Marine Engine Monitoring System Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025

Description

The marine engine monitoring system market reached a valuation of USD 5.5 billion in 2024 and is set to grow at a CAGR of 7.1% from 2025 to 2032, ultimately reaching USD 9.4 billion by 2032. This upward trajectory is fueled by the rapid expansion of the global shipping industry, stringent compliance requirements, and the mounting need for operational efficiency across naval and commercial fleets.

Engine monitoring systems are crucial for tracking performance, minimizing malfunctions, and optimizing energy use, especially amid fluctuating fuel prices and evolving maritime standards. The International Maritime Organization's (IMO) rules-such as the IMO 2020 sulfur cap, Carbon Intensity Indicator (CII), and Energy Efficiency Existing Ship Index (EEXI)-are further accelerating the adoption of these systems for real-time performance monitoring and emissions control.

The integration of smart technologies like IoT sensors, AI, and cloud-based platforms has made engine monitoring systems indispensable. These tools not only enhance fleet management but also enable predictive maintenance strategies that significantly reduce costs and improve vessel longevity.

Key Insights

In 2024, the hardware segment accounted for 65% of the market share, driven by strong demand for sensors, control modules, and data acquisition systems used in real-time engine monitoring.

The software category is expected to witness the highest CAGR, with increased investment in analytics, remote dashboards, and web-based maintenance platforms by OEMs and fleet operators.

Engines with up to 500 hp held the largest market share, at 60%, due to their widespread use in coastal, recreational, and small commercial vessels. These vessels prioritize fuel efficiency and preventive diagnostics.

The 501-1,000 hp category is set to grow the fastest, fueled by increasing requirements for advanced monitoring in offshore support vessels and other mid-size ships.

Auxiliary engines dominated the market with an 80% share and will maintain the highest CAGR. Their growing use in cruise ships and hybrid vessels for essential onboard systems is a key growth contributor.

Commercial ships comprised 75% of the market in 2024. The demand is driven by the need for operational efficiency and emissions control across container ships, tankers, and cargo carriers.

Naval ships will exhibit the fastest growth, owing to rising defense budgets and modernization programs in countries such as the U.S., India, and China, where MEMS integration is gaining traction.

The on-board deployment mode led the market with a 70% share due to its reliability in real-time diagnostics and system alerts, even without an internet connection.

Remote monitoring is the fastest-growing deployment mode, propelled by advancements in satellite communication, 5G, and IoT, enabling centralized, land-based fleet monitoring.

OEMs captured 85% of the market share in 2024, with monitoring systems factory-integrated into new vessels for seamless performance and regulatory compliance.

The aftermarket segment is set to grow rapidly as shipowners pursue retrofit solutions to meet environmental mandates and extend vessel lifespans.

North America led the market with a 40% share, supported by developed port infrastructure, environmental regulations like EPA Tier 4, and federal funding such as the USD 653 million awarded in 2023 for port modernization.

Asia-Pacific will record the highest CAGR, supported by initiatives like China's Green Shipbuilding Policy and India's Sagarmala program, which emphasize eco-friendly and digitally enabled maritime operations.

The market is fragmented with no single dominant player, as leading companies like Wartsila, MAN Energy Solutions, Rolls-Royce, and Caterpillar offer diverse, customized solutions across engine types and ship classes.

Notable recent developments include the Rolls-Royce and Singapore Institute of Technology partnership (March 2025) to enhance predictive diagnostics for autonomous vessels and hybrid engines, and Wartsila's MoU with Qatar Shipyard Technology Solutions to support dual-fuel and hybrid system upgrades.

Product Code: 13626

Chapter 1. Research Scope

1.1. Research Objectives
1.2. Market Definition
1.3. Analysis Period
1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by Component
- 1.4.2. Market Size Breakdown, by Engine Capacity
- 1.4.3. Market Size Breakdown, by Engine Type
- 1.4.4. Market Size Breakdown, by Ship Type
- 1.4.5. Market Size Breakdown, by Deployment
- 1.4.6. Market Size Breakdown, by End User
- 1.4.7. Market Size Breakdown, by Region
- 1.4.8. Market Size Breakdown, by Country
1.5. Market Data Reporting Unit
- 1.5.1. Revenue
1.6. Key Stakeholders

