The rise in disposable income among people, along with the presence of a stronger economy across many developed and developing nations, has spurred the need for a robust import and export system to meet the constantly changing demand from consumers. Widespread adoption of sea-borne trading to transport large volumes of products and bulk items at a relatively lower cost will supplement the production of ships, positively influencing global marine turbocharger market trends.

According to a report by United Nations Conference on Trade and Development (UNCTAD), in 2017 the worldwide seaborne trade was valued at 10.7 billion tons and is witnessing sustained growth each year. Use of turbochargers in ships facilitate benefits such as reduced fuel oil consumption, increased power for an engine of the same size and reduction in thermal loading, owing to shorter and more efficient burning period.

With surging demand for efficient and compact turbocharger for marine engines, Switzerland-based ABB Turbocharging had recently launched the new A255-L and A260-L models that are suitable for small and medium bore two-stroke gas and diesel engines.

Driven by technological advancements and innovations

Axial marine turbochargers have gained extensive momentum over the years. Reportedly, in an axial flow turbocharger, the exhaust gases enter and exit axially. Growing R&D in the field due to the constant up-gradation in technology along with the need to ensure environmental sustainability has steered developments in turbochargers.

In February 2019, MAN Energy Solutions – a Germany based company that manufactures large-bore diesel engines and turbomachinery for marine applications, launched TCT axial turbocharger series primarily optimized for IMO Tier III emission standard. Representing a considerable advancement, the new models will boost the efficiency levels of the company’s two-stage turbocharging solution to nearly 80%.

Moreover, the TCT turbochargers are suitable for low-speed engines as well as two and four-stroke engines.

Positive outlook from a robust military sector

There has been a veritable explosion in defense spending over the years due to the increase in cross border political tensions, emergence of radical activists, and other situations of war. Technological advancements across all the sectors of the economy have driven innovations and adoption of new and better mechanisms in the military sector.

Citing reports, between 1 Oct 2019 to 30 September 2020, the total military spending in the U.S. has been pegged at USD 989 billion and could growth further over the years. The data could indicate substantial expenditure on development and enhancement of marine products by the U.S. defense sector. Innovations in military to meet enhance reliability and safety concerns will amplify marine turbocharger industry size.

Additionally, the rise in purchasing power among people across the globe along with the increased spending on leisure activities has fueled the demand for recreational boats. Reportedly, in the year 2016, total number of recreational boats sold in the U.S. was estimated at more than USD 3.6 billion. The requirement for high speed and power output for recreational vessels will support marine turbocharger deployment.

Flourishing marine trade industry in Asia Pacific

Asia Pacific marine turbocharger industry share is witnessing widespread growth due to two main reasons. One, the presence of various ship manufacturers in the region due to the availability of relatively cheap labor and raw materials. Two, the increasing internal and cross border trade in the region.

The Asia- Pacific Trade Agreement is an agreement aimed at promoting the economic development of its members through the use of commonly beneficial trade liberalization methods. Vessels like oil tankers, container ships, tugboats and different other kinds of ships are built in the region, with shipbuilders catering to a number of global industrial and transportation customers.
APAC is a major exporter of vegetables, spices, textiles, tea, coffee, among others. Growing initiatives undertaken by the governments to promote trade in the region will drive seaborne trade activities thereby fostering the product penetration.

Global marine turbocharger market is highly fragmented due to the presence of industry participants ranging from small regional players to global manufacturers. Prominent participants in marine turbocharger market include Napier Turbochargers, MAN Diesel and Turbo, IHI Corporation and Liaoning RongLi Turbocharger Co., among various others.