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The hybrid electric marine propulsion engine market size is forecast to increase by USD 887.80 million at a CAGR of 4.02% between 2023 and 2028. The marine propulsion market is experiencing significant growth due to several influential factors. Strict emission regulations are a primary driver, as they necessitate the adoption of cleaner and more efficient technologies for marine engines. This demand for eco-friendly solutions fosters innovation and encourages the implementation of sustainable practices. Furthermore, the volatility of crude oil and natural gas prices impacts operational costs and fuel choices, leading maritime industries to explore alternative fuels and energy-efficient methods. The increase in maritime trade and fleet size also contributes to the market's expansion. Adhering to stringent emission regulations and managing operational costs effectively are essential for businesses in this sector, making the implementation of advanced and efficient marine propulsion engines a priority. Additionally, the expansion of maritime trade and fleet size boosts the need for advanced maritime equipment and services, further driving hybrid electric marine propulsion engine market growth.
Market Forecast 2023-2028
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The hybrid electric marine propulsion engine market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The market share growth by the commercial segment will be significant during the forecast period.
The commercial segment showed a gradual increase in the market share of USD 2.54 billion in 2018. The expanding growth of demand for energy, oil, and natural gas is also boosting the demand for offshore support vessels like tugboats. Additionally, due to offshore oil and gas reservoirs being larger than onshore reservoirs oil, gas companies are increasingly shifting to offshore exploration activities. This increases the demand for maritime support services such as tugboats, which are increasingly adopting hybrid electric marine propulsion engines, boosting the growth of this segment during the forecast period.
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APAC is estimated to contribute 47% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
The hybrid electric marine propulsion engine market in APAC is primarily driven by the economic stimulus programs and the increasing commodities prices, leading to a rise in demand for cargo ships and passenger vessels. The maritime tourism sector and the rising disposable income of consumers have fueled the growth of the recreational segment, with an emphasis on luxury yachts and passenger cruise ships. Integrated propulsion systems are gaining popularity due to their carbon impact reduction capabilities. The implementation of emission regulations, including the control of sulfur limits in maritime fuel, has led to the adoption of hybrid propulsion systems in marine vessels. For instance, from January 1, 2019, Taiwan and Hong Kong ports have enforced a maximum sulfur cap of 0.5% in the fuel used by vessels operating from these ports. This has resulted in the use of alternative fuels, such as hydrogen, which are stored in LH2 tanks and converted into electricity using fuel cells.
In the commercial sector, specifically logistics and offshore drilling, as well as the naval industry, there is a growing trend towards implementing hybrid propulsion systems. These systems provide numerous benefits, such as meeting emission regulations and reducing noise levels, making them an appealing choice for various applications, including high-speed and extended duration operations. The advantages of increased fuel efficiency, torque, and anticipated mileage further bolster the appeal of these systems. These factors are projected to significantly contribute to the expansion of the regional market throughout the forecast period. Our hybrid electric marine propulsion engine market industry report examines historical data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
The market is experiencing significant growth due to the increasing focus on climate change mitigation and digitization challenges in the shipping industry. Short-sea shipping and local manufacturing sectors are particularly adopting this technology to reduce air pollution from cargo ships and defense vessels. Webinars and online trade events are providing platforms for stakeholders to discuss fuel-efficient systems and the implementation of strict rules regarding emissions. Serial hybrid systems, which combine the benefits of internal combustion engines and battery power, are gaining popularity due to their ability to meet varying power requirements in different operating profiles. Fuel efficiency and commodities prices are key factors influencing the market's growth. Hybrid propulsion systems, including serial and parallel hybrid configurations and marine turbine propulsion engines, are essential for boats or businesses operating in diverse types of operations.
Furthermore, the market in APAC is primarily driven by the economic stimulus programs and the increasing commodities prices, leading to an increase in the demand for cargo ships and passenger vessels. The maritime tourism sector and the rising disposable income of consumers have fueled the growth of the recreational segment, with an emphasis on luxury yachts and passenger cruise ships. Additionally, BAE Systems offers a HybriGen Assist propulsion system. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The hybrid electric marine propulsion engine market is gaining traction due to its ability to decrease maintenance costs and fuel consumption, as well as operating costs, in comparison to conventional systems. This shift is driven by increasing environmental concerns and the need to comply with stringent regulations. Technological capabilities have advanced to accommodate the complexity of propulsion systems, integrating components such as generators, power management systems, marine batteries, and gearboxes.
Moreover, these systems are applicable to various ship types, including container ships, passenger ships, fishing vessels, yachts, and tankers. The hybrid electric engine reduces harmful emissions, including nitrous oxide, particulate matter, carbon oxide, hydrocarbon, and sulfur oxide, contributing to improved air quality and mitigating environmental factors. The MARPOL convention, an international regulation, addresses marine pollution by governing the discharge of pollutants from ships, making the adoption of these advanced propulsion systems essential for compliance. Hence, these factors will drive hybrid electric marine propulsion engine market growth during the forecast period.
The market has gained significant traction in the marine industry due to its potential to decrease maintenance costs, fuel consumption, and operating costs. This advanced propulsion system integrates technological capabilities such as waste energy recovery through hybrid turbochargers and the use of a generator and power management system. The complexity of the propulsion system is higher than that of conventional systems, but the benefits outweigh the challenges. Hybrid electric marine propulsion engines operate on various types of ships, including container ships, passenger ships, fishing vessels, yachts, and tankers.
