Marine Hybrid Propulsion Market Research Report 2023
Marine Hybrid Propulsion Market Size By Propulsion Type (Diesel-electric, Parallel Hybrid, Serial Hybrid), Power Rating (0-300 kW, 301-500 kW, 501-800 kW, Above 801 kW), Stroke (Two Stroke, Four Stroke), RPM, (0-1,000, 1,001-2,500, Above 2 500), End-Use (Offshore, Support Vessels, Ferries, Défense Vessels, Others), and Region Global Market Analysis and Forecast, 2023-2030
Marine Hybrid Propulsion Market Synopsis
The Global Marine Hybrid Propulsion Market size was reasonably estimated to be approximately USD 4100 Million in 2023 and is poised to generate revenue over USD 7000 Million by the end of 2030, projecting a CAGR of around 6.90% from 2023 to 2030.
Marine hybrid propulsion systems are gradually emerging as one of the most preferred clean propulsion systems globally and are being used in several vessel categories. One of the major advantages of using hybrid propulsion systems is their clean and efficient mechanism, which significantly lowers emissions as compared to conventional propulsion systems.
- Features such as silent maneuvering, emission-free operations, and lower degrees of fuel consumption have prompted vessel and towage operators to invest in this technology. Development of the technology originating from the hybrid automotive industry has assisted technology developers in designing efficient and economical marine hybrid propulsion systems.
- Marine hybrid propulsion systems are designed to use two independent drive systems for propulsion. A diesel engine and an electric motor, where electric power is generally stored in batteries or a supercapacitor. The system utilizes the unused capacity of the main diesel engine to generate electricity and store it in batteries for later use.
- The switch from fuel-based conventional propulsion to the environment-friendly hybrid variety is increasing owing to the latter's efficiency and cost-effectiveness. Multiple ship operators are utilizing renewable energy including solar energy as a storage option in hybrid propulsion systems.
Top Key Players Involved Are:
"ABB (Switzerland), Wärtsilä Corporation (Finland), Man Energy Solutions SE (Germany), Rolls-Royce Holdings PLC (UK), Siemens AG (Germany), General Electric Company (US), Caterpillar INC. (US), Volvo Penta (Sweden), Bae Systems PLC (UK), Torqeedo GMBH (Germany), Electric Marine Propulsion BV (Netherlands), Cummins INC. (US), Visedo Oy (Finland), Hybrid Marine (UK), Aspin Kemp & Associates (Canada), Leclanché SA (Switzerland), The Switch (Finland), Danfoss Editron (Finland), Steyr Motors GMBH (Austria), ZF Friedrichshafen AG (Germany), and Other Major Players."
Marine Hybrid Propulsion Market Trend Analysis
Growing Seaborne International Trade
As seaborne international trade continues to grow, there is a higher demand for shipping services and vessels. This demand puts pressure on the maritime industry to find sustainable and efficient propulsion solutions to meet the increased transportation needs.
- Hybrid propulsion systems offer the potential to reduce fuel consumption and, consequently, fuel costs. With growing trade volumes, vessel owners and operators are motivated to adopt hybrid solutions to lower operational expenses and remain competitive in the market.
- International shipping is subject to emission regulations set by organizations like the International Maritime Organization (IMO). These regulations aim to reduce the environmental impact of the maritime sector. Hybrid propulsion systems help vessel owners and operators comply with these regulations by reducing emissions, including greenhouse gases and air pollutants, ensuring adherence to international standards.
- Moreover, the growth in seaborne international trade has led to an increased focus on energy efficiency in shipping operations. Hybrid propulsion systems offer improved energy efficiency compared to conventional propulsion systems. Vessels equipped with hybrid technology can optimize power usage, reduce fuel consumption, and lower greenhouse gas emissions, meeting the energy efficiency demands of the industry.
- As seaborne international trade continues to grow, the marine hybrid propulsion market is poised to benefit from the increased demand for sustainable and efficient shipping solutions.
Emergence of Electric Infrastructure
The emergence of electric infrastructure is transforming the marine industry's landscape and providing opportunities for the adoption and advancement of hybrid propulsion systems. It not only supports the transition towards cleaner and more sustainable transportation but also promotes technological innovation and collaboration within the industry.
- As electric infrastructure expands, it enables vessels to recharge their batteries while docked, reducing reliance on traditional fossil fuel propulsion and promoting the use of hybrid systems.
- Advancements in rapid charging technologies, such as high-power chargers and fast-charging solutions, facilitate quicker and more efficient recharging of batteries. Rapid charging reduces vessel downtime and allows for more frequent and convenient use of electric power, enhancing the viability and attractiveness of hybrid propulsion systems.
