Marine Hybrid & Full Electric Propulsion Market Forecasts to 2028 – Global Analysis By Product (Diesel Electric, Hybrid Marine Propulsion, Full Electric, Gas Electric and Other Products), Ship Type, Deadweight, Fuel, Power Rating, Application and By Geography
According tStratistics MRC, the Global Marine Hybrid & Full Electric Propulsion Market is accounted for $4.6 billion in 2022 and is expected treach $9.9 billion by 2028 growing at a CAGR of 13.6% during the forecast period. Marine propulsion is a system or device used tgenerate thrust tmove a ship or boat across water. The setup of a propulsion system depends on the vessel size, transport system, and type of operation. Diesel marine propulsion system is a common type of marine propulsion system. The engine is directly connected tthe generator in a full electric marine propulsion system. Full electric marine propulsion enhances the overall efficiency of the vessel and alsreduces the carbon footprint. Full electric marine propulsion system consists of a series of motors and generators where electric power is transmitted from the engine tthe propeller shaft through the motor controller and electric motor.
According tthe U.N. international maritime organization if ocean shipping were a country, it would be the sixth-largest carbon emitter and accounts about 2.2% of all global greenhouse gas emissions.
Market Dynamics:
Driver:
Innovation in Propulsion Systems
Increased awareness about air pollution and its consequences on the environment has prompted businesses texplore more environmentally friendly and cost-effective solutions for the industry. Companies are concentrating on increasing battery capacity and reducing battery size for fully electric vessels. Thus, innovation in propulsion systems is expected drive the market growth.
Restraint:
Strict regulations
The stringent environmental regulations, the need for fuel efficiency and the high initial investment cost are the factors impeding the market growth. The cost of electric and hybrid propulsion systems is significantly higher than the conventional propulsion systems. In addition, the lack of trained personnel for operating and maintaining these systems is alsa challenge for the market growth.
Opportunity:
Increasing trade of resources
Large vessels are used more frequently in the trade of resources. These massive ships are being driven through the market while carrying vast amounts of resources. Also, the market is expanding due tongoing advances in the marine sector and rising ship owners' desires for high fuel-efficient features. Furthermore, increasing defence budget by various emerging economies is expected texpand the market growth.
Threat:
High cost of raw materials
The high cost of maintenance is another big issue for ship owners. Regular upkeep and service of the electric and hybrid propulsion systems raises the overall cost. Ships that have been retrofitted incur additional costs for the installation of the gear required for hybrid or all-electric propulsion. The high cost of batteries and the lack of availability of charging infrastructure are the major aspects hampering the market growth.
Covid-19 Impact
The marine sector is already seeing the effects of the COVID-19 outbreak. In order timplement methods that aid in the creation of prospects for revenue generation, ship owners, suppliers, and analysts in the market for marine hybrid & full electric propulsion are on the lookout for opportunities tattend webinars and online trade events. Companies in the market have experienced problems like climate change and the difficulty of digitization, and it is expected that things will get worse as a result of the COVID-19 outbreak.
The diesel electric segment is expected tbe the largest during the forecast period
The diesel electric segment is estimated thave a lucrative growth, due tthe fuel-efficient technology of diesel-electric propulsion. It is a method in which a generator is powered by a diesel internal combustion engine (ICE) tgenerate electricity for an electric motor in a naval vessel. It is a propulsion system that naval ships use extensively. These are the major factors propelling the growth of the segment.
The yachts segment is expected thave the highest CAGR during the forecast period
The yachts segment is anticipated twitness the fastest CAGR growth during the forecast period, due tprotecting the world and ocean by developing luxury yachts that have the lowest environmental footprint, along other benefits. The proven and versatile hybrid propulsion package combines a conventional diesel propulsion with and efficient diesel-electric propulsion. Thus, these factors are enhancing the growth of the segment.
Region with Largest share:
Asia Pacific is projected thold the largest market share during the forecast period owing tthe rising orders and deliveries of new aircraft. Investments in shipping industry have expanded dramatically in the region due texpansion in marine traffic in countries. The highly developed shipbuilding industry, which is involved in the creation of intricate naval vessels, is responsible for the growth. This is expected tboost the market in the region.
Region with highest CAGR:
Europe is projected thave the highest CAGR over the forecast period, owing tthe rising trade and tourism, demand for fuel-efficient technology, and stringent rules and regulations on emissions. Rising demand for propulsion systems and propellers was caused by an increase in the number of ships brought on by expanding international seaborne trade. Hence, this is the major factor influencing the growth.
Key players in the market
Some of the key players profiled in the Marine Hybrid & Full Electric Propulsion Market include Rolls-Royce Plc., AB VolvPenta, IHI Power Systems Co.,Ltd.., Cummins Inc., BAE Systems, Caterpillar, Masson Marine, General Electric, MAN Diesel & TurbSE, STEYR MOTORS GmbH, Fairbanks Morse Engine, TorqeedGmbH., Heesen Yachts Sales B.V, Niigata Power Systems CLtd, Wartsila Corporation, ABB Ltd, Siemens AG, Mitsubishi Heavy Industries, Ltd., Schottel GmbH and Kongsberg Maritime.
Key Developments:
In July, 2020, BAE Systems announced that it had been awarded a US$ 32 Mn prototype agreement by the U.S. Army’s Rapid Capabilities and Critical Technologies Office (RCCTO) tintegrate a Hybrid Electric Drive (HED) system onta Bradley Fighting Vehicle.
In June 2020, Cummins Inc. announced that the B6.7 and L9 Performance Series Power Units would feature new engine power take-off (PTO) capabilities tsupport key applications such as cranes, crushers, and screeners. Cummins Inc.’s power units are available from 75 – 503kW (100 – 675hp) as a complete and ready-made package.
Products Covered:
• Diesel Electric
• Hybrid Marine Propulsion
• Full Electric
• Gas Electric
• Other Products
Ship Types Covered:
• Naval Ships
• Cruise Liner
• Anchor Handling Tug Supply (AHTS) Vessels
• Small CargShips
• Platform Supply Vessel (PSV)
• Yachts
• Submarines
• Other Ship Types
Deadweights Covered:
• More Than 10K Dead Weight Tonnage (DWT)
• 5K-10K Dead Weight Tonnage (DWT)
• Less Than 5K Dead Weight Tonnage (DWT)
Fuels Covered:
• Diesel
• Hydrogen
• LNG
• Other Fuels
Power Ratings Covered:
• Upt1 MW
• 1.1 MW - 2 MW
• 2.1 MW - 3.5 MW
• Above 3.5 MW
Applications Covered:
• Naval
• Commercial
• Offshore Drilling
• Logistics
• Other Applications
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
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