The High Speed Engine Market Is Estimated To Witness High Growth Owing To Rising Demand For Fuel Efficient Engines
The High Speed Engine Market is estimated to be valued at Us$ 19.83 Bn in 2023 and is expected to exhibit a CAGR Of 7.2% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
High speed engines refer to combustion engines that operate at over 600 rpm. These engines are compact and lightweight. They find applications in marine, power generation, and rail and locomotive industries due to their high fuel efficiency and power density capabilities. Use of composite materials and 3D printing technologies make these engines durable and more efficient.
Market key trends:
The rising demand for fuel efficient engines across industries is driving the growth of the high speed engine market. Fuel efficiency is a major concern for marine and rail industries where fuel costs account for significant operational expenditure. High speed engines deliver powerful yet fuel efficient performance suitable for large ships and locomotives. Also, introduction of stringent emission regulations by regulatory bodies has increased demand for advanced turbocharger technologies integrated with high speed engines to restrict emissions. Adoption of composite materials and 3D printing in engine manufacturing has also enhanced design flexibility and performance of high speed engines.
Porter’s Analysis
Threat of new entrants: The high speed engine market requires massive R&D investments and capital expenditures to enter the market. Strict emission norms also discourage new entrants.
Bargaining power of buyers: Large aviation companies and militaries have significant bargaining power over engine manufacturers due to their purchase volumes.
Bargaining power of suppliers: A few large companies dominate key raw materials like aluminum and steel for engine manufacturing, giving them bargaining leverage.
Threat of new substitutes: No close substitutes currently exist for high-powered aviation and marine engines. Alternative fuels are being explored but substitution threat remains low.
Competitive rivalry: Major players compete on technology, performance and pricing. Intense competition exist between GE, Rolls-Royce, Pratt & Whitney and others to drive innovations.
SWOT Analysis
Strength: High speed engines provide greater fuel efficiency and power output. Leaders like GE and Rolls-Royce have significant R&D capabilities and experience.
Weakness: High capital and maintenance costs of engines increase operational expenditures. Manufacturing involves complex thermochemical processes.
Opportunity: Growth of aviation and marine transportation sectors in developing nations. Demand for higher output from military aircraft and ships.
Threats: Stringent emission norms requiring modifications in engine designs increase compliance costs. Volatility in oil prices impacts input costs.
Key Takeaways
The Global High Speed Engine Market Size is expected to witness high growth, exhibiting CAGR of 7.2% over the forecast period, due to increasing air passenger traffic and investments in naval vessels. The Asia Pacific region is expected to dominate the market over the forecast period, with China and India accounting for major shares driven by growth of aviation sectors in these countries.
Regional analysis: North America and Europe currently hold over 60% share due to strong presence of U.S and European OEMs. Asia Pacific is growing at fastest pace led by China, where government initiatives are promoting aircraft fleet expansion. Chinese aviation sector is projected to overtake Europe as the second largest by 2030.
Key players: Key players operating in the high speed engine market include GE, Siemens, Rolls-Royce, Kawasaki Heavy Industries, MAN Energy Solutions, Wartsila, Mitsubishi Heavy Industries, Harbin Turbine Company, Solar Turbines, and Ansaldo Energia. GE and Rolls-Royce dominate gas turbine manufacturing with largest global installed base and new unit sales.
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