical for carriers, which, in turn, increases the freight charge for the end users. An increase in the freight cost is expected to affect the growth of the seaborne trade, thereby acting as a restraint for the marine engines market.
Opportunities
Increased naval budgets worldwide
Countries such as the US, the UK, Russia, France, China, and India spend a significant amount of their military budgets on navies. For instance, the US spends 3.8% of its GDP on military expenditure. The country has an arsenal of warships, destroyers, and submarines. It is expected to enhance the existing fleet of naval vessels, thereby providing growth opportunities to manufacturers and suppliers of propulsion engines and auxiliary engines. The sale of warships by the aforementioned countries to other nations worldwide is further enhancing the demand for marine propulsion engines and auxiliary engines. Moreover, in 2015, the Russian government approved a rearmament program for the modernization of its navy and development of its strategic nuclear forces. Under this program, 45% of the inventory of the Russian Navy is to be replaced with modern equipment. Thus, the modernization programs have led to building new naval warships, which, in turn, are expected to contribute to the high demand for marine engines.
Rising demand for dual-fuel engines
A marine engine is a very important part of ships and boats. Currently, many companies are spending on the research & development of engines to get the maximum mileage and power at the minimum cost. Alternative fuel is also required to run an engine because of the higher cost and low availability of petroleum fuel (diesel and petrol). Many engines are developed that can run on an alternative fuel. Duel Fuel engine runs on 2 fuels to complete a power stroke. It uses gaseous fuel as the main fuel and diesel fuel as a pilot fuel. The heavy fuel and marine gas/diesel oil are the 2 fuels that are mostly used simultaneously. In general, during offshore sailing, heavy oil is used because of its low cost. On the other hand, marine gas oil is used when sailing near land. Nearly all new engines are manufactured to handle both fuels. This hybrid system offers an economical option for the vessel operators to comply with the emission norms.
Challenges
Fluctuations in oil & gas prices
The production, exploration, and distribution of oil & gas are undertaken by the members of the Organization of the Petroleum Exporting Countries (OPEC). According to the US Energy Information Administration (EIA), oil prices have declined by a significant extent since 2014; in January 2016, the price of oil was USD 28/barrel. However, in July 2017, oil prices increased to USD 45.9/barrel. Low oil prices impact the oil & gas exploration & production industry, thereby propelling organizations to re-evaluate their exploration strategies. The decline in oil & gas exploration & production activities affects the demand for merchant vessels, such as oil tankers and bulk carriers, and subsequently the demand for marine propellers. Therefore, fluctuations in oil & gas prices act as a challenge to the growth of the marine engines market.
Shipping overcapacity
Shipping overcapacity refers to the oversupply of shipping vessels against demand. Old vessels are sold in the market, thereby adding more tonnage to the already oversupplied market. The overcapacity in the shipping industry has led to a decline in the number of orders for new vessels, despite growth in the international marine freight traffic. Thus, a reduction in the new shipbuilding orders is anticipated to act as a key challenge for the growth of the marine engines market.
Best Marine Engines, By Power Range
The marine engines market has been segmented on the basis of the power range (in horsepower (hp)) into 5 segments, ranging from 1,000 hp to more than 20,000 hp. In the marine engines market, the 5,001–10,000 hp engine segment had the largest share in the projected timeline. China is the leading country for shipbuilding activities, followed by South Korea and Japan. The development in the Asia Pacific, low-cost manufacturing, and government support are the prime drivers for the development in the region. Other drivers include low labour cost and increasing local demand in small ferries, military purposes, and fishing boats.
Up To 1,000 HP - Marine engines up to 1,000 hp by power has applications in smaller vessels such as tug boats, yachts, motor-boats, recreational boats with outboard engines, small- and medium-sized fishing vessels, ferries, and inland waterway vessels. These engines are generally high-speed and may also come in medium-speed specifications as well.
1,001–5,000 HP - The 1,001–5,000 hp marine engines usually have medium- or high-speed specifications and are generally used in medium-sized vessels such as passenger ferries, luxury yachts, tractor tugs, small offshore support vessels, medium-sized fishing vessels, small cargo vessels, crew vessels, and other vessels.
5,001–10,000 HP - The 5,001-10,000 hp marine engines are, based on usage, the most frequently deployed engines and also profit margins by volume. In vessels such as tankers, cruise liners, pull ships and other offshore service boats, backup and recovery ships, chemical containers, passenger ships, protection navy ships such as coast guards, and numerous other uses, these engines, typically use medium-speed motors.
10,001–20,000 HP - The 10,001–20,000 hp marine engines find applications in a variety of vessels such as offshore support vessels, defense vessels, bulk carriers, gas carrier vessels such as LNG and LPG carriers, chemical carriers, cargo vessels, multipurpose supply vessels, and other vessel types.
