Hybrid Electric Marine Propulsion Engine Market size is set to grow by USD 887.8 million from 2024-2028, Stringent emission regulations boost the market, Technavio

NEW YORK, July 18, 2024 /PRNewswire/ -- The global hybrid electric marine propulsion engine market size is estimated to grow by USD 887.8 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  4.02%  during the forecast period. Stringent emission regulations is driving market growth, with a trend towards increasing popularity of hybrid turbochargers for marine vessels. However, availability of substitutes and maintenance complexities  poses a challenge. Key market players include 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..

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Market Driver

The marine industry is investing significantly in research and development to reduce harmful emissions, enhance fuel economy, and lower operational costs. One of the latest advancements in this regard is the hybrid turbocharger technology. Unlike conventional turbochargers, hybrid turbochargers generate electrical power through an alternator in the turbocharger, which does not consume additional fuel. This innovation contributes to improved fuel economy and reduced carbon emissions. Mitsubishi Heavy Industries, in collaboration with Calnetix Technologies, has developed a hybrid turbocharger that utilizes a heat recovery system to power the alternator, eliminating the requirement for an auxiliary blower for the main engine. This technology not only enhances energy efficiency but also reduces fuel consumption and carbon emissions. The integration of hybrid turbochargers and hybrid electric propulsion systems is anticipated to boost the global hybrid electric marine propulsion engine market during the forecast period. 

Hybrid electric marine propulsion engines are gaining traction among shipowners as they seek to reduce CO2, SOx, and NOx emissions in line with climate change initiatives. The digitization challenge in marine propulsion is being addressed through webinars and online trade events showcasing serial and parallel hybrid systems, megawatt and kilowatt systems, magnet electric motors, and battery makers. Shipbuilders and energy discharge providers are collaborating to create fuel-efficient systems using local manufacturing of components. Megawatt systems power large cargo and defense ships, while kilowatt systems are suitable for short-sea shipping and adventure cruise ships. Renewable energy sources like solar power, wind energy, and hydrogen are being integrated into hybrid systems. Fuel cell propulsion using hydrogen, LNG, and biofuel are also being explored. Strict rules and budgets allocated for carbon reduction strategies have led to the retrofitting of existing ships with hybrid electric propulsion systems. Charging infrastructure is being developed to support the growing number of hybrid ships. The maritime tourism sector and global trade are driving the demand for fuel-efficient systems as rising disposable income fuels travel and commodities prices remain volatile. Kongsberg Maritime and other industry leaders are investing in research and development to create advanced propeller systems and power generators for hybrid marine propulsion. The transition to hybrid electric marine propulsion is a significant step towards reducing air pollution and improving fuel efficiency in the maritime industry. 

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Market Challenges

• The hybrid electric marine propulsion engine market is experiencing early growth due to stricter emissions regulations and the focus on fuel savings. However, the market faces challenges from alternative propulsion methods, such as LNG-based, gas turbine-based, wind energy-based, solar energy-based, hydrogen fuel-based, and pure-electric propulsion systems. While some substitutes, like solar and pure-electric, have limitations, others, like gas turbine and LNG, are projected to grow significantly. Maintenance complexities, including the shift from lead-acid to lithium-ion batteries, and the uncertainty surrounding marine battery technology, further hinder the adoption of hybrid electric marine propulsion engines.
• The Hybrid Electric Marine Propulsion Engine market is witnessing significant growth due to the increasing demand for eco-friendly and fuel-efficient solutions in the maritime industry. Two main segments in this market are Diesel-electric and Gas-electric. Hybrid propulsion systems combine the benefits of Internal Combustion Engines (ICE) and Battery power. Operating profiles and power requirements vary for different vessels, including boats or businesses, such as Container ships, Passenger ships, Fishing vessels, and Yachts. Serial and Parallel hybrid propulsion systems offer advantages like noise level reduction, fuel efficiency increase, and carbon emissions reduction. Factors like emission standards, expected mileage, duration of operation, speed of operation, and fuel consumption decrease are driving the adoption of these systems. Technological capabilities, complexity of propulsion, and maintenance costs decrease are also essential considerations. Components like the Generator, Power management system, Battery, and Gearbox play a crucial role in the functionality and efficiency of these systems. The choice between a Diesel-electric or Gas-electric system depends on the type of operation, vessel size, and fuel availability. Overall, the Hybrid Electric Marine Propulsion Engine market presents opportunities for cost savings, improved environmental performance, and regulatory compliance.

