Marine Propeller Market Size, Share and Industry Analysis, By Application (Merchant Ships, Naval Ships, Recreational Boats, and Others), By Type (Propellers, Thrusters, and Others), By Propulsion (Inboard, Outboard, Sterndrive, and Others), By Material (Stainless Steel, Aluminum, Bronze, Nickel-Aluminum Bronze, and Others), By Number of Blades (3-blade, 4-blade, and 5-blade), By End-User (OEM and Aftermarket), and Regional Forecast, 2022-2029

The global marine propeller market size was valued at USD 3.48 billion in 2021. The market is projected to grow from USD 3.60 billion in 2022 to USD 5.68 billion by 2029, exhibiting a CAGR of 6.76% during the forecast period. Asia Pacific dominated the marine propeller market with a market share of 34.77% in 2021.

The global COVID-19 pandemic has been unprecedented and staggering, with marine propellers witnessing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 21.84% in 2020 as compared to 2019.

A maritime propeller comprises a complex design containing radiating blades and a propeller shaft. The power-generated revolving blades are engaged to move a naval ship employing the central hub construction. Depending on the speed and maneuverability needs of the navy ship, a maximum of five to six radiating blades can be installed.

The market will benefit from technological advancements in real-time data tracking in marine propulsion systems. However, the market expansion is being hampered by variations in oil & gas costs. In March 2019, Rolls-Royce Holdings and Cantiere Navale Vittoria, an Italian shipbuilder, signed a marine propulsion system for offshore patrol vessels.

Impact of Russia-Ukraine War on the Marine Sector

• Ukraine and Russian ports on the Black Sea are the biggest export hubs for corn, crude oil, and wheat. Thus, the war has led to the shutdown of cargo operations and export through the sea, which results in a slowdown in the growth of the marine sector.


• On the other hand, European countries have increased their defense spending due to Russia’s invasion. Germany increased its defense spending above 2% of GDP and allocated USD 109 billion, which is more than the total defense bill for 2021.


• Furthermore, Poland and Denmark also declared an increase in the defense budget for security purposes. On 16^th March 2022, the Polish National Defense Minister announced that Warsaw would procure three new mine countermeasure vessels (MCVs) to boost its naval capacities in the Baltic Sea.


• On 22nd January 2022, Russia reportedly deployed 140 combat and supply ships, 1,000 pieces of military equipment, and more than 50 aircraft for exercises. Furthermore, NATO is believed to have deployed over 100 jets and 120 allied ships to the Mediterranean region.


• Thus, with rising expenditure on the procurement of new warships and increased spending on the modernization of naval vessels, the market will witness significant growth during the forecast period.

LATEST TRENDS

Increasing Adoption of Fixed Propeller in Marine Propulsion Systems Boosts Market Growth

The market trends of adoption and implementation of the fixed propeller have increased in recent years. The fixed pitch marine propeller shaft and blades are firmly connected to the hub. The pitch position of fixed pitch propellers is permanently fixed and cannot be changed during operation as it is normally cast. Copper alloy is frequently used to make it. Fixed pitch propellers are chosen as the most durable and reliable as the system has no mechanical or hydraulic linkages. Compared to controllable pitch propellers, cheaper manufacturing, installation, and operational costs have encouraged the adoption of fixed propellers.  

Growing Adoption of Rim Thruster in Marine Propulsion Systems to Strengthen Market Growth

The rim thruster has recently grown in popularity among major marine propeller rivals. It's an inexpensive and lightweight propulsion system. SCHOTTEL, a German-based company, has created a cutting-edge rim thruster. The thruster's primary goal is to reduce noise and vibration. The Schottel rim thruster improves the effectiveness of the maritime propulsion system while lowering maintenance expenses. Interchangeable blades and slide bearings, water-lubricated bearings, and cost-effective operation are all aspects of the rim thruster. The market is likely to develop due to the rising use of rim thrusters in naval vessels.

Adoption of Environment-friendly Propulsion Systems Will Drive the Market Growth

Marine propulsion systems propel ships across the water while ensuring that the marine ecosystem is safe. The International Maritime Organization (IMO) has set emission reduction targets in the maritime industry. The IMO has set a target of reducing carbon emissions in international shipping by at least 40% by 2030 and 70% by 2050.