- Additionally, the integration of renewable energy sources, such as solar and wind power, with the electric infrastructure offers opportunities for the marine hybrid propulsion market. Utilizing clean energy sources to charge the batteries further reduces emissions and dependency on fossil fuels, aligning with the sustainability goals of the industry.
Segmentation Analysis of The Marine Hybrid Propulsion Market
Marine Hybrid Propulsion market segments cover the Propulsion Type, Power Rating, Stroke, RPM, End-use. By Propulsion Type, the Diesel-electric segment is Anticipated to Dominate the Market Over the Forecast period.
- Diesel-electric propulsion systems offer high efficiency and flexibility in marine applications. They combine diesel generators with electric motors, allowing for optimal power distribution and utilization based on vessel requirements. This configuration enables vessels to operate at varying speeds and power levels, optimizing fuel consumption and reducing emissions.
- Also, diesel-electric propulsion has been widely adopted in the marine industry and has a proven track record of reliability and performance. Many shipbuilders and operators are familiar with diesel-electric systems, making it a preferred choice for new vessel constructions and retrofits.
- Diesel-electric propulsion systems provide reliable power generation on board ships. The diesel generators produce electricity, which is then used to power the electric motors driving the propulsion system. This setup allows for redundancy, as multiple generators can be installed to ensure a continuous power supply even if one generator fails.
Regional Analysis of The Marine Hybrid Propulsion Market
Asia Pacific is Expected to Dominate the Market Over the Forecast Period.
- Asia Pacific has a strong and rapidly expanding shipbuilding industry, with countries like China, South Korea, and Japan being major players. The region's dominance in shipbuilding creates a significant market for marine hybrid propulsion systems as new vessels are constructed with advanced and eco-friendly propulsion technologies.
- In addition to this, Asia Pacific is a hub for international maritime trade, with major ports and shipping routes connecting the region to the rest of the world. The increasing volume of seaborne trade in the region drives the demand for efficient and sustainable propulsion systems, making marine hybrid solutions an attractive choice for vessel owners and operators.
- The Asia Pacific region, like other parts of the world, has implemented stricter regulations to reduce emissions from maritime activities. These regulations, such as the IMO's sulfur cap and greenhouse gas reduction targets, incentivize the adoption of cleaner propulsion technologies like marine hybrid systems. These factors are causing the domination of the market in the Asia Pacific region.
Source – IMO
China has the largest wealth in marine assets i.e., 1,91,253 million USD. Japan ranks 2nd with an assets value of 1,87,674 million USD. It shows that the Asia Pacific region is well developed for the marine sector and it can be anticipated that the region will dominate in the future in a strong position.
Covid-19 Impact Analysis on Marine Hybrid Propulsion Market
- The COVID-19 pandemic has had significant effects on various industries, including the marine sector. The marine hybrid propulsion market, which involves the integration of conventional propulsion systems with electric propulsion technologies, has also been affected by the pandemic in several ways.
- The pandemic has caused disruptions in the global supply chain due to lockdowns, travel restrictions, and temporary closures of manufacturing facilities. This has affected the production and delivery of hybrid propulsion systems, leading to delays and increased costs.
- The maritime industry, including shipbuilding and shipowners, has been negatively impacted by the pandemic. Economic uncertainties, the decline in international trade, and travel restrictions have resulted in reduced demand for new vessels. As a result, shipbuilders and shipowners may postpone or cancel orders for hybrid propulsion systems.
Top Key Players Covered in The Marine Hybrid Propulsion Market
- ABB (Switzerland)
- Wärtsilä Corporation (Finland)
- Man Energy Solutions SE (Germany)
- Rolls-Royce Holdings PLC (UK)
- Siemens AG (Germany)
- General Electric Company (US)
- Caterpillar INC. (US)
- Volvo Penta (Sweden)
- Bae Systems PLC (UK)
- Torqeedo GMBH (Germany)
- Electric Marine Propulsion BV (Netherlands)
- Cummins INC. (US)
- Visedo Oy (Finland)
- Hybrid Marine (UK)
- Aspin Kemp & Associates (Canada)
- Leclanché SA (Switzerland)
- The Switch (Finland)
- Danfoss Editron (Finland)
- Steyr Motors GMBH (Austria)
- ZF Friedrichshafen AG (Germany), and Other Major Players.
Key Industry Developments in The Marine Hybrid Propulsion Market
In August 2022, Aspin Kemp & Associates Inc. and E-Link Commuting Co. Ltd collaborated to Accelerate Net-Zero Waterway Transportation. The e-Link team focused on the technical aspects of the boat design and shuttle build/assembly, while AKA’s team designed the vessel’s power system and drivetrain propulsion as well as the addition of hydrogen fuel-cell innovation to help extend the battery life of the e-Link shuttle platform.
