1 Global Shaft Generator System Market Insight Analysis
The global Shaft Generator System market is valued at USD 281.56 million in 2024 and is expected to register a CAGR of 6.91% from 2024 to 2033.
Commonly used on marine vessels, a shaft generator system can support the main engine of a ship by generating electricity for the onboard grid and by acting as a motor, it can boost the power on the main propulsion shaft. A shaft generator system can provide the power needed to turn the propeller for maneuvering a ship as back-up in case of main propulsion engine malfunction.
Figure Global Shaft Generator System Market Size (M USD) and CAGR (2024-2033)
2 Shaft Generator System Market Growth Drivers and Restraints
In the context of global advocacy of carbon emission reduction, the shipping industry is facing tremendous pressure to reduce carbon emissions. The International Maritime Organization (IMO) has set strict emission reduction targets, requiring the shipping industry to reduce carbon intensity by 40% by 2030 and 70% by 2050. The shaft generator system can effectively reduce energy consumption and operating costs, which meets the emission reduction needs of the shipping industry.
Its application can convert and utilize the excess power of the ship’s main engine, reducing energy consumption by 15-20%, which has prompted shipping companies to adopt the system to improve fuel efficiency and reduce carbon dioxide emissions, thereby driving market growth. In addition, as an important support for global trade, the shipping industry has generally maintained a growth trend in recent years. Despite the impact of factors such as the epidemic, geopolitics and global economic fluctuations, in the long run, global seaborne trade volume is on an upward trend.
For example, from 2012 to 2019, the global seaborne trade volume increased from 9.197 billion tons to 11.999 billion tons, with a compound annual growth rate of 3.87%; in 2021, as the epidemic eased and the economy recovered, the seaborne trade volume rebounded to 11.974 billion tons, a year-on-year increase of 3.38%. The shaft generator system can be applied to various types of ships. The development of the shipping industry provides a broad market space for it, especially in emerging fields such as LNG carriers, where its application demand continues to grow.
There are some technical and cost issues in the actual application of the shaft generator system. Technically, the system has limitations under certain working conditions, such as increasing the consumption of specific fuel and cylinder oil when used, and cannot be met alone when high load demand occurs. It may also affect the performance and maintenance of the main engine, and some systems require complex gears, couplings and other devices for installation.
In terms of cost, the initial investment of the shaft generator system is relatively large. Although in the long run, the savings in annual operating costs can make up for this part of the investment, the cost recovery period varies greatly under different power and ship operating conditions, which to some extent affects the purchasing decisions of downstream customers. Fluctuations in raw material prices are also an important limiting factor. The main raw materials for the shaft generator system include metals and electronic components, etc.
Their prices are affected by various factors such as the economic situation, inflation, currency and commodity price fluctuations, tariffs, transportation costs, weather and natural disasters, and geopolitics, and their supply stability is poor. For example, in the past two years, due to the impact of the COVID-19 pandemic, metal commodity prices have generally risen, the price of raw materials for the shaft generator system has risen, and the supply chain has been disrupted. This has not only squeezed the profit margins of enterprises, but may also lead to delays in product delivery, affect customer orders, and thus suppress market demand.
3 Technological Innovations in the Shaft Generator System Market
There are many limitations in the use of early shaft-belt generators. For example, when encountering strong winds and waves, the main engine will change speed, affecting the operation of the generator. In severe cases, diesel generators must be used instead. With the development of technology, mechanical control technology has been applied, which can stabilize the generator frequency to a certain extent, but it is limited by the capacity of the device and has a limited scope of application. In modern society, power control technology has made significant breakthroughs, and the application of inverter technology in generator systems has greatly increased its power.
The system consists of a constant frequency device and a shaft-belt generator. By controlling the regulation system and the inverter device, it can effectively enhance the voltage stability and control the speed change within a specific range. In the late 1980s, electrical energy conversion achieved a qualitative breakthrough, and the application of fast devices such as IGBT and SIT broke the limitations of traditional power conversion. In the 1990s, active inverters were widely used, and PWM rectifiers emerged and were applied to ship generator systems.
They can maintain constant voltage through excitation and rectification control in the rated power area, reduce grid harmonics, and reasonably control reactive power output. These technological innovations have enabled the continuous upgrading of shaft-belt generator system products, overcome the original shortcomings, and have a wider range of applications.