Furthermore, these engines use a battery to store energy generated during operation and provide power when needed. The generator, which is a key component of the system, converts mechanical energy into electrical energy. The environmental factors driving the adoption of hybrid electric marine propulsion engines are the need to reduce harmful emissions and improve fuel economy. The system's ability to recover waste energy and use it to power the ship's auxiliary systems further enhances its environmental benefits. Thus, these factors will fuel hybrid electric marine propulsion engine market growth during the forecast period.
The hybrid electric marine propulsion engine market is experiencing growth due to environmental concerns and the desire to decrease fuel consumption. This market's early stage in the product life cycle is driven by stringent regulations on carbon emissions and the shift towards sustainable propulsion solutions. However, the market's expansion is challenged by the availability of alternatives. These alternatives include LNG-based, gas turbine-based, wind energy-based, solar energy-based, hydrogen fuel-based, and pure-electric propulsion systems.
Furthermore, each system offers unique advantages, such as lower operating costs, reduced maintenance requirements, and varying technological capabilities. Hybrid electric propulsion systems consist of several components, including a generator, power management system, battery, and gearbox. The complexity of these systems can be a barrier to entry for some ship types, such as fishing vessels and yachts. However, for larger vessels like container ships, passenger ships, and tankers, the benefits of hybrid electric propulsion engines outweigh the challenges. The decreased maintenance costs and operating costs associated with hybrid electric marine propulsion engines make them an attractive option for stakeholders in the marine industry, thus hindering hybrid electric marine propulsion engine market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Beta Marine Ltd. - The company offers Beta 105T Engine with Twin Hybrid Motor, the Beta 50 Engine with Single Hybrid Motor.
We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including:
ABB Ltd., Aspin Kemp and Associates Inc., BAE Systems Plc, Beta Marine Ltd., Caterpillar Inc., Cummins Inc., General Dynamics Corp., General Electric Co., IHI Aerospace Co. Ltd., Kawasaki Heavy Industries Ltd., Kongsberg Gruppen ASA, Korindo Energy, Leonardo DRS Inc., Oceanvolt, Porsche Automobil Holding SE, RENK GmbH, Roper Technologies Inc., TRANSFLUID S.p.A., Twin Disc Inc., and Wartsila Corp.
Technavio market forecast provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market is witnessing significant growth as shipowners navigate the digitization challenge and increasing environmental regulations. Global trade drives demand for efficient ships and cargo vessels, with budgets allocated for greener technologies. Innovations like marine engine monitoring systems, serial hybrid propulsion, and parallel hybrid propulsion systems are becoming integral in both defense ships and commercial operations. Furthermore, the traditional internal combustion engine is being supplemented or replaced to enhance fuel efficiency and reduce emissions. Depending on the type of operation, whether for boat or business, hybrid propulsion offers a sustainable solution, aligning with the maritime industry's push towards cleaner energy.
The market for hybrid electric marine propulsion engines is experiencing significant growth in the United States, fueled by innovations in lithium-ion battery technology, parallel hybrid systems, and magnet electric motors. With both megawatt and kilowatt systems providing flexibility in power generation, the transition to electric propulsion leads to increased fuel efficiency, decreased maintenance costs, reduced fuel consumption, and operating expenses for various maritime applications, including adventure cruise ships, container ships, passenger ships, fishing vessels, and tankers. Battery manufacturers are dedicated to enhancing energy discharge capabilities and power generators to meet the unique demands of propeller systems. The integration of solar power, wind energy, and fuel cell propulsion, in conjunction with LNG and biofuel, supports carbon reduction strategies.
This shift towards electric propulsion contributes to the reduction of CO2 emissions, SOx emissions, and NOx emissions, aligning with environmental protection efforts. Furthermore, noise level reduction is crucial for maritime leisure activities and defense ships. Charging infrastructure plays a crucial role in facilitating these advancements. Ships retrofitted with hydrogen propulsion systems, serial hybrid systems, and fuel-efficient systems must comply with stringent regulations. The logistics and offshore drilling sectors benefit from the increased torque and flexibility offered by these systems. The digitization challenge, climate change, and local manufacturing trends prioritize sustainable innovations in ship types such as short-sea shipping. Economic stimulus programs, webinars, and online trade events further propel global growth in this dynamic market.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.02% |
Market growth 2024-2028 |
USD 887.8 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.81 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 47% |
Key countries |
China, US, Norway, South Korea, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Aspin Kemp and Associates Inc., BAE Systems Plc, Beta Marine Ltd., Caterpillar Inc., Cummins Inc., General Dynamics Corp., General Electric Co., IHI Aerospace Co. Ltd., Kawasaki Heavy Industries Ltd., Kongsberg Gruppen ASA, Korindo Energy, Leonardo DRS Inc., Oceanvolt, Porsche Automobil Holding SE, RENK GmbH, Roper Technologies Inc., TRANSFLUID S.p.A., Twin Disc Inc., and Wartsila Corp. |
Market dynamics |
Parent market analysis, Market Forecasting, Hybrid electric marine propulsion engine market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Hybrid electric marine propulsion engine market worth and condition analysis for market forecast period |
Customization purview |
If our hybrid electric marine propulsion engine market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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