Marine Hybrid & Full Electric Propulsion Market
Marine Hybrid & Full Electric Propulsion Market (Propulsion: Hybrid Propulsion and Full Electric Propulsion; End-use: Tugboats, Offshore Support Vehicles, Ferries, Defense Vessels, Yachts, Cruise Ships, and Others; Power Rating: Up to 1 MW, 1.1 MW - 2 MW, 2.1 MW - 3.5 MW, and Above 3.5 MW; RPM: 0 RPM - 1,000 RPM, 1,001 RPM - 2,500 RPM, and Above 2,500 RPM; and Fuel: Hydrogen, LNG, Diesel, and Others) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020 - 2030
- Energy & Natural Resources
- 390 Pages
Short-sea Shipping and Local Manufacturing to Generate Revenue amidst COVID-19 Pandemic
Negative ramifications of the coronavirus (COVID-19) pandemic are being experienced in the marine industry. Hence, organizers of the SMM international maritime trade fair remotely conducted their event, which has now been postponed to February 2021. Thus, shipowners, suppliers, and analysts in the marine hybrid & full electric propulsion market are on the pry to attend webinars and online trade events to adopt strategies that help to create revenue generation opportunities.
Companies in the marine hybrid & full electric propulsion market has been subject to issues such as climate change, the digitization challenge, and is anticipated to further deteriorate due to the COVID-19 outbreak. As such, short-sea shipping and gradual increase in local manufacturing for countries where the virus is subsiding, shows positive growth for hybrid propulsion system manufacturers.
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Parallel Hybrid Systems: A Novel Introduction in E-propulsion Sector
Technology game changers such as brushless permanent magnet electric motors and serial hybrid systems are bringing about a significant change in the marine hybrid & full electric propulsion market. Magnet electric motors are built with the lithium ion battery technology, which is a novel introduction in the marine electric propulsion sector. On the other hand, parallel hybrid systems are gaining more popularity as compared to serial hybrid systems, owing to the former’s advantages of a free-spinning propeller. Apart from megawatt systems, companies in the marine hybrid & full electric propulsion market are increasing their production capabilities to manufacture pre-packed kilowatt systems that boat builders can drop into their engine rooms.
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Full electric propulsion system manufacturers are collaborating with battery makers to find ways of efficiently discharging energy in e-propulsion systems. Companies are increasing their production capabilities to develop hybrid propulsion systems capable of operating in variable speeds.
Hybrid Marine Propulsion Systems Help Conserve Environmental Resources
Large ships have the capacity to release emissions of several thousand cars, along with harmful carcinogenic particles. This issue has led to the introduction of hybrid marine propulsion systems. Marine hybrid & full electric propulsion systems are gaining popularity, owing to its advantages of zero-emission shipping. These systems are projected to represent a business of US$ 7.8 Bn for the marine hybrid & full electric propulsion market by the end of 2030. Thus, manufacturers are increasing their R&D muscle to develop systems that focus on reducing environmental footprint and also deliver high performance in shipping activities.
Managing director Massimo Labruna of AS Labruna-a manufacturer of marine hybrid & full electric propulsion systems and power generators, states that he is a firm believer that shippers must adopt hybrid marine propulsion systems in order to conserve the environmental resources. Thus, companies in the marine hybrid & full electric propulsion market have an upper hand for fruitful business opportunities during the assessment period.
New Propeller Systems Leverage Marine Hybrid & Full Electric Propulsion Technology
Self-sufficient ocean cruisers are gaining energy boost with the electric hybrid marine technology. For instance, Energy Observer— an ocean cruiser that works on fuel cell propulsion, completed its first transatlantic passage by processing its own hydrogen with the help of solar power. This is evident since companies in the marine hybrid & full electric propulsion market are investing in technologies that accommodate alternate fuel solutions such as hydrogen, LNG (Liquefied Natural Gas), and biofuel.
The marine hybrid & full electric propulsion technology is being leveraged with the integration of new propellers in vessels. For instance, Bruntons Propellers Ltd.- a designer and manufacturer of propellers for vessels, has been investing in R&D for innovating in automatic pitch adjustment systems for propellers. Thus, companies in the marine hybrid & full electric propulsion market are benefitting with the introduction of new propeller systems in vessels that support the performance involving constant torque delivered by the electric drive.
