The global azimuth thrusters market size was USD 498.5 million in 2021. The market is expected to grow from USD 526.4 million in 2022 to USD 583.8 million by 2030, exhibiting a CAGR of 1.49% during the forecast period.

Azimuth Thrusters Market

Overview:

The effects of COVID-19 on the world have been unprecedented and shocking. For example, demand for azimuth thrusters is lower than expected in all regions compared to levels before the pandemic. Based on our research, the world market was 14.99% smaller in 2020 than it was in 2019.

A pod on a boat is where the azimuth thruster is located. Since these thrusters can move in any direction in the horizontal plane, the rudder is no longer needed. In the spherical coordinate system, it gives a measurement of the angle. This propeller can turn 360 degrees on its vertical axis. Compared to fixed pitch thrusters, it gives the best thrust and has more options. Most thrusters are set up in either a Z-drive or an L-drive configuration. These are used for a lot of different things, like escorting ships, providing dynamic positioning services, and helping ships dock.

Market Dynamics:

Latest Trends:

The newest trend on the market is the use of more advanced technologies and new ideas in marine propulsion systems. One of the more advanced features of an azimuth thruster is a thruster that can be extended or pulled back. Brunvoll made a deal with Navantia, a state-owned shipbuilding company in Spain, in March 2021 to give the Spanish Navy five F-110 frigates with shock-qualified retractable thrusters.

The main problem with conventional thrusters that are attached to the bottom of the ship is that the openings cause turbulence, which makes the ship's performance even worse in water. When extended down from the hull, a retractable thruster works as an azimuth thruster. When retracted, it works as a standard tunnel thruster. So, it offers a solution that can be used for more than one thing and improves performance.

Driving Factors:

The market will grow as ship owners use more Azimuth Thrusters to speed up their ships.

Azimuth thrusters are used on naval ships to give them the thrust they need in the right direction. This makes them easier to turn than rudders and fixed propellers. Most of the time, ships use thrusters to change their position. These thrusters stay in place by working against things like wind and waves in the environment. It increases the speed of ships at sea. Most of the time, they are used on tugs, workboats, cargo ships, icebreakers, and military ships. Ship owners are using these advanced thrusters more and more because they make ships easier to turn. It has a high level of operational reliability and is easy to keep up, which has helped the market grow.

The Azimuth Thrusters Market is growing because there is more international trade by sea.

According to the United Nations Conference on Trade and Development's (UNCTAD) maritime transport report for 2021, international maritime trade is expected to grow by 4.3%. In 2020, there were 99,800 ships of 100 gross tonnes or more in the world's commercial shipping fleet. This was a 3% increase from the year before. By January 2021, the capacity was almost the same as 2.13 billion tonnes of dead weight (dwt).

Japan, China, and South Korea are now the top three shipbuilding countries in the world. The propeller is one of the most important parts of a ship. So, the growth of the market is being driven by the growing need for naval ships and cargo ships for sea-based trades.

Restraining Factors:

The growth of the market is slowed by the high cost of maintaining azimuth thrusters.

Traditional thrusters have high costs for maintenance and replacement, which slows the growth of the market. Modern thrusters have Z-drive configurations that are powered directly by diesel engines and L-drive configurations that are powered by electricity from above. Modernizing and improving advanced thrusters is a very expensive process. So, the fact that naval ships need upgraded azimuth thrusters slows the growth of the market.

Segmentation Analysis:

By Type Analysis:

Depending on the type, the market is divided into three groups: less than 1500KW, 1500KW–3500KW, and more than 3500KW.

In 2021, the most market share was in the 1500KW-3500KW range. The reason for this is that cargo ships and survey ships are using thrusters more and more. The market for thrusters is growing because maritime trade is getting bigger and more money is being spent on buying cargo ships.

From 2022 to 2029, the segment of less than 1500KW will grow a lot. The growth is because the number of small ships like cruise ships, ferries, lifeboats, tugs, and fishing boats is expected to rise during the forecast period.

By Drive System Analysis:

The market is divided into diesel drive systems, electric drive systems, and hydraulic drive systems based on how the vehicles move.

During the time frame of the forecast, the electric drive system segment is expected to be the largest. This is because there is a lot of demand for ships that are easy to move. The electric system's biggest benefit is that it doesn't need a gearbox. Torqeedo and Italdraghe signed a deal in November 2021 to work together on making an outboard, retractable electric propulsion system for commercial vessels that can be used in urban and inland waterways.

