High-Speed Engine Market Outlook – 2030
High speed engines are widely used for propelling small, generally specialized, commercial vessels, and as main and emergency genset drives on all types of tonnage. High speed engine designs are benefited from several technological innovations such as modular assembly, electronically controlled fuel injection systems, common rail fuel systems, and sophisticated electronic control/ monitoring systems. Some of the most significant key factors driving the growth of the global high speed engine market are rising demand for reliable and uninterrupted power to drive the high-speed engine market for backup power generation and growth in international marine freight transport to create demand for marine high-speed engines. In November 2020, Rolls Royce announced investments of up to USD 13.9 million in its Power Systems business unit for the addition of new research and development building and multi-phase expansion of its mtu power generation manufacturing facility in Mankato, Minnesota, US.
COVID-19 Impact analysis
The most significant near-term impact on high-speed engines already contracted or in the manufacturing process may be felt through the supply chain. Industry executives are expecting delivery and construction slowdowns, either because of the closure of industries to reduce the spread of coronavirus or because the workers start getting sick. Many parts and components used to make high-speed engines come from China, Asia Pacific, the United States and parts of Europe. Manufacturing interruptions in China and the United States may cause a short-term sharp decline in the high-speed engine market. Moreover, due to the COVID-19 outbreak, the value of the local currencies of many countries have depreciated. The imbalance between supply and demand has caused metal manufacturers to suffer economic losses, and the key components for manufacturing high-speed engines are usually purchased in US dollars, which may lead to increased component costs.
Top Impacting Factor
- Rising demand for reliable and uninterrupted power to drive high-speed engine for backup power generation, increased demand for backup power solution, and growth in maritime tourism are driving the growth of the market.
- High fuel, and operation & maintenance costs of high-speed engines, and strict emission regulations is expected to hamper the growth of the market.
- Growing trend of distributed power generation can be seen as an opportunity for the market investments.
The high speed engine market trends are as follows:
Rising demand for reliable and uninterrupted power to drive high-speed engine for backup power generation
Electricity is a critical resource to drive the growth of any country. According to EIA's International Energy Outlook 2019, by 2040, global electricity demand is anticipated to grow at an annual rate of 2.11%. Most of the growth is expected to occur in non-OECD countries, such as China and India. However, the short-term electricity demand in 2020 is expected to fall by 5% as a consequence of COVID-19 and the resultant economic downturn. In the case of a faster recovery, the demand is expected to fall by 2%. the global power capacity growth rate was relatively fast, and the growth rate of the expansion of the transmission and distribution network could not keep up. This leads to reliability issues such as power outages and surges. There are more power outages in developing regions, and more power outages and voltage fluctuations in developed regions. Thus rising demand for reliable and uninterrupted power to regenerate power will drive the growth of high speed engine market.
High fuel and operation & maintenance costs
The backup generator can operate for 30,000 hours before the overhaul, but requires preventive maintenance to operate effectively. Diesel fuel is costly when compared to other alternatives such as gas engines and gas turbines, especially for long-duration operations. Preventive maintenance requires regular maintenance and refilling of lubrication, cooling and fuel systems, starting batteries and fuel filters. These costs add up to the total operating and maintenance costs of diesel engines, which are higher than the operating costs of renewable technologies. In addition, factors such as extreme temperatures, weather, and salt water can increase the frequency of maintenance activities. Emerging technologies such as battery energy systems for backup power solutions require no fuel costs and are easy to maintain and operate. With the increasingly fierce competition from these emerging technologies, high fuel costs and high-speed engine operation and maintenance costs may become major constraints on market growth.
Key benefits of the report:
- This study presents the analytical depiction of the high speed engine industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with challenges of the high speed engine market.
- The current market is quantitatively analyzed to highlight the high speed engine market growth scenario.
- The report provides a detailed high speed engine market analysis based on competitive intensity and how the competition will take shape in coming years.
Questions answered in the high speed engine market research report:
- Which are the leading market players active in the high speed engine market?
- What would be the detailed impact of COVID-19 on the market?
- What current trends would influence the market in the next few years?
- What are the driving factors, restraints, and opportunities in the high speed engine market?
- What are the projections for the future that would help in taking further strategic steps?
- In August 2018, MITSUBISHI HEAVY INDUSTRIES, LTD. introduced new models of its MET turbochargers for diesel engines. The MET-MBII axial-flow turbocharger series, primarily used for two-stroke engines, is smaller and lighter than the existing MET-MB series, with a 16% greater air flow capacity. The MET-ER radial turbocharger for four-stroke engines is more compact, with fewer components for improved maintainability. Axial-flow turbochargers are primarily used for large two-stroke marine propulsion diesel engines.
High-Speed Engine Market Report Highlights
By Power Output
By End User
Key Market Players
Daihatsu Diesel Mfg, CNPC Jichai Power Company Limited, Cummins, Doosan Infracore, FPT Industrial, Anglo Belgian Corporation, Guangzhou Diesel Engine Factory, Hyundai Heavy Industries, Caterpillar, Deutz