Marine Battery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Marine Battery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The marine battery market is expected to register a CAGR of more than 18% during the forecast period.

• The global marine sector witnessed the mild impact of the COVID-19 pandemic. According to the United Nations Conference on Trade and Development (UNCTAD) Review of Maritime Transport Report 2021, the impact of the COVID-19 pandemic on maritime trade volumes in 2020 was less severe than initially expected. The report stated that maritime trade contracted by 3.8% in 2020, but it recovered later in 2020 and is projected to increase by 4.3% in 2021.
• Growing demand for marine freight transportation, an increase in water sports and leisure activities, and rising investments in vessel modernization programs drive the growth of the market. Furthermore, growing automation in marine transportation and rising demand for electric and hybrid vessels will drive market growth in the coming years. According to the Organisation for Economic Co-operation and Development (OECD), ocean shipping is the major transport mode for global trade, around 90% of traded goods are carried by sea, which is likely to supplement the growth curve of the market over the forecast period.

The Lithium-ion battery segment is estimated to show remarkable growth during the forecast period. The growth is attributed to the growing maritime trade and increasing demand for commercial vessels with electric propulsion. These marine batteries are lightweight, more efficient than lead-acid batteries, and can last up to ten times longer. The batteries provide various advantages such as longer durations, improved safety, higher discharge rates, and required less maintenance. The lithium marine batteries have a lifecycle from 3000 to 5000 cycles. Furthermore, these batteries have high storage capacity, reduced weight, and size. Thus, the rising demand for marine vessels due to increased maritime trade and growing investment in the marine sector will create higher demand for lithium-ion batteries, which will drive the growth of the market.

For instance, in June 2022, Saft, a subsidiary of TotalEnergies, launched a new lithium-ion battery system, Seanergy 2.0, for hybrid and full-electric vessels. It can be scaled to suit propulsion and other loads on board vessels such as workboats and tugs, ferries, cruise liners, offshore support vessels, and yachts. Also, in November 2021, Electric Fuel, a global manufacturer of high-performance batteries launched its new 48V high-energy density lithium-ion marine battery at the METSTRADE 2021 show, held in Amsterdam, Netherlands. The new 48V batteries generate the standard voltage for e-boats and e-mobility. Such factors are likely to drive the demand for lithium-ion batteries over the forecast period.

Europe held the largest market share in the marine battery market and is anticipated to continue its domination during the forecast period. Europe has the largest maritime territory in the world. Eurostat report stated that 3.5 billion tonnes of freight were handled in European Union ports and the Netherlands remained the largest maritime cargo transport country across the region in 2021. Furthermore, the presence of a large number of commercial vessel operators and the growing procurement of advanced electric propulsion systems for marine vessels drive the growth of the market across Europe.

For instance, in November 2022, Vision Marine, the global innovator in the electric transition of the recreational boating industry, announced that it completed a production contract with Negi, a French manufacturer of specialized batteries and systems. These batteries would be installed in 120 full systems for Vision Marine’s E-Motion 180E propulsion system offered to OEMs. In June 2022, Leclanché, a Swiss battery manufacturer, completed the development of the third generation of a marine battery system Navius MRS-3. The first systems are scheduled for delivery in 2023. Thus, growing expenditure on the development of advanced marine batteries boosts the market growth in Europe during the forecast period.

The marine battery market is fragmented in nature, with the presence of several players holding significant shares in the market. Some of the prominent players in the market are BorgWarner Inc., Siemens AG, Wartsila Corporation, Exide Technologies, and Saft, among others.

An increase in focus on the development of lightweight, high-power, reduced size and operates for longer duration marine batteries from OEMs drives the growth of the market. For instance, in March 2022, RELiON Battery, a lithium batteries manufacturer, launched its InSight Series 12V battery which offers boat and vessel owners the ability to power more appliances for longer while off the grid. The company stated that one battery at 120 amp-hours provides 160 amps continuous current and can power multiple appliances in a marine vessel at the same time.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support