Ship Power operating environment

The marine industry

The main vessel segments covered by Ship Power are Merchant, Offshore, Cruise & Ferry, Navy and Special vessels. Ship Power’s customers include both shipyards and ship owners.

General shipbuilding and shipping market drivers

Demand in the shipbuilding and shipping industries is mainly driven by developments within the global economy and the resulting impact on trade and transportation capacity requirements. The global economy also influences fuel prices, which in turn has both a direct and an indirect impact on the shipping and offshore oil & gas industries. High fuel prices drive the development in the offshore oil & gas industry while in the general shipping industry they increase the demand for efficient vessels. Other factors, such as shipyard capacity, new build prices, decommissioning and scrapping, interest and freight rates, and environmental considerations and regulations, also affect these industries. Global demand for new vessels drives Wärtsilä Ship Power’s business, in particular ships built for seaborne cargo transportation, offshore oil production and support, cruise and ferry services, and for naval use. Another important factor is the demand for environmental solutions and gas as a marine fuel resulting from environmental regulations. Moreover, the increasing demand for oil and gas, together with declining production from traditional fields, supports new offshore investments in deepwater and remote locations.

Main drivers for Wärtsilä's Ship Power business
  • Developments in the global economy
  • Development of world trade and needed transportation capacity
  • Development of oil and gas prices
  • Environmental regulations
  • Development of new offshore oil & gas fields
Competitors and market position

Wärtsilä Ship Power has continuously broadened its portfolio, which today ranges from engines and propulsion equipment to electrical equipment, automation and ship design. Furthermore, the acquisition of Hamworthy positions us well to grow in environmental solutions and gas systems for vessels. This is backed by the capability to build environmentally sound solutions, and by the best service support throughout the lifecycle of the product. Our competitive advantage lies in having the industry’s broadest marine focused offering of leading products, as well as insightful integrated systems and engineering, supported by a unique global sales and service network. We have a strong position in the medium-speed engines markets in which our largest competitors are MAN Diesel & Turbo and Caterpillar (MAK). In the dual-fuel engines market we are the leading player with the widest references in the industry. In the market for low-speed engines, MAN Diesel & Turbo is the leading player followed by Wärtsilä and Mitsubishi Heavy Industries.

Wärtsilä's offering Main application* Main competition** Wärtsilä's market position
4-stroke medium-speed main engines Small merchant vessels, offshore, special vessels MAN D&T, MAK (CAT), Rolls-Royce, HiMSEN Approximately half of the market (in MW) is controlled by Wärtsilä.
4-stroke auxiliary generating sets All vessel types Market is highly fragmented, price sensitive and with heavy competition. Main competitors are MAN D&T and its local license manufacturers, Yanmar, and HiMSEN. High-speed engines also compete in the auxiliary engine market. Wärtsilä is a market challenger, having around 3% of the total market.
2-stroke engines (license-built) Large and medium size merchant vessels MAN D&T, Mitsubishi Heavy Industries Market challenger, approximately 18% of the market (in MW) is controlled by Wärtsilä.
  • Controllable Pitch Propellers (CPP)
  • Fixed Pitch Propellers (FPP)
  • Steerable thrusters
  • Tunnel thrusters
All vessel types Rolls-Royce, Schottel, Hyundai Heavy Industries, Mitsubishi Heavy Industries, Mecklenburger Metallguss, Thrustmaster, Brunvoll, Kawasaki CP & FP propellers: Market is fragmented with several players competing, Wärtsilä amongst top players.
Steerable thrusters: Wärtsilä amongst top players.
Tunnel thrusters: Market is highly fragmented, Wärtsilä is a market challenger.
Electricity & Automation
  • Low Loss concept (LLC)
  • LV & MV switchboards
  • Variable speed drive
  • Flowline heating
  • Ship automation systems
  • Power management systems
Offshore, special vessels ABB, Siemens, Kongsberg, Rolls-Royce, General Electric Established position in offshore, otherwise market challenger.
Ship design OSVs, merchant vessels, specialised vessels, fishing vessels Skipsteknik, Marinteknik, MMC, Rolls-Royce, Ulstein, STX OSV Amongst the leading independent ship design houses.
Oil & Gas systems
  • Regasification systems
  • Gas Reliquefaction systems
  • Onshore gas liquefaction systems
  • Gas recovery systems
  • Separation systems
  • Fuel gas systems
Offshore gas processing & storage vessels,  LNG/LEG/LPG carriers, floating production systems, industrial applications, fuel gas to all vessel types TGE Marine, Cryostar, Linde GAS - AGA, Kobelco, Moss Maritime, Daewoo Shipbuilding & Marine Engineering, Weir LGE, Cryonorm, John Zink,  Black & Veatch, Air Liquid, Aker Solutions, FMC / CDS, Cameron / Concept Wärtsilä Hamworthy amongst top players.
Flow systems
  • Deepwell cargo pumps
  • Pump room systems
  • Engine room pumps
  • Valves
All vessel types Niigata, Marflex, Framo, Hyundai Heavy Industries, Shinko, Colfax, Ellehammer Wärtsilä Hamworthy amongst top players.
Environmental solutions
  • Exhaust gas cleaning
  • Ballast water management systems
  • Inert gas systems
  • Water production systems
  • Water cleaning systems
All vessel types Alfa Laval, Hyundai Heavy Industries, Couple Systems, DuPont (Belco), GEA Westfalia, Siemens, Ecospec Wärtsilä Hamworthy amongst top players.

* Only main applications mentioned.
** Only main competitors mentioned.

Market position of medium-speed main engines

Medium-speed engines are Wärtsilä's core product and are used mainly in Offshore and specialised vessel segments, such as cruise ships and LNG carriers.


Market position of low-speed main engines

Low-speed main engines are built under license close to the shipyards and are mainly used in the merchant vessel segment.



Market position of auxiliary engines

The auxiliary engine market is highly fragmented with many competitors.



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