Hybrid and Full Electric Marine Propulsion Market
Hybrid and Full Electric Marine Propulsion Market (Propulsion Type - Hybrid Vessel, Full Electric Vessel; Vessel - Tugboats and OSVs, Ferries, Defense Vessels, Yachts, Cruise Ships; Power Rating - Up to 1 MW, 1.1-2 MW, 2.1-3.5 MW, Above 3.5 MW; RPM - 0-1,000 RPM, 1,001-2,500 RPM, Above 2,500 RPM) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 - 2026
Press Release :
Full Electric Marine Propulsion Market - Snapshot
Marine propulsion refers to a system or a mechanism that is utilized in the generation of thrust to propel a boat and ship across water. The arrangement of the entire propulsion system relies on the operation type, system of transport, and size of vessel. A very common type of marine propulsion system is diesel marine propulsion system. However, almost all vessel types such as recreational vessels, defense vessels, Yachts, ferries, and tugboats, utilize hybrid systems to move. Diesel-electric marine propulsion systems are used in the marine vessels. Such wide use of the system is expected to bolster expansion of the global hybrid and full electric marine propulsion market.
In a full electric marine propulsion system, the generator is directly linked with the engine in the full electric marine propulsion system. This type of marine propulsion systems is capable of enhancing the efficiency of the vessel. In addition, it is environment friendly as it reduces the overall carbon footprint in the environment. The environment friendly factor of the system is likely to amplify the overall growth of the global hybrid and full electric marine propulsion market.
Environment Friendliness of the Product to Amplify its Demand
The International Convention on the Prevention of Pollution from Ships (MARPOL) is an international regulatory body that is assigned with the task of regulating the issue of marine pollution caused by vessels. There are six different annexes in the MARPOL and each of those annexes deal with pollutants arising out of routine operations and accidents in the oceans and seas. Annex VI particularly takes care of the air pollutants generated by ocean bound ships. This annex restricts the level of nitrogen emission level and mandates use of low sulfur-content fuel to diminish environmental pollution.
In the hybrid electric marine propulsion engines, dual fuel engines have come up as an emerging trend. These engines operate with both gaseous and liquid fuels. In comparison with diesel engines, dual fuel engines have been extremely useful in reducing carbon emissions. These engines also make an offering of the following
- high energy-efficiency
- excellent reliability in the long run
- power characteristics
Furthermore, technological and commercial progress made in the marine propulsion industry is further estimated to fuel the market.
Hybrid and Full Electric Marine Propulsion Market - Snapshot
Marine propulsion is a mechanism or system used to generate thrust to move a ship or boat across water. Battery packs are used for propulsion/voyage in hybrid and full electric marine propulsion systems. In hybrid marine vessels, battery as well as alternate fuel such as diesel and LNG are utilized during propulsion of the vessel. In full electric marine vessels, 100% propulsion is made through the usage of rechargeable battery packs.
Rise in Investments in Fuel-efficient Marine Propulsion Systems
The year-on-year growth in inter-state, intra-state, and cross-border trade activities has triggered the demand for marine ships. Rise in number of marine ships for several operations inside and outside a country has boosted the demand for fuel-efficient marine propulsion systems. Increase in usage of ferries for transportation purposes in coastal waterways is driving the demand for hybrid and full electric marine propulsion system. New/converted hybrid/full electric ferries play an important role in public transport systems in many waterside cities and islands.
Shift from Conventional to Hybrid Propulsion Units
Implementation of strict regulations around the Emission Control Areas (ECA) across the globe has boosted investment in marine hybrid propulsion systems. Stringent regulations pertaining to carbon emissions and oil spillage have augmented investments in the development of fuel-efficient marine propulsion systems. Better fuel-efficient marine propulsion components such as generator and motors are being developed by companies operating in the market. Various ship operators are utilizing renewable energy (including solar energy) as storage option in hybrid propulsion systems. Stored solar energy is used during peak hours or at night in marine propulsion systems. This eliminates the round-the-clock need for conventional marine fuel. Hence, a shift toward usage of hybrid propulsion units is estimated to take place in the near future. Furthermore, governments of several countries are funding and supporting development and adoption of the latest technology in marine propulsion systems. Various ship operators are utilizing renewable energy, including solar energy, as storage option in hybrid propulsion systems.
