Report Overview

Growing cruise and ferry industry, rising global trade and shipping, an increasing focus on offshore oil & gas exploration are expected to drive India Marine Engines Market during the forecast period between 2024 and 2030.

India Marine Engines Market – Industry Trends & Forecast Report, 2030

India Marine Engines Market size was estimated at USD 1.68 billion in 2023. During the forecast period between 2024 and 2030, India Marine Engines Market size is projected to grow at a CAGR of 3.3% reaching a value of USD 2.2 billion by 2030. Prominent drivers of the market include the country's extensive coastline and strong maritime sector, which boosts demand for marine engines through both domestic and international shipping operations. The "Sagarmala" initiative, which focuses on upgrading and expanding port and logistics infrastructure, creates significant opportunities for the marine engines market, especially for vessels and equipment needed for port activities, dredging, and coastal shipping. Additionally, the rising environmental concerns and stricter regulations are driving the demand for eco-friendly and sustainable marine engines. Manufacturers are responding by developing engines that use alternative fuels such as LNG, hydrogen, or ammonia, and by providing technologies to reduce emissions. Incorporating digitalization, IoT, and data analytics in monitoring and maintaining marine engines presents further opportunities for technological innovation. Engine manufacturers are investing in research and development to create more efficient and reliable engines that seamlessly integrate these advanced technologies, enhancing overall performance and reducing operational costs.

Marine Engines – Overview

Marine engines are specialized machinery designed to provide power for ships, boats, and other watercraft. They convert various forms of energy, typically derived from fuels such as diesel, gasoline, LNG (liquefied natural gas), hydrogen, or ammonia, into mechanical energy to propel vessels through water. Marine engines are built to withstand harsh maritime environments and can vary significantly in size and complexity depending on the type and purpose of the vessel. They include main propulsion engines, which drive the ship's propeller or waterjet, and auxiliary engines, which power onboard equipment and systems. The design and operation of marine engines prioritize efficiency, reliability, and adherence to environmental regulations to minimize emissions and environmental impact.

India Marine Engines Market

Growth Drivers

Rising Global Trade and Shipping

The Maritime India Vision (MIV) 2030, a strategic initiative aimed at elevating India to global maritime leadership, significantly impacts the marine engine market as global trade and shipping rise. With 12 major and over 200 non-major ports along its 7,500 km coastline, India handles 95% of its trade volume and 65% of trade value via maritime transport, positioning itself as a key player in global trade. MIV 2030, developed with input from over 350 stakeholders, outlines a comprehensive plan to enhance port infrastructure, logistics efficiency, and technological innovation. It includes capacity augmentation, development of world-class mega ports, and establishing a transshipment hub in Southern India. The emphasis on modernizing infrastructure and increasing operational efficiency is driving demand for advanced marine engines to support fleet modernization and port expansion. India's global trade prominence is further highlighted by the inclusion of its ports, JNPT and Mundra, in the top 40 global container ports. Consequently, the marine engine market is poised for substantial growth as these developments foster increased investments in shipbuilding, repair, and technology adoption, positioning India competitively in the global maritime sector.

Growing Cruise and Ferry Industry

The burgeoning cruise and ferry industry is significantly bolstering the Indian marine engines market. This sector, which sustains 1.2 million jobs globally and generates USD 150 billion annually, is witnessing robust growth, supported by strategic initiatives from the Indian Ministry of Tourism. Under India's G20 presidency, the focus on cruise tourism has intensified, with the nation leveraging its extensive coastline, navigable waterways, and port infrastructure to become a key player in this industry. The launch of the “Draft National Strategy for Cruise Tourism” aims to position India as a premier destination for various types of cruises by capitalizing on its natural, historical, and cultural assets. The strategy includes enhancing ease of business, integrated tourism around cruise terminals, and fostering infrastructure development. As India endeavors to quadruple the number of cruise ships in its waters over the next two decades, this growth stimulates demand for advanced marine engines. Furthermore, India's commitment to sustainable and responsible tourism practices, alongside efforts to address environmental and gender gaps within the sector, ensures that the marine engines market is poised for expansion, driven by increased investment and innovation in the cruise and ferry industry.

Challenges

High Initial Investment

High initial investment is a significant restraint for the growth of India Marine Engines Market. The substantial capital required for advanced marine engine technologies, including research, development, and procurement, can be a barrier for both new entrants and existing players. High cost hampers the ability of smaller firms to compete and invest in innovation. Additionally, the long-term return on investment and uncertain economic conditions further deter potential investors, limiting market expansion and slowing the adoption of cutting-edge marine engine technologies in India.

Impact of Escalating Geopolitical Tensions on India Marine Engines Market

Escalating geopolitical tensions among countries across regions could have a significant impact on the growth of India Marine Engines Market. Rising political uncertainty can disrupt international trade routes and supply chains, increasing operational costs and delaying shipments. This instability may lead to fluctuating fuel prices and a potential slowdown in global shipping activities, adversely affecting market growth. Additionally, heightened security concerns could lead to stricter regulations and compliance requirements, further challenging market players. As India navigates these turbulent waters, the marine engines sector must adapt to maintain stability and sustain growth amid evolving geopolitical dynamics.