Due to rising fuel costs, end customers that use wind power to propel commercial ships have become more interested in wind propulsion systems. It also serves as a substitute for systems that emit huge amounts of carbon dioxide (CO2). The International Windship Association (IWSA) launched a new initiative to accelerate decarbonization in the shipping industry in February 2021. The campaign is known as the ‘Decade of Wind Propulsion,’ which aims to support the adoption of blending wind, hybrid alternative propulsion methods, alternative fuels, and energy efficiency measures.

DRIVING FACTORS

Increase in Demand for Electric Propulsion Technology in Shipbuilding Industry to Drive the Market Growth

The Electric Propulsion System (EPS) includes hybrid diesel and gas turbine engines. Maritime vessel propulsion uses diesel generator-powered energy to drive propeller blades. This propulsion technology makes the elimination of clutches and gearing systems possible.

Compared to the traditional system, this technology has a number of advantages. It offers great redundancy, improved mobility, and increased payload due to the variable arrangement of mechanical components, decreased pollutants, and lower fuel consumption. Daewoo Shipbuilding & Marine Engineering, a South Korean shipbuilder, created an electric propulsion system for the Republic of Korea Navy's KDDX destroyer and LPX-II LHD projects in May 2020.

Growth in International Seaborne Trade to Propel the Market Growth owing to Post-Pandemic Trade Resumption

According to the United Nations Conference on Trade and Development (UNCTAD), global maritime trade and transport have been severely impacted due to the pandemic-triggered global healthcare and economic crisis and supply chain issues. As per UNCTAD, the global seaborne trade dropped by 4.1% in 2020. In the UNCTAD maritime transport report 2018, the international maritime trade grew with a growth rate of 4%, the highest from 2014. The report showed 17.1% growth in containerized trade, 29.9% in dry bulk commodities, and 2.4% in crude oil shipments.

Furthermore, the share of developing countries in maritime imports rose to 65% in 2019, and seaborne trade reached 155 million tons. UNCTAD’s Maritime Transport Report 2020 estimated that the seaborne trade growth would expand by 4.8% in 2021. Propellers are the essential system of naval ships. Thus, the expansion of the naval sector due to rising international seaborne trade activities would propel the growth of the market.

RESTRAINING FACTORS

Implementation of Stringent Environmental Regulations to Hamper Market Growth

Under the new IMO2020 requirements, sulfur content in fuel oil must be reduced from 3.50 percent m/m to 0.50 percent m/m (mass by mass). These new regulations will help reduce health problems in coastal areas and port cities and acid rain and lightning storms along trade routes. These severe environmental laws will considerably influence seaborne commercial activities, stifling business expansion.

In 2016, the International Maritime Organization (IMO) implemented stringent sulfur regulations known as IMO2020. The new environmental rules would affect international shipping costs. These regulations are directly related to the level of sulfur oxide (SOx) emissions produced by shipping vessels sailing around the globe. Modern commercial ships and container ships run their engines on traditional fossil fuels. These are also called the ‘bunker fuels.’ These fuels consist of marine gas oil (MGO), marine diesel oil (MDO), marine fuel oil (MFO), heavy fuel oil (HFO), and intermediate fuel oil (IFO).

SEGMENTATION

By Type Analysis

Propellers Segment Held Highest Shares in 2021 Backed by Increasing Usage in Merchant Ships

Based on type, this market is classified into propellers, thrusters, and others.

The propellers segment held the largest marine propeller market share in 2021. The dominance is due to the increased use of naval ships, recreational boats, and merchant ships. Furthermore, the market expansion of the key players, the advent of 3D printing in the marine sector, and increased demand for naval vessels are projected to drive the marine propeller market growth.

In April 2021, Nakashima Propeller announced the majority shares acquisition of Becker Marine Systems. The acquisition is projected to drive the market growth due to a wide range of portfolios that both manufacturers possess such as high-efficiency propellers & rudders and energy-saving marine devices.

By Application Analysis

Naval Ships Segment Will Showcase Remarkable Growth Due to Rising Demand for Defense Applications

By application, the market is divided into merchant ships, naval ships, recreational boats, and others.

The merchant ships segment will grow with the highest CAGR during the forecast period. The growth is attributed to the growing trade of imported goods and materials worldwide. According to the UNCTAD report (2018), dry bulk carriers have the highest share of 42.5% of dead-weight tonnage.

