Marine Battery Market Analysis Europe, North America, APAC, Middle East and Africa, South America - Norway, US, China, Germany, Japan - Size and Forecast 2024-2028

Marine Battery Market Size 2024-2028 

The marine battery market size is forecast to increase by USD 436.7 million, at a CAGR of 14.19% between 2023 and 2028. The market is influenced by several critical factors. Firstly, there is a rising demand for lithium batteries, driven by their superior energy density and efficiency, which are essential for modern marine applications. Secondly, the need for better marine infrastructure and connectivity underscores the importance of reliable and long-lasting battery solutions in powering vessels and supporting onboard systems. Technological advancements in marine batteries, such as improved durability and charging capabilities, further enhance their appeal and functionality in marine environments. These factors collectively shape the marine battery market, driving innovation and adoption across the industry as stakeholders seek more sustainable and efficient power solutions for maritime operations.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market is witnessing significant growth in the global commercial trade due to the increasing demand for advanced marine batteries. These batteries are essential for various applications in maritime transportation, including ships, ferries, and water sports industry. The key factors driving the market growth are the need for electrification to reduce emissions and stringent environmental regulations. Advanced marine batteries offer high energy density and high power density, making them suitable for applications requiring long-term power supply and high power output. The market is also influenced by the adoption of exhaust cleaning systems, scrubbers, and LNG-based fuel in the maritime industry. The market is expanding in the leisure boating sector, with the growing popularity of full electric ships and hybrid ships. Renewable energy sources, such as solar and wind, are also being integrated into marine battery systems to provide sustainable power solutions.

In addition, the market is rapidly evolving with advancements in technology and a global shift towards sustainable practices. Key drivers include the adoption of fully electric marine vessels and battery-driven hybrid propulsion systems, which reduce emissions compared to high sulfur fuel oil and very low sulfur fuel oil powered vessels. LNG-based fuel and advanced marine battery technologies are also pivotal, offering cleaner alternatives for powering electric cargo ships and container ships. Innovations in lithium-ion battery modules and novel marine battery designs cater to the diverse needs of cargo and freight operators aiming for fossil fuel-free targets. As the market embraces marine electric propulsion technology and low-cost shipping solutions like electric ferries, the focus remains on enhancing power stations for efficient and sustainable maritime operations.

Key Market Driver

Rising demand for lithium batteries is notably driving market growth. The marine industry's growing demand for lithium batteries is propelling the expansion of the global marine battery market. These batteries are an ideal choice for deployment in vessels to enhance their functionality and energy efficiency due to their lightweight and compact size. The commercial segment, including passenger transportation boats, Roro boats, barges, and even full electric ships and hybrid ships, is witnessing a significant shift towards lithium batteries. This trend is driven by the increasing cost-efficiency of these batteries, resulting from advancements in manufacturing techniques.

Furthermore, the safety benefits of lithium batteries, such as minimal maintenance requirements and quick response times, are also contributing to their widespread adoption in the marine industry. Zero emission shipping, including electric ferries and yachts, as well as leisure boats and cruises ships, are also embracing lithium batteries to reduce their carbon footprint and meet environmental regulations. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

Growing demand for fully electric ships is the key trend in the market. The market is experiencing significant growth due to the increasing adoption of electric ships in various maritime industries. With concerns about greenhouse gas emissions and pollution levels on the rise, there is a growing demand for zero emission shipping solutions. The water sports industry and leisure boating segments are leading the way, with an increasing number of electric ferries, passenger transportation boats, Roro boats, and even yachts being powered by marine batteries.

In addition, the commercial segment, including barges and cargo ships, is also exploring the use of hybrid ships, which combine traditional engines with electric propulsion, to reduce fuel consumption and emissions. The International Maritime Organization (IMO) has set strict emission control standards, such as IMO 2020, which restricts sulfur dioxide emissions to 0.50% mass by mass. These regulations are driving the demand, as a cost-effective and sustainable alternative to traditional fuels for short voyages. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Limitation of capacity and range of fully electric ships is the major challenge that affects the growth of the market. The market is witnessing significant growth due to the increasing adoption of electric and hybrid vessels in the water sports industry and leisure boating. Full electric ships, while offering zero emission benefits, face limitations in terms of range and capacity, averaging around 80 kilometers on a single charge. This constraint is particularly challenging for larger vessels such as passenger transportation boats, Roro boats, barges, and even electric ferries, which may require longer distances to travel. Hybrid ships, which combine diesel engines and batteries, offer a solution by enabling extended sailing distances and providing electricity when batteries run low.

Further, the commercial segment, including cargo and passenger transportation, is expected to drive market growth as the industry transitions towards low cost and more environmentally friendly shipping options. Cruise ships and yachts are also exploring electric fuel alternatives to reduce their carbon footprint. However, the challenge of achieving a fully zero-emission shipping and transport industry remains, with the development of advanced battery technology and infrastructure being key areas of focus. Hence, the above factors will impede the growth of the market during the forecast period

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

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.