India Marine Engines Market

Segmental Coverage

India Marine Engines Market – By Engine

By engine, India Marine Engines Market is bifurcated into Propulsion Engine and Auxiliary Engine segments. The propulsion segment holds a higher share in India Marine Engines Market by engine. The propulsion system, which includes the propulsion engines, forms the main supporting structure of a ship and is essential for its movement. These engines, whether gas turbines, diesel engines, steam turbines, or dual-fuel engines, are crucial assets for ships. The demand for propulsion engines is strong and anticipated to grow, given their necessity for all types of vessels, from small passenger ferries to large container ships.

India Marine Engines Market – By Type

Based on type, India Marine Engines Market is bifurcated into Two Stroke and Four Stroke segments. The two-stroke segment holds a higher share in India Marine Engines Market by type. Environmental regulations like IMO Tier III and MARPOL Annex VI require marine engines to reduce nitrogen oxide (NOx) emissions. In response, manufacturers have developed technologies such as selective catalytic reduction (SCR) systems. The Indian government's focus on promoting coastal shipping as an economical and eco-friendly transportation method presents a lucrative opportunity for the two-stroke engine segment. These engines are essential for coastal vessels, which are crucial for transporting goods between Indian ports. Engine manufacturers are partnering with Indian shipyards and maritime institutions to facilitate technology transfer and improve local capabilities in manufacturing and maintaining two-stroke engines. Overall, the two-stroke segment is vital in strengthening India's commercial shipping industry.

India Marine Engines Market – By Range

By range, India Marine Engines Market is divided into Up to 1,000 hp, 1,001–5,000 hp, 5,001–10,000 hp, 10,001–20,000 hp, and Above 20,000 hp segments. The above 20,000 hp segment holds the highest share in India Marine Engines Market by range. These high-capacity engines are essential for commercial shipping and specialized applications like offshore drilling, powering rigs, and production platforms in India's offshore oil and gas fields. A notable trend in this sector is the increasing adoption of electrification and hybrid propulsion systems. These systems offer the potential for reduced emissions and enhanced operational flexibility, particularly for offshore energy and passenger vessels. Engine manufacturers have significant opportunities to provide advanced propulsion systems and related technologies as India enhances its naval capabilities, including aircraft carriers, destroyers, and submarines.

India Marine Engines Market – By Region

The in-depth research report on India Marine Engines Market covers the market in the country’s major regions: North India, South India, East India, and West India regions. South India holds the highest share in India Marine Engines Market and is expected to maintain its dominance during the forecast period. The region’s strategic advantage lies in its robust maritime infrastructure, encompassing major ports like Chennai, Kochi, Vishakhapatnam, and Ennore. This has attracted both domestic and international shipbuilding and repair businesses, creating a thriving ecosystem for marine engine manufacturers, distributors, and service providers. The burgeoning shipbuilding and repair industry fuels consistent demand for modern and efficient marine engines to cater to new vessel construction and refurbishment projects. Also, South India’s proximity to the Bay of Bengal and its emerging offshore oil and gas exploration activities present significant growth opportunities for marine engine suppliers. The region’s increasing focus on renewable energy, particularly offshore wind farms, further solidifies the demand for marine engines in supporting the installation, maintenance, and operation of these projects. Ongoing port modernization initiatives in key South Indian ports are also driving the need for marine engines in port equipment, tugboats, and dredging vessels, thereby sustaining market growth.

Competitive Landscape

Major players operating in India Marine Engines Market include Kirloskar Oil Engines Limited, Cummins India Limited, Ashok Leyland, Greaves Cotton Limited, ELGi Equipments Limited, Wärtsilä India, MAN Energy Solutions, Caterpillar India, Yanmar India, and Mitsubishi Heavy Industries India. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2024 - Garden Reach Shipbuilders and Engineers Ltd (GRSE) and Rolls-Royce signed an agreement to locally produce MTU Series 4000 marine engines in India, specifically at GRSE's Diesel Engine Plant in Ranchi, India. The collaboration, part of the 'Make in India' initiative, aims to supply engines for the Indian Navy and Coast Guard's Fast Patrol Vessels, Interceptor Boats, and Fast Attack Crafts. The MTU Series 4000 engines, known for their high-power output, compact design, and stability, will be assembled, tested, and serviced in India under this agreement.

• In March 2023 - Honda Marine unveiled its BF250 engine in the Andaman Islands to expand its marine engine business, leveraging its existing network of over 600 dealers.

Scope of the Report

By Engine

• Propulsion Engine

• Auxiliary Engine

By Type

• Two Stroke

• Four Stroke

By Range

• Up to 1,000 hp

• 1,001–5,000 hp

• 5,001–10,000 hp

• 10,001–20,000 hp

• Above 20,000 hp

By Fuel

• Marine Diesel Oil

• Heavy Fuel Oil

• Marine Gas Oil

By Region

• North India

• South India

• East India

• West India