LNG Marine Engine Market Size, Regional Outlook, Application Development Potential, Price Trends, COVID-19 Impact Analysis, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3762
LNG Marine Engine Market size is set to witness expansion from 2021 to 2027 driven by the rising need for lower polluting fuels in the maritime shipping sector and the growing intervention of regulatory bodies like the International Convention for the Prevention of Pollution from Ships. The increasing number of ships employed with LNG (liquefied natural gas) engines has led to higher investments in infrastructure projects. The rising focus of shipowners on tackling decarbonization and the escalating LNG supplies will positively fuel the market prospects.
Owing to its non-toxicity towards polluting seas and waterways, LNG infrastructure has been expanding at a robust pace and several ports across the globe are increasingly bunkering the fuel. As the LNG engines provide affordable propulsion systems that adhere to all emission legislation and strict safety requirements, these engines witness higher adoption in commercial power generation. Furthermore, the flourishing maritime tourism sector and the relatively cheaper costs of LNG than conventional fuels, in the long run, are other factors driving the market expansion.
Based on type, the LNG marine engine market is bifurcated into spark-ignited, diesel-ignited, and direct gas injection. Out of these, the industry share of diesel-ignited LNG marine engines is anticipated to rise driven by their large size and robust abilities to operate with higher efficiencies. Four-stroke marine diesel engines are extensively used in marine shipping, specifically in smaller containers and bulk carrier ships. Increasing emphasis on fuel consumption as well as exhaust gas emissions will also favor the market growth.
In terms of geography, North America is expected to record a substantial LNG marine engine industry share due to the mounting number of crude oil exports in the region. According to estimates, the U.S., on average exported nearly 18.6 billion barrels of oil each day, accounting for 20% of the global exports in 2020. The influx of various environmental norms has brought a rise in the number of investments towards shipbuilding. The higher instances of R&D activities for manufacturing engines will infuse a positive scenario for the market progression.
Asia Pacific LNG marine engine market is set to attain traction between the period 2021 and 2027 on account of the spiraling number of seaborne trades from several developing countries. The significant boom in LNG bunkering across the region, mainly in Singapore, which houses the world’s largest bunkering port, and in Australia and the U.A.E is an impact rendering factor for the regional growth.
Global participants in the LNG marine engine industry are actively implementing marketing and growth strategies, like acquisitions, contracts, novel product developments, and partnerships to gain competitive advantages over their counterparts.
For instance, in January 2021, Wartsila secured a contract for supplying 36 dual-fuel engines to six novel 172,500cbm LNG carrier vessels built in order to assist the Arctic LNG 2 project conducted within Russia’s tough Arctic water.
In another instance, Rolls-Royce, in January 2021, supplied two of its gas engines, mtu 16V 4000 M55RN to Sembcorp Marine Integrated Yard to help in the construction of the first-ever LNG-hybrid-powered tug across the world.
IHI Corporation (Dai-ichi Life), Yuchai, Cummins, Caterpillar, John Deere, Yanmar, Scania (Volkswagen Group, Traton), Brunswick Corporation, Volvo Penta (AB Volvo), Turbo, Anglo Belgian, and Deutz are some other providers of LNG marine engines.
Effect of the COVID-19 crisis on LNG marine engine market trends
The ongoing COVID-19 pandemic not only crafted major dramatic impacts on businesses but also heavily disrupted the global economy considering the influx of trade barriers. However, it acted as a considerable booster for the LNG marine engine industry considering the paradigm shift of shipping companies towards better and greener options. The year 2020 also witnessed the first uses of bio-LNG to limit the carbon footprints by deep-sea ocean vessels. The growing focus of ship owners and fuel suppliers on human health and decarbonizing shipping will enhance the market outlook in the long run.
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