Small Marine Engines Market

Small Marine Engines: Essential for Boating and Fishing

Small marine engines are crucial for boating and fishing activities, as they provide the necessary power to propel boats and help fishermen catch fish. These engines are designed to operate in harsh marine environments, providing reliable and efficient performance. In this essay, we will discuss the importance of small marine engines, their types, and the factors to consider when purchasing them.

Importance of Small Marine Engines

Small marine engines play a vital role in recreational boating and commercial fishing. They provide the necessary power to propel boats and help fishermen navigate through waterways. Small marine engines also power essential equipment, such as bilge pumps, navigation lights, and electronics. Without these engines, boaters and fishermen would be unable to enjoy their activities safely and efficiently.

Types of Small Marine Engines

Small marine engines come in various types, including inboard, outboard, and sterndrive engines. Inboard engines are mounted inside the boat's hull, while outboard engines are mounted outside the hull. Sterndrive engines are a hybrid of inboard and outboard engines, with the engine mounted inside the boat's hull, and the drive unit outside the hull.

Outboard engines are the most popular type of small marine engines, as they are easy to install, maintain, and repair. They are also versatile and can be used on a variety of boats, including dinghies, pontoon boats, and center console boats. Inboard engines are commonly found on larger boats, such as cabin cruisers and yachts, and offer more power and speed than outboard engines. Sterndrive engines are ideal for boats that require both speed and maneuverability, such as sports boats and high-performance boats.

Factors to Consider when Purchasing Small Marine Engines

When purchasing a small marine engine, there are several factors to consider, including engine size, fuel type, horsepower, and maintenance requirements. Engine size should be determined based on the boat's weight and size, with larger boats requiring larger engines. Fuel type is also important, with gasoline and diesel being the most common options. Gasoline engines are typically less expensive, but diesel engines offer better fuel efficiency and durability.

Horsepower is another critical factor, as it determines the engine's power output. The horsepower required depends on the boat's weight, size, and intended use. Maintenance requirements should also be considered, with some engines requiring more maintenance than others. Regular maintenance, such as oil changes and filter replacements, is essential to ensure the engine's longevity and reliable performance.

In conclusion, small marine engines are essential for boating and fishing activities, providing the necessary power to propel boats and equipment. Outboard, inboard, and sterndrive engines are the most common types of small marine engines, with each offering unique advantages. When purchasing a small marine engine, it is essential to consider engine size, fuel type, horsepower, and maintenance requirements. By selecting the right engine for your boat, you can ensure a safe and enjoyable boating or fishing experience.

Small Marine Engines Market Dynamics

Drivers in Small Marine Engines Market

The growth of the fishing industry is a significant driver of the small marine engines market. Small motorized vessels are widely used in the fishing industry across all continents, with Asia having the highest number of these vessels, followed by the Americas and Africa. The development of semi-industrial fishing operations, vessels, and gear has been driven by the need to reduce fuel costs, save energy, and improve fishing efficiency, while reducing environmental impact, improving handling and product quality, and enhancing safety at sea and working conditions for fishers. These developments, together with an increase in the price of aquatic products, successful fisheries management in some areas, and improved fleet capacity management in Europe and North America, have resulted in positive financial and economic performance of the main global fishing fleets in recent years. As the fishing industry continues to grow, the demand for small marine engines is expected to increase.

Marine engines are critical power sources for vessels, used for converting heat generated by burning fuel into useful work. The Asia-Pacific region currently dominates the global marine engine market, followed by Europe, North America, and LAMEA. Europe is expected to maintain its dominance in the market due to its large market for marine/shipping, and the surge in shipbuilding activities.

Restraints in Small Marine Engines Market

One of the restraints on the small marine engines market is the lack of marine infrastructure in developing economies. As the maritime and shipping industries continue to grow, infrastructure must be expanded and constructed to accommodate current vessel traffic and port operations. Smaller economies usually lack liner shipping connectivity, have lower quality port infrastructure, and inadequate trade facilitation measures, which hampers the growth of maritime trade in such countries and regions. These challenges pose a significant hurdle to the growth of the small marine engines market.

Opportunities: Increasing Offshore Energy Facilities Installation

Marine Renewable Energy (MRE) is a vital source of sustainable energy, encompassing both offshore wind and ocean energy. The EU's 2050 energy strategy can significantly benefit from MRE. Over the past decade, offshore wind technologies have witnessed a significant surge due to their high capacity factors, availability of larger sites, cost reduction, and technological advancements. Offshore wind power is expected to play a crucial role in Europe's carbon-neutral goals. The European Commission's Offshore Renewable Energy Strategy has highlighted the potential of the boating industry as a useful resource for commuting to offshore energy facilities, driving growth in the small marine engines market.

