Marine Hybrid and Full Electric Propulsion Market Report 2024

The marine hybrid and full electric propulsion market size has grown strongly in recent years. It will grow from $4.07 billion in 2023 to $4.56 billion in 2024 at a compound annual growth rate (CAGR) of 12.2%. The growth during the historical period can be attributed to increasing global trade, rising fuel costs, and the economic advantages of reduced fuel consumption in hybrid and electric vessels. Additionally, growing consumer awareness and demand for environmentally friendly products and services, as well as environmental regulations and sustainability goals, have driven the demand for green shipping.

The marine hybrid and full electric propulsion market size is expected to see strong growth in the next few years. It will grow to $7.31 billion in 2028 at a compound annual growth rate (CAGR) of 12.5%. The growth in the forecast period is expected to be driven by a rise in maritime trade, increased local manufacturing, industrialization, and globalization, all of which have boosted sea trade. An increase in passenger numbers and greater awareness about air pollution will also contribute to this growth. Key trends for the forecast period include advancements in battery technology and renewable energy, innovations in automatic pitch adjustment systems for propellers, technological advancements, the development of autonomous and unmanned vessels, and innovations in propeller systems.

The growing popularity of maritime trade is anticipated to drive the expansion of the marine hybrid and full electric propulsion market. Maritime trade involves the exchange of goods and commodities via sea routes between different regions or countries. This increase is attributed to rising fuel prices, the expansion and modernization of ports, and the improvement of shipping lanes. Marine hybrid and electric propulsion systems are more fuel-efficient and emit fewer pollutants compared to traditional diesel-powered vessels, allowing for more cost-effective and environmentally friendly operations. For instance, according to the UN Trade Development, a Switzerland-based intergovernmental organization, maritime trade is expected to grow by 2.4% in 2023 and over 2% annually from 2024 to 2028. Consequently, the increasing popularity of maritime trade is driving the growth of the marine parallel hybrid propulsion market.

Leading companies in the marine hybrid and full electric propulsion market are focusing on creating innovative products, such as hybrid diesel-electric boat propulsion systems, to enhance fuel efficiency, reduce emissions, and meet strict environmental regulations. These systems combine a traditional diesel engine with an electric motor and batteries to power a vessel, offering benefits such as lower fuel consumption, reduced emissions, quieter operation, and greater operational flexibility compared to traditional diesel-only systems. For example, in March 2022, Elcome International, a UAE-based maritime company, launched a new hybrid diesel-electric boat propulsion system. This system uses smaller, more efficient diesel engines, which decreases fuel consumption and maintenance costs without compromising performance. It also allows operation in environmentally sensitive areas and improves crew comfort by eliminating fumes and noise in electric mode.

In January 2024, Yamaha Motor, a Japan-based automotive company, completed the acquisition of Torqeedo for an undisclosed sum. This strategic move enhances Yamaha Motor's capabilities in electric propulsion within its Marine CASE Strategy, aimed at achieving carbon neutrality in the marine industry. Torqeedo, headquartered in Germany, specializes in manufacturing electric marine propulsion systems, motors, batteries, and related technologies.

Major companies operating in the marine hybrid and full electric propulsion market are Siemens AG, Caterpillar Inc., AB Volvo, ZF Friedrichshafen AG, Cummins Inc., BAE Systems PLC, Rolls-Royce plc, Danfoss, Hyundai Heavy Industries Co. Ltd., Wärtsilä Corporation, WEG S.A., MAN Diesel & Turbo SE, Kongsberg Gruppen, Schottel GmbH, General Electric Company, Heesen Yachts, Steyr Motors GmbH, Mitsubishi Heavy Industries Ltd., Aspin Kemp and Associates Inc., IHI Power Systems Co. Ltd., Beta Marine Ltd., Masson Marine, Korindo Energy.

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

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

Marine hybrid and full electric propulsion systems are technologies used to power ships and boats by combining battery power with alternative fuels such as diesel or liquefied natural gas (LNG). These systems incorporate electric motors alongside traditional internal combustion engines or turbines. Marine hybrid propulsion combines conventional and electric propulsion systems to enhance efficiency and flexibility, while full electric propulsion offers a completely emission-free and quieter option for maritime operations.

The primary types of marine hybrid and full electric propulsion include hybrid propulsion and full electric propulsion. Hybrid propulsion systems utilize both internal combustion engines (ICE) and electric motors to maximize fuel efficiency, reduce emissions, and improve overall performance. These systems are used in various ship types, such as naval ships, yachts, platform supply vessels, cruise liners, and more, and are applied in different contexts, including tugboats, ferries, defense vessels, and others.

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

The marine hybrid and full electric propulsion market consists of sales of design and integration, propulsion components, and full electric propulsion. 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.