Marine Gearbox Market size was valued at USD 7.17 billion in 2024 and is poised to reach USD 14.38 billion in 2037, expanding at more than 5.5% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of marine gearbox is assessed at USD 7.56 billion.
The marine gearbox market’s growth is propelled by the expansion in maritime trade, which is expanding owing to increasing goods transportation via the sea route. The surge in maritime trade directly impacts the requirement for more ships, which in turn drives demand for propulsion systems. For instance, the United Nations Conference on Trade and Development (UNCTAD) released a report on global maritime trade, indicating that maritime trade grew by 2.4% in 2023, and expects continued moderated growth in trade volume from 2024 to 2028. With increasing shipping volumes bolstering fleet usage, the demand for high-performance marine gearboxes is projected to increase.
Furthermore, the global push to inculcate sustainable marine operations drives the adoption of cleaner fuels for ships. The trend is beneficial in accelerating the demand for gearboxes that can function with sustainable marine fuels. For instance, in July 2024, NMMA alongside Suzuki Marine, Hyperfuels, and LyondellBasell, launched the first-ever pilot program for sustainable marine fuels in the U. S. to reduce carbon emissions from recreational boating. The adoption of sustainable marine fuels is poised to create profitable opportunities in the marine gearbox market with manufacturers having to design advanced gearbox systems ensuring optimal performance and integration with new marine fuels.
Additionally, the marine gearbox market is poised to expand owing to increasing investments in increasing the fleet size and quality in the defense sectors, which provides opportunities to retrofit gearboxes in ships, submarines, and other marine vessels. For instance, in July 2024, the U.S. Navy reported that heightened focus on shipbuilding and restoring capacity to build by streamlining investments in ship and submarine building. The trends are reflective of a global shift by navy forces to upgrade existing fleets or bolster shipbuilding capacities, necessitating a steady supply of marine gearboxes. The emerging opportunities in the marine gearbox market foster industry partnerships and attract investments, positioning the market to maintain a continued growth curve by the end of the forecast period.
Growth Driver
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.5% |
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Base Year Market Size (2024) |
USD 7.17 billion |
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Forecast Year Market Size (2037) |
USD 14.38 billion |
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Regional Scope |
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Number of Engine (Single, Dual)
The single engine segment is estimated to dominate marine gearbox market share of around 70.3% by the end of 2037. The segment’s growth is owed to rising demands for single engines in small commercial and leisure vessels. The rising advent of recreational boating propels the demand. Additionally, the growth of luxury tourism and pleasure crafts is poised to add to the surging demand for single-engine gearbox solutions.
Single-engine gearboxes offer cost-effectiveness that is lucrative for medium and small-scale marine tourism operators. Furthermore, key players in the market are expanding the remanufacturing segment to leverage the opportunities. For instance, in August 2024, Volvo Penta announced the expansion of its range of remanufactured drivelines for marine customers and will offer complete engines, i.e., D13, D8, D4, and D6, along with off-the-shelf delivery and easy installation. All-in-one solutions as such make it lucrative for operators to adopt while upgrading or newly installing single-engine gearboxes.
The dual-engine segment of the marine gearbox market is positioned to expand its revenue share by the end of the forecast period. The rising demand from large commercial marine vessels and defense vessels such as warships is driving the segment’s growth. The operational reliability offered by dual engines offers operational stability that is vital for offshore oil rigs. The advancements in dual-engine configurations are poised to benefit maneuverability and fuel efficiency. For instance, in January 2024, ZF and Caudwell Marine announced plans to parent a project to improve the performance of Caudwell’s new V6 turbodiesel outboard marine engine.
Application (Commercial Ships, Naval Vessels, Recreational Boats, Fishing Vessels, Offshore Support Vessels, Others)
The commercial ships segment of the marine gearbox market is positioned to experience the largest applications during the forecast period. The surge in international maritime trade has driven demand for gearboxes and the segment is poised to remain the largest end user by the end of the forecast period. Furthermore, the advent of LNG and hybrid-powered commercial vessels is poised to create the necessity for specialized gearboxes.
In August 2023, Wallenius Wilhelmsen announced the signing of a letter of intent for four next-generation vessels with the Jinling Shipyard, and the new vessels are poised to be delivered in 2026. The surging investments by companies to bolster commercial vessel portfolios are conducive to the marine gearbox market. Similarly, in August 2024, Maersk announced the continuation of their fleet renewal plans with a mix of methanol and liquified gas dual-fuel propulsion systems that will necessitate fuel-flexible gearbox systems.
Our in-depth analysis of the global marine gearbox market includes the following segments:
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Number of Engines |
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Application |
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Type |
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Component |
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Propulsion System |
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Product Type |
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Sales Channel |
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The marine gearbox market is positioned to expand during the forecast period. The key players in the market are actively investing in providing advanced marine gearbox solutions. Furthermore, strategic acquisitions and partnerships are poised to benefit the companies in the sector. In August 2022, Dana Incorporated announced the launch of the Brevini EvoMax series of helical and bevel-helical gearboxes for marine and offshore applications with five new sizes that include 14 redesigned gearboxes. New gearbox solutions help companies stand out in the competitive market.
