Europe 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

Europe is the largest region in the global marine hybrid propulsion market. The Europe marine hybrid propulsion market size is anticipated to grow at a CAGR of 12.4 % during the forecast period. The global market is anticipated to grow from USD 4.62 billion in 2022 to USD 11.59 billion by 2030.

The European shipbuilding industry is a go-ahead and highly competitive sector. It is important both economically and socially. Furthermore, the European Union is focused on the development of the shipbuilding sector in the region. In December 2020, the European Union and China signed a bilateral agreement on investments called the “Comprehensive Agreement on Investment” (CAI). The aim of the agreement is to enable EU companies to have better market access in China and increase investments for EU companies. Additionally, in June 2022, according to a report by SEA Europe, Europe's Green Deal and 'Fit-for-55' legislation will give shipyards and marine equipment manufacturers a key role in transforming the shipping sector into a zero-emission mode of transport and achieving the goals set by the European Union. Owing to such major factors, this market is anticipated to grow.

The region provides various opportunities for the market growth of marine hybrid propulsion systems.

LATEST TRENDS

Development of Energy Efficient Propulsion System is a Latest Technological Trend in the Region

Hybrid systems offer advantages over traditional gasoline and electric systems, such as reduced environmental impact, reduced fuel consumption, redundancy, and distributed propulsion. Further energy efficiency can be achieved by using part of the thermal energy of the exhaust gases. Owing to such advantages, the development of energy-efficient propulsion systems is the latest trend in the region. In October 2022, European short sea shipping company UECC received its new multi-fuel LNG battery hybrid vessel, which is a China-built vessel and got it commissioned in Europe. The company is at the forefront of the transition to greener ships and believes its efforts can serve as a model for the wider shipping industry in Europe. The three vessels are the first of their kind to combine multi-fuel LNG engines with hybrid battery solutions and intelligent energy management systems in an innovative configuration designed to reduce fuel consumption and energy efficiency. Moreover, according to the company, it has planned to reduce carbon emissions by 40% till 2030.

DRIVING FACTORS

Ease of Upgrading Marine Hybrid Propulsion Systems to Drive the Market 

The ease of upgrading depends on various factors such as the type of vessels, the age of vessels, current propulsion systems, and desired hybrid propulsion systems. There are various hybrid propulsion systems available and each of them has specific advantages and disadvantages. In October 2019, Norwegian company Eidesvik AS selected Wärtsilä to modernize its design vessel Viking Neptun. The order was placed in August 2019, and in the last few months, the company signed two similar hybrid upgrade deals.

Furthermore, the EU has also launched several initiatives to promote the adoption of sustainable and low-emission shipping such as the Green Deal and FuelEU maritime initiative. Such developments in the region are anticipated to ease the upgrade and promote marine hybrid propulsion.

RESTRAINING FACTORS 

Limited Infrastructure in the Region for Development of Marine Hybrid Propulsion System is a Major Concern for the Market Growth 

Hybrid propulsion systems rely on alternate energy sources such as electricity, hydrogen, or other fuels, which require a certain infrastructure for charging or refueling. In many cases, the infrastructure needed is not fully developed or widely available in Europe. For instance, marine charging stations for electric or hybrid vessels may be limited or unevenly distributed in ports around Europe.

Moreover, lack of infrastructure can also be a barrier to investment in hybrid propulsion systems. Vessel owners or OEMs may not invest due to the lack of infrastructure needed to support the technology. Such factors are projected to hamper the Europe marine hybrid propulsion market growth.

KEY INDUSTRY PLAYERS

In terms of the European competitive landscape, ABB Ltd. (Switzerland), BAE Systems (U.K.), Nidec Industrial Solutions (Italy), MAN Energy Solutions (Germany), and Siemens (Germany) are the key players in the European market share due to their strong product portfolio, new product launches, and increased investment in R&D.

BAE Systems provides various solutions for marine hybrid propulsion system. The services offered include HybriGen power and propulsion, HybriGen Assist, and Integrated Installation & Support.

Furthermore, in November 2022, Siemens Energy equipped the vessels with diesel-electric propulsion systems and battery storage technology. The new vessel, called Oceanographer and Discoverer, was acquired by the National Oceanic and Atmospheric Administration (NOAA).

LIST OF KEY COMPANIES PROFILED:

• ABB Ltd. (Switzerland)
• BAE Systems (U.K.)
• Nidec Industrial Solutions (Italy)
• MAN Energy Solutions (Germany)
• Siemens (Germany)
• Wärtsilä Corporation (Finland)
• Steyr Motors (Austria)

KEY INDUSTRY DEVELOPMENTS:

• July 2022: ABB won a contract from IHI Power Systems to supply a power system platform for electric tugs called Taiga. The electric tug is expected to be delivered by the end of the year and will be built at Kanagawa Shipyard.
• October 2022: MAN Energy Solutions signed a Memorandum of Understanding with Norwegian Cruise Line Holdings Ltd. This MoU is related to a project to modify a medium speed MAN 48/60 engine to make it suitable for diesel/methanol dual fuel operation.
• November 2021: BAE Systems, a leading provider of electric propulsion, launched its next generation power and propulsion system for the marine market. HybriGen power and propulsion systems are flexible solutions that help operators achieve zero emissions, improving vessel electrical efficiency and range, increasing propulsion and simplifying installation.

REPORT COVERAGE

The market research report provides qualitative and quantitative insights on the market and a comprehensive analysis of the Europe market size & growth rate for all possible segments in the market. The Europe market includes the U.K., Germany, France marine hybrid propulsion market share and others. Numerous key insights presented in the report are an overview of the number of procedures, price analysis of types of products, summary of the regulatory scenario by key countries, pipeline analysis, new product launches, key industry developments – mergers, acquisitions & partnerships, and the impact of COVID-19 on the market growth during the forecast period.

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