Marine diesel engines market has notably depicted commendable advancements in the recent years, primarily on account of the escalating deployment of the product. Indeed, these engines find primary usage in marine vehicles namely boats, ships, submarines and so on, the rising deployment of which will augment marine diesel engines market, estimated to surpass $7 billion by the end of 2024.
How will seaborne trade affect the marine diesel engines market growth?
As per the United Nations Conference on Trade & Development, global seaborne trade grew by 3.4% in 2014 as compared to 2013. DNV GL, an internationally acclaimed registrar and classification society estimates a 39% rise in seaborne trade between 2016 – 2030 and a 2% increase between 2030 to 2050. Moreover, seaborne transport is forecasted to increase in all trade segments except oil products and crude oil, which is expected to rise by 2030. Undoubtedly, this scenario points out toward the expansion of the marine diesel engines market in the ensuing years.
Will investments in shipbuilding during the estimated timeline prove lucrative for the industry?
A rise in investments focused on the shipbuilding sector along with growing research and development in a bid to implement environmentally friendly technology is estimated to fuel the U.S. marine diesel engine market. For instance, in 2015, the U.S shipbuilding industry accounted for more than $37.3 billion to the country’s GDP. Besides the U.S., the shipbuilding industry in the Asia Pacific region will also contribute to the industry growth. Recently, for instance, South Korean shipyards regained the first spot in shipbuilding orders for the year 2018. Shipbuilder’s secured new orders equaling a combined 12.63 million CGT to account for a 44.2 percent of out of 28.6 million CGT for all global orders placed.
Meanwhile, China came next with 9.15 million CGTs and Japanese shipyards won orders accounting for 3.6 million CGTs. Such radical development in the Asia Pacific shipbuilding sector will certainly drive the regional as well as global marine diesel engines market in the coming years.
How will growing investments toward the defense sector fuel marine diesel engine market?
The surge in investments towards strengthening naval forces will augment the marine diesel engine market. For instance, Russia has plans to increase its military support fleet by building more than 6 ships including aircraft ships and submarines by the end of 2020.
Another example worth mentioning is China’s Senior Naval Expert’s plea for three new aircraft carriers in order to protect its extensive coastline and its interests abroad. While the country’s second unnamed carrier is currently undergoing sea trial, some reports claimed that two more carriers that are allegedly a part of new Type 003 class, are undergoing construction.
Thus, growing expenditure towards the strengthening of a country’s naval forces will ensure major shipbuilding deals and demand for marine diesel engines in the future.
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Which country will emerge as a strong regional contender in the foreseeable years?
China marine diesel engines market is estimated to experience strong growth in the ensuing years attributed to the rising number of shipping companies paired with increasing expenditures in manufacturing ecological safe diesel engines. In addition, an accelerated reduction in interest rates of short-term instruments will present lucrative financial opportunities for the shipbuilding industry.
In a successful turn of events, The China State Shipbuilding Corporation issued bonds for more than $700 million with a 4.6% yearly rate of return, which saw a substantial decrease in financing costs. The positive estimations for China’s shipbuilding sector will most likely lead to extensive product demand, thereby pushing China as a prominent regional contender in the global marine diesel engines market.