Marine Air Conditioning Systems Market size is set to grow by USD 3.70 billion from 2024-2028

Date: 05 July 2024

The Marine Air Conditioning (AC) Systems market size is forecast to increase by USD 3.70 billion. is estimated to grow at a CAGR of 2.59% between 2023 and 2028. The market experiences significant expansion, driven by key factors. Robust commercial shipping growth underpins market progression, as increased trade volumes necessitate efficient climate control solutions. The yacht industry's strong growth potential adds impetus, as luxury vessels demand advanced, quiet, and energy-efficient AC systems. Furthermore, the increasing demand for Floating Production, Storage, and Offloading (FPSO) vessels in offshore oil and gas exploration drives market growth, as these complex structures require sophisticated AC systems to maintain optimal operating conditions.

Market Dynamics

The market experiences significant trends in the shipbuilding industry due to urbanization and increasing competition. These systems are essential for maintaining optimal Temperature in Cargo vessels, Cabins, and Passenger vessels, ensuring comfort for Crew and passengers. The use of Refrigerant gas and Sea water in the process is prevalent, with strategies focusing on energy efficiency to mitigate environmental regulations. Enhanced globalization and overcapacity pose challenges, necessitating innovation. Mold, Mildew, Dangerous organisms, and Air quality are critical concerns addressed by advanced Marine AC Systems. The market is influenced by the increasing demand for Cargo and Passenger vessels, including Water taxis, and the need for improved Air quality. Overall, the Marine AC Systems market is a vital component in the maritime industry, continually adapting to meet the evolving needs of the sector. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.

Driver - Increasing demand for FPSO vessels

The exponential increase in demand for petroleum and energy-related products across the world significantly influences the growth of the market for floating, production, storage, and offloading (FPSO) vessels. According to the EIA, oil and gas will be extensively used to fulfill 60% of the global energy demand by 2030, when China is expected to overtake the US and become the world's largest consumer of oil.

Moreover, the increasing demand for energy, gas, and oil will be fulfilled by several advancements in technology along with R&D an innovation that will enable the extraction of oil and gas from unconventional resources. As a result, it will result in the growth in the number of offshore oil platforms and renewable resources, offering huge potential to participants in these sectors. Hence, such factors are positively impacting the market. Therefore it is expected to drive the market during the forecast period.

Trends - Increasing merger and acquisition alliances among players

The growing competitiveness in the shipping industry has resulted in unpredictable fluctuations. The market players in the ports and shipping industry are finding it hard to survive the competition in terms of costs and services. Several ports across the world are competing against each other to attract shipping lines to provide efficient services and better facilities.

Moreover, in order to minimize operating expenses, many prominent shipping companies are adding fuel-efficient ships to their fleets as well as trimming down port assets and third-party logistics. Additionally, there are several strategic partnerships by shipping companies to cover certain trade routes and share ship and port operations. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market during the forecast period.

Challenge - Complex installation and retrofitting

One of the major challenges faced by the market players is retrofitting existing vessels with new air conditioning systems as it is highly complex and disruptive. As a result, several market players are limiting the upgrades to the system due to the need for modifications to integrate new equipment, coupled with potential downtime during installation.

Moreover, marine vessels are available in different sizes, types, and layouts, each with specific requirements for air conditioning. Therefore, retrofitting a standardized system that is applicable to a broad range of vessels can be challenging and might need customization for each application. Hence, such factors can negatively impact the marine AC systems market. Therefore it is expected to drive the market during the forecast period.

Market Segmentation by Product, End-user, and Geography

Product Segment Analysis:

The chiller systems segment is estimated to witness significant growth during the forecast period. The chiller segment can be referred to as a common type of air conditioning system that is extensively used in different applications, especially marine environments. Several marine air conditioning systems that utilize chiller systems are specifically designed to offer cooling and climate control for the interior spaces of boats, ships, and other maritime vessels.

The chiller systems segment was the largest segment and was valued at USD 11.14 billion in 2018. One of the main advantages of the chiller system segment is that it is designed in such a way that is more energy-efficient over time, which helps vessel operators reduce energy consumption and operating costs. Therefore, there is an increasing demand for energy-efficient air conditioning systems due to the growing concern regarding sustainability. Additionally, there is an increasing growth in marine tourism and leisure industries, and several people are opting for cruise vacations, luxury yacht charters, and other maritime leisure activities. Thus, there is a rising investment by ship owners in advanced air conditioning systems, especially chiller systems in order to offer a comfortable and enjoyable experience for passengers. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market during the forecast period.

End-User Segment Analysis:

Based on end-users, the segment is classified into leisure ships and commercial ships. This leisure ships segment mainly comprises cruise ships, passenger ships, and yachts. Factors such as the combined effect of rising GDP levels, an increase in disposable incomes, increasing volumes of international tourism, and improving adult participation in recreational boating activities are significantly contributing to the growth of this segment. Additionally, there is an increase in demand for yachts, especially large-sized yachts. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market during the forecast period.

Regional Analysis

APAC is estimated to contribute 53% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Some of the main factors that are significantly contributing to the marine AC systems market growth in APAC are the increasing number of ship-owning countries in the region and the huge volumes of seaborne trade between the region and Europe and North America, fuelled by rapid industrialization and export-import-driven strategies adopted by countries in the region.

As a result, it will significantly fuel the demand for marine air conditioning systems for commercial and leisure ships in the region. Additionally, factors such as growth in industrial, trade, and export-import activities are fuelling the demand for shipping and ocean transport in APAC. Furthermore, there is an increasing shift of manufacturing bases to APAC due to the comparative cost advantages in the region which will positively impact the market. Hence, such factors are expected to drive the market in the region during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

BRONSWERK GROUP Ltd., Carrier Global Corp., Chongqing Acir Marine Co. Ltd., Daikin Industries Ltd., Dometic Group AB, Eberca Holding BV, Flagship Marine Inc., FRIGOMAR Srl, GEA Group AG, Heinen and Hopman, Johnson Controls International Plc, Mabru Power Systems, MARINAIRE TECHNOLOGIES INC., Nissin Refrigeration and Engineering Ltd., Ocean Breeze, Pompanette LLC, The Koja Group, Veco S.p.A, and Webasto SE.