Global Dual Fuel Engine Market 2016-2020

July 21, 2016
This market research report analyzes the key players in the dual fuel engine market such as Caterpillar, Cummins, Kubota, MAN Diesel & Turbo, and Wärtsilä. The report also presents a competitive analysis of the market by end-user (marine and power generation) and by geography (the Americas, APAC, and EMEA).

Global outlook of the dual fuel engine market

Technavio’s market research analysts have predicted that the global dual fuel engine market will grow steadily during the predicted period and post a CAGR of more than 6% by 2020. Diesel emissions have a negative impact on the environment. Combustion of diesel results in the emission of primary pollutants such as NOx, carbon monoxide, hydrocarbons, and particulate matter. This has led to the introduction of several changes in the diesel emission regulations which compels diesel engine manufacturers to implement new technologies such as dual fuel injection to ensure that their products have high performance level while meeting the stringent emission norms. Stringent government regulations, such as those imposed by the US Environmental Protection Agency (EPA) or the EU, requires engine manufacturers to embrace the strict legislations of Tier IV when operating in the US and Stage III and IV standards when operating in Europe. The introduction of these regulations that demand the reduction of pollutants especially NOx, will have a positive impact on the growth of this market in the coming years.

The use of Ammonia gas as a substitute for natural gas in dual fuel engines will lead to a significant reduction in CO₂, NOx, and PM (particulate matter) emission levels. Several research organizations have already started focusing on studying the effective use of ammonia in dual fuel engine systems due to the significant feature that it possesses, which is a high level of resistance to pre-ignition. It has also been observed that engines using ammonia as a fuel source have enhanced power output compared to gasoline or diesel engines and also offer higher engine efficiency.

Competitive landscape and key vendors

The market is characterized by the presence of major internationally established players and regional vendors. The market is moderately fragmented and is clearly dominated by the large international dual fuel engine manufacturers. This highly capital-intensive market poses as a stiff challenge to the local players. International manufacturers are increasing their global presence and the small regional players find it difficult to compete with them in terms of product quality, features, functionalities, and services. In the coming years, this market will witness the introduction of several products with new features and technologies. This will likely intensify the competition among vendors in the coming years.

The leading vendors in the market are -

  • Caterpillar
  • Cummins
  • Kubota
  • MAN Diesel & Turbo
  • Wärtsilä

The other prominent vendors in the market are ABC Diesel, Heinzmann, Hyundai, Rolls Royce, Westport, Woodward, and Yanmar.

Segmentation by end-user and analysis of the dual fuel engine market

  • Marine
  • Power generation

This market research and analysis estimates that the marine segment accounted for about 65% of the total market share and dominated this market during 2015. Dual fuel marine engines are mainly preferred in large vessels as they reduce the requirement for extra fuel storage. This results in the reduction of operating costs and also significantly reduces the overall weight of the ship, which in turn, improves the efficiency of the vessel.

Geographical segmentation and analysis of the dual fuel engine market

  • Americas
  • APAC
  • EMEA

In terms of geography, APAC will account for about 42% of the total share of the dual fuel engine market by 2020 and will also dominate the industry throughout the forecast period. This region has a wide presence of both the prominent end-user industries. Shipping routes between Asia and Europe are a significant thoroughfare for shipping companies. The estimated increase in global trade will lead to a rise in demand for new ships. Additionally, the rapid urbanization and industrialization in all major APAC countries will also propel the demand for power which will, in turn, increase the demand for duel fuel engines for power generation from this region.

Key questions answered in the report include

  • What will the market size and the growth rate be in 2020?
  • What are the key factors driving the global dual fuel engine market?
  • What are the key market trends impacting the growth of the global dual fuel engine market?
  • What are the challenges to market growth?
  • Who are the key vendors in the global dual fuel engine market?
  • What are the market opportunities and threats faced by the vendors in the global dual fuel engine market?
  • Trending factors influencing the market shares of the Americas, APAC, and EMEA.
  • What are the key outcomes of the five forces analysis of the global dual fuel engine market?

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