Marine Inboard Engines Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, Australia, France, Spain - Size and Forecast 2024-2028

Marine Inboard Engines Market Size 2024-2028

The marine inboard engines market size is forecast to increase by USD 556.86 million at a CAGR of 4.96% between 2023 and 2028.

• The market is driven by several key factors. The growing popularity of marinas and recreational boating activities in the US is one such factor, leading to an increase in demand for efficient and powerful engines. Another trend in the market is the adoption of advanced technologies, such as turbochargers, in marine inboard engines to enhance power output and reduce fuel consumption. Natural gas is a cleaner alternative to traditional fuels such as heavy fuel oil and marine diesel.
• Furthermore, stringent environmental regulations, particularly those set by the Maritime Pollution Prevention and Control Act (MARPOL), are pushing engine manufacturers to develop engines that run on cleaner fuels, such as marine diesel oil, or use dual-fuel engines or steam turbines. Two-stroke engines continue to dominate the HP segment, but there is a growing trend towards the adoption of diesel engines due to their higher efficiency and lower emissions. The market is expected to experience steady growth in the coming years, with a focus on developing engines that offer superior performance, reliability, and fuel efficiency.

What will be the Size of the Market During the Forecast Period?

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• The market is witnessing significant growth, driven by the increasing demand for efficient and environmentally friendly engines in various maritime applications. Inboard engines, which are self-contained power units installed within the hull of a vessel, play a crucial role in powering cruise and ferries, offshore support vessels, gas carriers, oil tankers, bulk carriers, general cargo ships, container ships, and seaborne trade. Technological advancements have been a key factor fueling the growth of the market. Engine manufacturers are continuously investing in research and development to produce engines that offer higher fuel efficiency, lower emissions, and improved reliability. These advancements include the integration of electronic engine control systems, the use of advanced materials, and the adoption of clean energy technologies. Regulatory compliance is another significant factor shaping the market. Stringent emission norms set by organizations such as the International Maritime Organization (IMO) have led to the widespread adoption of engines that meet the latest emission standards.
• For instance, the IMO's Tier III emission standards, which came into effect in 2016, require vessels to reduce their sulfur oxide and nitrogen oxide emissions by up to 90% compared to Tier II standards. The market is witnessing a shift towards the use of natural gas as a fuel. It produces fewer greenhouse gas emissions and significantly lower levels of sulfur oxides and nitrogen oxides. This trend is particularly prominent in the ferries & passenger ships segment, where reducing emissions is a priority due to the potential impact on public health and the environment. Despite the challenges posed by the ongoing pandemic, the market is expected to continue its growth trajectory. While lockdown measures and travel restrictions have led to a decline in demand for some maritime applications, such as cruise ships, the demand for other applications, such as offshore support vessels and oil tankers, remains strong.
• In conclusion, the market is witnessing significant growth, driven by technological advancements and regulatory compliance. The shift towards cleaner fuels, such as natural gas, is also gaining momentum. Despite the challenges posed by the pandemic, the market is expected to continue its growth trajectory, driven by the increasing demand for efficient and environmentally friendly engines in various maritime applications.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Yachts
  • Powerboats
• Fuel Type
  • Heavy fuel oil
  • Intermediate fuel oil
  • Others
• Geography
  • North America
    • Canada
    • US
  • Europe
    • France
    • Spain
  • APAC
  • South America
  • Middle East and Africa

By Application Insights

• The yachts segment is estimated to witness significant growth during the forecast period.

In the luxury yacht market, inboard engines are a preferred choice for vessels over 24 meters in length, including superyachts and mega yachts. The increasing affluence of households and the growing demand for pleasure yachting are driving the industry's expansion. For instance, Lurssen, a renowned yacht builder, launched the 146-meter Opera yacht in Germany in September 2022. Following this, the company debuted the 122-meter Jag yacht for sea trials in October 2023. Lurssen's upcoming project, the 137-meter Alibaba, is set for completion by the end of 2024. Technological advances in marine engine manufacturing have led to the development of more efficient and eco-friendly engines. This trend is particularly prominent in gas carriers, oil tankers, and bulk carriers, where reducing emissions is a priority.

However, the yachting sector also benefits from these advancements, as modern engines offer improved fuel efficiency and reduced environmental impact. Lockdown measures and vaccination campaigns have had a significant impact on the global economy, including the marine industry. While the pandemic initially led to a decline in demand, the sector is now experiencing a resurgence as travel restrictions ease and people look for alternative ways to enjoy their disposable income. In summary, the yacht market is thriving, with companies focusing on developing larger, more luxurious vessels. Technological advancements continue to drive innovation in marine engine manufacturing, benefiting both commercial and recreational applications. The economic recovery from the pandemic is expected to further boost demand for yachts and other luxury goods.

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The yachts segment was valued at USD 1.27 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• North America is estimated to contribute 41% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In North America, the United States is a significant market for marine inboard engines. The US market is primarily driven by sales from pontoon boats, new ski boats, personal watercraft, powerboats, and aluminum fishing boats. Notably, wakeboards, ski boats, and personal watercraft experienced a notable uptick in sales during the fourth quarter of 2020. Florida, Michigan, California, and Wisconsin are the leading states for marine inboard engine demand in the US.