Fuel Efficiency Important for Cruise Ships Charting Expeditions in Polar Regions
Companies in the marine hybrid & full electric propulsion market are bolstering their credibility credentials by complying with the carbon reduction strategy set by the International Maritime Organization (IMO). Norwegian technology enterprise Kongsberg Maritime is developing hybrid propulsion systems that offer performance efficiencies and abides by the IMO’s carbon reduction strategy in a range of ship types. Such positive developments are contributing toward the striking CAGR of ~9% of the marine hybrid & full electric propulsion market during the forecast period.
Manufacturers are increasing their focus in adventure cruise ships to tap into incremental opportunities. Portuguese cruise companies are taking keen interest in developing ships made with marine hybrid & full electric propulsion systems and are able to withstand harsh weather conditions in polar regions. Offering fuel efficiency for vessel owners has become a key focus point for propulsion system manufacturers.
Low Cost of Ownership Offset Disadvantages of Hybrid Propulsion Systems
The marine hybrid & full electric propulsion market is anticipated to reach a production of ~1,000 units by the end of 2030. This propulsion technology is gaining attention for its green movement against controlling emissions. However, there is a lack of energy independence in marine hybrid & full electric propulsion systems, which poses as a restraint for its mass adoption in vessels. Moreover, the marine industry is small and is slow to adapt greener technologies such as hybrid & full electric propulsion systems. As such, low cost of ownership for marine hybrid & full electric propulsion systems is anticipated to offset the disadvantages of these systems.
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Uncertain sea trade has become a major concern for companies in the marine hybrid & full electric propulsion market amidst the COVID-19 outbreak. Manufacturers are maximizing energy efficiency in marine hybrid systems with the help of dynamic positioning technology that eliminates the need to use anchors to halt vessels. Rapidly growing cruise ship sector is creating incremental opportunities for companies. However, complexity of boats acts as a major hurdle for innovations in marine propulsion systems. Hence, companies should direct more than 40% of their profit, as R&D investment to design electric propulsion systems that currently account for the lion’s share of the market.
Marine Hybrid & Full Electric Propulsion Market: Overview
- Marine propulsion is used to generate thrust in order to propel a boat and ship across water. The arrangement of the entire propulsion system relies on the type of operation, system of transport, and size of the vessel.
- Diesel marine propulsion system is common type of marine propulsion system. However, almost all types of vessels such as recreational vessels, defense vessels, yachts, ferries, and tugboats employ hybrid systems to move. Diesel-electric marine propulsion systems are increasingly used in marine vessels. Extensive usage of the system is expected to boost the global hybrid & full electric marine propulsion market.
- The generator is directly linked with the engine in the full electric marine propulsion system. This type of marine propulsion system is capable of enhancing the efficiency of the vessel. Additionally, it is environment friendly, as it reduces the overall carbon footprint in the environment. The environment-friendly factor of the system is likely to propel the global hybrid & full electric marine propulsion market in the near future.
- Demand for marine hybrid & full electric propulsion is expected to increase in the near future, due to various factors such as stringent regulations of governments to lower greenhouse gases and carbon emission in and around coastal areas; fuel efficiency; and long-term cost effectiveness
Increase in Adoption of Hybrid Propulsion Systems in Retrofit Ships to Drive Global Market
- Adoption of hybrid propulsion systems in retrofit ships has been increasing significantly since the past few years. This can be ascribed to various benefits provided by hybrid propulsion systems.
- Hybrid propulsion provides high variation in operation modes. This helps address flexible power demand, resulting in an increase in the overall operational capability of the engine. A propeller can be driven by a diesel engine or an electric motor, which provides a highly reliable propulsion system. Reduced engine operation leads to optimum use of the main engine and auxiliary gensets. The main engine and auxiliary gensets are used to provide the required amount of power, with optimal load and minimal specific fuel oil consumption. This reduces the consumption of fuel, leading to a reduction in emission of CO2, SOx, and NOx.
- Vessel operators are using sources of renewable energy, such as solar and wind energy, while at dock or in sea. The energy is stored in batteries, which can be utilized during peak hours in marine propulsion systems. This decreases the usage of fossil fuel. Thus, increase in adoption of marine hybrid & full electric propulsion system in retrofit ships is estimated to boost the global marine hybrid & full electric propulsion market in the near future.
