In HD Hyundai Heavy Industries’ order performance this year, the marine engine business has shown significant growth. This is mainly due to the increase in new ship orders globally and the growing demand for engines in response to increasingly stringent carbon emission regulations.
Data shows that from January to May this year, HD Hyundai Heavy Industries’ total marine engine orders reached US$2.38 billion, up 92.5% from the same period last year, and has completed 81.7% of its annual order target for 2025. This data is in contrast to the trend of new ship orders. During the same period, HD Hyundai Heavy Industries’ total new ship orders were US$3.464 billion, down 7.2% from the same period last year.
HD Hyundai Heavy Industries has its own marine engine brand, Himsen Engine. Its product range covers large engines for large ships such as merchant ships, as well as medium-sized engines for main engines of small and medium-sized ships such as passenger ships.
In the field of medium-speed marine engines, HD Hyundai Heavy Industries ranks first with a 35% share of the global market. In addition, the shipbuilder has developed ammonia dual-fuel engines that can be used in ammonia carriers and general merchant ships. Large engines for large ships are manufactured under a technology licensing agreement.
According to South Korean media reports, HD Hyundai Heavy Industries’ engine technology and production capabilities have translated into overseas export performance. In 2024, HD Hyundai Heavy Industries achieved revenue of 3.1343 trillion won in its engine business, with approximately 97% coming from overseas exports.
South Korean media said that HD Hyundai Heavy Industries’ engine technology and production capacity have been transformed into overseas export performance. In 2024, HD Hyundai Heavy Industries achieved revenue of 3.1343 trillion won in its engine business, with approximately 97% coming from overseas exports.
Considering that more than 50% of new ship orders are currently taken by Chinese shipyards, HD Hyundai Heavy Industries’ engine export business has new opportunities. Since 2021, based on compensated gross tonnage (CGT), Chinese shipyards have accounted for more than 50% of global new ship orders, and the market share in 2024 will be as high as 70%.
In addition, the strengthening of environmental regulations is also seen as an opportunity factor for HD Hyundai Heavy Industries’ engine business.
The International Maritime Organization (IMO) decided during MEPC 83 in April this year that from the first half of 2027, enhanced greenhouse gas intensity standards will be applied to ships of 5,000 tons (t) or more engaged in international voyages.
Compared to 2008, the greenhouse gas intensity of marine fuels must be reduced by 4% to 17% by 2028 and by 8% to 21% by 2030. Each ton exceeding the standard will incur a fee of $100 to $380. To comply with the standard, engines on older ships must be replaced with engines with lower carbon emissions. To this end, demand for low-carbon engines that HD Hyundai Heavy Industries is developing or has already put into production is expected to increase.