Above 20,000 HP - The marine engines of the above 20,000 hp segment have applications majorly for very large vessels which include large bulk carriers, cargo vessels, containerships, defense vessels, LPG carriers, LNG carriers, and other large vessels.
Best Marine Engines, By Vessel
The global marine engines market has been segmented, based on the vessel, into the commercial vessel, offshore support vessel, and others.
Commercial Vessel
A commercial vessel is also known as a merchant vessel or trading vessel. It includes all the vessels involved in commercial trade to transport cargo on hire. The trade for consumer products and the demand from consumers worldwide has increased in the past few years. As globalization has brought the world closer, the need for cargo shipping and trading vessels has subsequently increased. This phenomenon has resulted in the demand for consumer goods in countries such as China, India, and European nations.
The commercial vessel segment of the marine engines market can be segmented into 16 subsegments, based on the vessel type for which they are employed. These include bulker, containership, general cargo, product carrier, Multi-Purpose Vessels (MPVs), Ro-Ro, LPG carrier, LNG carrier, Pure Car Carrier (PCC), reefers, chemical carrier, special carrier, and others.
Offshore Support Vessel
The offshore support vessels are cargo vessels that regularly transport goods, supplies, or equipment supporting exploration or production of offshore mineral or energy resources. Some of the support operations of offshore support vessels include:
- Seismic survey to locate oil & gas bearing areas.
- Towing of rigs and platforms to their location, positioning them.
- Laying anchoring & mooring equipment.
- Supplying rigs and platforms with the necessary personnel, equipment, stores, provisions, and more.
- Subsea operations such as ROV operation, diving support, inspection, and maintenance, and safety standby.
Others
Vessels, which are not commercial and offshore support vessels, have been included in the others segment. This segment has been divided into 6 subsegments on the basis of the vessel type for which they are employed. These include bunkering & fleet replenishment vessel, cruise, dredger, ferries, landing craft, and tugs.
Marine Engines, By Fuel
The marine engines market has been categorized into 5 segments, based on the fuel used in the propulsion system of the ship/vessel. These include Heavy Fuel Oil (HFO), Intermediate Fuel Oil (IFO), Marine Diesel Oil (MDO), Marine Gas Oil (MGO), and others. The others segment includes Liquefied Natural Gas (LNG) and hybrid fuels such as LNG-HFO, LNG-IFO, LNG-MDO, LNG–MDO-HFO, LNG-MGO, LNG-MGO-HFO, MGO-HFO, and nuclear fuel. LNG, which is expected to be the fuel of the future in the marine industry, is expected to witness some growth, especially in inland waterways; hybrid engines may increase in small numbers in the near future.
Heavy Fuel Oil - Heavy fuel oil is the last fuel produced in the fractional distillation of crude oil. It has a kinematic viscosity of more than 180 mm²/s at 50°C and density of greater than 900 kg/m³ at 15°C. It is blended with other lighter fuels to achieve the required specification. The fuel has a high sulfur content, which is harmful to the environment. As stringent emission norms are being implemented in developed regions such as North America and Europe, a decline is expected in the heavy fuel oil usage.
Intermediate Fuel Oil - The intermediate fuel oil is a grade G residual marine fuel, a blend of gasoil and heavy fuel oil, with less gasoil than marine diesel oil. It is one of the most common residual fuels used in transoceanic ships. More commonly known as IFO380, this residual marine fuel is manufactured at the refinery and contains visbroken residue and heavy- and light-cycle oil. The Asia Pacific is estimated to be the largest market for the intermediate fuel oil segment.
Marine Diesel Oil - The marine diesel oil is manufactured by combining kerosene, light, and heavy gas oil fractions. Moderate growth is estimated in this segment due to growth in applications such as harbour tugs and push boats. The Asia Pacific is estimated to be the largest market for the marine diesel oil segment.
Marine Gas Oil - The marine gas oil is made by blending light cycle oil with distillate oil. It is relatively expensive because it is a lighter fraction and a better quality fuel than diesel. It is one of the highest grade marine oils. It is a fuel best suited for faster moving engines.
Others - The others segment includes LNG, hybrid fuels such as LNG-HFO, LNG-IFO, LNG-MDO, LNG–MDO-HFO, LNG-MGO, LNG-MGO-HFO, MGO-HFO, and nuclear fuel. High growth is estimated in this segment due to the eco-friendly nature of these fuels. LNG is a clean and efficient fuel. LNG is essentially a natural gas in the liquid form under high-pressure and low-temperature conditions. LNG-MDO is a hybrid engine operating on both LNG and marine diesel oil; similarly, LNG-MGO is a hybrid fuel engine operating on both LNG and marine gas oil.