The naval ship segment will showcase remarkable growth during 2022-2029. Rising demand for defense vessels from China, the U.S., Russia, and others will boost the segmental growth. The recreational boat segment is projected to grow with significant CAGR due to recreational boat-based propellers' technological innovations. For instance, in May 2020, Sharrow Propeller introduced the MX-1 model, a recreational boat-based propeller with an innovative design, high performance, and improved fuel efficiency.

By Number of Blades Analysis

Increasing Demand for 5-blade Propeller in Merchant Ships to Drive the Market Growth

By number of blades, the market is classified into 3-blade, 4-blade, and 5-blade.

The rising number of merchant, naval and coast guard, and recreational vessels deliveries is leading to the high demand generation for 5-blade marine propellers. An increase in shipbuilding activities in China, Japan, South Korea, and Greece and rise in major shipbuilding countries have witnessed market consolidation, owing to pandemic-led economic impact and weaker 2019 market growth.

For instance, China, India, and Singapore seek mergers in the shipbuilding industry. The two largest shipbuilders, Marine Engineering and Hyundai Heavy Industries and Daewoo Shipbuilding are waiting for the market competition review from the regional governments and shipbuilding industry.

By Propulsion Analysis

Growing Use of Sterndrive in Naval Vessels to Boost the Segment Growth

Based on propulsion, the market is divided into inboard, sterndrive, outboard, and others. The inboard propulsion system will showcase remarkable growth during 2022-2029. Vessels with advanced inboard systems are mounted inside the boat's hull. The inboard system is widely used in watersports boats. A driveshaft is connected to the propeller and used to run the boat.

The sterndrive segment held the largest shares in the market in 2021. It is the most powerful propulsion system. The system can generate more horsepower to boost the naval vessel than inboard and outboard.

By Material Analysis

Growing Adoption of Stainless Steel in Propulsion Systems Drives the Market Growth

By material, the market is segmented into aluminum, stainless steel, nickel aluminum bronze, bronze, and others.

Marine propellers are made up of corrosion-resistant alloys such as aluminum and stainless steel. The stainless steel segment held the largest shares in 2021. The growth is due to the growing use of stainless steel material in the propulsion system. It provides higher strength and more reliability than other materials. Other popular materials used are aluminum alloys, bronze, nickel-aluminum bronze, and others. The increasing adoption of corrosion-resistant alloys material in the propulsion system would drive the market growth.

By End-User Analysis

Growing Merchant Vessel Deliveries to Support Growth of the OEM Segment

Based on end-user, the market is classified into OEM and aftermarket.

The OEM segment is predicted to register the fastest growth during the forecast period. This growth is attributed to the increasing demand for maritime trade for merchant vessels from China, India, and Australia. These merchant vessels are equipped with an advanced marine propeller to propel a vessel. The aftermarket segment is estimated to show significant growth during 2022-2029. The growth is attributed to the increased upgrades of merchant vessels for enhanced maritime trade across the globe. The aftermarket segment includes the maintenance of propeller components.

REGIONAL INSIGHTS

This market is segmented into North America, Europe, Asia Pacific, and the Rest of the World. The market size in Asia Pacific stood at USD 1.21 billion in 2021. This is attributed to the growing demand for frigates and corvettes from emerging economies, such as India and China, to improve the coordination in the naval fleet, several procurement initiatives, and demand for modern amenities in the cruise ship. South Korea is the largest supplier of merchant ships in Asia Pacific. The rising upgrade of marine propeller design systems for older vessels is helping to propel the market growth.

The market in Europe will witness significant growth during the forecast period. The presence of many marine interior players in France, Germany, the U.K., and Russia increases the demand for passengers for cruise ships' yachts.

North America will witness significant growth from 2022 to 2029. This growth is attributed to the upgrade of dry cargos for real-time data exchange in the U.S. due to the region's flourishing marine industry, presence of the largest marine lines, rise in investment in the marine sector, and increase in the number of marine propeller manufacturers. Furthermore, the high demand for specialized vessels in maritime tourism in Canada is expected to boost the market.

The market will witness significant growth in the rest of the world from 2022 to 2029. The market development is due to high net worth in the region, rise in travel and business opportunities, changing passenger preference, demand for modern amenities, and increase in the number of shipbuilding industries.

