Marine Propulsion and Auxiliary Power Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Fuel Type (Diesel, Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), Natural Gas, Battery, Ammonia, Hydrogen, Others), By Application (Propulsion, Auxiliary), By Power Rating (<1,000 kW, 1,000-2,000 kW, 2,001-3,000 kW, 3,001-4,000 kW, 4,001-5,000 kW), By Vessel Type (Tankers/Carriers, Barges/Cargo Vessels, Defense Vessels, Cruise Ships, Others), By Region, By Competition 2020-2030F

Market Overview

The Global Marine Propulsion and Auxiliary Power Market, valued at USD 10.11 Billion in 2024, is projected to experience a CAGR of 13.04% to reach USD 21.09 Billion by 2030. The Global Marine Propulsion and Auxiliary Power Market encompasses the design, manufacturing, and distribution of systems and technologies essential for propelling marine vessels and generating onboard power. This market's expansion is fundamentally driven by several key factors, including the consistent growth in international maritime trade necessitating larger and more efficient fleets, and increasingly stringent environmental regulations, such as those introduced by the International Maritime Organization, which mandate reductions in greenhouse gas emissions. According to the European Commission's EU Blue Economy Report, European shipyards received 101 new orders in 2023, marking a 9% increase over the preceding year, demonstrating ongoing demand within the sector.

However, a significant challenge impeding broader market growth is the substantial initial investment required for advanced propulsion systems, particularly those utilizing alternative fuels, coupled with the underdeveloped global infrastructure necessary to support these cleaner energy sources.

Key Market Drivers

Stringent maritime emission regulations fundamentally influence the Global Marine Propulsion and Auxiliary Power Market by compelling fleet operators to adopt advanced technologies and cleaner operational practices. International Maritime Organization mandates, such as the Energy Efficiency Existing Ship Index and the Carbon Intensity Indicator, necessitate significant upgrades or replacements of propulsion and auxiliary systems to ensure compliance and avoid penalties. This regulatory pressure directly stimulates demand for exhaust gas cleaning systems, energy recovery solutions, and more efficient engine designs. According to DNV's Alternative Fuels Insight, in February 2025, the number of LNG-fuelled ships in service increased to 641 by the end of 2024, reflecting the growing operational fleet seeking to comply with environmental standards. Concurrently, the pronounced shift towards alternative and sustainable marine fuels is reshaping the market by driving investment in new engine designs and fuel infrastructure. This transition, largely catalyzed by emission reduction goals, requires propulsion systems capable of operating on fuels such as liquefied natural gas, methanol, and ammonia. Shipowners are increasingly ordering vessels designed for these cleaner energy sources, which in turn fuels innovation and production in engine manufacturing and auxiliary power solutions. According to DNV's Alternative Fuels Insight, in February 2025, 515 alternative-fuelled vessels were ordered in 2024, demonstrating the industry's commitment to cleaner energy sources. This dual pressure from regulations and the imperative for fuel diversification represents a transformative period for the marine propulsion sector.

The overall Global Marine Propulsion and Auxiliary Power Market demonstrates resilience and growth, driven by these foundational shifts. The demand for advanced power solutions spans across new vessel constructions and the retrofitting of existing fleets as operators seek to enhance operational efficiencies and meet evolving environmental standards. According to MAN Energy Solutions' 2023 Annual Report, published in February 2024, the company reported a total order intake of over 1.4 gigawatts for its two-stroke marine engines, demonstrating robust demand for high-power propulsion solutions. This continuous investment underscores the industry's commitment to modernizing its capabilities in response to both regulatory imperatives and the pursuit of long-term sustainability within maritime operations.

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Key Market Challenges

The substantial initial investment required for advanced propulsion systems, particularly those utilizing alternative fuels, represents a significant impediment to the growth of the Global Marine Propulsion and Auxiliary Power Market. Shipowners face considerable upfront capital expenditure when considering these innovative technologies, which often carry a higher procurement cost compared to conventional systems. This financial hurdle often deters broader adoption, as businesses prioritize immediate economic viability and return on investment.

This reluctance to commit substantial initial outlays directly constrains market expansion for cleaner, more efficient marine power solutions. The higher cost of entry for alternative fuel-capable vessels impacts fleet modernization across various segments. According to BIMCO, in August 2025, alternative-fuel vessels constituted only 8% of bulk carrier orders, 17% of crude tanker orders, and 9% of product tanker orders, indicating a slower transition in these large segments of the global fleet. Such figures demonstrate how investment barriers delay the widespread integration of advanced propulsion and auxiliary power systems, thereby slowing the overall market's growth trajectory.

Key Market Trends

Hybrid and electric propulsion system integration represents a significant trend in marine power architecture, combining traditional engines with energy storage like batteries for enhanced fuel efficiency, reduced emissions, and improved operational flexibility. The American Bureau of Shipping (ABS), an industrial association, actively classifies vessels with lithium-ion battery installations, exemplified by several SEACOR Marine platform support vessels receiving ABS-classed hybrid battery-power upgrades. Reflecting market demand, Wärtsilä secured an order in September 2023 for an integrated hybrid propulsion solution for three new cargo vessels, with deliveries slated for December 2025 and 2026. This underscores the market’s embrace of comprehensive hybrid solutions to meet evolving environmental and performance criteria.

