Hybrid Electric Marine Propulsion Engine Market Analysis APAC, Europe, North America, Middle East and Africa, South America - China, US, Norway, South Korea, Japan - Size and Forecast 2024-2028

Hybrid Electric Marine Propulsion Engine Market Size 2024-2028

The hybrid electric marine propulsion engine market size is forecast to increase by USD 887.8 million at a CAGR of 4.02% between 2023 and 2028. The market's growth is influenced by several key factors, including stringent emission regulations, volatility in prices of crude oil and natural gas, and an increase in maritime trade and fleet size. Stricter emission regulations drive demand for cleaner and more efficient technologies for marine propulsion engines, encouraging innovation and adoption of eco-friendly solutions. Fluctuating crude oil and natural gas prices impact operational costs and fuel choices, prompting shifts towards alternative fuels and energy-efficient practices. Additionally, the expansion of maritime trade and fleet size boosts the need for advanced maritime equipment and services, further propelling hybrid electric marine propulsion engine market growth. Our hybrid electric marine propulsion engine market industry report examines historical data from 2018 - 2022, besides analyzing the current and forecasted market scenario.

Hybrid Electric Marine Propulsion Engine Market Forecasting and Size

Market  Forecast 2023-2028

To learn more about this hybrid electric marine propulsion engine market analysis report,  Request Free Sample

Hybrid Electric Marine Propulsion Engine Market Dynamics

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. 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.

Furthermore, the market in APAC is primarily driven by the economic stimulus programs and the increasing commodities prices, leading to a surge 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. Additionally, BAE Systems offers a HybriGen Assist propulsion system.

Key Hybrid Electric Marine Propulsion Engine Market Driver- Stringent emission regulations

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, 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 the growth of the market during the forecast period.

Significant Hybrid Electric Marine Propulsion Engine Market Trends- Increasing popularity of hybrid turbochargers for marine vessels

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 the growth of the market during the forecast period.

Major Hybrid Electric Marine Propulsion Engine Market Challenge- Availability of substitutes and maintenance complexities

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, these factors will hinder the growth of the market during the forecast period.

Hybrid Electric Marine Propulsion Engine Market Segmentation

Application Segment Analysis:

The market share growth by the commercial segment will be significant during the forecast period.

Customised Report as per your requirements!

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 of the market during the forecast period

Regional Analysis

For more insights on the market share of various regions Download Sample PDF now!

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 surge 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, such as those developed by Havyard, a Norwegian shipbuilding company, 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.

The commercial segment, including logistics and offshore drilling, and the naval segment are also adopting hybrid propulsion systems to meet emission standards and reduce noise levels. These systems offer increased fuel efficiency, torque, and expected mileage, making them an attractive option for various types of operations, including high-speed and long-duration ones.  Hence such factors are predicted to boost the growth of the regional market during the forecast period.

Key Companies & Market Insights

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 the 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.  

Segment Overview

The hybrid electric marine propulsion engine market industry 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.

• Application Outlook 
  • Commercial
  • Leisure
• End-user Outlook
  • Tugboats
  • Offshore support vehicles
  • Ferries
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Analyst Overview

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.

Request Sample PDF 

What are the Key Data Covered in this Hybrid Electric Marine Propulsion Engine Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and trends across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

We can help! Our analysts can customize this hybrid electric marine propulsion engine market research report to meet your requirements. Get in touch