BorgWarner Inc. - The company offers marine batteries under the subsidiary Akasol AG.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Corvus Energy
• Echandia Marine AB
• EnerSys
• EST Floattech BV
• EverExceed Corp.
• Exide Industries Ltd.
• Forsee Power
• Freudenberg FST GmbH
• HBL Power Systems Ltd.
• Kokam Co. Ltd.
• Leclanche SA
• Lifeline Batteries Inc.
• Saft Groupe SAS
• Siemens AG
• Spear Power Systems
• Sterling PlanB Energy Systems
• The Furukawa Battery Co. Ltd.
• Toshiba Corp.
• U.S. Battery Manufacturing Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By Application 

The commercial segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth, particularly in the commercial sector, due to the increasing adoption of advanced marine batteries. Sulfur content in marine batteries is decreasing as ship manufacturers and owners shift towards electric propulsion systems and electric ships, which require high energy and power density batteries. LNG-based fuel and exhaust cleaning systems, such as scrubbers, are also driving the demand for marine batteries, as they require batteries to power their auxiliary systems. Battery technology, including lithium, lead acid, deep cycle, and dual-purpose batteries, is becoming increasingly important in the maritime transportation sector. The electrification of ships, including container ships, bulk carriers, and ferries, is a key trend, as it helps reduce emissions and comply with stringent environmental regulations.

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The commercial segment was the largest and was valued at USD 310.90 million in 2018. Hybrid propulsion technology, which combines diesel generators and electric motors, is also gaining popularity. The charging infrastructure is also evolving, with high voltage superchargers and renewable energy sources being used to charge batteries at sea. Government incentives and subsidies are further boosting the growth of the marine battery market. Defense applications, such as submarines and naval vessels, are also expected to contribute to the market growth. Overall, the market is poised for significant growth in the coming years, driven by technological advancements, regulatory requirements, and the shift toward sustainable and efficient energy solutions.

Regional Analysis

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Europe is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Marine Battery Industry is witnessing significant growth due to the increasing adoption of advanced marine batteries in various maritime applications. The global commercial trade is driving the demand for marine batteries, particularly in electric propulsion systems for ships, including electric cargo ships, container ships, ferries, and electric ships. Sulfur content in marine fuels is being regulated due to stringent environmental regulations, leading to the exploration of alternative energy sources such as LNG-based fuel and exhaust cleaning systems like scrubbers. Ship manufacturers and shipowners are investing in battery technology and hybrid propulsion technology to reduce emissions and improve energy efficiency. Lithium and lead-acid batteries are popular choices due to their high energy density and power density.

In addition, the maritime transportation sector is undergoing electrification, with government incentives encouraging the adoption of energy storage systems in commercial and defense applications. Electric cargo ships and container ships are expected to become more common in the future, requiring extensive charging infrastructure and high voltage superchargers. The market is also witnessing advancements in battery technology, such as deep cycle and dual-purpose batteries, to meet the specific requirements of marine applications. Renewable energy sources are being integrated into hybrid propulsion systems to further reduce emissions and improve sustainability.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Application Outlook
  • Commercial
  • Defense

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is witnessing significant growth in the global commercial trade due to the increasing adoption of advanced marine batteries. These batteries, which come in various types such as Lithium, Lead Acid, Deep Cycle, and Dual Purpose, play a crucial role in powering various applications on ships. One of the major drivers for the market is the shift towards electric propulsion systems in ships. This trend is being fueled by the growing demand for energy efficiency, emissions reduction, and stringent environmental regulations. The use of marine batteries in electric ships, ferries, and hybrid propulsion systems is becoming increasingly popular. Battery technology, including energy density and high power density, is a key factor driving the growth of the Marine Battery Industry. The integration of marine batteries with exhaust cleaning systems, scrubbers, and LNG-based fuel is also gaining traction. Ship manufacturers and shipowners are investing in the development and implementation of advanced marine batteries to power their vessels.

Additionally, the OEM and aftermarket segments are expected to offer significant growth opportunities in the Marine Battery Market. The Maritime Transportation sector, which includes ships of various deadweight tonnages, is a major consumer of marine batteries. The market is expected to be driven by the growing electrification of the shipping industry, government incentives, and the integration of renewable energy sources. High voltage superchargers and charging infrastructure are also crucial components of the Marine Battery Market. Energy storage systems, which are used to store excess energy generated by renewable energy sources, are also gaining popularity. In conclusion, the market is poised for significant growth due to the increasing demand for energy efficiency, emissions reduction, and stringent environmental regulations. The market is expected to be driven by the adoption of electric propulsion systems, the integration of renewable energy sources, and government incentives.

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What are the Key Data Covered in this Market Research Report?

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