High-Speed Engine Market: Overview
The market size for High-Speed Engines was USD 20.5 billion in 2021, projected to grow at a CAGR of 4.9 percent during the forecast period. The market for high-speed engines is being propelled by the expansion of global marine cargo transit, the booming travel sector, and the increased demand for dependable and continuous power. Additionally, a growing need for reinforcement power arrangements will likely drive market growth. Rapid motors have become increasingly popular due to the advancement of computerization in the auto industry and the growth of industrialization, which has increased the need for high performance and a reliable power supply.
The market is expanding due to rising demand for backup power solutions, stable and uninterrupted electricity to operate high-speed engines for backup power production, and increased maritime tourism. Additionally, expanding international marine freight transport and rising demand for dependable and uninterrupted power are two of the key factors boosting the growth of the high-speed engine market globally. In addition, prominent market players are increasing their investments, boosting market expansion. For instance, in November 2020, Rolls Royce announced investments of up to USD 13.9 million in its Power Systems business unit to construct new research and development building and a multi-phase extension of its MTU power generating manufacturing facility in Mankato, Minnesota, US.
Demand for commercially feasible engines that are dependable, long-lasting, and fuel-efficient may further support expansion. Fuel economy is a big issue in both developed and developing nations; therefore, focusing on reducing carbon emissions during development is an important growth opportunity. The market for high-speed engines may continue to be lucrative since high-speed engines with speeds of 900 to 1200 revolutions per minute can save fuel up to 10-15% compared to low-speed engines with speeds of 80 to 120 revolutions per minute and fuel efficiency of 8%. Due to several businesses in established and emerging nations, the market is fragmented and is driving market expansion. Important businesses are enlarging their markets and emphasizing contract wins. For instance, in January 2020, a 500 kW mobile diesel Genset that complies with Tier 4 emission regulations were introduced by Cummins.
High-Speed Engine Market: COVID-19 Impact
The supply chain may experience the largest immediate impact on high-speed engines currently under contract or being manufactured. Industry leaders anticipate supply and construction delays, either due to the closure of certain industries to stop the spread of the coronavirus or as a result of worker illness. High-speed engines are made with a lot of help from China, the Asia-Pacific region, the United States, and some regions of Europe. A severe short-term reduction in the market for high-speed engines may result from manufacturing disruptions in China and the United States. Furthermore, many countries' domestic currencies have lost value due to the COVID-19 pandemic. The mismatch between supply and demand has resulted in losses for metal producers, and since the essential parts for making high-speed engines are typically paid for in US dollars, component costs may rise as a result.
High-Speed Engine Market: Drivers
Rising Demand for Backup Power Generation to Drive Market Growth
The market for uninterrupted power supply is growing rapidly, as is the global demand for reliable power supply. The growing demand for continuous power increases the requirement for backup power generation so that people can access electricity even during outages. The growth of any nation depends on its access to electricity. The EIA's International Energy Outlook 2019 projects that by 2040, the world's energy demand will increase by 2.11% annually. The majority of the increase is anticipated to take place in non-OECD nations like China and India. Global power capacity increased relatively quickly between 2010 and 2018, outpacing the rate at which the transmission and distribution network was expanding. This results in reliability problems like power surges and outages. Power outages and voltage variations are more common in established and emerging regions. The market for high-speed engines will expand due to the increasing requirement for consistent, uninterrupted electricity for power regeneration.
Rising Trend of Distributed Power Generation to Drive Market Growth
With the expansion of the transmission and distribution networks that link supply and demand, the development of high-speed engines for power generation will quicken. This network growth and technical developments will result in increased network density, flexibility, and economics. High-speed engines outperform conventional distributed power generation technologies for on-site generating and backup power requirements due to their superior efficiency and stable generation capacity. As a result, makers of high-speed engines can anticipate profitable opportunities due to the development in distributed power generation.
High-Speed Engine Market: Restraints
Stringent Regulations on Environment by Government to Hamper Market Growth
The growing environmental impact of automobiles has long been a concern, which is why governments worldwide are issuing regulations to fight the escalating pollution. For instance, the UK government has planned a ban on new gasoline and diesel cars beginning in 2030 as part of the new PM's green strategy. The rule is intended to combat climate change and generate employment in the nuclear industry. Such rules based on environmental effects may eventually impede commercial expansion. USEPA has set restrictions to control air emissions from stationary and mobile sources following the USA's Clean Air Act. High-speed engine sales may decline due to the policies established by the act to prevent air pollution. The government is investing in electric vehicles and launching numerous measures to promote them, which may impact the traditional speed engine business either directly or indirectly. These elements can limit the market's ability to adopt high-speed engines.
