China Marine Hybrid Propulsion Market Size, Share & COVID-19 Impact Analysis, By Operation Type (Parallel Hybrid Propulsion System and Serial Hybrid Propulsion System), By Component (IC Engine, Generator, Power Management System, Battery, Gear Box, and Others), By Ship Type (Container Ship, Passenger Ship, Fishing Vessel, Yacht, Tanker, and Others), By Installation (Linefit and Retrofit), and Regional Forecast, 2023-2030

The China marine hybrid propulsion market size is projected to grow at a CAGR of 14.6% during the forecast period.

China has the world’s second largest fleet of commercial shipping vessels. Furthermore, China is a leading manufacturer of marine equipment, producing 96% of the world's shipping containers, 80% of the world's ship-to-shore cranes and receiving 48% of the world's shipbuilding orders in 2020. More than 80% of China's overseas port terminals belong to the 'Big 3' terminal operators: China Ocean Shipping Company (COSCO), China Merchants Group (CMG), and CK Hutchison Holdings. Due to such factors, there is a growing opportunity for the marine hybrid propulsion system market in China, and these are driving the growth of the market.

LATEST TRENDS

Increase in Environmental Laws for Reduction in Marine Pollution to Boost Market Trend

With the increase in marine pollution, the government is focused on taking proactive steps to revise environmental regulations. China accords great importance to the protection of the marine environment and has developed the rule of law of marine environmental governance in shipping for over 40 years, including legislative, law enforcement, and judicial efforts. The regulatory law was passed in 1982 and has been revised four times, in 1999, 2013, 2016, and 2017. The latest draft for regulation was introduced in December 2022 and focused on steps to reduce carbon emissions from ships. Furthermore, according to the International Council on Clean Transportation, in 2019, China's domestic ships emitted about 45 million tons of CO2, or about 4.5% of the total CO2 emissions of China's transport sector. Additional guidelines state that CO2 emissions from China's domestic coastal shipping will be more than tripled to over 162 million tons by 2060. Owing to this, the strict regulatory law passed by the government is expected to reduce carbon emissions and aid the China marine hybrid propulsion market growth.

DRIVING FACTORS

Increase in Demand for Implementation of Marine Hybrid Propulsion System to Boost the Market

Growing climate awareness is creating a new demand for greener solutions for power systems, sources, and propulsion for different modes of transport. Environmental concerns, financial incentives, and support schemes are the three factors behind efforts to reduce emissions and fuel consumption in all transport sectors, including the shipping industry. In China, there is an increased demand for the implementation of marine hybrid propulsion system. In December 2022, Wärtsilä will supply hybrid propulsion systems for four new heavy lift vessels under construction at Wuhu Shipyard in China.

RESTRAINING FACTORS

Lack of Technical Expertise in the Region to Hamper Market Growth 

Hybrid propulsion systems are complex technologies that require specialized knowledge and skills to install, maintain, and operate. There are several factors contributing to the lack of technical expertise in China for marine hybrid propulsion systems. Compared to a traditional diesel engine, hybrid propulsion systems are newer technologies and have not been widely adopted. Another factor is the specialized knowledge required to design, install, and maintain the hybrid propulsion system. The complexity of the technology means that there are relatively few experts in this field. Such major factors are anticipated to hamper the market growth during the forecast period.

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In terms of marine fleet ownership, China holds the first place across the globe. Due to the existing marine fleet, China becomes potential market for these systems.

KEY INDUSTRY PLAYERS

China is a leading manufacturer of marine equipment, producing 96% of the world's shipping containers, 80% of the world's ship-to-shore cranes, and receiving 48% of the world's shipbuilding orders in 2020.

In terms of the competitive landscape, China Shipbuilding Industry Company Limited, Cosco Shipyard Group Co., Ltd., and Dalina Shipbuilding Industry Co., Ltd. are the key OEMs in the China marine hybrid propulsion market share due to their strong R&D investments and focus on the increase in technological development.

LIST OF KEY COMPANIES PROFILED:

• China Shipbuilding Industry Company Limited (China)


• Dalina Shipbuilding Industry Co., Ltd. (China)


• Jiangnan Shipyard Co., Ltd. (China)


• Fujian Shipbuilding Industry Group Company Limited (China)


• General Electric Company (U.S.)


• Nidec Industrial Solutions (Italy)


• MAN Energy Solutions (Germany)


• Siemens (Germany)


• Mitsubishi Heavy Industries (Japan)

KEY INDUSTRY DEVELOPMENTS: 

• December 2022 – Wärtsilä supplied hybrid propulsion systems for four new heavy lift vessels under construction at Wuhu Shipyard in China. This makes it one of the first vessels ready to operate on clean-burning, sulfur-free methanol to replace conventional fossil marine fuels. It will also be the first methanol powered vessel to use variable speed main engines in a hybrid installation.


• June 2022 – Wärtsilä delivered Stena RoRo's new hybrid RoPax vessels for Brittany Ferries U.K.-France service. The order was placed at China Merchants Jinling (Weihai) shipyard in May 2022 for deliveries in 2024 and 2025.


• June 2020 – The Danish company MHO-Co contracted with China's Afai Southern Shipyard to build two hybrid-powered crew transfer vessels for the Hornsea Project Two offshore wind farm.

REPORT COVERAGE

The market research report provides a detailed analysis of the market. It focuses on key aspects such as an overview of the technological advancements, market dynamics, key trend analysis such as such as mergers, partnerships, & acquisitions, and the impact of COVID-19 on the market. Besides this, the report offers insights into the market trends and highlights key industry dynamics. In addition to the above-mentioned factors, it encompasses several factors that have contributed to the growth of the market in recent years.

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