Trends in the markets for Power Engineering
We expect the market environment in power engineering to remain difficult in 2019, with undiminished price and competitive pressures.
In 2019, the market volume for two-stroke engines used in merchant shipping is likely to reach a level similar to that seen in the reporting period. Calls for high energy efficiency and low pollutant emissions will continue to have a significant influence on ship designs in the future. We expect sustained stable demand in the market for four-stroke engines used in ferries, dredgers and government vessels. In the offshore sector, new order volumes of special applications look set to be on the low side due to existing overcapacity. Overall, we expect the marine market to remain at a similar level to that seen in the reporting period. The competitive pressure will continue unabated.
Demand for energy correlates strongly with macroeconomic and demographic trends, especially in emerging markets. The global trend toward decentralized power stations and gas-based applications shows no sign of losing momentum. For 2019, we expect demand to rise slightly but remain at a low level overall.
In turbomachinery, demand looks set to recover in 2019 due to price increases in our customers’ sales markets. As capacity utilization of their production facilities increases, the number of projects for turbocompressors is likely to rise. In energy generation, demand for steam and gas turbines will probably continue to vary from region to region. Sustained stable demand is expected in the countries with strong industrial growth or a low level of electrification. By contrast, electricity producers in the industrialized countries are still experiencing overcapacity. Possible growth will be satisfied above all by renewable energy sources, whose irregular electricity production requires a significant increase in storage capacity. As a consequence of the shortage of raw materials for batteries, we expect that the development and construction of thermal storage will be pushed, thereby invigorating the market for turbocompressors and turboexpanders. Overall, the price and competitive pressures will ease somewhat but remain high due to existing overcapacity.
We anticipate a positive trend in the marine and power plant after-sales business for diesel engines in 2019. In turbomachinery, we expect a slight upward trend.
For the period 2020 to 2023, we expect to see growing demand in the power engineering markets. The extent and timing of this growth will vary in the individual business fields, however.