Marine Engines, By Engine Type
In this study, the marine engines market has been segmented on the basis of the engine into a propulsion engine and auxiliary engine. The propulsion engine segment is further divided into gas turbine, diesel engine, steam turbine, and dual-fuel engine.
Propulsion Engine
Propulsion engines are the main engines of ships, providing thrust and power to move and sail the oceans. Marine propulsion engines are a very important asset of ships as they are the prime mover of the ship. Thus, the demand for propulsion engines across various engine types is expected to increase. Propulsion engines are further divided into gas turbine, diesel engine, steam turbine, and dual-fuel engine, and are explained below:
- Gas Turbines - A gas turbine, also known as a combustion turbine, is a type of internal combustion engine. The most widely used form of the propulsion system for modern ships is the gas turbine engine. These engines have an upstream rotating compressor coupled with a downstream turbine and a combustion chamber.
- Diesel Engines - Diesel engines are used in marine vehicles, namely, boats, ships, submarines, and so forth. Both, two-stroke as well as four-stroke engines are used in the marine industry. The engines used for the main propulsion or turning the propellers of normal ships are usually slow-speed two-stroke engines, while those used to provide auxiliary power are usually four-stroke high-speed diesel engines.
- Steam Turbines - Steam turbines are very old forms of marine engines and presently use different energy sources such as coal, crude oil, natural gas, and most importantly nuclear fuel to boil water for the steam turbine. Nuclear fuel systems are majorly installed on naval ships and submarines. Nuclear ships use atomic engines, which have lower fuel costs, last for many years, and are zero-emission, and therefore have a growing demand from the maritime industry. The major components of steam turbines are generators, nuclear reactors, turbines, and boilers. Nuclear reactors produce a significant quantity of heat, which is the driving force for the working of a nuclear ship. The quality and durability of reactors are very important factors in nuclear ship reactors as the components last for long durations of time. Reduction in the availability of fossil fuels is expected to lead to the high demand for marine nuclear propulsion in the near future.
- Duel-Fuel Engines - The maritime industry is on the verge of a major change, from conventional propulsion methods to modern and more economical and environment-friendly methods, which are enabled through the use of dual-fuel engines which can be operated on natural gas as well as fuel. Almost all new engines are manufactured to handle both fuels. This hybrid system offers an economical option for the vessel operators in order to comply with these emission norms.
Auxiliary Engine
Marine support engines, also known as auxiliary power engines, are designed to ensure the proper functioning of a vessel’s main engines, piping systems, and equipment. The marine auxiliary engine acts as an electric generator, which produces electricity to power the propulsion engine starter, ship’s pumps, onshore machinery; cool refrigerated holds; and provide power to the air conditioning system of the ship. Furthermore, the auxiliary engine powers winches used to anchor, moor, load cargo, and for cranes of cargo vessels. The demand for electricity is high in passenger ships, cruise ships, fishing ships, and yachts, and thus require a larger number of marine auxiliary engines to generate enough electricity. The increasing deliveries of cruises, yachts, and passenger ships are leading to the high demand for auxiliary engine deliveries in the market, thereby fostering the demand for auxiliary engines in the marine engine market.
Best Marine Engines, By Type
The marine engines market has been segmented, on the basis of type, into two-stroke and four-stroke. The two-stroke segment dominates the marine engines market because of various advantages. They can run on low-grade fuels; have better efficiency and high power; and are more reliable. They are preferred as main engines in vessels in case of long journeys via oceans when higher power and efficiency is required. On the other hand, the four-stroke marine engines offer a compact design, low initial cost, and more rpm/speed.
Two-Stroke - The two-stroke marine engines are widely used in large ships/vessels while covering long distances via oceans. Also, they are more efficient and offer more power.
Four-Stroke - Medium to large merchant boat commission four-stroke engines that provide medium engine speeds of 250–850 rpm. These engines are also the preferred method of propulsion on vessels, such as passenger boats and ferries, with minimal passenger capacity. These engines require 4 piston strokes to convert fuel into power. While the piston moves up and down the cylinder twice, the crankshaft also revolves twice. These engines incur low maintenance cost, thus reducing the overall operating cost of a ship, which is expected to drive the four-stroke marine engines market.
New Product Developments
In October 2018, John Deere launched a new series for marine engines 4045SFM85 which has 2 ratings—275 HP at 2,600 rpm and 315 HP at 2,800 rpm.
In September 2018, GE Transportation launched a new high-speed diesel engine program, which is likely to serve the locomotive, marine, and power generation segments.