Corporate mergers and acquisitions are an important trend in market development. For example, in October 2022, Hitachi acquired ABB’s remaining 19.9% stake in Hitachi Energy. Prior to this, in 2020, Hitachi had acquired 81.1% of ABB’s power grid business and established Hitachi Energy. The acquisition further integrated the resources of both parties in the energy field, enhanced Hitachi Energy’s competitiveness in the power industry, and further improved its technology and services in the fields of high-voltage direct current transmission infrastructure and transformers.
ABB itself has also adjusted its strategic layout. In September 2021, it plans to build a large park in the Milwaukee area to expand its US motion business, which covers multiple fields such as drives, motors, generators, etc., and serves industries such as mining and power. This will help ABB further expand its market share and optimize its business layout.
In October 2022, Wärtsilä integrated its marine business into the marine power department, and improved its competitiveness in the marine power market by integrating resources, optimizing marine operations, reducing costs, reducing emissions, and providing customers with more comprehensive life cycle services. These corporate mergers and acquisitions and restructuring activities help optimize resource allocation, enhance corporate competitiveness, and promote market integration and development, prompting changes in the market structure, making the competition and cooperation relationships between enterprises more complex and diverse, and driving the industry to a higher level of development.
4 Global Shaft Generator System Market Size by Type
Less than 500V Systems are known for their compact design and lower initial cost, making them an attractive option for smaller vessels. Their market share is expected to remain strong due to the large number of smaller ships in the global fleet. The sales volume of 91 units in 2024 reflects the continued demand for cost-effective and efficient power solutions in the maritime industry.
500-1000V Systems offer a balance between power output and cost, making them suitable for a wide range of applications. The sales volume of 72 units in 2024 highlights the growing demand for these systems, driven by the need for higher efficiency and reliability in medium-sized vessels. The market shares of 37.70% underscores their importance in the global shaft generator system market.
Over 1kV Systems are designed for large vessels and specialized applications. The sales volume of 28 units in 2024 indicates a niche market, primarily driven by the demand for high-efficiency solutions in large maritime operations. The market share of 14.66% reflects the specialized nature of these systems and their limited but growing adoption.
Table Global Shaft Generator System Market Size and Share by Type in 2024
|
Type |
Sales (Units) 2024 |
Market Share 2024 |
|---|---|---|
|
Less than 500 V |
91 |
47.64% |
|
500-1000 V |
72 |
37.70% |
|
Over 1 kV |
28 |
14.66% |
5 Global Shaft Generator System Market Size by Application
Bulk cargo ships are the largest segment in terms of shaft generator system sales. These vessels require robust and efficient power generation solutions to support their operations, which often involve long-haul transportation of large quantities of goods. The market shares of 50.26% reflects the significant demand for shaft generator systems in this segment. The sales volume of 96 units in 2024 underscores the importance of these systems in enhancing fuel efficiency and reducing operational costs for bulk cargo ships.
Container ships are another significant segment in the shaft generator system market. These vessels require reliable power generation to support their operations, which involve transporting large numbers of containers across long distances. The market share of 26.18% indicates the growing demand for efficient power solutions in this segment. The sales volume of 50 units in 2024 highlights the increasing adoption of shaft generator systems to optimize fuel consumption and reduce emissions.
LNG ships are a specialized segment within the shipping industry, requiring high-efficiency power generation systems to support their operations. These vessels often use shaft generator systems to optimize fuel consumption and reduce emissions, which is crucial for their environmental sustainability. The market share of 9.95% reflects the growing importance of these systems in the LNG shipping segment. The sales volume of 19 units in 2024 indicates a steady demand for advanced power solutions in this niche market.
Table Global Shaft Generator System Market Size and Share by Application in 2024
|
Application |
Sales (Units) 2024 |
Market Share 2024 |
|---|---|---|
|
Bulk Cargo Ship |
96 |
50.26% |
|
Container Ship |
50 |
26.18% |
|
Liquefied Natural Gas (LNG) Ship |
19 |
9.95% |
|
Others |
26 |
13.61% |
6 Global Shaft Generator System Market Size by Region
China is the largest market for shaft generator systems, with a significant share of the global revenue. The country’s robust shipping industry and focus on energy efficiency drive the demand for advanced power generation solutions. The revenue of $115.86 million in 2024 reflects China’s strong position in the market. The market shares of 41.15% underscores the importance of China in the global shaft generator system market, driven by its large fleet of cargo ships and increasing investment in sustainable technologies.
South Korea is another key player in the global shaft generator system market, with a significant revenue contribution. The country’s advanced shipbuilding industry and focus on high-efficiency maritime operations drive the demand for shaft generator systems. The revenue of $93.29 million in 2024 highlights South Korea’s strong market position. The market shares of 33.13% reflects the country’s significant contribution to the global market, driven by its expertise in building large and efficient vessels.
