Marine Battery Market Size, Share & COVID-19 Impact Analysis, By Battery (Lithium-ion, Fuel Cell, Lead-Acid Battery, Nickel-Cadmium, and Sodium-based), By Capacity (Less than 100Ah, 100-250Ah, and Greater than 250 Ah), By Design (Solid-state Battery and Flow Battery), By Application (Defense and Commercial), and Regional Forecast, 2021-2028

The global marine battery market size was valued at USD 676.2 million in 2021 and is projected to grow from USD 926.44 billion in 2023 to USD 3296.81 billion by 2031 at a CAGR of 17.05% during the forecast period. The global impact of COVID-19 has been unprecedented and staggering, witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a stellar growth of 16.93% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Rising seaborne emissions, environmental hazards, particulates released from conventional fuel consumption, and climate change have pressured us to evaluate and curb these emissions and pollution. International intergovernmental bodies such as United Nations on Climate Change and International Maritime Organization (IMO) on Sulphur Dioxides Emissions have formalized regulations to curb these emissions.

The advancement in marine battery technology has increased the adoption rate of alternative propulsion and power sources. The adoption of this type of battery technology for fully electric and hybrid propulsion by commercial passenger vessels, leisure boat operators, ferry operators, and submarines has increased its operational efficiency. With the dwindling sources of lithium and geopolitics over lithium sources, the market players are pressurized to look for other power sources such as sodium-ion batteries that work on similar working principles as that of a lithium-ion marine battery. Sodium is abundantly available globally, which allows it to grow its market share in the market.

COVID-19 IMPACT

High Demand for Electric Propulsion Worldwide to Have Short-Term Impact on Market Growth

The ongoing COVID-19 pandemic has heavily impacted the marine industry, but market research has showcased moderate growth in 2020 and is anticipated to grow during the forecast period.

• With the dwindling number of new marine vessel orders from 2018 to 2019, the ongoing COVID-19 pandemic outbreak has impacted the global supply chain and the eventual global economic slowdown, which influenced the availability of commercial vessels and disruption of the supply chain. However, the anticipated rise in the requirement for marine battery technology is expected to increase during the forecast period.


• With the ongoing pandemic worldwide, there has been a significant decline in the global market growth and market players' revenue growth due to production and delivery delays. Also, it has been impacted by manufacturing shut down due to the implementation of lockdowns worldwide or limited manufacturing capacity.


• The governmental or commercial market player's budget for shipping and shipbuilding industry development has declined due to the spread of the ongoing pandemic and related infrastructure spending.

LATEST TRENDS

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Implementation of IMO (International Maritime Organization) 2020 Sulfur Regulation to Boost Market Growth

Since January 2020, International Maritime Organization (IMO) has implemented a regulation to curb the growing sulfur dioxide emissions from Marine Vessels. IMO has implemented stringent regulation in four ECAS (Emission Control Areas) such as the Baltic Sea area, the North Sea area, the North American area, and the U.S. Caribbean Sea area. In these ECAS, the market is anticipated to experience demand for alternative marine power technologies and the high adoption rate of marine battery and relevant technologies. These factors are expected to propel the marine battery market growth.

DRIVING FACTORS

Growing Maritime Trade Due to High Demand for Alternative Supply Chain to Drive Market Growth

According to a Maritime Supply Chain Optimization study, world trade is highly dependent on maritime transport. Around 90% of products are traded through sea trade routes. Seaborne trade has been highly impacted, owing to the ongoing COVID-19 pandemic, the U.S.-China trade war, and the palpable churning of geoeconomics and geopolitics. These factors are forcing governments worldwide to evaluate and reconfigure the global supply chain and implement alternative marine power and propulsion systems during 2021-2030. An alternative global supply chain is anticipated to increase the number of vessels operating worldwide and modernize the existing fleet of vessels.

Rising Maritime Tourism and Need for Better Marine Infrastructure and Connectivity to Propel Market Growth

High demand for maritime tourism and the need for better marine infrastructure and connectivity are the major factors for the growth of marine industries, which is anticipated to generate significant revenues for developing and developed countries, mainly depending upon marine and coastal tourism. Better infrastructure and connectivity are crucial factors for increasing maritime and coastal tourism. Governments worldwide optimize their seaborne economy policies to provide environment-friendly marine tourism and better connectivity to different ports. These factors are anticipated to generate market growth during 2021-2028.

