Marine Hybrid Propulsion Global Market Report 2024

Marine hybrid propulsion refers to hybrid propulsion systems designed for marine applications, combining combustion engines with battery power to optimize engine operation and reduce emissions. This technology is particularly beneficial for vessels with variable power demands, such as tug boats, fishing vessels, and others, aiming to enhance fuel efficiency.

The main propulsion types in marine hybrid propulsion are diesel-electric, parallel hybrid, serial hybrid, full electric, gas turbine, and fuel cell. Diesel-electric systems can use a single engine to drive multiple propellers or several engines to power one or more propellers. Parallel hybrid systems involve the collaboration of an engine and electric motor to generate power for propulsion, with the electric motor serving as a generator during low power demands. Serial hybrid systems utilize a single electric motor for both power generation and energy storage, optimizing fuel consumption with a constant-speed generator engine. Full electric propulsion systems use electrical power to drive propeller blades and are increasingly adopted in various vessel designs, including large cargo vessels. Gas turbine propulsion involves a continuous and internal combustion engine, commonly used in aircraft and marine warship applications. Fuel cell propulsion systems, similar to electric vehicles, convert stored hydrogen into electricity for propulsion. Different types of ships, such as anchor handling tug supply vessels, platform supply vessels, yachts, motor ferries, cruise liners, operate within various power ranges (0-300 KW, 301-500 KW, 501 KW-800 KW) and find applications in commercial, logistics, offshore drilling, naval, and other sectors.

The marine hybrid propulsion market research report is one of a series of new reports that provides marine hybrid propulsion market statistics, including marine hybrid propulsion industry global market size, regional shares, competitors with a marine hybrid propulsion market share, detailed marine hybrid propulsion market segments, market trends and opportunities, and any further data you may need to thrive in the marine hybrid propulsion industry. This marine hybrid propulsion market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The marine hybrid propulsion market size has grown rapidly in recent years. It will grow from $3.95 billion in 2023 to $4.45 billion in 2024 at a compound annual growth rate (CAGR) of 12.6%. The expansion observed in the historical period can be attributed to several factors, including an increased emphasis on energy efficiency and fuel conservation, a rise in fuel prices and operating costs for marine vessels, a heightened awareness of environmental sustainability in the maritime industry, government incentives and initiatives promoting green shipping, and the overall growth of the shipping and cruise industry.

The marine hybrid propulsion market size is expected to see rapid growth in the next few years. It will grow to $7 billion in 2028 at a compound annual growth rate (CAGR) of 12.0%. The projected growth in the forecast period can be attributed to the adoption of alternative fuels and energy sources for hybrid propulsion, the integration of energy storage and battery technologies in marine systems, a focus on the electrification of propulsion systems to reduce emissions, the expansion of hybrid technology in offshore support vessels and ferries, and an emphasis on noise reduction and vibration control in marine propulsion. Noteworthy trends expected in this period include the integration of lithium-ion batteries, the development of hydrogen fuel cell technology, hybrid retrofitting for existing vessels, the implementation of dynamic positioning systems (DPS) with hybrid propulsion, and the incorporation of life cycle cost analysis and total cost of ownership (TCO) considerations.

The expansion of international trade is playing a crucial role in the growth of the marine hybrid propulsion market. Cargo vessels and ships are key components of transporting internationally traded goods, and the adoption of hybrid propulsion systems enhances the fuel efficiency of these vessels, particularly those with variable power demands. According to UNCTAD’s Global Trade Update, the value of global trade in 2021 reached a record $28.5 trillion, marking a 25% increase from 2020 and a 13% increase from 2019. Factors such as increased commodity prices, easing pandemic restrictions, and robust economic stimulus packages contributed to this positive trend in international trade. Consequently, the upswing in international trade activities leads to a higher demand for cargo vessels and ships, thereby propelling the marine hybrid propulsion market.

The upward trajectory of fuel prices is anticipated to further drive the growth of the marine hybrid propulsion market. As fuel costs escalate, the appeal of marine hybrid propulsion systems, designed for improved fuel efficiency and reduced consumption of expensive marine fuels, becomes more pronounced for shipowners and operators. For instance, between January and June 2022, regular motor gasoline prices witnessed a 49% increase, while diesel fuel prices rose by 55%, as reported by the United States Department of Transportation. This surge in fuel prices is a significant factor contributing to the growth of the marine hybrid propulsion market.

Major players in the marine hybrid propulsion market are actively developing innovative products to cater to a broader customer base, boost sales, and increase revenue. One notable development is the introduction of zero-emission marine propulsion systems, which eliminate direct greenhouse gas emissions and air pollutants. In November 2021, BAE Systems Plc launched the HybriGen Power and Propulsion system, distinguished by its adaptability to help operators achieve zero emissions. Leveraging 25 years of experience in electric propulsion systems, this system enhances electrical efficiency, extends vessel range, increases propulsion power, and simplifies installation. The modular accessory power system (MAPS) and modular power control system (MPCS) enable a customizable and scalable solution suitable for various vessels.

The primary trend in the marine hybrid propulsion market involves the introduction of marine hybrid propulsion engines by major companies to cater to diverse customer needs and bolster revenue. Cummins Inc., a prominent provider of power generation products, launched the B4.5 marine generator set and propulsion engine in March 2022. Complying with IMO II, ST V, and ECD 2 regulations without additional after-treatment, this compact and powerful engine spans a horsepower range of 102 to 250. The B4.5 addresses both commercial and recreational propulsion needs, derived from a proven industrial engine and incorporating reliable marine-specific components.

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 include BAE Systems PLC, Schottel GmbH, MAN Energy Solutions SE, Siemens AG, ABB Ltd., General Electric Company, Steyr Motors GmbH, Mitsubishi Heavy Industries Ltd., Torqeedo GmbH, Wartsila Corporation, Yanmar Co. Ltd., Cummins Inc., Volvo Penta AB, Beta Marine Limited, Oceanvolt Oy, TRANSFLUID Maschinenbau GmbH, Nanni Industries SAS, Caterpillar Inc., Nidec Industrial Solutions, Rolls-Royce PLC, Nigata Power Systems Co. Ltd., EnPro Industries Inc., Masson-Marine S.A.S, Hyundai Heavy Industries Co. Ltd., IHI Power Systems Co. Ltd., Aspin Kemp & Associates Inc., Hybrid Marine Ltd., Kongsberg Maritime AS., L3Harris Technologies Inc., MAN Diesel & Turbo SE, Northern Lights Inc., Praxis Automation Technology B.V., Thordon Bearings Inc.

Europe was the largest region in the marine hybrid propulsion market share in 2023. The regions covered in the global marine hybrid propulsion market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the marine hybrid propulsion market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

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.


This product will be delivered within 3-5 business days.