Japan is a notable market for shaft generator systems, with a significant revenue contribution. The country’s focus on advanced maritime technologies and sustainable shipping practices drives the demand for efficient power generation solutions. The revenue of $43.15 million in 2024 reflects Japan’s strong market position. The market shares of 15.33% underscores the importance of Japan in the global shaft generator system market, driven by its advanced shipbuilding capabilities and commitment to environmental sustainability.
The Philippines is an emerging market for shaft generator systems, with a growing revenue contribution. The country’s developing shipping industry and increasing focus on energy efficiency drive the demand for advanced power generation solutions. The revenue of $17.31 million in 2024 highlights the Philippines’ growing market position. The market shares of 6.15% reflects the country’s increasing importance in the global market, driven by its growing fleet of maritime vessels and investment in sustainable technologies.
Figure Global Shaft Generator System Market Size (M USD) by Region in 2024
7 Global Shaft Generator System Market Analysis by Major Players
7.1 ABB
Company Introduction and Business Overview:
ABB is a multinational corporation headquartered in Zurich, Switzerland, formed in 1988 through the merger of ASEA from Sweden and Brown, Boveri & Cie from Switzerland. ABB is a leading global technology company that specializes in electrification, robotics, automation, and motion control solutions, with a strong focus on driving sustainable and efficient operations across various industries.
ABB’s business is structured around four main divisions: Electrification, Industrial Automation, Motion, and Robotics & Discrete Automation. The company operates in over 100 countries and employs approximately 105,000 people. ABB’s success is driven by its commitment to innovation, sustainability, and customer satisfaction, with a wide range of products and services designed to enhance efficiency and reduce environmental impact.
Products:
ABB offers a variety of shaft generator systems, including permanent magnet shaft generators for the marine industry. These systems are designed to reduce emissions, enhance efficiency, and improve the reliability of ocean-going vessels. ABB’s permanent magnet shaft generators are optimized for converter control, providing better efficiency compared to traditional induction or electrically excited synchronous machines.
Market Performance in 2022:
In 2022, ABB reported sales of 15 units, with a total revenue of $46.19 million and a gross margin of 31.13%.
7.2 Wärtsilä
Company Introduction and Business Overview:
Wärtsilä is a Finnish company founded in 1834, with headquarters in Finland. The company is a leading provider of power sources and other equipment for the marine and energy markets. Wärtsilä specializes in the design, manufacturing, and servicing of advanced technologies for ship propulsion and power generation systems.
Wärtsilä’s business is centered around providing comprehensive solutions for the marine and energy sectors. The company offers a wide range of products and services, including engines, propulsion systems, shaft generator systems, and energy management solutions. Wärtsilä’s focus on innovation and sustainability has positioned it as a leader in the industry, with a strong commitment to reducing emissions and improving fuel efficiency.
Products:
Wärtsilä offers shaft generator systems that are designed to reduce fuel consumption and emissions while improving overall efficiency. These systems are capable of operating under varying main engine speeds, providing stable electrical power to the ship’s main grid. Wärtsilä’s shaft generator systems are known for their reliability, efficiency, and ability to meet stringent environmental regulations.
Market Performance in 2022:
In 2022, Wärtsilä reported sales of 21 units, with a total revenue of $29.83 million and a gross margin of 31.82%.
7.3 Ingeteam
Company Introduction and Business Overview:
Ingeteam is a Spanish company founded in 2007, with headquarters in Sarriguren, Spain. The company specializes in the design, manufacturing, and servicing of electric power conversion systems for various industries, including the maritime sector. Ingeteam is known for its innovative solutions and commitment to sustainability.
Ingeteam’s business is focused on providing advanced electrical power conversion solutions for renewable energy, industrial, and marine applications. The company offers a wide range of products and services, including synchronous generators, frequency converters, and energy management systems. Ingeteam’s commitment to innovation and sustainability has positioned it as a leading provider of efficient and reliable power solutions.
Products:
Ingeteam offers a range of synchronous generators designed for marine applications, including the INDAR SG Series. These generators are available in different versions depending on the hauling machine and are known for their reliability, robustness, and ability to meet specific customer needs. Ingeteam’s products are designed to optimize fuel consumption and reduce emissions, making them ideal for modern maritime operations.
Market Performance in 2022:
In 2022, Ingeteam reported sales of 18 units, with a total revenue of $21.74 million and a gross margin of 32.27%.