Marine energy or Marine power (also sometimes referred to as ocean energy, ocean power, or hydro-kinetic energy) refers to the energy carried by waves, tides, salinity, and ocean temperature differences. The marine power market is supposed to grow at a CAGR of approximately 4% during the forecast period. With the Asia Pacific region dominating the marine energy market, followed by Europe, the marine power market is projected to reach a value of approximately USD 15 million during the forecast period.
Factors That Have Driven The Market Growth
The factors which have driven the industry are an increase in the production and sales of ships globally, a rise in international seaborne trade, and growth in demand for crude oil. Furthermore, the market has the opportunity to grow with the technological advancements and rise in usage of inland waterways. Moreover, the growth of FPSO vessels is related to an exponential increase in the demand for petroleum, which is expected to provide various opportunities to boost the market.
Obstacles That Hamper The Market Growth To a Certain Extent
Despite the growth opportunities, stringent environmental rules and regulations across the globe is a huge barrier for the market to grow. On the other hand, the requirement of huge capital investment to set up new manufacturing facilities has reduced the entry of new entrants in the market to a certain extent. Taking into consideration, the challenges in marine power have reduced the cost of the operational engine, fuel consumption, and the time between overhaul.
Asia Pacific - The Most Lucrative Market Around The Globe
The Asia Pacific region dominated the overall marine power supply market globally in 2016. The region accounts for the highest market share and is foreseen to dominate the market throughout the forecast period. Europe was the other region to account for the second largest market share in the marine energy market. The Asia Pacific is expected to be the most lucrative marine power market, owing to increase in shipbuilding industries in China & South Korea and growth in the number of joint ventures with international brands. In addition, the rise in seaborne trade of crude oil, mostly from countries in the Middle East and the Asia Pacific region is a major factor that drives the growth of marine power market.
China holds 40% of the diesel market share and South Korea holds 37% of the gas turbine market share in the Asia Pacific region. Japan accounts for 18% of the natural gas market share and rest of the Asia Pacific region accounts for 5% of the other gases market share.
Besides, a number of developments have been seen to ensure the growth of the marine energy market in Europe and worldwide such as:
?40 MW of tidal and 26 MW of wave is expected to be installed in Europe by 2018 if proposed and ongoing projects reached to a financial closure.
?Nearly 30 tidal and 45 wave energy companies are on the way to the advanced stage of technological development.
The global marine power market is expected to grow at a CAGR of 4% during the forecast period. The increase in demand for petroleum and energy-related products globally is associated with the growth of the market globally.