Significant Rise in Sea Trade to Boost Marine Hybrid & Full Electric Propulsion Market
- Significant increase in industrialization and globalization has boosted sea trade. It is highly effective and is low cost of transportation. Therefore, governments of various countries are promoting exports by developing world-class infrastructure in port areas.
- More than 53,000 merchant ships are trading internationally, transporting various types of cargo. The number of bulk carriers stood at around 11,000 in 2019. The number of crude oil tankers stood at about 7,400 units, while the number of container ships in the world stood at about 5,000 units in 2019. These numbers are expected to rise in the near future due to increase in sea trade.
- Global seaborne trade stood at more than 20,000 million tons, in terms of volume, in 2019. Asia Pacific is the leading region in terms of sea trade. More than 11 billion tons of goods were transported in the region in 2019. This trend is anticipated to continue over the next few years. This, in turn, is projected to drive the global marine hybrid & full electric propulsion market in the near future.
High Initial Investments and Inadequate Infrastructure to Hamper Marine Hybrid & Full Electric Propulsion Market
- Installation of necessary equipment suitable for hybrid or full electrical propulsion entails additional costs in retrofit ships. Furthermore, the cost of batteries required to store the electricity and set it up for the propulsion system is high. For instance, the battery system costs seven times more than that of a normal diesel engine. These batteries require additional space, which can increase the dead weight of the ship. This, in turn, is hampering the marine hybrid & full electric propulsion market.
- Limited number of charging cycles of battery is also a key factor that discourages the use of batteries in marine vessels. Limited number of charging would lead to replacement of the battery pack, as the cost of these batteries is high. This would hinder the operational cost of shipping companies. This, in turn, is projected to adversely affect the marine hybrid & full electric propulsion market.
- Limited or no charging infrastructure exists for these batteries in several developing and underdeveloped countries. Port authorities as well as ship owners require additional investments for charging stations. Developed countries such as the U.S., and Canada, and some countries in Europe possess onshore marine power from where ships can charge batteries that are installed for marine hybrid & full electric propulsion.
- Thus, high initial investments and inadequate infrastructure for charging are projected to hamper the global marine hybrid & full electric propulsion market during the forecast period
Innovation in Propulsion Systems to Provide Opportunities for Marine Hybrid & Full Electric Propulsion Market
- Increase in awareness about air pollution and its effects on the environment as well as human beings have compelled companies to seek more environment-friendly and cost-effective solutions for the global shipping industry
- Currently, companies are investing significantly in alternate solutions such as LNG, hydrogen, biofuel, and electric propulsion. For instance:
- In December 2019, Kawasaki Heavy Industries Ltd. introduced the world’s first liquefied hydrogen carrier in Japan. This ship uses hydrogen, which can be produced using water and electricity, and subsequently stored and shipped and re-used to generate power. However, hydrogen is volatile and flammable.
- In terms of full electric vessels, currently, companies are focusing on improving battery capacities and reducing battery size. This can be beneficial for the marine industry, as the dead weight of batteries would reduce. Companies are also emphasizing on increasing the number of charging cycles of batteries. This would be also beneficial for the marine industry, as the cost of batteries is high and frequent replacement increases operational costs.
- Thus, innovation in propulsion systems is expected to offer lucrative opportunities to the global marine hybrid & full electric propulsion market during the forecast period
Recent Developments, Expansions, Acquisitions, and New Contracts in Marine Hybrid & Full Electric Propulsion Market
- 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 to support 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. These comprise engine, exhaust after-treatment system, radiator and cooling system, and auxiliaries such as mounting feet, hoses, and an air cleaners.
- In December 2019, AB Volvo announced that it had contributed to a project with shipyard Concordia Damen and operator Sendo Shipping to deliver the Sendo Liner, the first battery-hybrid inland barge. The Sendo Liner is a 110m inland container ship operating routes between the North of the Netherlands and the Port of Rotterdam.