During the forecast period, the fastest growth will be in the segment of hydraulic drive systems. This growth is because these systems are being used more and more on naval ships to keep the force constant even when the speed changes and to control the speed accurately.

By Vessel Type Analysis:

Based on the type of vessel, the market is split into offshore drilling, naval ships, offshore wind farms (CTVs and SOVs), recreational boats, and others.

In 2021, naval ships had the biggest share of the market, and this is likely to stay the case from 2022 to 2029. The growth is due, among other things, to more people wanting submarines, surveillance ships, and tugboats.

Due to a rise in demand for Service Operation Vessels (SOVs) and Crew Transfer Vessels, the offshore wind farms segment will grow the most over the next few years (CTVs). Fincantieri's subsidiary Vard signed a contract with Scottish company North Star Renewables in April 2021 to deliver three service operation vessels (SOV).

By End-user Analysis:

The market is split into Original Equipment Manufacturers (OEMs) and the aftermarket based on who the end user is.

Due to rising investments in the naval sector, the purchase of new vessels, and the rapid growth of the seaborne cargo trade, the OEM segment is expected to be the largest. The growth of the segment is helped by the fact that there are more contracts between ship owners and OEMs to buy things.

The aftermarket segment will grow at the fastest rate because more maritime vessels are getting upgrades to make them safer and improve their operational capabilities.

Regional Insights:

In 2021, Asia Pacific was the most important part of the market, which was worth USD 262.5 million. This is because the shipbuilding industry is growing quickly and more and more naval ships are being bought from emerging economies like China and India. South Korea's government also set a goal for ship builders: by 2030, they should have up to 75% of the market for eco-friendly ships with low or no carbon emissions.

During the time frame of the forecast, Europe would grow at the fastest rate. Because of companies like Brunvoll, ABB Marine, and KONGSBERG, the market is growing. Europe's market is likely to be driven by a rise in demand for small and medium-sized boats for fishing, transporting people, and other uses at sea.

North America will have a lot of growth between 2022 and 2029. The growth is because the U.S. Navy is spending more money on ships. For FY2023, the U.S. Navy wants to spend USD 27.9 billion on shipbuilding, which would pay for the purchase of eight new ships. It includes buying two destroyers of the Arleigh Burke (DDG-51) class, two attack submarines of the Virginia (SSN-774) class, one amphibious ship of the LPD-17 Flight II class, one frigate of the Constellation (FFG-62) class, one towing, salvage, and rescue ship of the Navajo (TATS-6) class, and one oiler of the John Lewis (TAO-205) class.

During the forecast period, South America and the Middle East and Africa would see a lot of growth. This growth is because there are more offshore wind farms in these areas. The market is also growing because countries like Saudi Arabia, the UAE, Brazil, Argentina, and others are spending more on the naval sector..

Scope Analysis

Recent Development:

• January 2022 - Kongsberg signed a contract with Sanmar Shipyards to provide US255SFP and US205SFP thrusters to be installed on the new Azimuth Stern Drive (ASD) tugboat that the Turkish shipyard is building for Svitzer.
• April 2022 – Kongsberg awarded two contracts for the supply of ships to the Navy. We supply two Commissioning Service Operation Vessel (CSOV), one with integrated wind power solution (IWS) as an integrated equipment solution. The second contract was with Sembcorp Marine to supply a comprehensive technology package for wind turbine installed vessels (WTIV).

Market Segmentation

By Type:

• Less than 1500KW
• 1500KW-3500KW
• More than 3500KW
• Others

By Drive System:

• Electric Drive System
• Diesel Drive System
• Hydraulic Drive System
• Others

By Vessel Type:

• Naval Ships
• Offshore Drilling
• Recreational Boats
• Offshore Wind Farms (CTVs, SOVs)
• Others

By End-user:

• OEM
• Aftermarket
• Others

By Companies:

• ABB (Switzerland)
• Brunvoll AS (Norway)
• Caterpillar (U.S.)
• Hydromaster (Netherlands)
• IHI Power Systems Co., Ltd. (Japan)
• Jastram (Germany)
• Kawasaki Heavy Industries, Ltd. (Japan)
• KONGSBERG (Norway)
• SCHOTTEL GROUP (Germany)
• Steerprop (Finland)
• Thrustmaster (U.S.)
• Veth Propulsion (Netherlands)
• Voith Turbo (Germany)
• Wartsila Corporation (Finland)
• Wuxi Ruifeng Marine (China)
• ZF Friedrichshafen AG (Germany)
• Others