Onboard Marine Gensets Market size has expanded rapidly in the last few years and will continue to show positive growth trends through 2027. While the rise in maritime trade due to globalization is driving the demand for commercial gensets, a global increase in maritime tourism is creating new opportunities for the market in the recreational sector. Following the impacts of the global COVID-19 pandemic during 2020-2021, increasing shipbuilding, repair, and retrofitting activities in the marine sector will positively influence the industry landscape.
An onboard marine genset is an alternative power generation unit that transfers electricity to the vessel to maintain fuel-efficiency for diesel-electric propulsion and onboard systems. Compared to conventional gensets that take up a substantial amount of deck space, most modern gensets are available in compact sizes that offer benefits including high power output, fewer vibrations, and reduced noise levels. Continuous advances in marine technologies will augment onboard marine gensets industry forecast.
Commercial vessels are likely to account for a substantial share of onboard marine gensets market over 2021-2027. Globalization and rapid industrial development in emerging economies and the subsequent rise in international import and export activities are key factors supporting the growth. Commercial vessel owners are likely to invest in repair and retrofitting activities to boost efficiency and comply with the latest marine emission standards set forth by regulators such as the International Maritime Organization (IMO).
Geographically, North America is expected to be a highly profitable market for onboard marine gensets. The regional growth trends can be closely tied to developments in the shipbuilding sector and a strict regulatory scenario to minimize marine emissions. Increasing military & defense expenditure to expand naval fleets is providing manufacturers with tremendous opportunities. Citing an instance, in May 2021, the U.S. Navy (USN) had awarded Rolls Royce with a contract to supply MTU naval gensets for its Constellation-class (FFG-62) frigate programme.
Besides Rolls Royce, Cummins, Caterpillar, ABB, Siemens AG, Mitsubishi Heavy Industries, MAN Energy Solutions, Onboard Marine Group Ltd, John Deere, Daihatsu Diesel, Sole Diesel, Yanmar, DEUTZ, Scania, Kirloskar, Kohler, and Wärtsilä are some of the prominent names in the onboard marine gensets business. In anticipation of an increasing market demand in the future, these companies are constantly rolling out new genset technologies for the maritime sector.
In June 2021, for example, Rolls Royce had showcased next-generation naval power and propulsion technologies at MADEX 2021, the South Korean International Maritime Defense exhibition. The company’s latest marine MT30 gas turbine genset is set to power the integrated full-electric propulsion (IFEP) system in the Republic of Korean Navy’s (RoKN) KDDX-class destroyer.
The coronavirus pandemic had impacted every industry vertical and the maritime sector is no exception. Constituting more than 90% of worldwide cross-border trade, maritime shipping is the backbone of the global economy. While the industry had already been facing pressure to make shipping more efficient, sustainable, and cheaper, the pandemic has thrown new unprecedented challenges, impacting associated business verticals such as the onboard marine gensets industry.
The worldwide maritime trade plunged by over 4.1% during 2020, as per the United Nations Conference on Trade and Development’s (UNCTAD) Review of Maritime Transport 2020 published in November 2020. Besides reduced maritime shipping, the pandemic had disrupted supply chains and shipping networks, resulting in plummeting cargo volumes. UNCTAD’s report has also highlighted that new COVID-19 waves in the future could further amplify supply chain disruption and cause a steeper decline in international trade, which could affect marine genset demand.
However, shipping companies are focusing on becoming agile and adaptable to the changing situation and building effective strategies and plans. The revival and recovery of the maritime sector is expected to augment onboard marine gensets market trends over 2021-2027.