In September 2018, Rolls-Royce launched a new range of powerful medium-speed V-Engines with 12, 16, and 20-cylinder option. The engine offers 20% more power per cylinder at 600 kW compared to its previous versions.
In September 2018, MAN Diesel & Turbo SE launched its latest 2-stroke engine, which is built on dual-fuel technology designed for LPG running.
In August 2018, Cummins launched the QSK60 engine package with cleaner emissions for a wide range of marine applications, from commercial workboats to luxury yachts.
Marine Engines
Hyundai Heavy Industries is a builder of ships, offshore and industrial equipment, engines & machinery, electric systems, construction equipment, and other products that are used in green energy. The company provides products that can cater to the requirements of applications such as shipbuilding, construction, industrial usage, and utilities. The company provides marine diesel engines and marine duel fuel engines which range from 1,300–30,170 hp. These engines are used mostly in large commercial and recreational/cruise applications.
Caterpillar builds and sells engines, construction and mining equipment, diesel-electric locomotives, and industrial gas turbines around the world. The company provides products to various industries like agriculture, defence, construction, marine, electric power generation, mining, and landscape. It provides both diesel as well as natural gas engines to the customers. The company leverages both organic as well as inorganic growth strategies for expansion.
Mitsubishi Heavy Industries is a Japanese electrical equipment and electronics company. The company provides products to numerous industries. It provides engines through its industry and infrastructure segment, and the marine engines fall under marine development equipment, which belongs to the ship & ocean sub segment. Mitsubishi Heavy Industries offers an extensive range of application-based products and is among the main players providing a high-power output range of diesel engines.
MAN SE is one of the most prominent mechanical engineering and Commercial Vehicles Company. MAN Diesel & Turbo SE offers turbomachinery and diesel engines that are used in marine and stationery applications. The company’s product line comprises of two-stroke and four-stroke engines, gas turbines, gas engines, steam turbines, compressors, turbochargers etc. Man SE also builds yachts’ engines and commercial shipping for light, medium, as well as heavy operations under marine engines.
Volvo Penta acts as a detached business unit and is a top manufacturer of marine engines for Volvo Group. It makes marine commercial engines and marine leisure engines that are used in powerboats, sailboats, and marine yachts. The engines built by Volvo Penta deliver a power output of up to 1,000 kW, making it fit to be used for commercial purposes. The company introduced a new engine based on the Selective Catalytic Reduction (SCR) technology, which will possibly help Volvo in attaining more than 75% emission decline in marine applications.
Wärtsilä provides products and services for applications in marine, oil & gas, and energy sector. The company offers marine engines under its marine power solutions sub segment. The company also provides propulsion engines, which are diesel and dual-fuel engines.The company implemented both organic as well as inorganic growth strategies for the growth of its product line-up.
Yanmar Marine International is a Japanese industrial equipment maker that provides an extensive assortment of equipment for agricultural, construction, marine, power generation, and air conditioning applications. The products and services provided by the company include agriculture equipment, construction, commercial, industrial engines, marine engines, energy systems, and power products. The company offers marine engines through the marine commercial and marine pleasure segments, which have applications in commercial marine, sailboats, and powerboats.
Deutz AG is one of the top producers of innovative drive systems. The company offers a product spectrum with capacities ranging from 19 to 620 kW for numerous applications like construction equipment, agricultural machinery, material handling equipment, stationary equipment, commercial vehicles, and rail vehicles.
John Deere manufactures agricultural, construction, diesel engines, and drivetrains that are used in heavy equipment and lawn care equipment. The company builds products that are most ideal for applications in agriculture, construction, domestic usage, and forestry. The company implemented an organic growth strategy to enhance its product offerings with progressive technologies and cater to maximum end users across the globe.
GE Transportation is a wholly owned subsidiary of General Electric (GE). The company operates via 4 business segments, viz., locomotives, services, mining, and others. The company provides 3 types of marine engines with power ranging from 1,400–5,685 hp. GE Transportation has worked with several industries such as rail, mining, and marine all around the world. The company implemented organic growth strategies to improve its product offerings and market position, and discover new opportunities in the untapped markets.
Rolls-Royce develops and sells electromechanical and hybrid power systems. The company creates products for several applications such as aerospace and power systems. It offers engines for marine propulsion applications under the marine division. The company also offers automation and control, electrical power systems, gas turbines, generating sets, propulsion engines, and other products for maintenance and maneuvering, and others under the marine division.
Cummins makes diesel engines, natural gas engines, generators, and engine related technologies and components. The company provides engines for marine applications through its engine division. It builds and provides engines for marine under the off-highway sub segment of the engine division. The off-highway sub segment comprises of numerous applications such as marine, construction, compressor, mining, rail, oil & gas, pumps, and ReCon engines.