Challenges: High Lead Times

One of the major challenges faced by the small marine engines market is the increase in lead times. Lead time refers to the delay between initiating and executing a product or process. Small marine engine manufacturers are striving to reduce delivery times and shorten lead times. This challenge can be overcome through innovative solutions and increased productivity. The marine leisure market experienced a record surge in 2021, driven by the stay-at-home trend caused by the COVID-19 pandemic and high economic activity. However, the demand, coupled with supply chain issues, led to longer lead times. In the marine commercial market, postponed projects, such as passenger vessels for tourism, were resumed, further exacerbating the lead time issue.

During the period of 2022 to 2027, the largest market for small marine engines is expected to be the outboard segment, based on its placement. An outboard engine, also known as an outboard motor, consists of an engine, gearbox, and propeller and is mounted to the back of a boat, outside the hull. It is primarily used to power and steer the boat, with smaller boats being steered manually and larger vessels equipped with steering wheels. The underwater positioning of the engine propeller and gear case allows for quick planning and agile turning, making it a popular choice among boaters. With steady growth expected in the upcoming years, the market for outboard engines is expected to remain strong.

In terms of application, recreational boats are projected to hold the highest market share during the forecast period. The demand for boating and fishing activities has increased as consumers seek accessible outdoor activities amidst the impact of COVID-19 on other leisure activities, sports, and travel. This increase in demand for boating and fishing activities is expected to drive the market for yachts, cruiser boats, sailboats, catamarans, and fishing boats, all of which use small marine engines. As a result, the small marine engines market is expected to be mainly driven by the recreational boats and fishing boats segments.

During the forecast period, North America and Europe are expected to account for the largest market size in the small marine engines market. The North America region is projected to dominate the market due to increasing investments in the defense sector and restructuring efforts by ship manufacturing companies. These factors are driving the growth of the small marine engines market in the region. In Europe, the growth of the recreational boating industry is a significant factor contributing to the increasing demand for small marine engines. Countries such as France, the Netherlands, and the UK are well-known for their boat building capabilities, contributing to the rising demand for small marine engines in the region.

The growth of the marine engine market is primarily driven by an increase in international marine freight transport, high demand for two-stroke marine engines, and an increase in water sports and leisure activities. However, the market growth is restrained by the rise in adoption of fully electric vessels and fluctuations in transportation and inventory costs. On the other hand, the adoption of dual fuel-based marine engines and the development of engine technology are expected to offer lucrative growth opportunities for market players.

High Demand for Two-Stroke Marine Engines

Two-stroke marine engines provide high torque at low engine speed, allowing vessels to cruise at a steady pace without frequent adjustments. These engines can also run on low-grade fuel, lowering the overall running cost for ship operators. They are commonly used in vessels requiring a high power output, such as cargo ships and bulk carriers. Two-stroke engines generate more power and offer a higher power-to-weight ratio than four-stroke engines, enabling operators to carry more weight cargo with less power. The increase in demand for cargo transportation via ships is driving the demand for two-stroke engines. Manufacturers' development of two-stroke engines is also expected to boost demand in the future. For example, in November 2021, Wartsila technology group introduced its two-stroke future fuel conversion technology, allowing two-stroke marine engines to run on clean-burning future fuels. Thus, the high use of two-stroke marine engines and advancements in technology are projected to support market growth in the future.

Development of Engine Technology

Dual-fuel engines can run on both gaseous and liquid fuels, allowing for the use of a mixture of two different fuels. Diesel and natural gas fuels are typically used together in dual-fuel engines, but in the absence of natural gases, these engines can run on diesel alone. Some dual-fuel engines can also use varying mixtures of biodiesel, landfill gas, bio-gas, and other fuels.

Dual-fuel marine engines are eco-friendly and reduce carbon emissions, enabling companies to comply with emission norms and regulations. Market players of marine engines are thus focused on developing dual-fuel marine engines. For example, in July 2021, the Engine Machinery Division of Hyundai Heavy Industries (HHI) placed an order for the latest addition to MAN Energy Solutions' dual-fuel portfolio, the low-speed ME-GA dual-fuel engine. The first engine is expected to arrive in August 2022, with the final unit arriving the following year. The increase in government regulations related to emission norms and customer demand for fuel-efficient and cost-effective engines is expected to fuel the demand for dual-fuel engines and the growth of the global marine engine market in the future.

Marine transportation has become one of the most cost-effective modes of transportation, especially for freight transportation, leading to a significant increase in seaborne trade. According to the United Nations Conference on Trade and Development (UNCTAD), in 2020, international seaborne trade volume reached 10.7 billion tons, indicating a substantial growth trend. Additionally, in November 2021, the global trade for merchandise goods increased in both exports and imports, as per the UNCTAD report. In 2021, global imports of goods rose by 13.3%, while exports of goods increased by 14.3%.

Furthermore, the international maritime trade has witnessed an increase in traffic over the past years (2010–2019), with the global maritime trade increasing from 8,408 million tons loaded in 2010 to 11,076 million tons in 2019, according to the United Nations Conference on Trade and Development (UNCTAD). The majority of the movement of goods over long distances is expected to continue to be covered by maritime shipping in the coming years, as per the ITF transport outlook by The Organisation for Economic Co-operation and Development (OECD). It predicts that by 2030, 70% of total freight will be transported using maritime transport.

