Heavy fuel oil (HFO) is projected to be the cheapest marine fuel globally in 2050. The price for HFO should be between seven and 13 U.S. dollars per gigajoule in 2050. Marine gas oil combined with hydrogen (e-MGO) will be the most expensive fuel for ships in 2050 with a price of between 28 and 52.5 U.S. dollars per gigajoule.

Shift towards sustainable shipping The shipping industry was responsible for about 11 percent of all transportation-related carbon dioxide (CO2) emissions in 2020, emitting about 667 million metric tons of CO2 that year. There has thus been a considerable pressure coming from international organizations, governments, NGOs, and shippers themselves to reduce the environmental impact of maritime shipping. Since most of the pollution is produced by burning fossil fuels such as heavy fuel oil (HFO) and very-low sulfur fuel oil (VLSFO), one of the most efficient ways to reduce emissions would be to switch to cleaner marine fuels such as ammonia and hydrogen.

In February 2025, one gallon of diesel cost an average of 3.68 U.S. dollars in the United States. That was an increase compared to two months prior, which was the lowest price in the past 24-month period. Impact of crude prices on motor fuel consumer prices Diesel prices are primarily determined by the cost of crude oil. In fact, crude oil regularly accounts for around 50 percent of end consumer prices of diesel. As such, supply restrictions or weak demand outlooks influence prices at the pump. The fall in diesel prices noted in the latter half of 2024 is a reflection of lower crude prices. Diesel and gasoline price development The usage of distillate fuel oil began in the 1930s, but until further development in the 1960s, diesel vehicles were mostly applied to commercial use only. In the U.S., diesel-powered cars remain a fairly small portion of the automobile market and diesel consumption is far lower than gasoline consumption. In general, gasoline also tends to be more widely available than diesel fuel and usually sells for a lower retail price. However, diesel engines have better fuel economy than gasoline engines, and, as such, tend to be used for large commercial vehicles.

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Military Marine Vessel Engines Market Size 2024-2028

The military marine vessel engines market size is forecast to increase by USD 888.4 million at a CAGR of 4.5% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand for naval vessels and the exploration of advanced propulsion systems. One such innovation is the adoption of Gas turbine propulsion, which offers improved fuel economy and efficiency, as well as a reduction in emissions. Another trend gaining traction is the transition towards hydrogen-based propulsion, which presents a promising solution for reducing fuel consumption and minimizing environmental impact. Defense budgets continue to be a major driver for the market, with defense spending increasing due to the ongoing arms race among nations. However, the volatility in crude oil and natural gas prices poses a challenge for engine manufacturers, necessitating the development of cost-effective and efficient solutions.

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The market encompasses the production, procurement, and maintenance of engines powering naval vessels for maritime defense and military applications. The market is significant due to the strategic importance of coastal bordering nations and territorial disputes. New naval vessels and the existing fleet require efficient engines to ensure operational parameters are met. Traditional diesel engines and gas turbines dominate the market, with a shift towards electronic propulsion, hybrid turbochargers, and hydrogen-based propulsion for improved fuel economy, reduction in emission, and fuel consumption. Procurement of military marine vessels is influenced by geopolitical shifts and security challenges, necessitating the need for advanced engine technologies. The market is expected to grow as countries continue to prioritize naval defense and maritime interests.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Gas turbine
  Hybrid
  Diesel
  Water jet
  Nuclear


Geography

  APAC

    China
    Japan


  Europe

    Germany
    UK


  North America

    US


  South America



  Middle East and Africa

By Type Insights

The gas turbine segment is estimated to witness significant growth during the forecast period. Marine engine manufacturers are prioritizing the advancement of gas turbine propulsion systems, marking a notable shift from their conventional diesel engine offerings. This trend is driven by the increasing emphasis on technological innovations in marine engine designs, leading to a reduction in fuel consumption and emissions. For instance, Japan's Ministry of Defense has commissioned two Future Multi-Mission Frigates (FFM) at two domestic shipyards, Mitsubishi Heavy Industries (MHI) and Mitsui. These next-generation frigates, designed for the Japan Maritime Self-Defense Force (JMSDF), are expected to replace the current fleet of six frigates. The Japanese government has plans to procure a total of 22 frigates, with MHI and Mitsui sharing the production.

The adoption of gas turbine propulsion in military marine vessels is a strategic move to enhance fuel economy and efficiency, aligning with defense budgets and the ongoing arms race for advanced naval capabilities. The transition to hydrogen-based propulsion is also gaining traction as a potential solution for further reducing fuel consumption and emissions in the future.

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The gas turbine segment accounted for USD 1.11 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In the global military landscape, the demand for advanced marine vessel engines is on the rise, driven by military applications in APAC. With comparative cost advantages and a growing focus on naval fleets, this region is expected to significantly contribute to the market's expansion. Tactical maneuvers and mission capabilities are key considerations for military forces, leading to an increased preference for sustainable engine solutions such as diesel engines, gas turbines, and hybrid propulsion systems. The need for sustainability and emission reduction is becoming increasingly important in military applications, particularly in the vast oceanic expanses. Neighboring countries in APAC, including China, South Kor