Wärtsilä's markets

Wärtsilä's markets

• Energy Business markets

  Wärtsilä Energy Business main customer segments are:

  • Flexible baseload
  • Grid stability and peaking
  • Industrial self-generation
  • Oil and gas industry
    
    

  Strong growth in world economy boosts the need for electricity. High oil prices and tightening environmental norms favour high-efficiency products and work in favour of Wärtsilä’s products. Electricity consumption growth rates are fairly high in the developing world and drive demand for both Wärtsilä’s heavy fuel oil and gas power plants. In the industrialised world, Wärtsilä’s demand is mainly driven by the need for stable, reliable, and flexible energy that Wärtsilä power plants provide.
  
  Demand is spread evenly around the world, which reduces risks associated with geographical concentrations and single markets.

• Marine Business markets

  Wärtsilä Marine Business main customer segments are:

  • Merchant - Includes all vessels for seaborne transportation, such as:
    • Container vessels
    • Tankers
    • Bulk Carriers
    • LNG Carriers
    • RoRo
    • Other cargo vessel

  • Offshore - Includes vessels and platforms used in oil and gas exploration as well as their supporting activities:    
    • Drilling rigs and ships
    • Anchor handling vessels
    • Offshore research vessels
    • Floating production units
    • Platform supply vessels

  • Cruise & Ferry - Includes:
    • Cruise vessels
    • Passanger ferries
    • Passanger/Cargo ferries
    • Fast ferries
    •  Yachts

  • Navy - Includes various kinds of naval vessels and submarines

  • Special vessels - Includes a broad range of different vessels, the main categories being:

  Demand in the shipbuilding and shipping industry is driven by the world economy, trade, and transport capacity needs. The main market driver for Wärtsilä Marine Business is the global demand for new vessels that are based on seaborne transportation, offshore oil exploration and support, cruise and ferry demand, as well as naval contracting. The demand for new vessels is also affected by shipyard capacity, ship prices, scrapping, oil prices, interest rates, freight rates, and environmental aspects.
  
  The need for energy has increased in recent years, which has increased the price of oil, intensifying the exploration and development of new oil and gas reserves. Demand has also been very buoyant during the past few years for LNG carriers, an area of particular strength for Wärtsilä.
  
  Geographically, the hub of shipbuilding industry today is in Asia, headed by Korea and China. European shipyards concentrate on special vessels, passenger and cruise ships.

• Service markets

  Wärtsilä’s services cover both the Marine Business and Energy Business in their entirety.
  
  The main market driver for services is lifecycle efficiency, for which the availability, reliability, and economic viability of the equipment are crucial. Marine service business is strongly driven by existing as well as new environmental regulations. Other drivers are the need to lower operating costs, the need for enhanced safety, and the need to outsource the operations and management of power plants.