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The hybrid electric marine propulsion engine market size is estimated to grow at a CAGR of 5.2% between 2022 and 2027 and the size of the market is forecast to increase by USD 1,133.1 million. The growth of the market depends on several factors such as stringent emission regulations, the volatility in crude oil and natural gas prices, and an increase in maritime trade and fleet size.
This report extensively covers market segmentation by application (commercial and leisure), end-user (tugboats, offshore support vehicles, ferries, and others), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Hybrid Electric Marine Propulsion Engine Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Stringent emission regulations are driving the market growth. Marine propulsion engines primarily use diesel which emits pollutants like nitrous oxide, particulate matter, carbon oxide, hydrocarbon, and sulfur oxide. They are not in compliance with the Environmental Protection Agency (EPA) air quality standards. Regulations as per the International Convention for the Prevention of Pollution from Ships or MARPOL convention instruct that diesel engines in US-flagged ships should have an Engine International Air Pollution Prevention (EIAPP) certificate issued by the EPA.
Additionally, these regulatory norms have also resulted in fuel quality improvements that help marine vessels to reduce their carbon footprint and reduce the cost of fuel. This also reduces the operational cost for marine vessel fleet operators, boosting demand for alternative fuel sources like LNG. Hence such factors will result in the increasing adoption of hybrid electric marine propulsion engines and the expansion of the market during the forecast period.
The increasing popularity of hybrid turbochargers for marine vessels is a key trend in the market. Massive investments to reduce emissions by the marine industry, and improvements in fuel quality are seen in hybrid turbochargers, another technological advance. It involves using the turboshaft as the primary mover as it generates electricity through an alternator in the turbocharger, unlike conventional turbochargers where turbines turn the compressor, which sucks in more air and feeds it to the combustion chamber. Additionally, the alternator generates electrical power without extra fuel consumption.
Additionally, reduced carbon emissions make it a highly appealing alternative compared to conventional turbochargers. Hence, there is a growing popularity of hybrid turbocharger technology and hybrid electric propulsion system which is likely to propel growth of the market during the forecast period.
Availability of substitutes and maintenance complexities is challenging market growth. The market for hybrid electric marine propulsion engines is at its nascent stage in terms of product life cycle. Other competing alternatives such as LNG-based propulsion, gas turbine-based propulsion, wind energy-based propulsion, and solar energy-based propulsion are growing increasingly popular and have greater potential for growth.
Additionally, stringent regulations on carbon emission reduction and fuel quality improvements as well as the lack of skilled service personnel have made the operation, maintenance, and repair of hybrid electric marine propulsion engines difficult. Moreover, lithium-ion batteries are increasingly over lead acid batteries and they result in complex installation during retrofitting. Hence, the above factors are likely to pose a hindrance to the growth of the market during the forecast period.
Vendors 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.
BAE Systems Plc - The company offers a hybrid electric marine propulsion engine namely the HybriGen Assist propulsion system.
Beta Marine Ltd. - The company offers hybrid electric marine propulsion engines such as the 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 vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market share growth by the commercial segment will be significant during the forecast period. It includes numerous commercial marine vessels, like cargo ships, container ships, offshore support vessels, and supply vessels used for seaborne transportation of goods across counties. To reduce emissions, various stakeholders are innovating methods such as alternative fuels and hybrid engines. Hybrid electric engines are increasing in demand in commercial marine vessels and offshore support vessels, such as tugboats.
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The commercial segment showed a gradual increase in the market share of USD 2,452.76 million in 2017 and continued to grow by 2021. 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 of the market during the forecast period
End-User Segment Analysis:
The market share growth by the tugboats segment will be significant during the forecast period. The ability of tugboats to tow and maneuver large vessels in ports, harbors, and offshore activities is making this segment extremely important for the marine industry. Moreover, hybrid electric propulsion engines are being adopted by tugboats due to reduced emissions and improved fuel efficiency. They also help in working in rough seas, strong currents, shallow waters, confined spaces, and heavy loads by providing increased power and performance. Hence the above factors are likely to contribute to the growth of this segment of the market during the forecast period.
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APAC is estimated to contribute 44% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
The main sources of revenue for the APAC market are ferries, tugboats, and yachts. They are adopting hybrid electric engines to reduce emissions and adhere to stringent regulations issued by regulatory and governmental bodies. For instance, Taiwan and Hong Kong ports have mandated a maximum sulfur cap of 0.5% in fuel sources in vessels in 2019. This is predicted to further increase demand for hybrid electric propulsion engines. Key countries within APAC include Hong Kong, China, Taiwan, and Singapore which are also adopting it for their marine vessels due to higher propulsion power. Hence such factors are predicted to boost the growth of the regional hybrid electric marine propulsion engine market during the forecast period.
The COVID-19 outbreak resulted in reduced orders for marine vessels in the region. For instance, in February 2020, the Chennai Port in India banned the entry of crew onboard ships from China, including Hong Kong and Macau, Thailand, and Singapore, to limit the spread of the disease. However, large-scale vaccination drives in the region resulted in the resumption of activities in the regional marine industry. This also marked increasing demand for hybrid electric marine propulsion engines in 2021-22. Hence the above factors are likely to increase market growth during the forecast period.
The hybrid electric marine propulsion engine market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Hybrid Electric Marine Propulsion Engine Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.2% |
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Market growth 2023-2027 |
USD 1,133.1 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.71 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 44% |
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Key countries |
US, China, South Korea, Japan, and Norway |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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 Corp., 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. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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