Marine Industries Global Market Analysis - Marine Institute

12 MARINE INDUSTRIES GLOBAL MARKET ANALYSIS
The increased demand for commodities has resulted in supply shortages and large
price rises in crude oil, steel and other metals.
The US has been importing increasing amounts of goods from China and its growing
balance of payments deficit has resulted in a fall in the value of the US dollar against
the Euro which has undermined Eurozone companies’ competitiveness.
Globalisation and the growth of low-cost manufacturing centres (China, India,
E. Europe) is having serious implications for developed countries as it becomes
increasingly necessary for some companies to re-locate production in order to remain
internationally competitive.
The aging and declining workforce in developed economies and high wage costs are
also pushing industries into locating production in the developing world.
Although there are costs for the marine industry arising from requirements to comply
with environmental legislation, this also generates benefits for technology providers.
Development of the renewable energy sector is but one example.
Global terrorism and associated security needs has resulted in development of new
‘markets’ in provision of products and services.
The strong growth in global energy demand, particularly from the developing
countries has boosted the offshore oil & gas sector but increasingly raises concerns
over a possible limit to oil supplies.
The interplay of the above factors means that marine industries are going through a
period of considerable change and this seems to be the likely pattern in the future.
3.3 WORLD MARKET SECTORS
Of the marine sectors analysed within the report, there are a few that stand out as
either being substantial in today’s market, or that are currently small but set for rapid
growth.The largest market in 2004 was the shipping and transport sector
(€343 billion), a position it will still hold through to 2009. However, it is forecast to
experience a decline in Euro terms over the period to 2009, averaging 1.8% per year
as shipping rates moderate somewhat. At the other end of the scale is the marine
renewable sector, valued in 2004 at only €128 million, but forecast to grow
dramatically, by almost 1,000% during the period, to €5.6 billion.These examples
illustrate the point that very small sectors may contain great opportunity for new
players and activity. Summaries of trends for all sectors are outlined in figure 3.2.