In April 2022, MAN Energy Solutions and Amazon Web Services collaborated to drive digital transformation in the marine Industry. Companies set to improve operational efficiency for marine, power, and industrial applications with real-time monitoring and predictive maintenance platform.
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Global Marine Hybrid Propulsion Market |
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Base Year: |
2022 |
Forecast Period: |
2023-2030 |
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Historical Data: |
2016 to 2021 |
Market Size in 2022: |
USD 4100 Mn. |
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Forecast Period 2023-30 CAGR: |
6.90% |
Market Size in 2030: |
USD 7000 Mn. |
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Segments Covered: |
By Propulsion Type |
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By Power Rating |
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By Stroke |
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By RPM |
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End-Use |
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By Region |
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Global Marine Hybrid Propulsion Market |
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Base Year: |
2022 |
Forecast Period: |
2023-2030 |
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Historical Data: |
2016 to 2021 |
Market Size in 2022: |
USD 4100 Mn. |
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Forecast Period 2023-30 CAGR: |
6.90% |
Market Size in 2030: |
USD 7000 Mn. |
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Segments Covered: |
By Propulsion Type |
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By Power Rating |
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By Stroke |
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By RPM |
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End-Use |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the Report: |
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Chapter 1: Introduction
1.1 Research Objectives
1.2 Research Methodology
1.3 Research Process
1.4 Scope and Coverage
1.4.1 Market Definition
1.4.2 Key Questions Answered
1.5 Market Segmentation
Chapter 2:Executive Summary
Chapter 3:Growth Opportunities By Segment
3.1 By Propulsion Type
3.2 By Power Rating
3.3 By Stroke
3.4 By RPM
3.5 By End-Use
Chapter 4: Market Landscape
4.1 Porter's Five Forces Analysis
4.1.1 Bargaining Power of Supplier
4.1.2 Threat of New Entrants
4.1.3 Threat of Substitutes
4.1.4 Competitive Rivalry
4.1.5 Bargaining Power Among Buyers
4.2 Industry Value Chain Analysis
4.3 Market Dynamics
4.3.1 Drivers
4.3.2 Restraints
4.3.3 Opportunities
4.5.4 Challenges
4.4 Pestle
Frequently Asked Questions
What would be the forecast period in the Marine Hybrid Propulsion Market research report?
The forecast period in the Marine Hybrid Propulsion Market research report is 2023-2030.
Who are the key players in Marine Hybrid Propulsion Market?
ABB (Switzerland), Wärtsilä Corporation (Finland), Man Energy Solutions SE (Germany), Rolls-Royce Holdings PLC (UK), Siemens AG (Germany), General Electric Company (US), Caterpillar INC. (US), Volvo Penta (Sweden), Bae Systems PLC (UK), Torqeedo GMBH (Germany), Electric Marine Propulsion BV (Netherlands), Cummins INC. (US), Visedo Oy (Finland), Hybrid Marine (UK), Aspin Kemp & Associates (Canada), Leclanché SA (Switzerland), The Switch (Finland), Danfoss Editron (Finland), Steyr Motors GMBH (Austria), ZF Friedrichshafen AG (Germany), and Other Major Players.
What are the segments of the Marine Hybrid Propulsion Market?
The Marine Hybrid Propulsion Market is segmented into Propulsion Type, Power Rating, Stroke, RPM, End-Use, region. By Propulsion Type, the market is categorized into Diesel-electric, Parallel Hybrid, Serial Hybrid. By Power Rating, the market is categorized into 0-300 kW, 301-500 kW, 501-800 kW, Above 801 kW. By Stroke, the market is categorized into Two Stroke,Four Stroke. By RPM, the market is categorized into 0-1,000, 1,001-2,500, Above 2 500. By End-Use, the market is categorized into Offshore, Support Vessels, Ferries, Défense Vessels, Others. By region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; Netherlands; Italy; Russia; Spain; Rest of Western Europe), Asia Pacific (China; India; Japan; South Korea; Malaysia; Thailand; Vietnam; The Philippines; Australia; New-Zealand; Rest of APAC), Middle East & Africa (Turkey; Bahrain; Kuwait; Saudi Arabia; Qatar; UAE; Israel; South Africa), South America (Brazil; Argentina; Rest of SA)
What is the Marine Hybrid Propulsion Market?
Marine hybrid propulsion systems are gradually emerging as one of the most preferred clean propulsion systems globally and are being used in several vessel categories. One of the major advantages of using hybrid propulsion systems is their clean and efficient mechanism, which significantly lowers emissions as compared to conventional propulsion systems.
How big is the Marine Hybrid Propulsion Market?
The Global Marine Hybrid Propulsion Market size was reasonably estimated to be approximately USD 4100 Million in 2023 and is poised to generate revenue over USD 7000 Million by the end of 2030, projecting a CAGR of around 6.90% from 2023 to 2030.
