Asia Pacific Marine Diesel Engine Market size is set to register lucrative growth rate between 2021 and 2027, due to growing marine tourism and shipbuilding activities. A marine diesel engine is an internal combustion engine (ICE) in which escalated temperature of air in the cylinder ignites the fuel due to the mechanical compression. Strict government norms to accelerate the adoption of green fuels will drive the industry trends. In addition, paradigm inclination towards fuel-efficient systems across the shipping industry along with an increase in seaborne trade will supplement the industry spectrum.
Rising participation in recreational activities combined with the ongoing technological advancements will boost the product demand. Moreover, several cruise ship manufacturers are focusing on product diversification and expansion plans to offer improved passenger experience which will accelerate the market outlook.
The high-speed marine diesel engine market is projected to grow substantially through 2027, on account of escalating demand from the defense sector coupled with growing inclination toward sports activities. In addition, consistent efforts to mitigate CO2 emission through the integration of emission-reducing technologies. For instance, in June 2021, International Maritime Organization (IMO) aimed to cut the carbon intensity of all ships by approximately 40% by 2030 as a short-term measure. These measures are in line with improving the energy efficiency of ships by combining technical and operational approaches by all key manufactures.
Merchant based marine diesel engines will observe high demand during the forecast period, led by favorable government policies including low-cost loans and export subsidies to increase sea-borne trades. Moreover, a growing focus toward enhanced functioning and superior product design will propel system installations. Ongoing investments in technological integration and up-gradation of scrubber systems coupled with stringent government regulations to provide lucrative opportunities for industry players.
China marine diesel engine market size is expected to expand at a significant CAGR till 2027, owing to rising retrofitting activities along with stringent government mandates regarding marine diesel system efficiency. Growing import and export activities coupled with a paradigm shift towards oil & gas exploration to meet the growing demand for diesel will positively influence the market landscape. In addition, increasing Chinese refineries' production capacity for very low sulfur fuel oil (VLSFO) to run power ships is anticipated to sway the market potential.
Key companies involved in the marine diesel engine market include AB Volvo, Wärtsilä, Cummins Inc., Caterpillar, Deere & Company, Scania, Deutz AG, and Rolls Royce plc. Industry players are focusing on JV, mergers & acquisitions, product launches, and forming partnerships related to the changes in product designs and aesthetics to reach a wider customer base.