The increase in marine freight transportation can be attributed to the rise in traffic congestion in trade lanes in the Indian and Pacific Oceans, and the surge in demand for maritime freight transportation has led to an increased demand for maritime vessels. According to the UNCTAD, the commercial shipping fleet of 100 gross tons and above has reached around 99,800, indicating a growth trend in the industry. Therefore, the demand for maritime transport services and the growth of international maritime freight transport are expected to fuel the demand for global marine engines during the forecast period.

Adoption of Electric Vessels

To comply with the International Maritime Organization 2020 (IMO 2020) mandate that enforces maximum sulfur content of 0.5% in marine fuels, shipbuilding companies and operators are increasingly adopting emission-free transportation. This has led to a growing inclination toward installing electric propulsion in both existing and newbuild ships in the marine industry. Governments are also supporting electrification in marine vessels, and countries worldwide are utilizing electrified passenger boats and ferries.

For example, the European Union-backed E-ferry project developed the fully electric ferry, E-ferry Ellen, at a cost of approximately 24 million. The ferry can carry up to 200 passengers and 30 vehicles, and it is equipped with two 750kW propulsion motors and a 4.3 MWh lithium NMC battery. Additionally, companies are developing fully electric cargo ships such as Yara International's Yara Birkeland, which was commissioned in 2020. These electric ships derive all their energy from batteries, as they do not have an internal combustion engine on board.

The rise in adoption and advancement of electric marine vessels is expected to hinder the market growth of small marine engines, as these engines will not be required in fully electric ships.

Key Players in Small Marine Engines Market

• YAMAHA MOTOR CO., LTD.
• YANMAR CO. LTD.
• BRUNSWICK CORPORATION
• SUZUKI MOTOR CORPORATION
• HONDA MOTOR CO., LTD.
• CATERPILLAR
• CUMMINS INC.
• VOLVO PENTA
• DEUTZ AG
• GREAVES COTTON LIMITED
• WEICHAI POWER CO., LTD.
• JOHN DEERE
• KOHLER CO.
• TOHATSU CORPORATION
• KIRLOSKAR OIL ENGINES
• OXE MARINE AB
• HYUNDAI SEASALL
• MITSUBISHI HEAVY INDUSTRIES-VST DIESEL ENGINES
• DOOSAN INFRACORE
• FPT INDUSTRIAL

Recent Developments in Small Marine Engines Market

The small marine engines market has seen recent developments in the form of partnerships and agreements. In June 2021, Suzuki Marine USA, LLC agreed to supply outboard motors to Camping World, a leading outdoor retailer in the US. This partnership is aimed at expanding the private boat brand of Camping World.

In February 2020, Yanmar entered into a partnership with Smartgyro, a company specializing in gyro stabilization technology for marine systems. This collaboration enabled Yanmar to enter the growing gyro stabilizer market and offer more technologically advanced marine systems that enhance boating comfort, enjoyment, and safety.

In January 2020, Yanmar partnered with Nauti-Craft with the aim of commercializing Yanmar’s boats through the utilization of Nauti-Craft’s patented marine suspension technology. This collaboration will likely enable Yanmar to offer more innovative boats that are more comfortable and safe for boaters.

The Small Marine Engines Market has witnessed significant growth in recent years, driven by various factors such as increased demand for recreational boating, fishing, and water sports. The market has been witnessing a surge in demand for small marine engines, which are more fuel-efficient, lightweight, and eco-friendly than their predecessors.

One of the recent developments in the Small Marine Engines Market is the adoption of electric and hybrid engines. These engines are gaining traction due to their lower emissions and noise levels, making them more environmentally friendly. Several manufacturers are investing in research and development to develop more advanced electric and hybrid engines to cater to the growing demand.

Another significant development in the Small Marine Engines Market is the integration of advanced technologies such as artificial intelligence, internet of things (IoT), and machine learning. These technologies are being used to optimize engine performance, reduce fuel consumption, and improve safety. Manufacturers are also incorporating sensors and other advanced systems to monitor engine health, detect faults, and predict maintenance needs.

The Small Marine Engines Market is also witnessing an increase in collaborations and partnerships among manufacturers, component suppliers, and other stakeholders. These collaborations are aimed at developing more advanced and efficient small marine engines to cater to the growing demand in the market.

Furthermore, the market is experiencing a shift towards cleaner and more sustainable fuels such as biodiesel, ethanol, and hydrogen. Manufacturers are investing in the development of engines that can operate on these fuels to meet the increasing demand for eco-friendly marine engines.

In conclusion, the Small Marine Engines Market is witnessing rapid developments, driven by the adoption of advanced technologies, the shift towards eco-friendly fuels, and the increasing demand for electric and hybrid engines. The market is expected to continue its growth trajectory in the coming years, with manufacturers focusing on developing more advanced, efficient, and sustainable engines to meet the evolving needs of the market.