KEY INDUSTRY PLAYERS

Technological Trends Implemented by Key Players to Propel Market Growth

The market's forthcoming trends include fuel-efficient propulsion systems, improved materials, rim thrusters, and anti-fouling coatings. These leading market players, such as Hyundai Heavy Industries and MAN SE, can be attributed to their diverse product portfolios, innovative technology trends, and research & development activity. Brunswick Corporation debuted its newly improved MerCruiser Bravo Four S front-facing drive with Smart Tow technology in August 2020. This system provides comprehensive control for two sports.

LIST OF KEY COMPANIES PROFILED:

• AB Volvo (Sweden)


• Brunswick Corporation (U.S.)


• Kongsberg Gruppen (Norway)


• Mecklenburger Metallguss GmbH (Germany)


• Bruntons Propellers Ltd. (U.K.)


• Hyundai Heavy Industries Co., Ltd. (South Korea)


• Kawasaki Heavy Industries, Ltd. (Japan)


• MAN SE (Germany)


• NAKASHIMA PROPELLER Co., Ltd. (Japan)


• Rolls-Royce plc (U.K.)


• SCHOTTEL Group (Germany)


• Michigan Wheel Holdings LLC (U.S.)


• Wärtsilä Corporation (Finland)


• VEEM Propellers Ltd. (Australia)


• Andritz AG (Austria)

KEY INDUSTRY DEVELOPMENTS:

• February 2021- AB Volvo announced that the company’s Volvo Penta IPS had been used to power Sunseeker’s. The company also included 65 Sport Yacht’s fuel tanks. The forward-facing twin counter-rotating propellers help increase the fuel economy by 30% over similarly powered rivals' inboard shaft installations.


• August 2020- The shipbuilder, Brodosplit, selected SCHOTTEL GmbH to provide highly reliable main and auxiliary propulsion units for first-class expedition cruise vessels ‘Hondius.’ The company agreed to deliver SCHOTTEL Controllable Propeller type SCP 109 4-XG (4,260 kW) with a propeller diameter of 3.6 meters.


• November 2021- Navantia, a Spanish shipyard, awarded Kongsberg Maritime a contract worth USD 23.48 million to supply propeller systems for five F110 frigates now under construction for the Spanish Navy. These next-generation ships will build on the success of Navantia's F100 frigate, combining cutting-edge technologies to create a ship fit for the 21st century.


• April 2021- Rolls-Royce agreed to develop and construct up to 40 fixed-pitch propellers for the U.S. Navy's Constellation-class (FFG-62) guided-missile frigate program alongside Fincantieri Marinette Marine.

REPORT COVERAGE

The research report offers qualitative and quantitative insights on this market. It offers a detailed analysis of the market size & growth rate for all possible segments. It also provides an elaborative analysis of dynamics, COVID-19 effect, emerging trends, UNCTAD maritime transport report, and competitive landscape in the market.

Key insights offered in the report are the adoption trends of marine propeller by individual segments, recent industry developments such as mergers & acquisitions, partnerships, consolidated SWOT analysis of key players, Porter’s Five Forces analysis, business strategies of leading market players, micro and macroeconomic indicators, and the leading industry trends.

Report scope & Segmentation 

ATTRIBUTE	DETAILS
Study Period	2018-2029
Base Year	2021
Estimated Year	2022
Forecast Period	2022-2029
Historical Period	2018-2020
Unit	Value (USD Billion)
Segmentation	By Type Propellers Thrusters Others
By Application Merchant Ships Naval Ships Recreational Boats Others
By Number of Blades 3-blade 4-blade 5-blade
By Propulsion Inboard Outboard Sterndrive Others
By Material Stainless Steel Aluminum Bronze Nickel-Aluminum Bronze Others
By End-User OEM Aftermarket
By Geography North America (By Type, By Application, By Number of Blades, By Propulsion, By Material, By End User, and By Country) U.S. (By Type) Canada (By Type) Europe (By Type, By Application, By Number of Blades, By Propulsion, By Material, By End User, and By Country) U.K. (By Type) Germany (By Type) France (By Type) Russia (By Type) Italy (By Type) Norway (By Type) Rest of Europe (By Type) Asia Pacific (By Type, By Application, By Number of Blades, By Propulsion, By Material, By End User, and By Country) China (By Type) Japan (By Type) India (By Type) South Korea (By Type) Philippines (By Type) Vietnam (By Type) Rest of Asia Pacific (By Type) Rest of the World (By Type, By Application, By Number of Blades, By Propulsion, By Material, By End User, and By Country) Latin America (By Type) Middle East & Africa (By Type)