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 customers comprise of both shipyards and ship owners.

General shipbuilding and shipping market drivers

The demand in the shipbuilding and shipping industries is mainly driven by the development of the global economy and its impact on trade and transportation capacity required. The global economy also influences the level of fuel prices, which in turn has both a direct and an indirect impact on the shipping and offshore industries. Other factors, such as shipyard capacity, new build prices, decommissioning and scrapping, interest and freight rates, and environmental considerations, also affect these industries. The main market driver for Wärtsilä Ship Power business is the global demand for new vessels, in particular regarding ships built for seaborne cargo transportation, offshore oil exploration and support, cruise and ferry services, and for naval contracting. Another important factor is the environmental regulation that drives demand for environmental solutions and gas as a marine fuel.

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 regulation
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. Our competitive advantage lies in having the broadest offering in the industry. This offering is backed by the capability to build environmentally sound solutions and by the best service support throughout the lifecycle of the product.

Equipment
Equipment offered by Wärtsilä Main application* Main competition**Wärtsilä’s market position
4-stroke main engines Small tankers, small container vessels, LNG carriers, drillships, FPSO, offshore support/service vessels, cruise vessels, ferries, ro-pax vessels MAN Diesel, Caterpillar (MAK), Hyundai Heavy Industries (HiMSEN), Niigata, Rolls-Royce Market leader: Wärtsilä’s share of the market approx. one third (in kW)
2-stroke engines (license-built) Large merchant vessels: bulk carriers, tankers, container vessels MAN Diesel, Mitsubishi Heavy Industries Market challenger: Wärtsilä’s share of the market approx. one sixth (in kW) 
Auxiliary engines
(medium-speed)
Generating sets for all vessel types Highly fragmented market, price sensitive and heavy competition. Main competitors: MAN Diesel and its license manufacturers, Yanmar, the HiMSEN engine designed and manufactured by Hyundai Heavy Industries. High-speed engines also compete in this market. Market challenger: Wärtsilä’s share of the market 1-5%
Controllable Pitch Propellers (CPP) Small container vessels, offshore supply/service vessels, FPSO, cruise vessels, ferries, dredgers Rolls-Royce, Schottel Fragmented market with several players. Wärtsilä amongst top players.
Fixed pitch propellers (FPP) Large merchant ships (tankers, container vessels, bulk carriers), LNG carriers, drillships, cruise vessels, ferries, tugs, dredgers Hyundai Heavy Industries, Mitsubishi Heavy Industries & Mecklenburger Metallguss Fragmented market with several players. Wärtsilä amongst top players.
Tunnel thrusters All vessel types Rolls-Royce, Schottel, Brunvoll, Kawasaki Market challenger
Steerable thrusters Drillships, FPSO, offshore support/supply vessels, pipelayers, AHTS (Anchor Handling Tug Supply), tugs Rolls-Royce, Schottel Fragmented market with several players. Wärtsilä amongst top players.
Seals and bearings Merchant vessels: bulk carriers, tankers, container vessels Michell (Rolls-Royce), Renk (MAN) Market challenger
* Only main applications of interest to Wärtsilä mentioned 
** Only main competitors mentioned  

 

Vessel segments
SegmentVessel typeMain offeringWärtsilä's value proposition and market trendsCompetitive landscape
Merchant         Tankers 2-st engines, auxiliary engines, FPP, tunnel thrusters Unique portfolio (including ship design) and service network. Environment and efficiency increasingly important, higher operative expenses boosting demand for efficient equipment and vessels.       MAN is the clear market leader in 2-stroke engines. The rest of the equipment: larger vessel sizes are typically standardised and equipment providers face intense and fragmented competition. On the other hand, more specialised applications (chemical tankers, shuttle tankers, and smaller vessels in general terms) provide opportunities for focusing on complete lifecycle solutions and efficiency. Dual-fuel engines are the leading technology used in LNG propulsion. Wärtsilä is the clear leader in this technology.    
Containers 2-st engines, auxiliary engines, FPP, CPP, tunnel thrusters, ship design, gearboxes
LNG 4-st main dual-fuel engines, CPP, gearboxes, tunnel thrusters
Bulkers 2-st engines, auxiliary engines, FPP, tunnel thrusters, 4-st engines for smaller vessels
Other: cargo, RoRo, car carriers, LPG carriers All of the above
Offshore    Exploration (floating): drillships, semisubmersibles, etc. 4-st engines, steerable thrusters, tunnel thrusters, FPP, electrical propulsion, automation, gearboxes The most extensive single source offering and network, including ship design, project management and engineering. Emphasis on safety and reliability, as well as on energy, operational and environmental efficiency.    Few players other than Wärtsilä and Rolls-Royce provide an extensive offering. Competition divided by application, i.e. automation (Kronsberg, Converteam, Siemens, ABB), ship design (Ulstein, Rolls-Royce, STX) etc.   
Floating production units: FPSOs, FSO, floating LNG, etc . 4-st engines, steerable thrusters, tunnel thrusters, CPP, electrical propulsion, automation, gearboxes
Service/Supply vessels: OSVs, PSVs, AHTS, AHS 4-st engines, steerable thrusters, tunnel thrusters, CPP, electrical propulsion, ship design, automation, gearboxes
Other: crane vessels, pipelayers, accomodation vessels All of the above
Cruise & Ferry   Cruise vessels 4-st engines, CPP, FPP, steerable thrusters, tunnel thrusters, automation The most extensive offering and network in the market, customer care. Environmental performance and lifecycle approach important. High operating costs calling for greater efficiencies.  Limited competition with only the main players having access to the market (MAN, Caterpillar, Rolls-Royce, ABB, etc).
Ferries 4-st engines, CPP, FPP, steerable thrusters, tunnel thrusters, automation, ship design
Other: ro-pax, yachts All of the above
Special vessels   Tugs 4-st engines, FPP, steerable thrusters, tunnel thrusters, automation, ship design Extensive offering including ship design and a holistic approach to efficiency in operations. Lifecycle service and environmental aspects on top of the agenda.  Competitive landscape varies depending on vessel type, owner, etc. Competition is highly fragmented with small and big players present. 
Dredgers 4-st engines, CPP, FPP, steerable thrusters, tunnel thrusters, automation, ship design
Other: fishing vessels, ice breakers, research vessels, inland water ways vessels All of the above
Navy Frigates, corvettes, patrol vessels, aircraft carriers, destroyers, support vessels Waterjets, seals and bearings, tunnel thrusters, 4-st engines Focus on selected vessel types with selected components and lifecycle services. Strong engineering capabilities and focus on reliability. Limited competition with only the main players having access to the market (MAN, Caterpillar, Rolls-Royce, ABB, etc). High-speed engines are mainly used in this segment.
There are 2 related stories
+