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Segment Overview 

This hybrid electric marine propulsion engine market report extensively covers market segmentation by  

1. Application 
• 1.1 Commercial
• 1.2 Leisure
2. End-user 
• 2.1 Tugboats
• 2.2 Offshore support vehicles
• 2.3 Ferries
• 2.4 Others
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Commercial-  The commercial segment of the global hybrid electric marine propulsion engine market caters to various types of commercial marine vessels, including cargo ships, container ships, offshore support vessels, and supply vessels. Seaborne trading, an efficient method of shipping goods across countries, is experiencing a surge in demand due to rising logistics costs of alternative transportation methods. This growth in seaborne activities will boost the demand for offshore support vessels, such as tugboats. However, the increasing number of shipping activities contributes to environmental pollution through emissions. To mitigate this issue, stakeholders in the marine industry are turning to energy-efficient and eco-friendly solutions, such as hybrid electric engines. The US is a leading adopter of hybrid electric tugboats, and the trend is expected to continue as the demand for offshore oil and natural gas exploration and production increases. The US Energy Information Administration forecasts global liquid fuel consumption to reach 100.6 million barrels per day by 2022, leading to a higher demand for maritime support services, including tugboats. Thus, the need to reduce carbon emissions is driving fleet owners to adopt hybrid electric propulsion systems, fueling the growth of the commercial segment of the hybrid electric marine propulsion engine market.

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Research Analysis

The Hybrid Electric Marine Propulsion Engine market is experiencing significant growth due to increasing focus on climate change mitigation and stricter regulations against air pollution from ships. Shipowners are allocating budgets to adopt fuel-efficient systems, including hybrid propulsion, to meet these requirements. Short-sea shipping and defense ships are leading the adoption of these systems. The digitization challenge in marine propulsion is driving the need for webinars and online trade events to discuss the latest trends and technologies. Serial hybrid systems, which combine the benefits of both internal combustion engines and battery power, are gaining popularity due to their flexibility in meeting power requirements based on operating profiles. Local manufacturing of these systems is also on the rise to reduce transportation costs and ensure timely delivery. Cargo ships and vessels of various types and operations are adopting these systems to improve fuel efficiency and reduce emissions. Commodities prices and global trade dynamics also play a role in the market's growth. Hybrid propulsion systems offer a balance between power and efficiency, making them a viable alternative to traditional internal combustion engines. The choice between serial and parallel hybrid propulsion depends on the boat or business's specific needs and operating profiles.

Market Research Overview

The Hybrid Electric Marine Propulsion Engine market is experiencing significant growth due to increasing climate change concerns and stricter emission regulations. Shipowners are adopting hybrid propulsion systems to reduce CO2, SOx, and NOx emissions, as well as noise levels. The digitization challenge is driving the adoption of integrated propulsion systems, serial hybrid systems, and parallel hybrid systems. Short-sea shipping and local manufacturing are key areas of focus for the commercial and logistics segments. Webinars and online trade events provide a platform for industry professionals to learn about the latest technologies, including magnet electric motors, battery makers, and energy discharge systems. Megawatt and kilowatt systems are being used in cargo ships, defense ships, and passenger cruise ships to increase fuel efficiency and reduce carbon impact. Fuel cells and hydrogen propulsion systems are gaining popularity in the commercial and naval segments. Adventure cruise ships, luxury yachts, and passenger cruise ships are also adopting hybrid propulsion systems as part of their carbon reduction strategy. Havyard, a Norwegian shipbuilding company, is leading the way with innovative fuel-efficient systems and hydrogen propulsion systems. The market is expected to grow further due to budgets allocated for fuel-efficient systems, global trade, and the rising demand for maritime leisure activities. The use of renewable energy sources such as solar power and wind energy is also on the rise, with retrofit ships and new builds incorporating these technologies. The challenges of charging infrastructure and the carbon impact of LH2 tanks are being addressed through advancements in fuel cell technology and the development of more efficient battery systems. The future of the Hybrid Electric Marine Propulsion Engine market is bright, with a focus on reducing emissions, increasing fuel efficiency, and improving operational profiles to meet the needs of various types of vessels and businesses.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Commercial
• Leisure
• End-user
• Tugboats
• Offshore Support Vehicles
• Ferries
• Others
• Geography
• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio