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Marine Solutions' operating environment

Wärtsilä Marine Solutions serves the marine and oil & gas industries. The main vessel segments covered in the marine industry are traditional merchant vessels, gas carriers, cruise & ferry, navy, and special vessels. In the oil & gas industry, Wärtsilä is active in serving offshore installations and related industry vessels, as well as land-based gas installations.

General shipbuilding and shipping market drivers

The global demand for new vessels 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 have both a direct and an indirect impact on the marine and oil & gas industries. The price, availability, and demand drives development in the oil & gas industry, while in the general shipping industry, fuel costs increase the demand for more efficient vessels. Other factors, such as shipyard capacity, newbuild prices, decommissioning and scrapping, as well as interest and freight rates, also affect these industries. Another important driver is the development of environmental regulations and their impact on the demand for optimised vessel efficiency, environmental solutions, and gas as a marine fuel.

Main drivers for Wärtsilä's Marine Solutions business

  • Developments in the global economy
  • Development of world trade and needed transportation capacity
  • Global energy demand growth
  • Development of oil and gas prices
  • Development of oil & gas fields and infrastructures
  • Environmental regulations
  • Technological developments and innovations

Competitors and market position

Wärtsilä Marine Solutions has continuously broadened its portfolio, which today ranges from engines and propulsion equipment to electrical equipment, automation, ship design, environmental solutions, gas systems, and pumps and valves. This is backed by the capability to build environmentally sound solutions, and by superior service support throughout the lifecycle of the product. Wärtsilä’s competitive advantage lies in having the industry’s broadest marine focused offering comprised of leading, innovative products, integrated systems, and engineering, which is supported by a unique sales and service network in touch with customers globally.

The field of competitors is extensive. It includes engine companies, such as MAN D&T and Caterpillar, propeller makers such as Schottel and Thrustmaster, and environmental and auxiliary equipment providers like Alfa Laval. It also includes electrical and automation houses, notably Siemens, GE, ABB, and Kongsberg, pump and gas system providers, such as TGE Marine and Framo, and companies with broad offerings such as Rolls-Royce. Wärtsilä is recognised as a proven supplier of innovative and sustainable technologies across its portfolio serving the marine and oil & gas markets.

 

Wärtsilä's offering Main application Main competition Wärtsilä's market position
4-stroke main engines Small merchant vessels, offshore, special vessels MAN D&T, MAK (CAT) 51% of the market (in kW) is controlled by Wärtsilä.
4-stroke auxiliary generating sets All vessel types The market is highly fragmented, price sensitive, and with heavy competition. The 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's market share is 18%.
Propulsion
  • Controllable Pitch Propellers (CPP)
  • Fixed Pitch Propellers (FPP)
  • Steerable thrusters
  • Tunnel thrusters
All vessel types Rolls-Royce, Schottel, Voith, Mecklenburger Metallguss, Thrustmaster, Brunvoll, Kawasaki, Caterpillar (Berg Propulsion) CPP & FPP: fragmented market, in which Wärtsilä is among the top players.Steerable thrusters: Wärtsilä is among the top players.Tunnel thrusters: a highly fragmented market in which Wärtsilä is a market challenger.
Electrical & Automation
  • Ship automation systems
  • Navigation and electrical systems
  • Dynamic positioning technology
  • Integrated bridge solutions
  • Entertainment systems
  • Electric propulsion
  • Power distribution
  • Sonar systems
  • Underwater communication
Cruise, cargo, offshore, special vessels, navy ABB, Siemens, Kongsberg, Rolls-Royce, GE Navigation and automation leader in the cruise and large cargo segments, and an established position in the offshore markets.
Ship design OSV's, merchant vessels, specialised vessels, fishing vessels Skipsteknisk, Marinteknikk, MMC, Rolls-Royce, Ulstein, Vard Among the leading independent ship design houses.
Oil & Gas systems
  • Mobile LNG (barge) offering
  • Regasification systems
  • Gas reliquefaction systems
  • Onshore gas liquefaction systems
  • Gas recovery systems
  • Oil separation systems
  • Fuel gas systems
Offshore gas processing & storage vessels, LNG/LEG/LPG carriers, floating production systems, industry applications, fuel gas systems for all vessel types TGE Marine, Linde, Babcock LGE, Daewoo Shipbuilding & Marine Engineering, Samsung Heavy Industries, Cryonorm, John Zink, Air Liquide Wärtsilä is among the top players.
Pumps and valves
  • Deepwell cargo pumps
  • Pump room systems
  • Engine room pumps
  • Fire-fighting systems
  • Valves
All vessel types, on- and offshore oil & gas facilities Marflex, Framo, Hyundai Heavy Industries, Shinko, Allweiler, Desmi, Ellehammer Wärtsilä is among the top players.
Environmental solutions
  • Exhaust gas cleaning
  • Ballast water management systems
  • Inert gas systems
  • Water production systems
  • Water treatment systems
All vessel types Alfa Laval, Yara, Techcross, Panasia, Evac, GEA Westfalia, Hug Engineering Wärtsilä is among the top players.

 

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