RESTRAINING FACTORS

High Initial Cost and Limitation of Capacity and Range by Battery-Powered Vessels to Restrain Market Growth

Electric propulsion systems involve higher initial costs than conventional propulsion systems due to the installation of relevant storage capacity and size of the battery storage, which limits the range of the electric-propelled vessels. The battery technology has a long way to mature in the marine market due to the higher range and capacity of conventional marine fuels and propulsion systems. Also, electronic components are highly prone to failures due to corrosion which requires specialized coating and treatment and highly skilled human resources to operate. The cost factor has restricted the more widespread adoption of electric propulsion technology.

SEGMENTATION

By Battery Analysis

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Lithium-ion Segment to Lead Market During Forecast Period Owing to its Proven Capacity and Reliable Technology

Based on battery, the market is divided into lithium-ion, fuel cell, lead-acid battery, nickel-cadmium, and sodium-based.

The lead-acid battery segment is anticipated to drive the market remarkably, with the largest market share in 2020. The growth is due to the high demand for electric propulsions for numerous commercial vessels by the commercial market players and commercial marine fleet operators. Increased demand for electric propulsion and the advent of maritime tourism drive the market growth.

The lithium-ion segment will witness significant growth due to growing demand for commercial vessels with electric propulsion across regions, especially IMO 2020's four ECAS. The rise in demand for lithium-ion battery-powered vessels across the industries also yields an eco-friendly, efficient, and reliable solution for their maritime operations.

The fuel cell segment is estimated to grow significantly during the forecast period due to the marine shipbuilders' adoption of fuel cell technology in their ships, such as Hyundai Heavy Industries and Toshiba Corporation, involved in developing reliable fuel cell technology.

The sodium-based segment is anticipated to grow at a significant CAGR during the forecast period due to highly abundant sources of sodium worldwide. Still, it has limited manufacturers, which are anticipated to grow. Lithium-ion and Sodium-based (Sodium-ion) batteries were developed simultaneously, but lithium-ion batteries had more commercial utilities than sodium-based batteries. With a dwindling supply of lithium over the next few decades, battery manufacturers are adopting and advancing the sodium-based batteries that work on the same working process as lithium-ion batteries.

By Capacity Analysis

Greater than 250 Ah Segment to Lead Market Owing to High Demand for High Capacity Marine Batteries

Based on capacity, the market is divided into less than 100 Ah, 100-250 Ah, and greater than 250 Ah.

The greater than 250 Ah segment held the highest shares in 2020 due to the high demand for large-capacity batteries for electrically-propelled commercial vessels. With the advent of stringent governmental and international environmental policies on carbon and hazardous gaseous emissions, the utility of electric propulsion in marine vessels, passenger ships, and ferries increases.

The less than 100Ah segment is anticipated to be the second-largest segment during the forecast period due to leisure boats' high demand for these batteries and the high adoption rate of marine batteries due to the shift from conventional marine fuel-based propulsion. The 100-250Ah segment is anticipated to grow significantly during the forecast period due to the need for better maritime connectivity and demand for maritime passenger ships and ferries worldwide.

By Design Analysis

Flow Battery Segment to Propel Market During Forecast Period due to High Demand for Electric Propulsion for Various Marine Applications

Based on design, the market is segmented into the solid-state and flow battery.

The flow battery segment is the largest segment during the forecast period owing to the rise in utility of electric propulsion for various applications, the increase in the number of commercial vessels, and the rise in maritime tourism worldwide. Though electric propulsion involves a higher initial cost, commercial marine vessel fleet operators have emphasized the utility of electric propulsion.

The solid-state battery segment has shown a significant market growth rate. It is the fastest-growing segment during the forecast period due to high demand for its marine applications, more extended range, and low risk than flow batteries. Solid-state batteries such as sodium-based, lithium-ion batteries, and others have been reliable for many commercial vessel fleet operators worldwide. They have been the primary revenue-generating factors for market players.

By Application Analysis

Commercial Segment to Lead the Market During the Forecast Period due to High Adoption Rate of Marine Battery Technology

The global market is bifurcated into commercial and defense by application.