Volatility in Prices of Crude Oil and Stringent Regulations Related to Marine Fuel Emissions to Adversely Affect Diesel-based Marine Propulsion
Diesel is the preferred fuel for marine transport. Its price is directly proportional to the price of crude oil. Volatility in prices of crude oil has resulted in a switch from diesel to other propulsion systems. The relatively low price of natural gas and LNG compared to diesel in North America and Europe has attracted investments in LNG infrastructure in these regions. This can also affect diesel-electric based hybrid marine vessels. Hybrid and full electric power based new/converted marine fleet is likely to expand at a rapid pace during the forecast period.
Developments & Innovations in Product and Technology
In November 2018, Wartsila Corporation expanded its Smart Marine portfolio with the addition of high-speed, compact engine that is ideal for hybrid installation. In December 2018, Rolls-Royce Plc. received approval in principle (AIP) for hybrid tug propulsion system. The AIP was granted following an evaluation of the world’s first hybrid tug, a unique vessel designed by Jensen Maritime and will be delivered to Baydelta Maritime LLC in February 2019. In July 2018, Cummins Inc. acquired EDI, a provider of electric and hybrid powertrains. Efficient Drivetrains, Inc. (EDI) designs and produces hybrid and fully-electric power solutions for the commercial market. In June 2018, AB Volvo Penta announced a hybrid concept for its IPS propulsion. The hybrid system includes Volvo diesels, electric motor drive, and an energy storage system (lithium batteries) that is designed to produce zero-emission propulsion. In December 2017, Caterpillar Inc. collaborated with Sanmar Shipyards in Istanbul, Turkey, to build an innovative tugboat with a hydraulic hybrid propulsion system. The company’s Cat Marine Advanced Variable Drive (AVD) is utilized for hydraulic hybrid propulsion system. In November 2017, Caterpillar Inc. announced it had entered into a contract to supply an integrated hybrid propulsion solution on two new vessels for Harbor Docking and Towing based in Houston, Texas. The two new vessels will be designed and built by Washburn & Doughty in East Boothbay, Maine, the U.S.
In Terms of Demand, Hybrid and Full Electric Marine Propulsion Market in Asia Pacific and Europe to Expand at Fast Pace
Currently, Europe and Asia Pacific are the key regions of the hybrid and full electric marine propulsion systems market. Highly environment-conscious Europe and North America are projected to lead the global hybrid and full electric marine propulsion market in the near future. On the other hand, the hybrid and full electric marine hybrid propulsion systems market in Asia Pacific is dominated by ASEAN. Numerous attractive technologically advanced models are expected to be introduced across the globe in the near future. The hybrid and full electric marine propulsion market is projected to witness a large number of collaborations between vessel operators and technology developers in the next few years.
Highly Competitive Market with Dominance of Top Players
The global hybrid and full electric marine propulsion market is highly competitive. Leading players dominate the market. Key players operating in the hybrid and full electric marine propulsion market are Cummins Inc., Caterpillar Inc., AB Volvo Penta, BAE Systems, Wärtsilä Corporation, Rolls Royce Plc., Niigata Power Systems Co., Ltd., Fairbanks Morse Engine, Masson-Marine S.A.S., GE, STEYR MOTORS GmbH, MAN Diesel & Turbo SE, and Torqeedo GmbH.
Hybrid and Full Electric Marine Propulsion Market - Overview
Marine propulsion is a mechanism or system used to generate thrust to move 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. Hybrid systems, such as diesel-electric marine propulsion systems, are used in almost all types of vessels such as tugboats, ferries, Yachts, defense vessels, and recreational vessels. The engine is directly connected to the generator in a full electric marine propulsion system. Full electric marine propulsion enhances the overall efficiency of the vessel. It also reduces the carbon footprint. Full electric marine propulsion system consists of a series of motors and generators. Electric power is transmitted from the engine to the propeller shaft through the motor controller and electric motor.
