A fresh business and commerce study by Transparency Market Research (TMR) has detected that the shares in the global marine hybrid propulsion market are distributed among a small chunk of players and as the market is heavily dependent on technology that is not ubiquitous, the consolidated condition of the market will sustain in the near future too. While new entrants struggle to make a foray into the marine hybrid propulsion market, some of the leading vendors such as General Electric, Siemens AG, Rolls-Royce plc, Volvo Penta, BAE Systems plc, MAN Diesel & Turbo SE, Aspin Kemp & Associates, Caterpillar Inc., and SCHOTTEL Group are focused on developing efficient propulsion technologies and offer enhanced features such as emission-free operations, silent maneuvering, and low degree of fuel consumption.
In addition to product and technology development, the stockholders of this market, such as technology developers and vessel operators, are frequently indulging in collaboration activities to expand their geographical presence. One of such example can be the acquisition of Berg Propulsion by Caterpillar in 2013, which helped the company to expand its range of marine propulsion package system and strengthen its position in the market.
Marine Hybrid Propulsion Market to be worth US$6484.9 mn by 2025
The analysts of the TMR repot have projected the demand in the global marine hybrid propulsion market to proliferate at a notable CAGR of 8.9% during the forecast period of 2017 to 2025. The analysts have also forecasted the opportunities in this market to translate into a revenue of US$6484.9 mn by the end of 2025, swelling up from its evaluated worth of US$3278.0 mn in 2017.
Based on propulsion type, the market has been segmented into diesel-electric, serial hybrid, and parallel hybrid, whereas on the basis of end use, the analysts have bifurcated the market into tugboats, ferries, defense vessels, offshore support vessels (OSV’s), yacht, and cruise ships. The market has also been classified on the basis of power rating, stroke, and RPM. Geographically, the report highlights Europe as the region that is providing for the maximum demand in the global marine hybrid propulsion market, although the demand from Asia Pacific has been ascribed for an above-average CAGR of 11.0% during the forecast period of 2017 to 2025.
Increased International Trade Opening New Opportunities
In the recent past, there has been a substantial increment in International trade, which has tremendously added to the demand for modes of water transportation that are cost effective as well as efficient. Marine hybrid propulsion not only offer improved fuel efficiency but also adhere to stringent environmental regulations that a number of countries have installed owing to the growing concerns of global warming caused as a result of fossil fuel. The system utilizes the unused capacity of the main diesel engine to generate electricity and store it in batteries for later use.
In recent years, marine hybrid propulsion systems have emerged as a reliable method of clean propulsion and a number of vessel categories are utilizing it. In addition to that, increased defense budget by various emerging economies, particularly for sea-based defense and maritime security and gradual adoption of LNG over conventional marine fuels are expected to open new opportunities in the global marine hybrid propulsion market. Moreover, the ease with which these systems can be configured and installed has helped the adoption substantially.
On the other hand, volatility of crude oil prices is the most prominent restraint over the true prosperity of the global marine hybrid propulsion market. The system utilizes the unused capacity of the main diesel engine to generate electricity and store it in batteries for later use.