The commercial segment is projected to grow at the highest rate during the forecast period. The market growth is attributed to the rise in maritime tourism, changes in the governmental policies to optimize the seaborne economy, conversion of the propulsion system in the existing fleet with electric propulsion in IMO 2020's ECAS, rise in demand for marine services across commercial industries such as deep-sea mining, energy, and infrastructure, oil, and gas. Also, the utility of battery technology in the commercial sector has shown significant growth and is anticipated to grow during the forecast period.

The defense segment is anticipated to grow at a significant growth rate due to the rising number of defense shipping building programs, rise in the utility of the marine batteries in naval vessels by government and commercial naval shipyards, and rise in the defense budgets in China, India, the U.S., and the UAE despite the ongoing pandemic. The increase in utility of marine type of batteries in the submarines by defense organizations and forces is anticipated to grow the segment's market share during the forecast period.

REGIONAL INSIGHTS

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This market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.

Europe holds the largest and fastest-growing market share globally, with USD 195.5 million in 2020 and during the forecast period. The growth is attributed to the high number of commercial marine vessels operators and market players and the vast supply chain network in Europe. The procurement of advanced electric propulsions for future marine vessels by the market players such as Wartsila, Akasol AG, Echandia AB, Siemens, Leclanche SA, and others. The rise in maritime tourism and adoption of electric propulsion in various marine applications drive the market growth.

North America will witness remarkable growth in the market during the forecast period. Increasing adoption of electric propulsion by government agencies such as NOAA, rising battery-powered marine vessels for commercial and governmental, and defense utilities, and high demand for these batteries across North America for leisure boats and recreational applications to drive the development of the market.

The Asia Pacific market is projected to grow at a moderate pace, owing to the presence of marine battery manufacturers such as Toshiba Corporation, Exide Industries Ltd., Korea Special Battery, Furukawa Battery Solutions, and others. These players drive the growth of the market in the Asia Pacific. The rest of the world, which encompasses Latin America and, the Middle East & Africa, will witness moderate growth due to the rise in the number of commercial marine vessels during the forecast period.

KEY INDUSTRY PLAYERS

Advent of Advanced Battery Technologies for Next-Generation Electric Propulsion Development by Key Market Players to Propel Market Growth

The development of marine battery, technological advancements in marine batteries, and others are the upcoming trends in the market. A robust product portfolio, increment in R&D investments, and emphasis on mergers & acquisitions are the primary factors responsible for the dominance and high market share of key market players such as Wärtsilä Oyj Abp Siemens, Akasol AG, Leclanche S.A., and others.

LIST OF KEY COMPANIES PROFILED:

• Akasol AG (Germany)


• EnerSys (U.S.)


• Exide Industries Ltd. (India)


• Furukawa Battery Solutions Co. Ltd. (Japan)


• G.S. Yuasa Corporation (Japan)


• HBL Power Systems Ltd. (India)


• Johnson Controls International (Ireland)


• Leclanché SA (Switzerland)


• Saft Groupe S.A. (France)


• Siemens AG (Germany)


• Systems Sunlight SA (Greece)


• Toshiba Corporation (Japan)


• Wärtsilä Oyj Abp (Finland)

KEY INDUSTRY DEVELOPMENTS:

• September 2021 – Wartsila was awarded a contract by Zero Emissions Services BV (ZES) to deliver Warsila's mobile battery container solution to enable the Netherland's inland waterway vessels.


• May 2021 – Wartsila was selected by Maersk Supply Service to facilitate its Wartsila HY Module, a containerized hybrid battery solution and battery energy storage system for its fleet modernization.

REPORT COVERAGE

An Infographic Representation of Marine Battery Market

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The global marine battery market report offers qualitative and quantitative insights on this market. It provides a detailed analysis of the market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of dynamics, COVID-19 effect, emerging trends, and competitive landscape in the market.

Key insights offered in the report are the adoption the marine battery market trends by individual segments, recent industry developments such as mergers & acquisitions, partnerships, consolidated SWOT analysis of key players, Porter's five forces analysis, business strategies of leading market players, micro and macroeconomic indicators, and the leading industry trends.

Report Scope & Segmentation