Ship Propulsion System Market Valued at USD 7.12 Billion in 2020 and is Growing at An Exceptional Pace of CAGR 2.98% by 2028
According to analysts at Vantage Market Research, the Global Ship Propulsion System Market was valued at USD 7.12 Billion in 2020 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 2.98% between 2021 to 2028.
Ship propulsion is a system that is used to propagate thrust which is used for the movement of ship across the water. Conventionally, paddle and sails are used for small boats, but modern ships require mechanical support system that consists of electric motor impeller, pump-jets or engine turning a propeller to be propelled. Ships may be integrated with one or more propulsion engines depending on their size.
The market is primarily driven by the increased in production and sales of ships across the globe with increasing demand for resources such as steel, iron, crude oil, coal from developing countries that are exported and imported through the waterways. Moreover, increased investment by governmental authorities in the development of inland waterways and shipbuilding industry is also expected to fuel the global ship propulsion system market.
However, due to the COVID-19 pandemic the market has been negatively impacted owing to the halted shipbuilding activities, impacted overall value chain and supply chain which has resulted in an overall reduction in production and the market is expected to show a downfall till the restriction are uplifted by the authorities.
Subsequently, strict, and stringent governmental regulation with high investment requirement is expected to restrain the market growth. Whereas rise in usage of waterways and advanced technology with adoption of alternatives in fuel propulsion engine is expected to provide opportunity for the growth of the market.
Globally, Asia-Pacific is expected witness highest growth region wise owing to the increasing number of joint ventures among established market players, growing shipbuilding activities specifically in China, South Korea, and Japan. Furthermore, the revenue generated through the trading of crude oil from this region is expected to augment growth of the overall market in this region.
Key market players in the global ship propulsion market are 3W International GmbH, Lockheed Martin, United Technologies Corporation and Northrop Grumman.