The global market for Marine Gensets is projected to reach US$6.3 billion by 2025 driven by the healthy growth outlook for shipbuilding, repairs, overhaul and maintenance. Macro factors supporting these opportunities include steady expansion in seaborne trade volume; stable spending on tourism/commercial voyages and the resulting increased demand for recreational vessels. The encouraging outlook for sea trade comes despite the threat of trade wars, protectionist trade policies, and increasing regulations such as the International Maritime Organization (IMO) 2020. Trade patterns will be supported by new trends such as digitalization which will redefine the geography of trade flow. Artificial intelligence, big data, Internet of Things (IoT), automation, blockchain will transform supply chains and create new business opportunities. Digitalization of port and shipping services will reduce cost of maritime transport and will help increase volume of traded commodities via sea. IoT and integrated communications and better visibility of shipments at any given point in time will increase reliability of container transport services. Dry bulk commodities are expected to witness the highest growth in seaborne trade, along with coal as alternative markets open up such as in Vietnam to counter balance falling Chinese imports. IMO 2020, although will push up the cost of maritime transport, it will also help encourage fleet demolitions and fleet expansion, modernization and upgrades. Owners of inefficient vessels will face the necessity to scrap their ships and upgrade to newer energy efficient fleet to ensure conformance to the regulations. This will push up orders for new generation ships, positively influencing demand for shipbuilding components including power and propulsion systems.

In addition to commercial vessels, the healthy outlook for the maritime leisure sector supported by rising tourism, favorable government initiatives, and increase in exotic sailing vacations by affluent consumers, will benefit growth in the market. In view of the growing carbon footprint of the maritime transport industry, there is strong focus being shed on energy efficiency in ship building both on manufacturing processes and engineering designs. It is estimated that international maritime transport generates over 980 million tonnes of CO2 annually and is responsible for over 2% of global greenhouse gas (GHG) emissions. In this regard, variable speed marine generators are growing in popularity. Variable speed drive technology has the potential to reduce energy consumed by machinery by over 60%. Benefits of this technology includes ability to operate at lower speeds; features autostart and data-logging functions; enables automatic adjustment of speed according to the electrical load of the engine; more efficient use of engine power, and lower fuel consumption and emission. The United States, China and Europe represent large markets worldwide with a combined share of 65.5% of the market. Latin America ranks as the fastest growing market with a CAGR of 5.1% over the analysis period supported by the region's efforts to enhance indigenous shipbuilding capacity. Of special note is the emerging growth in defense vessels against the backdrop of Latin American navies deploying new vessel systems over the last couple of years. China represents another major market with a 4.3% CAGR. Cumulative shipbuilding orders in the country is among the highest in the world, highlighting the country's growing global clout in the shipbuilding business.