High-Speed Engine Market: Segment Overview
1-2MW Segment to Dominate Market Owing to Rising Utilisation in Power Generation Industry
Based on power output, the high-speed engine market is segmented into 0.5-1 MW, 1-2 MW, 2-4 MW, and above 4 MW. Thee 1-2 MW segment is anticipated to dominate the market. The rise in the utilization of such engines in the power generation industry is largely responsible for this engine's increase in power output. As more people use ferries, there is a rising demand for such a power output range from marine sectors. In many regions of the world, there is a rising demand for water activities. This fuels segment expansion in the 1-2 MW power output range during the predicted period. The 2-4 MW segment is expected to expand during the forecast period. The market for high-power output engines is significantly driving up demand for such engines. The major players are producing more engines with this power output range.
Power Generation Category to Dominate Market Owing to Increasing Need for Consistent and Uninterrupted Electricity
Based on end-user, the market is segmented into power generation, marine, mining and oil & gas, railway, and others. The power-generating segment will probably dominate the market. Both developing and developed countries are increasingly in need of consistent and uninterrupted electricity. These considerations increase the need for power backup in the power-producing sector. The growing need for power backup is also brought on by accelerated urbanization and industrialization. This fuels market expansion in the power generation sector. The marine sector is anticipated to increase during the anticipated timeframe. Due to increased shipping via waterways, demand from the marine industry is rapidly expanding. Worldwide, there is a rise in maritime tourism. Water sports and adventure activities are also growing significantly worldwide.
High-Speed Engine Market: Regional Landscape
Asia Pacific to Dominate Market due to Rise in Demand for Uninterrupted Power Supply
Over the forecast period, it is anticipated that the Asia Pacific market will account for the largest revenue share. Within the region, there is an abrupt rise in demand for uninterrupted power supply, and the power industry is also seeing an increase in demand for power backup due to urbanization and industrialization. Power backup is necessary because developing nations like China, India, Thailand, and South Korea frequently experience power outages and blackouts. In nations like South Korea, Japan, and China, the marine sector is developing, accelerating the adoption of such engines. With the taxpayer-funded "Make in India" effort, there is a great possibility for growth and improvement for the Asia-Pacific high-speed engine market in the foreseeable future. Some of the biggest automakers in the world have their headquarters in India, China, and Japan. In November 2020, Rolls Royce said that the company had signed agreements to provide up to 1000 motors and finalized important partnerships. Six additional Chinese companies have also agreed to provide the organization with up to 1000 MTU 2000 and 4000 series motors.
The North American market is anticipated to experience stable revenue growth throughout the forecast period. The US is one of North America's main markets for high-speed engines. Additionally, it is the largest market for high-speed engines in the world. As North America's electrical infrastructure ages, there may be a higher chance of widespread blackouts and power outages. Increased backup power system expenditures are anticipated due to recent widespread outages in several states, including Texas. Shale gas projects are also anticipated to support this region's expansion of the high-speed engine industry. In October 2021, Cummins Inc. announced that the US Army had awarded them a USD 87 million contract to finish developing the high-level battle motor, a flexible and unique diesel motor framework.
Global High-Speed Engine Market: Competitive Landscape
In May 2020, the Nordic and Baltic regions' largest telecom provider, Telia (Sweden), has chosen CAT dealer Witraktor (Finland) to install 12 CAT diesel generator sets to supply standby power at its new 24-MW data center in Finland. Similarly, in April 2020, Isla Norte Energy Corp. (Philippines) and Wärtsilä had a contract to deliver diesel-powered engines. According to the deal, Wärtsilä would offer W32 series diesel engines and broaden their product line. In August 2019, BBI Indonesia and Doosan Infracore had a deal for the production and marketing of engines. To meet the demands of the South East Asian market, the company will produce 1600 units as part of this deal.
Few of the players in the High-Speed Engine Market include Caterpillar (US), Cummins (US), Rolls Royce Holdings (UK), Volvo Penta (Sweden), Man SE (Germany), Weichai power (2002), Wartsila (Finland), Mitsubishi Heavy Industries Engine & Turbochargers (Japan), Doosan Infracore (South Korea), and Yanmar Holdings (Japan).
Regional Classification of the Global High-Speed Engine Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global High-Speed Engine Market
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