Enhanced digitalization and automation are profoundly reshaping the Global Marine Propulsion and Auxiliary Power Market by optimizing vessel performance and streamlining operational workflows. Integrating advanced sensors, artificial intelligence, and the Internet of Things facilitates real-time monitoring and data analysis, directly contributing to improved fuel efficiency and reduced operational costs. The Digital Container Shipping Association (DCSA)'s "State of the Industry Report 2024," published in September 2024, indicated that 86% of cargo owners consider digitalization essential for enhancing operational efficiency. Further, Kongsberg announced in January 2025 the integration of its maritime digital operations into Kongsberg Maritime, consolidating a business that generated approximately NOK 600 million (US$52.6 million) in revenue in 2023. This strategic reorganization reinforces the industry's commitment to leveraging digital capabilities for vessel control and lifecycle management.

Segmental Insights

The Liquefied Natural Gas (LNG) segment is experiencing rapid growth within the Global Marine Propulsion and Auxiliary Power Market, primarily driven by stringent environmental regulations. The International Maritime Organization (IMO) plays a pivotal role, with its 2020 sulfur cap significantly increasing demand for cleaner fuels. LNG offers substantial reductions in sulfur oxide, particulate matter, and nitrogen oxide emissions, alongside a notable decrease in carbon dioxide compared to conventional marine fuels. This aligns directly with the IMO's broader strategy for reducing greenhouse gas emissions from ships, positioning LNG as a viable and compliant option for vessels aiming to meet current and future emission targets. The expanding bunkering infrastructure and competitive operational costs further contribute to its accelerating adoption across the global fleet.

Regional Insights

Europe leads the Global Marine Propulsion and Auxiliary Power Market due to its stringent environmental regulations, notably the EU's Fit for 55 package and FuelEU Maritime Regulation, which mandate reduced emissions and the widespread adoption of low-carbon and zero-emission technologies. These comprehensive regulatory frameworks actively drive demand for energy-efficient and sustainable propulsion solutions, including advanced hybrid and electric systems. Furthermore, significant investment in research and development, spearheaded by prominent European manufacturers and supported by initiatives like the Waterborne Technology Platform, continuously advances marine propulsion innovation, solidifying Europe's dominant position.

Recent Developments

• In June 2025, MAN Energy Solutions is scheduled to deliver the world's most powerful two-stroke methanol engine. This 82,440 kW engine, a MAN B&W 12G95ME-C10.5-LGIM type, is currently under construction by a Chinese licensee and is intended to power a series of 24,000 TEU container vessels. This product launch represents a significant milestone in the Global Marine Propulsion and Auxiliary Power Market, demonstrating continued progress in developing alternative fuel solutions to support the maritime industry's decarbonization efforts and transition towards a multi-fuel future.

• In June 2024, Kongsberg Maritime achieved Approval in Principle from DNV and the Norwegian Maritime Authority to transfer the role of chief engineer from vessels to a shore-based control center. This breakthrough in autonomous shipping technology marks a substantial advancement for the Global Marine Propulsion and Auxiliary Power Market, enabling remote monitoring and control of propulsion and auxiliary systems. The functionality aims to enhance operational efficiency, safety, and address crew shortages within the maritime industry, utilizing advanced systems on board and at remote operation centers.

• In May 2024, Caterpillar Marine and Damen Shipyards Group formalized a collaboration through a Memorandum of Understanding to advance the development of methanol dual-fuel Cat 3500E marine engines. This partnership in the Global Marine Propulsion and Auxiliary Power Market targets the deployment of the first field demonstrator engines in 2026. The initiative leverages proven diesel fuel systems with innovative dual-fuel technology, aiming to achieve the same performance and durability as current diesel engines while meeting stringent emission standards with 100% power delivery.

• In April 2024, Wärtsilä, a leading marine technology company, announced its expectation to deliver the first ammonia-fueled engine for a new vessel in early 2025. This significant development in the Global Marine Propulsion and Auxiliary Power Market follows the commercial launch of the company's first ammonia four-stroke engine for orders in the fourth quarter of the previous year. The adoption of ammonia as a marine fuel represents a critical step towards decarbonization, offering a carbon-free alternative to traditional fuels, thereby positioning Wärtsilä at the forefront of sustainable marine propulsion solutions.

Key Market Players

• ABB Ltd
• Caterpillar Inc.
• Cummins Inc.
• MAN Energy Solutions
• Mitsubishi Heavy Industries Ltd.
• Rolls-Royce plc
• Siemens AG
• Wärtsilä Corporation
• Yanmar Holdings Co., Ltd
• Hyundai Heavy Industries Co., Ltd.

Report Scope:

In this report, the Global Marine Propulsion and Auxiliary Power Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Marine Propulsion and Auxiliary Power Market, By FuelType:

o   Diesel

o   Liquefied Natural Gas (LNG)

o   Liquefied Petroleum Gas (LPG)

o   Natural Gas

o   Battery

o   Ammonia

o   Hydrogen

o   Others

• Marine Propulsion and Auxiliary Power Market, By Application:

o   Propulsion

o   Auxiliary

• Marine Propulsion and Auxiliary Power Market, By Power Rating:

o   <1,000 kW

o   1,000-2,000 kW

o   2,001-3,000 kW

o   3,001-4,000 kW

o   4,001-5,000 kW

• Marine Propulsion and Auxiliary Power Market, By Vessel Type:

o   Tankers/Carriers

o   Barges/Cargo Vessels

o   Defense Vessels

o   Cruise Ships

o   Others

• Marine Propulsion and Auxiliary Power Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Marine Propulsion and Auxiliary Power Market.

Available Customizations:

Global Marine Propulsion and Auxiliary Power Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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