Europe Market Forecast
Europe in marine gearbox market is predicted to account for more than 46.5% revenue share by the end of 2037. and others. Furthermore, the proliferation of green maritime initiatives has propelled the production of energy-efficient vessels that require advanced gearboxes that can optimize the propulsion for hybrid or LNG-powered ships. For instance, the European Union (EU) has laid the groundwork for net zero emissions from ships by or around 2050.
Furthermore, agreements and contracts by key players in the region to forward hybrid propulsion solutions are positioned to drive sustained demand for marine gearbox solutions. For instance, in December 2023, the hybrid propulsion solution of Wärtsilä Corporation was selected for three new cargo vessels. The announcement is an indication of the push for cleaner cargo transport, and with maritime trade booming from and within Europe, the regional market is poised to maintain its expansion by the end of the forecast period.
The Germany marine gearbox market is poised to register a major share in the Europe marine gearbox market. The presence of industry-leading companies in the domestic market along with a well-established shipbuilding industry drives demand for marine gearbox solutions. Key opportunities arise in repairing and overhauling as vessels require upgradation to maintain optimum performance.
Furthermore, Germany’s ambitious decarbonization goals have propelled offshore wind farm projects in the maritime waters of the country, that require regular vessel services. Additionally, the rising maritime trade of Germany creates a sustained need for advanced gearbox solutions. For instance, in October 2024, the International Trade Organization estimated USD 93 billion in revenue of the maritime industry of Germany in 2023 and in 2022, around 60% of the country’s traded goods were handled via the maritime routes.
Spain is poised to account for a significant revenue share in the Europe marine gearbox market. The Spain marine gearbox market is gaining momentum owing to the expansion of maritime trade and the growth of the finish and shipbuilding industries. Spain imports a considerable share of gearbox components from Germany to cater to the rising domestic demands. Additionally, Spain has a thriving tourism sector driving the use of small-scale pleasure vessels along with large-scale cruise yachts.
Furthermore, Spain’s strategic maritime boundaries drive a large percentage of freight activity in its ports, with the rise of the Red Sea crisis bolstering traffic in the country’s ports. The increasing traffic provides opportunities for repair and overhaul for domestic marine gearbox suppliers benefiting the sector’s growth. The advancements in propulsion systems create further revenue streams in the market, with the Navy of Spain being a key beneficiary and an end user. For instance, in May 2023, ABB Ltd., along with Navantia shipbuilding company secured a contract from the navy of Spain to upgrade the flagship, Juan Carlos I, with an electrical propulsion system.
North America Market Forecast
The North America marine gearbox market is poised to register the fastest growth during the forecast period. The market’s growth is driven by the increasing maritime activities in the region. Furthermore, stringent emission regulations have prompted commercial fleet operators to retrofit sustainable propulsion solutions that drive demand for compatible gearboxes. A key sector driving demand is the marine defense sector of the U.S. and investments in the modernization of fleets. For instance, in May 2024, the United States Marine Corps announced significant modernization efforts and adopted a Condition-Based Maintenance plus strategy. Key players with a strong presence in the North America market are set to leverage lucrative defense contracts to supply marine gearboxes and expand their revenue shares.
The U.S. marine gearbox market holds a major revenue share in the North America marine gearbox market. A key driver of the market is the expansive maritime trade and defense budgets. Furthermore, the thriving U.S. marine economy is poised to provide a continuous stream of opportunities for gearbox manufacturers.
For instance, in June 2024, the National Oceanic and Atmospheric Administration released a report stating a USD 476 billion economic impact on the marine economy in 2022, making up around 2% of the country’s gross domestic product and generating USD 777 billion worth of sales. The trends augur well for the future of the marine gearbox market in the U.S.
Canada is projected to register a profitable revenue share in the marine gearbox market. The extensive coastline of the country assists the marine tourism sector and is poised to experience increased recreational yacht activities, providing opportunities for marine gearbox manufacturers. Furthermore, manufacturers are expected to find surging opportunities in providing sustainable solutions for marine vessels.
Rising opportunities to leverage contracts from the Coastguard of Canada are poised to expand the sector in the country. For instance, in September 2024, Man Energy Solutions announced that they had won an order to deliver the propulsion systems for two Arctic Offshore Patrol Ships (AOPS) for the Canadian Coastguard as part of a consortium with GE Power Conversion.
The marine gearbox sector is positioned to expand during the forecast period. The key players in the market are actively investing in providing advanced marine gearbox solutions. Furthermore, strategic acquisitions and partnerships are poised to benefit the companies in the sector. In August 2022, Dana Incorporated announced the launch of the Brevini EvoMax series of helical and bevel-helical gearboxes for marine and offshore applications with five new sizes that include 14 redesigned gearboxes. New gearbox solutions help companies stand out in the competitive market.
Here are some key players in the market:
Author Credits: Saima Khursheed
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