Implementation of stringent regulations related to minimization of harmful carbon emissions is propelling the demand for fuel efficient propulsion systems such as hybrid and full electric marine propulsion systems. Increase in seaborne trade has resulted in spillage of marine fuel in the marine ecosystem. Therefore, governments of several countries are funding and supporting development and adoption of the latest technologies in marine propulsion systems.
Several firms are actively developing fuel-efficient marine propulsion systems. Rise in demand for small- and mid-size vessels with fuel-efficient propulsion systems used in inland waterways is expected to drive the global hybrid and full electric marine propulsion market during the forecast period. Developed as well as developing countries are investing significantly in the defense sector. Demand for hybrid and full electric marine propulsion systems in Asia Pacific is gaining momentum due to the rise in seaborne trade, increase in manufacture of new vessels, and rise in upgrade of existing vessels into hybrid or full electric propulsion ones.
This report analyzes and forecasts the hybrid and full electric marine propulsion market at the global, regional, and country level. The market has been forecast based on revenue (US$ Mn) and volume (units) from 2018 to 2026, considering 2017 as the base year. The study includes drivers and restraints of the global hybrid and full electric marine propulsion market. It also covers impact of these drivers and restraints on demand for marine propulsion during the forecast period. The report also highlights opportunities in the hybrid and full electric marine propulsion market at the global and regional level.
The report includes detailed value chain analysis, which provides a comprehensive view of the global hybrid and full electric marine propulsion market. Porter’s Five Forces model for the hybrid and full electric marine propulsion market has also been included to help understand the competitive landscape. The study encompasses market attractiveness analysis, wherein propulsion type, vessel, power rating, RPM, and region/country are benchmarked based on their market size, growth rate, and general attractiveness.
The study provides a decisive view of the global hybrid and full electric marine propulsion market by segmenting it in terms of propulsion type, vessel, power rating, RPM, and region. In terms of propulsion type, the hybrid and full electric marine propulsion market has been classified into hybrid vessel and full electric vessel. Based on vessel, the market has been divided into tugboats & OSVs, ferries, defense vessels, yachts, cruise ships, and others (fishing vessels, water sports, underwater vehicles (AUV), and workboats. In terms of power rating, the market has been segregated into up to 1 MW, 1.1-2 MW, 2.1-3.5 MW, and above 3.5 MW. Based on RPM, the market has been segregated into 0-1,000 RPM, 1,001-2,500 RPM, and above 2,500 RPM. These segments have been analyzed based on present and future trends. Regional segmentation includes current and forecast demand for marine propulsion in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
The report provides the actual size of the hybrid and full electric marine propulsion market for 2017 and estimated size from 2018 to 2026. The global hybrid and full electric marine propulsion market has been provided in terms of revenue. Market numbers have been estimated based on propulsion type, vessel, power rating, and RPM of the hybrid and full electric marine propulsion market. Market revenue and volume have been provided in terms of global, regional, and country level markets.
The report comprises profiles of major companies operating in the global hybrid and full electric marine propulsion market. Key players operating in the hybrid and full electric marine propulsion market include Cummins Inc., Caterpillar Inc., AB Volvo Penta, BAE Systems, Wärtsilä Corporation, Rolls Royce Plc., Niigata Power Systems Co., Ltd., Fairbanks Morse Engine, Masson-Marine S.A.S., GE, STEYR MOTORS GmbH, MAN Diesel & Turbo SE, and Torqeedo GmbH. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.
- Utilization of battery pack in ferries is more than that in other vessel types and is expected to increase during the forecast period
- European countries are focusing more on full electric marine vessels. At the global level, the hybrid and full electric marine propulsion market is expected to expand at a faster pace than the hybrid segment.
- Currently, Asia Pacific and Europe are leading regions in terms of installation of battery packs on marine vessels. The regions constitute more than 75% share of the global market. The trend is expected to continue during the forecast period.
- The hybrid and full electric marine hybrid propulsion market in Asia Pacific is expected to expand at a rapid pace in the near future
The global hybrid and full electric marine propulsion market has been segmented as follows: