Marine Hybrid Propulsion Market Report 2026

The marine hybrid propulsion market size has grown rapidly in recent years. It will grow from $4.88 billion in 2025 to $5.45 billion in 2026 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to emission regulations, fuel cost volatility, adoption of diesel-electric systems, demand for operational efficiency, pilot hybrid vessel projects.

The marine hybrid propulsion market size is expected to see rapid growth in the next few years. It will grow to $8.41 billion in 2030 at a compound annual growth rate (CAGR) of 11.4%. The growth in the forecast period can be attributed to decarbonization targets, battery technology advancements, green shipping incentives, demand for autonomous vessels, smart energy management. Major trends in the forecast period include growing adoption of hybrid marine systems, integration of battery energy storage, demand for emission reduction solutions, expansion of electric propulsion, growth in smart vessel design.

Rising fuel prices are expected to drive the growth of the marine hybrid propulsion market in the coming years. Fuel price refers to the cost paid by individuals or businesses for fuels such as gasoline, diesel, natural gas, or other energy sources used to power vehicles, machinery, or heating systems. Marine hybrid propulsion systems are designed to be more fuel-efficient, reducing the consumption of expensive marine fuels. As fuel costs increase, the potential savings make these systems more attractive to shipowners and operators. For example, in February 2025, the Bureau of Transportation Statistics, a US-based federal agency under the Department of Transportation, reported that motor gasoline prices for end users in the Rocky Mountain region of North America were $2.9 per gallon in January 2025, compared with $2.74 per gallon in January 2024, marking a 6% year-over-year increase. Therefore, rising fuel prices are boosting demand for marine hybrid propulsion systems.

Leading companies in the marine hybrid propulsion market are developing products such as hybrid electric propulsion systems, which allow vessels to operate using both battery-powered electric motors and diesel generators. These systems enable precise maneuvering in shallow or congested waters while maintaining flexibility for longer routes. Hybrid electric propulsion combines conventional engines with electric motors and batteries, allowing the system to switch between or combine electric and diesel power depending on operational needs. For instance, in December 2024, Derecktor Shipyards, Inc., a US-based shipbuilder specializing in advanced passenger vessels, launched the Juliette Gordon Low II and Susie King Taylor II - the first U.S.-built hybrid-electric passenger ferries with waterjet propulsion. These vessels integrate dual marine jet power (MJP) ultraJet 305 waterjets with a serial hybrid-electric system combining Cummins 6.7 L marine diesel generators, a 308 kWh lithium-ion battery pack, and BAE Systems HybriGen electric motors, providing flexible and efficient power management. The ferries enable fully electric or hybrid diesel-assisted operation, reducing fuel consumption while enhancing maneuverability and smooth operation in shallow and congested waterways.

In September 2023, Brunswick Corporation, a leading US-based marine products manufacturer, acquired Fliteboard to tap into the growing electric-foiling surfboard market. Fliteboard, recognized for its fusion of advanced hydrofoils and electric propulsion for aquatic experiences, is expected to operate as a distinct business entity under Mercury Marine, a subsidiary of Brunswick Corporation. This acquisition positions Brunswick to explore synergies across technology, manufacturing, commercial aspects, and consumer engagement within its existing portfolio, leveraging Fliteboard's expertise in marine hybrid propulsion systems.

Major companies operating in the marine hybrid propulsion market are Schottel GmbH, MAN Energy Solutions SE, Siemens AG, ABB Ltd., General Electric Company, Mitsubishi Heavy Industries Ltd., Torqeedo GmbH, Wärtsilä Corporation, Yanmar Co. Ltd., Cummins Inc., Volvo Penta AB, Oceanvolt Oy, TRANSFLUID Maschinenbau GmbH, Caterpillar Inc., Rolls-Royce Plc, Hyundai Heavy Industries Co. Ltd., IHI Power Systems Co. Ltd., Aspin Kemp & Associates Inc., Hybrid Marine Ltd., Kongsberg Maritime AS, Praxis Automation Technology B.V.

Europe was the largest region in the marine hybrid propulsion market share in 2025. The regions covered in the marine hybrid propulsion market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the marine hybrid propulsion market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The marine hybrid propulsion market consists of sales of electric motor, energy storage device, battery system, electric machine, power electronics. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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