Dual Fuel Engine Market Size, Share, Growth, and Industry Analysis, By Type (Four-Stroke, Two-Stroke), By Application (Cargo Ship, Cruise Ship, and Others), Regional Insights and Forecast To 2031

Updated On: 08 April 2024

Dual Fuel Engine Market Report Overview

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The global dual fuel engine market size is expected to be USD 2679.7 million in 2021 and is expected to touch USD 15692.8 million by 2031, exhibiting a CAGR of 21.7% during the forecasted period. 

Engines operating on a mix of two different fuels are known as dual fuel engines. These engines operate on primary and secondary fuel and use natural gas, diesel, synthesis gas, hydrogen, biogas, and gasoline as fuel types to work. Amongst these fuels and gasses, natural gas is used the most, accounting for 90% of the mixture, as natural gas is cost-effective and reduces emissions. Diesel acts as a catalyst in the engine that brings up the compressed natural gas and the air mixture. The use of diesel ensures that the compression ratio and the efficiency of fuel remain intact.

The main advantage of dual fuel engines is that they can use both oil and natural gas, thus adding to the system's energy supply. The search for cleaner fuels is seeing LNG, LPG, methanol, and ethanol use in marine engines with rapid demand. Clean fuels will reduce the environment's carbon footprint and increase financial prospects for companies and investors. The reduced use of diesel in these regions also increases the financial savings of the companies, thus serving various purposes together. The cost-effectiveness of other fuels will help the companies increase their market profits.

COVID-19 Impact: Lockdowns Amid the Pandemic Affected Production and Sales

The global COVID-19 pandemic has been unprecedented, with dual fuel engines experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributed to demand returning to pre-pandemic levels once the pandemic is over.

The dual fuel engine industry was utterly battered, with lockdowns and curfews for most workers. The pandemic severely impacted the market, as production and demand for these engines halted. Vehicles requiring these engines were non-operational due to travel restrictions and norms in place for industrial companies. Hence, the sale of the machines was highly impacted due to these restrictions, thus bringing down the industry's pricing or rates. However, the rapid post-pandemic boom is bringing in various innovations in the market, with key players leveraging these opportunities.  

LATEST TRENDS

"Use of Sustainable Resources to Electrify Rural Regions"

Using sustainable resources such as LPG and LNG is a potential tool for the electrification of rural regions in developing countries. It will reduce the environment's carbon footprint and bring in development along with investments and dual fuel engine market growth in these regions. Thus, Asia Pacific will lead the market share and benefit most from the latest innovations in the market, followed by Europe. Investors must keep a watch on the developments in these regions.

Dual Fuel Engine Market Segmentation

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• By Type

Based on type, the market categorizes into four-stroke and two-stroke.

The Two-stroke dual fuel engine is the leading part of the type segment.

• By Application

Based on application, the market categorizes into cargo ships, cruise ships, and others.

Cargo ships are the leading part of the application segment.

DRIVING FACTORS

"Innovations in the Market to Reduce Environmental Emissions"

As the world looks for renewable energy sources, many companies and engines have already started using these resources, which are proven to reduce environmental emissions. Marine dual fuel engine markets are experiencing an exponential demand increase due to the increased need for carbon-free engines. Significantly, the European region frequently uses these engines as it contemplates innovative ways to combat emissions and climate change worldwide by 2030. Using natural gas, methane, and ethanol will only help achieve these aims faster and economically.

"Reduced Consumption of Diesel to Increase Financial Effectiveness"

Most engines use diesel as the primary fuel in the machines. However, the use of dual fuel engines reduces the usage of diesel, thereby reducing the costs and increasing the financial effectiveness of the companies. This is particularly beneficial for automobile companies, as it will help car makers to make sales on the claims of environment-friendliness and cost-effectiveness in the dual fuel engine market. The increasing use of natural gas is a testament to this fact in the market, which accounts for 90% of engine usage.

RESTRAINING FACTORS

"Storage Costs for Renewable Sources to Impede Market Growth"

The dual fuel engine market may see a profit drop if the engines constantly use natural gas in place of sustainable, environment-friendly resources. Natural gas needs to be stored at specific temperatures and in huge containers, which will increase the costs for investors. It will thus impede the market growth and may cause freight and transportation obstacles from region to region and affect the market. Therefore, investors must consider these factors before making investments.

Dual Fuel Engine Market Regional Insights

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"Asia Pacific to Lead the Global Market Owing to Increasing Product Production"

Asia Pacific region will lead the dual fuel engine market share as the production for vehicle engines returns to the pre-pandemic levels. The rising demand for industrial production requires four-stroke machines, thus increasing the market share in the Asian region as it is on track to revive its economy. The need for vehicular engines has risen dramatically after the pandemic, as travel restrictions and lockdowns ease worldwide. The market will exponentially increase in production and demand as investors look to diversify their investment channels.

KEY INDUSTRY PLAYERS

The report analyzes different market players in the industry. The information is published after proper research, analysis of trends, key developments, the introduction of new initiatives, and technological developments and innovations. Other aspects of the report include a study on the companies, regions, automation, technological developments, and the impact of newly emerging industries along with their risks. The facts in the report may be subject to change, given the situation of market players from time to time.

List of Market Players Profiled

• Win GD (Switzerland)
• MAN (Germany)
• Wartsila (Finland)
• Hyundai Heavy (South Korea)
• Yuchai (Singapore)

INDUSTRY DEVELOPMENT

June 2022: Win GD and Hyundai Heavy Industries collaborated to bring in an ammonium-based two-stroke engine. Both the companies aim to launch the decarbonizing engine by 2025, which will explore various avenues for Win GD's diesel-based machines and Hyundai Heavy's dual fuel engines. The development will be beneficial for two-stroke engines used in cargo vessels. The demand for commercial ammonia-powered vessels will thus increase in the future.

REPORT COVERAGE

The report examines elements that affect the demand and supply and estimates dynamic market forces for the forecast period. The report offers drivers, restraints, the latest trends, and industrial developments. After evaluating financial and technical market factors, the report provides exhaustive PEST and SWOT analysis. The research is subject to alteration if the key players and analysis of market dynamics change. The information is an approximate estimate of the factors mentioned, taken into consideration after thorough research.