Furthermore, the expansion of the regional market is fueled by the growing popularity of water-based recreational activities among North Americans. The US and Canada represent the primary markets for marine inboard engines in North America. The shipping industry, including port operations and supply chain, also contributes to the demand for these engines, with e-commerce and online trade further boosting shipping services. The OPEC oil market's impact on fuel prices may influence the market's growth trajectory.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Marine Inboard Engines Market?

Increasing customer engagement in marina and recreational boating activities is the key driver of the market.

• The market experiences significant growth due to the rising popularity of marina and recreational boating activities in the US and Europe. The US, in particular, is a major market for recreational boating, with marina and charter services experiencing increased demand. As the cost of owning and maintaining a leisure boat can be prohibitive for many Americans with mid-level and low-income, there is a trend towards renting boats from marina operators. This shift towards boat rental services is driving up demand for marine inboard engines.
• With the expansion of marina facilities and the growing interest in eco-friendly and fuel-efficient engines, the market for marine inboard engines is poised for further growth. Additionally, the need for well-connected ports and efficient shipping infrastructure to facilitate the transportation of these engines is crucial for market expansion. Companies that can offer economically viable solutions and address trade imbalances will have a competitive edge in this market.

What are the market trends shaping the Marine Inboard Engines Market?

Increased usage of turbochargers in marine outboard engines is the upcoming trend in the market.

• Marine inboard engines utilize turbochargers to enhance their power output without the need for larger cylinders. A turbocharger functions by increasing the air intake to combustion chambers, thereby boosting engine power. For instance, a four-cylinder engine with a turbocharger can generate the same power as a six-cylinder engine. The implementation of turbochargers results in smaller engines while maintaining power levels and offering fuel economy advantages. Major global economies prioritize reducing greenhouse gas emissions and improving energy efficiency. Turbochargers significantly contribute to the efficiency of marine inboard engines by increasing the power output without the need for larger engines.
• By compressing air and forcing it into the engine, a turbocharger enables a smaller engine to produce the same power as a larger one. This innovation is crucial in the maritime industry, where fuel economy and environmental sustainability are essential considerations. The global focus on reducing greenhouse gases and enhancing energy efficiency has led to the widespread adoption of turbocharged marine inboard engines. These engines offer a powerful and efficient solution for raw materials transportation, particularly in dry bulk carriers, which form a significant portion of world trade. By utilizing turbochargers, marine engine manufacturers cater to the evolving demands of the industry while addressing environmental concerns.

What challenges does Marine Inboard Engines Market face during the growth?

Stringent MARPOL regulations are the key challenges affecting market growth.

• Marine engines, primarily utilizing diesel fuel, power the vast majority of ships and marine vessels. However, the use of diesel engines contributes to the emission of harmful pollutants such as nitrous oxides, particulate matter, carbon oxides, hydrocarbons, and sulfur oxides, which are non-compliant with the US Environmental Protection Agency (EPA) air quality standards. These emissions are a significant contributor to ozone depletion and global warming.
• However, the International Convention for the Prevention of Pollution from Ships (MARPOL) is the most prominent international regulation addressing marine pollution. This convention sets standards to prevent and minimize pollution from ships, including regulations on emissions from marine engines. The marine engine market encompasses various types, including diesel engines, steam turbines, dual-fuel engines, and two-stroke engines. Marine diesel oil is a crucial component in the operation of diesel engines. Adhering to environmental regulations, the marine engine industry is constantly evolving to provide more eco-friendly solutions.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AB Volvo
• AQAFORCE Mobility GmbH
• Aquamot GmbH
• Beta Marine Ltd.
• Brunswick Corp.
• Caterpillar Inc.
• Combi
• Deere and Co.
• DIDAC INTERNATIONAL
• Hyundai Motor Co.
• Ilmor Engineering Inc.
• Marine Power USA
• Mitsubishi Heavy Industries Ltd.
• Pleasurecraft Engine Group
• Rolls Royce Holdings Plc
• Volkswagen AG
• Wartsila Corp.
• Yamaha Motor Co. Ltd.
• Yanmar Holdings Co. Ltd.
• Cummins Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

Marine inboard engines play a crucial role in powering various marine vessels, including cruise and ferries, offshore support vessels, and cargo ships. These engines convert thermal energy from fuel into mechanical energy, propelling the vessels forward. The marine engine market is driven by the increasing demand for seaborne trade, with gas carriers, oil tankers, bulk carriers, general cargo ships, container ships, and gas-based marine engines being key contributors. Technological advances in clean energy technologies and stringent emission norms have led to the development of fuel-efficient and ecologically friendly engines, such as gas turbines, diesel engines, steam turbines, and dual-fuel engines. The shipping industry, a significant contributor to global trade, has been impacted by the pandemic, leading to lockdown measures and vaccination drives. The industry's recovery is expected to be driven by shipping services, port operations, and supply chain needs.

Furthermore, the power range and HP segment of marine engines vary, with two-stroke engines being commonly used in large marine applications. Marine diesel oil is a primary fuel source, with raw materials transportation being a significant application area. The merchant fleet, including dry bulk carriers, plays a vital role in world trade, and economies of scale and shipping connectivity are essential factors influencing market growth. OPEC and oil demand also impact the marine engine market, with the shipping industry being a significant consumer of oil. E-commerce and online trade have further boosted the demand for ocean shipping, driving the need for efficient and cost-effective marine engines.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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