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Onboard Marine Gensets Market size is anticipated to grow from 2023 to 2032, primarily attributed to the increasing shipbuilding, repair, and retrofitting activities in the marine sector. 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.
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 compact in size with high power output, fewer vibrations, and reduced noise levels. Continuous advances in marine technologies will augment the onboard marine gensets market forecast.
Based on propulsion type, the diesel propulsion system will gain momentum during the estimated timeframe. Reliable power supply during power interruptions, high-density power, and efficiency will help the segment achieve notable gains during the analysis time. Additionally, the marine gen-sets market will see increased demand due to its longer shelf life, safer fuel storage, and less maintenance requirements.
By vessels, commercial vessels segment is likely to account for a substantial share of the onboard marine gensets market during 2023–2032. Globalization, 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 would emerge as a highly profitable market for onboard marine gensets. The regional growth trends can be closely tied to developments in the shipbuilding sector and a stringent regulatory scenario to minimize marine emissions. Increasing military & defense expenditures to expand naval fleets would further provide tremendous opportunities for the market players. Citing an instance, in May 2021, the U.S. Navy (USN) awarded Rolls Royce a contract to supply MTU naval gensets for its Constellation-class (FFG-62) frigate program.
Some of the eminent names in the global onboard marine gensets market are 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. In anticipation of increasing market demand, these companies are constantly rolling out new genset technologies for the maritime sector, while also engaging in marketing strategies such as hefty investments, mergers and acquisitions, and partnerships.
For instance, in March 2023, the USS Congress (FFG-63) selected the power systems division of Rolls-Royce to supply four of its mtu naval generator sets. In addition, Rolls-Royce has constantly been investing in its production facilities in Aiken, S.C. and Mankato, Minn, to support the program and manufacturing of the gen-sets in the U.S.
The Russian invasion of Ukraine has severely harmed the ships in the Black Sea, causing trade disruptions, port congestion, and crew crises. This has had a significant impact on the shipping industry.
The industry is also facing disruptions in daily operations due to the increasing cost of bunker fuel and the threats posed by cyber risk. Even the non-conflict zones have also been impacted as many countries have decided to cease trade with Russia, creating a complex and uncertain legal situation for contracts, including insurance. These factors are likely to challenge the onboard marine gensets market by 2032.