Asia Pacific Highly Lucrative Region of Global Marine Hybrid & Full Electric Propulsion Market
- Asia Pacific is projected to be a highly lucrative region of the global marine hybrid & full electric propulsion market during the forecast period. Investments in the shipping industry have increased significantly in the region over the past few years, due to rise in sea trade in countries such as China and Japan. This is expected to boost the marine hybrid & full electric propulsion market in Asia Pacific.
- North America is also a key region in terms of adoption of alternate marine power, as it helps lower greenhouse gas emissions. Countries in the region have enacted stringent rules to reduce air pollution in coastal areas. North America is estimated to be a lucrative region of the global marine hybrid & full electric propulsion market during the forecast period.
Intense Competition in Global Marine Hybrid & Full Electric Propulsion Market
- The global marine hybrid & full electric propulsion market is highly competitive. Shift in demand from conventional diesel propulsion to hybrid and full electrical in the shipping industry has prompted companies to develop new products and focus on R&D to provide more efficient systems. The marine hybrid & full electric propulsion market is dominated by international players. A few regional companies also function in the global marine hybrid & full electric propulsion market.
- Key players present in the global marine hybrid & full electric propulsion market are
- Cummins Inc.
- AB Volvo
- IHI Power Systems Co.,Ltd.
- General Electric
- BAE Systems Fairbanks Morse
- Masson Marine
- Wärtsilä Corporation
- Rolls-Royce plc
- STEYR MOTORS GmbH
- MAN Diesel & Turbo SE
- Torqeedo GmbH
Marine Hybrid & Full Electric Propulsion Market – Scope of the Report
The latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global marine hybrid & full electric propulsion market in order to accurately gauge its growth potential. The study presents detailed information about important drivers, restraints, and key trends that are creating a landscape for growth of the global marine hybrid & full electric propulsion market in order to identify opportunities for market stakeholders. The report also provides insightful information about how the global marine hybrid & full electric propulsion market would expand during the forecast period of 2020 to 2030.
The report offers intricate dynamics about different aspects of the global marine hybrid & full electric propulsion market, which aids companies operating in the market in making strategic decisions. TMR’s study also elaborates on significant changes that are anticipated to configure growth of the global marine hybrid & full electric propulsion market during the forecast period. It also includes key indicator assessment that highlights growth prospects for the global marine hybrid & full electric propulsion market and estimates statistics related to the market in terms of volume (units) and value (US$ Mn).
This study covers detailed segmentation of the global marine hybrid & full electric propulsion market, along with key information and a competition outlook. The report mentions company profiles of players that are currently dominating the global marine hybrid & full electric propulsion market, wherein various developments, expansions, and winning strategies practiced by these players have been presented in detail.
Key Questions Answered in TMR’s Report on Marine Hybrid & Full Electric Propulsion Market
The report provides detailed information about the global marine hybrid & full electric propulsion market on the basis of comprehensive research on various factors that are playing a key role in accelerating growth of the global market. Information mentioned in the report answers path-breaking questions for companies that are currently operating in the global market and are looking for innovative methods to create a unique benchmark in the market so as to help them design successful strategies and make target-driven decisions.
- Which segments of the global marine hybrid & full electric propulsion market would emerge as key revenue generators for the market during the forecast period?
- How are major market players successfully earning revenues in the global marine hybrid & full electric propulsion market?
- What would be the Y-o-Y growth trend of the global marine hybrid & full electric propulsion market between 2020 and 2030?
- What are the winning imperatives of leading players operating in the global marine hybrid & full electric propulsion market?
Research Methodology – Marine Hybrid & Full Electric Propulsion Market
The research methodology adopted by analysts for compiling the report on the global marine hybrid & full electric propulsion market is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the global marine hybrid & full electric propulsion market.
During the primary research phase, analysts have interviewed market stakeholders, investors, brand managers, vice presidents, and sales & marketing managers. Based on data obtained through interviews of genuine resources, analysts have emphasized the changing scenario of the global marine hybrid & full electric propulsion market.
For secondary research, analysts have scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global marine hybrid & full electric propulsion market.
Marine Hybrid & Full Electric Propulsion Market – Segmentation
TMR’s research study assesses the global marine hybrid & full electric propulsion market based on propulsion, end-use, power rating, RPM, fuel, and region. The report presents extensive market dynamics and progressive trends associated with different segments and how they are influencing growth prospects for the global marine hybrid & full electric propulsion market.