Marine Hybrid Propulsion System Market Analysis

Marine Hybrid propulsion System Market Overview:

Marine hybrid propulsion system Market Size was valued at USD 3.05 Billion in 2023. The marine hybrid propulsion system market industry is projected to grow from USD 3.33 Billion in 2024 to USD 6.21 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.09% during the forecast period (2024 - 2032). During the period of forecasting, the market will be driven by a number of market drivers, including an increase in the production of cargo ships and commercial and defense ships, a rise in the demand for fuel-efficient systems in the maritime industry, strict rules and regulations regarding fuel emissions from maritime activities, and a significant increase in the budgets allocated to naval defense.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Marine Hybrid Propulsion System Market Trends

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  Increased global trade is driving the market growth

  
  

The marine hybrid propulsion system market CAGR is expanding as a result of increased global trade. The majority of items that are traded globally are transported by ships and cargo vessels. Vessels with changing power requirements have better fuel efficiency thanks to hybrid propulsion. Global trade reached a record value of $28.5 trillion in 2021, according to UNCTAD's Global Trade Update. This represents an increase of roughly 25% over 2020 and around 13% over 2019. The rise in commodities prices, the easing of pandemic restrictions, and robust economic stimulus programmes were all factors in the 2021 increase in global commerce. Thus, the increase in global trade increases the fleet size and number of cargo ships, which in turn fuels the demand for marine hybrid propulsion system.

The maritime tourism sector has been growing over time as a result of rising disposable income and people's increasing tendency to spend money on maritime leisure activities. As a result, luxury yachts and passenger cruise ships are now utilised more regularly. Cruise Lines International Association (CLIA), one of the major trade organisations for the cruise industry, asserted in its report that the cruise sector has been expanding consistently over time. The research also highlights cruises' substantial contribution to global tourism, which saw a 7% increase in passenger numbers. This might help the market expand in the future.

The introduction of integrated propulsion systems has become a major development in the marine hybrid propulsion system market. The main participants in the marine hybrid propulsion system market are concentrating on the introduction of innovative hybrid propulsion systems to enhance performance, environmental friendliness, and propulsion system diversity. For instance, Havyard, a Norwegian shipbuilding company declared in November 2020 that its new hydrogen propulsion system for large ocean-going ships should be finished the following year as a potential alternative fuel to help minimize its carbon impact. With integrated LH2 tanks and fuel cells, it has created a ship's propulsion system. Thus, driving the marine hybrid propulsion system market revenue.

Marine Hybrid Propulsion System Market Segment Insights:

Marine Hybrid Propulsion System Application Insights

The Marine hybrid propulsion system Market segmentation, based on application includes Commercial, Logistics, Offshore Drilling, Naval and Others. The commercial segment dominated the market. The expansion of the cruise, ferry, fishing, and shipbuilding industries has led to an increase in the use of hybrid propulsion systems in commercial settings.

Marine Hybrid Propulsion System Deadweight Insights

The Marine hybrid propulsion system Market segmentation, based on deadweight, includes Less Than 5K DWT, 5K-10K DWT and More Than 10K DWT. 5K-10K DWT. The 5K-10K DWT category generated the most income. The optimal deadweight tonnage, which is predicted to fuel the segment's growth, is between 5K and 10K DWT. This range offers the precise load fluctuation needed for the hybrid system to operate at peak efficiency. Furthermore, it is anticipated that the sub-5K DWT category would increase significantly. The increase is linked to the rising demand for installing hybrid propulsion systems in small vessels including cruise, small cargo ships, lifeboats, and other similar types of vessels.

Figure 1: Marine hybrid propulsion system Market, by Deadweight, 2022 & 2032 (USD Billion)

 Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Marine Hybrid Propulsion System Type Insights

The Marine hybrid propulsion system Market segmentation, based on type includes Diesel-electric, Gas-electric and Others. The diesel-electric segment dominated the market. This method uses a diesel Internal Combustion Engine (ICE) to power a generator, which in turn generates power for an electric motor in a naval vessel. The fuel-efficient diesel-electric propulsion technology is what has given this market its dominance. The propulsion system is widely used in navy ships. Furthermore, the increasing usage of gas-electric propulsion in anchor handling tug supply vessels will lead to significant growth in the gas-electric market. It is anticipated that there would be a rise in demand for gas-electric propulsion systems due to the low cost of the gases used for gas-electric propulsion, such as CNG and LNG.

