Technavio report: Hybrid electric marine propulsion engine market to grow by $887.8 million from 2024-2028
Stringent emission regulations is driving market growth, with a trend towards increasing popularity of hybrid turbochargers for marine vessels
The global hybrid electric marine propulsion engine market size is estimated to grow by US$887.8 million from 2024-2028. The market is estimated to grow at a CAGR of 4.02% during the forecast period, Technavio report shows. 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.
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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