Chapter 2. Research Methodology

2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
2.2. Primary Research
2.3. Market Size Estimation
2.4. Data Triangulation
2.5. Currency Conversion Rates
2.6. Assumptions for the Study
2.7. Notes and Caveats

Chapter 3. Executive Summary

Chapter 4. Market Indicators

Chapter 5. Industry Outlook

5.1. Industry Background
5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
5.3. Impact of COVID-19
5.4. Sociopolitical Impact
5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
5.6. Innovation and Technology Trends
5.7. Supply Chain and Value Chain Insights
5.8. Economic and Regulatory Impact
5.9. Market Entry Strategies

Chapter 6. Competitive Landscape

6.1. List of Market Players and their Offerings
6.2. Market Share of Key Players (2024)
- 6.2.1. Global
- 6.2.2. North America
- 6.2.3. Europe
- 6.2.4. Asia Pacific
- 6.2.5. Latin America
- 6.2.6. Middle East & Africa
6.3. Competitive Benchmarking of Key Players
6.4. Product Benchmarking of Key Players
6.5. Recent Strategic Developments by Key Players
6.6. Company Leadership Matrix

Chapter 7. Global Market

7.1. Overview
7.2. Market Revenue, by Component (2019-2032)
7.3. Market Revenue, by Engine Capacity (2019-2032)
7.4. Market Revenue, by Engine Type (2019-2032)
7.5. Market Revenue, by Ship Type (2019-2032)
7.6. Market Revenue, by Deployment (2019-2032)
7.7. Market Revenue, by End User (2019-2032)
7.8. Market Revenue, by Region (2019-2032)

Chapter 8. North America Market

8.1. Overview
8.2. Market Revenue, by Component (2019-2032)
8.3. Market Revenue, by Engine Capacity (2019-2032)
8.4. Market Revenue, by Engine Type (2019-2032)
8.5. Market Revenue, by Ship Type (2019-2032)
8.6. Market Revenue, by Deployment (2019-2032)
8.7. Market Revenue, by End User (2019-2032)
8.8. Market Revenue, by Country (2019-2032)

Chapter 9. Europe Market

9.1. Overview
9.2. Market Revenue, by Component (2019-2032)
9.3. Market Revenue, by Engine Capacity (2019-2032)
9.4. Market Revenue, by Engine Type (2019-2032)
9.5. Market Revenue, by Ship Type (2019-2032)
9.6. Market Revenue, by Deployment (2019-2032)
9.7. Market Revenue, by End User (2019-2032)
9.8. Market Revenue, by Country (2019-2032)

Chapter 10. Asia Pacific Market

10.1. Overview
10.2. Market Revenue, by Component (2019-2032)
10.3. Market Revenue, by Engine Capacity (2019-2032)
10.4. Market Revenue, by Engine Type (2019-2032)
10.5. Market Revenue, by Ship Type (2019-2032)
10.6. Market Revenue, by Deployment (2019-2032)
10.7. Market Revenue, by End User (2019-2032)
10.8. Market Revenue, by Country (2019-2032)

Chapter 11. Latin America Market

11.1. Overview
11.2. Market Revenue, by Component (2019-2032)
11.3. Market Revenue, by Engine Capacity (2019-2032)
11.4. Market Revenue, by Engine Type (2019-2032)
11.5. Market Revenue, by Ship Type (2019-2032)
11.6. Market Revenue, by Deployment (2019-2032)
11.7. Market Revenue, by End User (2019-2032)
11.8. Market Revenue, by Country (2019-2032)

Chapter 12. Middle East & Africa Market

12.1. Overview
12.2. Market Revenue, by Component (2019-2032)
12.3. Market Revenue, by Engine Capacity (2019-2032)
12.4. Market Revenue, by Engine Type (2019-2032)
12.5. Market Revenue, by Ship Type (2019-2032)
12.6. Market Revenue, by Deployment (2019-2032)
12.7. Market Revenue, by End User (2019-2032)
12.8. Market Revenue, by Country (2019-2032)

Chapter 13. Company Profiles

Chapter 14. Appendix

14.1. Sources and References
14.2. Related Reports

Marine Engine Monitoring System Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)