Marine Industries Global Market Analysis - Marine Institute

MARINE INDUSTRIES GLOBAL MARKET ANALYSIS
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21 Marine Equipment
Definition – value of equipment and materials purchased for commercial shipbuilding
and oil & gas installations.
1999–03 2004 2005–09
Irish Market €M 1 0 1
UK Market €M 571 133 529
Europe Market €M 94,741 16,675 73,263
World Market €M 355,826 72,871 358,315
21.1 INTRODUCTION
Marine Equipment is a very large market and in this report we define it as being
comprised of two main customer groups:
Figure 21.1: Marine Equipment – World Market
• Shipbuilding sector capital items (e.g. propulsion systems & machinery) total €21bn
with over 5,000 suppliers listed worldwide.
• Oil & gas sector (e.g. production of platforms, pipelines, subsea equipment, etc)
total €49bn and over 6,000 suppliers are listed worldwide.
One of the problems in valuing this sector is definitions. Many other smaller sectors
such as offshore renewable energy could also be included; however, these are much
smaller than oil & shipbuilding and would not make a significant difference to the
totals.We specifically exclude military equipment.
There is growing technology content in all sectors, with hundreds of high-tech subsectors
ranging from software to underwater connectors to control systems and it is
within these that the main opportunities for SMEs exist.
21.2 WORLD MARKET
As mentioned above, there is no clear definition of what constitutes marine
equipment. Often it is regarded as bought-in items of the shipbuilding process such
as propulsion systems and other machinery, the bridge systems, control and
automation, but also extends to scuttles, washroom and galley equipment, etc. In our
analysis we include all bought-in items.The world market for marine equipment in
2004 was €73 billion, marine equipment in the shipbuilding sector accounted for
€21.3 billion of this.
Many definitions of ‘marine equipment’ only recognise the shipbuilding sector and
exclude all others.The definition we use includes the capital expenditure item of
the offshore oil & gas sector. In the oil & gas sector we use the capital expenditure
component which we value at €49.7 billion in 2004.The segmentation of this
expenditure by type of technology varies from region to region and also by water
depth. Historically, the market was worth €64 billion in 1999. Since then, the sector
has displayed slight fluctuations, but a general trend of growth, with forecast value
of €70 billion for 2009, representing a slight decline of 0.6% annually from 2005
following a peak of €74 billion in 2006.
Source: Douglas–Westwood
Table 21.1: Marine Equipment – World Market
1999–03 2004 2005–09
Africa 29,465 8,341 46,050
Asia 102,144 21,756 101,385
Australasia 9,989 2,124 11,557
E Europe/FSU 6,047 3,739 27,278
Latin America 37,857 6,147 32,588
Middle East 18,542 4,255 20,238
North America 57,061 9,834 45,956
Western Europe 94,721 16,675 73,263
TOTAL (€M) 355,826 72,871 358,315
Source: Douglas-Westwood
Figure 21.2: Marine Equipment – Regional
Segmentation 2005–2009
Source: Douglas–Westwood