Marine Hybrid Propulsion System Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific marine hybrid propulsion system market area will dominate this market. The market will be driven by rapidly increasing trade between nations, advancing technology, and shifting fuel prices. The Asia Pacific region's fastest-growing nation is predicted to be India. This is primarily a result of growing medical tourism, increased knowledge of prospects based on contracts and third parties, and expanding commerce and tourist sectors. Due to the expansion of marine trade in nations like China and Japan, investments in the shipping sector have increased dramatically in the area in recent years.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Marine Hybrid Propulsion System Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe marine hybrid propulsion system market accounts for the second-largest market share. The well-established shipbuilding sector, which creates sophisticated military vessels including ferries, cruise ships, mega yachts, and submarines, is credited with the expansion. Additionally, the expanding demand for propulsion systems and propellers across Europe was a result of the increased number of ships brought on by the expansion of international seaborne trade. The world's fourth-largest shipping nation is Norway. The nation had 1,783 ships with a combined deadweight tonnage of 51.1 million as of January 2021. Further, the German marine hybrid propulsion system market held the largest market share, and the UK marine hybrid propulsion system market was the fastest growing market in the European region

North America Marine hybrid propulsion system Market is expected to grow at the fastest CAGR from 2023 to 2032. The market in the North American region is expanding primarily as a result of growing trade and tourism, desire for fuel-efficient technology, and strict emission laws. Given the presence of major actors in the United States and the constantly expanding trade and tourism sectors, it is anticipated that the country would hold a prominent position in the North American region. Moreover, US marine hybrid propulsion system market held the largest market share, and the Canada marine hybrid propulsion system market was the fastest growing market in the region.

Marine Hybrid Propulsion System Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the marine hybrid propulsion system market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, marine hybrid propulsion system industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global marine hybrid propulsion system industry to benefit clients and increase the market sector. In recent years, the marine hybrid propulsion system industry has offered some of the most significant advantages to market. Major players in the marine hybrid propulsion system market attempting to increase market demand by investing in research and development operations include General Electric Company (U.S.), Siemens AG (Germany), Caterpillar Inc. (U.S.), BAE Systems (U.K), Wartsila Corporation (Finland), Mitsubishi Heavy Industries Ltd. (Japan), Torqeedo GmbH (Germany), Steyr Motors GmbH (Austria), ABB Ltd. (Switzerland), MAN Diesel & Turbo SE (Germany), Schottel GmbH (Germany) and Rolls-Royce plc (U.K.).

Manufacturer of machinery for transportation, energy, and construction, Caterpillar Inc. It creates, produces, markets, and sells mining and construction machinery, forestry machinery, industrial gas turbines, diesel-electric locomotives, and diesel and natural gas engines. The company's product line includes asphalt pavers, reciprocating engines, draglines, compactors, backhoe loaders, integrated systems, and many others. Customers, dealers, and Caterpillar itself can all get retail and wholesale financing options for Caterpillar goods.

Engineering firm Wartsila Corp provides comprehensive lifecycle solutions and cutting-edge technologies to the marine and energy sectors. The corporation takes advantage of the environmental and financial performance of the ships and power plants through its efficient operations, sustainable initiatives, and data analytics. Pumps and valves, shaft line solutions, low and medium-speed engines, automation systems, ship design and ballast water treatment systems are among the products offered by Wartsila. For all stages of onshore and offshore oil and gas exploration, transportation, and production, it also provides power solutions.

Key Companies in the marine hybrid propulsion system market include

• General Electric Company (U.S.)


• Siemens AG (Germany)


• Caterpillar Inc. (U.S.)


• BAE Systems (U.K)


• Wartsila Corporation (Finland)


• Mitsubishi Heavy Industries Ltd. (Japan)


• Torqeedo GmbH (Germany)


• Steyr Motors GmbH (Austria)


• ABB Ltd. (Switzerland)


• MAN Diesel & Turbo SE (Germany)


• Schottel GmbH (Germany)


• Rolls-Royce plc (U.K.)

Marine Hybrid Propulsion System Industry Developments

July 2022:Siemens increased Xcelerator's capabilities for climate-neutral flight by acquiring ZONA Technology, Inc. Siemens' Xcelerator portfolio will now include ZONA Technology, Inc. technology, which will help clients make their digital threads as thorough and effective as possible. This will hasten innovation and guarantee the delivery of more environmentally friendly aircraft technologies on schedule and within budget.

April 2021:To supply the drive system that drives Singapore's first plug-in parallel hybrid-electric quick launch vessel, Danfoss Editron inked a deal with Sea Forrest Power Solutions Ltd (SFP).

March 2021:The hybrid power, propulsion, and shore charging system was chosen by Casco Bay Lines for its new 50-meter ferry, according to a statement from ABB Ltd. The ferry will be able to run in emission-free, battery-powered, diesel-electric, or a mix of the two modes with the aid of ABB's hybrid-electric propulsion solution.

February 2021:The new marine research vessel for the University of Vermont (UVM) will include an electric hybrid power and propulsion system provided by BAE Systems PLC, according to naval architecture firm Chartwell Marine.

Marine Hybrid Propulsion System Market Segmentation:

Marine Hybrid Propulsion System Application Outlook (USD Billion, 2018-2032)

• Commercial


• Logistics


• Offshore drilling


• Naval


• Others

Marine Hybrid Propulsion System Deadweight Outlook (USD Billion, 2018-2032)

• Less Than 5K DWT


• 5K-10K DWT


• More Than 10K DWT. 5K-10K DWT 

Marine Hybrid Propulsion System Type Outlook (USD Billion, 2018-2032)

• Diesel-electric


• Gas-electric


• Others

Marine Hybrid Propulsion System Regional Outlook (USD Billion, 2018-2032)

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America