Hybrid Electric Marine Propulsion Engine Market to Grow by USD 887.8 Million from 2024-2028, Driven by Strict Emission Regulations and AI-Influenced Trends- Technavio Report

NEW YORK, Sept. 4, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape- 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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Key Market Trends Fueling Growth

The marine industry is focusing on reducing harmful emissions, improving fuel economy, and reducing operational costs through research and development. One of the recent advancements is the hybrid turbocharger technology, which differs from conventional turbochargers in energy recovery and fuel economy benefits. In hybrid turbochargers, the turboshaft generates electrical power through an alternator, contributing to high fuel economy without consuming extra fuel. Mitsubishi Heavy Industries and Calnetix Technologies have developed a hybrid turbocharger with a heat recovery system, eliminating the need for an auxiliary blower and reducing fuel consumption and carbon emissions. The integration of hybrid turbochargers and hybrid electric propulsion systems enhances energy efficiency and positively impacts the global hybrid electric marine propulsion engine market. 

Hybrid electric marine propulsion engines are gaining traction in the shipping industry as shipowners seek to reduce CO2, SOx, and NOx emissions in response to climate change regulations. The digitization challenge presents an opportunity for serial and parallel hybrid systems, as well as megawatt and kilowatt systems, to optimize energy usage and improve fuel efficiency. Local manufacturing and online trade events are driving innovation in battery makers and magnet electric motors. Shipbuilders like Kongsberg Maritime are leading the way with fuel-efficient systems, such as Energy Observer's hydrogen and solar-powered vessel, and fuel cell propulsion. Alternative fuels like LNG, biofuel, and hydrogen are also gaining popularity. Adventure cruise ships and retrofit ships are adopting these technologies to meet carbon reduction strategies. Budgets are being allocated for charging infrastructure, and strict rules are driving the adoption of hybrid systems in cargo ships, defense ships, and the maritime tourism sector. Rising disposable income and global trade are further boosting demand. Commodities prices and economic stimulus programs are also influencing the market. 

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Market Challenges

• The hybrid electric marine propulsion engine market is in its growth stage, driven by stricter emission regulations and the focus on fuel savings. However, the market faces challenges from alternative propulsion methods, including LNG-based, gas turbine-based, wind energy-based, solar energy-based, hydrogen fuel-based, and pure-electric propulsion. While some substitutes, like solar and pure-electric, have limitations, others, such as gas turbine and LNG, are projected to grow significantly. Maintenance complexities, including the shift from lead-acid to lithium-ion batteries, and uncertainty around marine battery technology, further hinder market expansion.
• Hybrid electric marine propulsion engines are gaining popularity in the shipping industry due to their environmental and economic benefits. The market consists of two main segments: diesel-electric and gas-electric. These systems combine the use of internal combustion engines and battery power to meet the power requirements of vessels. Operating profiles and power requirements vary for different types of vessels, including container ships, passenger ships, fishing vessels, yachts, and tankers. Serial and parallel hybrid propulsion systems offer advantages such as noise level reduction, fuel efficiency increase, carbon emissions reduction, and maintenance costs decrease. However, challenges include the complexity of the propulsion system, technological capabilities, and emission standards. The use of batteries, generators, power management systems, and gearboxes require careful consideration for optimal performance and cost-effectiveness. The choice between a hybrid system and a conventional system depends on the type of operation, speed of operation, expected mileage, duration of operation, and fuel consumption. Hybrid propulsion systems offer significant benefits, including torque increase, fuel efficiency increase, and operating costs decrease. Environmental factors also play a crucial role in the adoption of hybrid electric marine propulsion engines.

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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 economical method for shipping goods internationally, is experiencing a surge in demand due to rising logistics costs in other transportation modes. This growth in maritime activities increases the demand for offshore support vessels, such as tugboats. However, increasing seaborne activities contribute to environmental pollution through emissions. To mitigate this, stakeholders in the marine industry are focusing on energy-efficient and eco-friendly solutions, such as hybrid electric engines. Small commercial marine vessels and offshore support vessels, particularly tugboats, are major adopters of these engines. The US is a pioneer in this area, continually expanding its fleet of hybrid electric tugboats. The expanding demand for oil, gas, and natural resources necessitates offshore exploration and production activities, leading to an increase in the requirement for maritime support services. This includes the growth of port and inland trade activities, which in turn increases the demand for tugboats and other support vessels. In response to the need to reduce carbon emissions, fleet owners of marine vessels are prioritizing the use of 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 the increasing focus on climate change mitigation and air pollution reduction in the maritime industry. Shipowners are allocating budgets to adopt fuel-efficient systems, including hybrid propulsion, to meet strict rules and regulations. Short-sea shipping and defense ships are major adopters of these systems due to their operating profiles and power requirements. Serial and parallel hybrid propulsion systems are gaining popularity, with internal combustion engines and battery power working in harmony to optimize fuel consumption. The digitization challenge in marine propulsion is also driving innovation, with webinars and online trade events showcasing the latest technologies. Local manufacturing is also a trend, with cargo ships and vessels of various types and operations adopting these systems to reduce their carbon footprint and improve fuel efficiency. Commodities prices and global trade dynamics continue to influence the market's growth trajectory.

Market Research Overview

The Hybrid Electric Marine Propulsion Engine market is experiencing significant growth due to the increasing focus on climate change mitigation in the maritime industry. Shipowners are turning to hybrid propulsion systems to reduce CO2, SOx, and NOx emissions, as well as noise levels. Hybrid propulsion systems offer various configurations, including serial and parallel hybrid systems, megawatt and kilowatt systems, and magnet electric motors. Battery makers play a crucial role in providing energy storage solutions for these systems. Digitization poses a challenge for the maritime sector, with webinars and online trade events becoming essential platforms for knowledge sharing. Short-sea shipping and local manufacturing are driving the demand for hybrid propulsion systems. Serial hybrid systems and parallel hybrid systems are gaining popularity, with the former offering energy recovery during braking and the latter providing power from both the engine and batteries. Megawatt systems are suitable for large cargo ships and defense ships, while kilowatt systems are ideal for small boats and passenger vessels. Fuel cell propulsion, hydrogen, LNG, and biofuel are emerging alternatives to traditional fuels. Adventure cruise ships and luxury yachts are also adopting hybrid propulsion systems as part of their carbon reduction strategy. Integrated propulsion systems, such as those offered by Norwegian shipbuilding company Havyard, combine diesel-electric and gas-electric segments to enhance fuel efficiency and reduce emissions. The commercial, logistics, offshore drilling, and naval segments are expected to drive the growth of the hybrid electric marine propulsion engine market. The market's size and growth depend on factors such as deadweight, operating profiles, power requirements, emission standards, and expected mileage. Budgets allocated for fuel-efficient systems, global trade, commodities prices, and economic stimulus programs also impact the market's growth. The maritime tourism sector, rising disposable income, and maritime leisure activities are creating new opportunities for hybrid propulsion systems in the luxury yacht and passenger cruise ship segments. The market's future looks promising as stricter rules on emissions and air pollution continue to be enforced.

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

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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