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0 The global marine hybrid propulsion market was valued at USD 6.05 billion in 2024. It is projected to expand from USD 7.13 billion in 2025 to reach USD 14.49 billion by 2032, reflecting a compound annual growth rate (CAGR) of 10.7% over the forecast period. In 2024, Asia Pacific emerged as the leading region, accounting for 31.74% of the global market share.
In order to improve engine performance and cut pollution, hybrid propulsion systems for marine applications combine an internal combustion engine and battery power. They are perfect for boats with variable operating profiles and runtimes that demand different amounts of power. There are many different hybrid propulsion systems, but serial and parallel hybrid propulsion are the most widely used. Power generation flexibility, reduced carbon emissions, and fewer maintenance costs are all features of hybrid propulsion systems. Due to these important characteristics, the market for marine hybrid propulsion systems is anticipated to expand throughout the course of the forecast period.
Fortune Business Insights presents this information in their report titled “Global Marine Hybrid Propulsion Market Size, Share, Forecast, and 2025–2032.”
Information Source:
https://www.fortunebusinessinsights.com/industry-reports/marine-hybrid-propulsion-market-100128
List of Key Players Profiled in the Report:
- ABB Ltd. (Switzerland)
- BAE Systems (U.K.)
- Caterpillar Inc. (U.S.)
- General Electric Company (U.S.)
- Nidec Industrial Solutions (Italy)
- MAN Energy Solutions (Germany)
- Siemens (Germany)
- Mitsubishi Heavy Industries (Japan)
- Wärtsilä Corporation (Finland)
- Steyr Motors (Austria)
Segmentation:
Extensive Applications of Parallel Hybrid Propulsion Market to Boost Segment Growth
By operation type, the market is bifurcated into parallel hybrid propulsion system and serial hybrid propulsion system. The parallel hybrid propulsion segment propulsion is expected to dominate the market during the forecast period. Due to numerous benefits, including the ability for operators to switch to electric propulsion during low-speed cruising, which lowers fuel consumption, there has been an increase in the adoption of this technology in various ship types, including tugboats, passenger ships, and others.
I.C. Engine Segment Dominates Owing to Significance of Engine Component in Propulsion System
By component, the market is segmented into I.C. engine, generator, power management system, battery, gearbox, and others. The I.C. engine segment will dominate during the forecast period owing to the requirement of power during hybrid propulsion. I.C. engine is also an important part of the overall hybrid propulsion system due to its high cost.
Increasing Fleet of Fishing Vessels to Capture Market
By ship type, the market is categorized into container ship, passenger ship, fishing vessel, yacht, tanker, and others. During the forecast period, the fishing vessel segment is expected to lead the market. The size of fishing vessel fleets has increased globally, creating potential for the market of marine hybrid propulsion.
Technologically Advanced Ships Demand for Line Fit Segment to Drive Segment Growth
By installment, the market is categorized into line fit and retrofit. Throughout the anticipated period, the line fit segment will rule the market. During production, a number of OEMs and manufacturers add diesel-electric propulsion systems. Due to the need for highly advanced ships, the segment will expand in the coming years.
Information Source:
Drivers & Restraints:
Reduced Fuel Consumption and Low Operating Costs will Boost Market Expansion
The fuel consumption of a diesel engine propulsion system is the main issue for ship owners. Aside from this, significant players are concentrating on creating hybrid propulsion systems due to the fluctuation in fossil fuel prices, rise in sulfate emissions, and dependency on low-grade fuel. Also, the maximum load decrease of the hybrid propulsion system, according to numerous marine journals, reduces NOx by up to 40%. According to a different study, hybrid propulsion systems can reduce fuel consumption by up to 30% when compared to conventional propulsion systems. These figures show how important a hybrid propulsion system is for lowering fuel usage and consequently, operational costs, which will result in an increase in the marine hybrid propulsion market share.
On the contrary, propulsion systems are complex compared to conventional systems, which may impede the marine hybrid propulsion market growth.
Regional Insights:
North America Dominates the Market due to Increased Marine Fleet Size
In 2022, the North America market was worth USD 0.59 billion. The expansion of the marine fleet is driving the market growth in North America. A significant market driver is the increased emphasis that various OEMs are placing on R&D and the use of hybrid propulsion systems. Also, in April 2022, the federal and provincial governments of Canada invested USD 3 million to upgrade fishing vessels with effective hybrid and electric engines.
Competitive Landscape:
Key Players Increase Joint Ventures to Accelerate Market Growth
With numerous key players present, including ABB Ltd. (Switzerland), BAE Systems (U.K.), Caterpillar Inc. (U.S.), General Electric Company (U.S.), Nidec Industrial Solutions (Italy), MAN Energy Solutions (Germany), Siemens (Germany), and others, the global market is highly fragmented. The most crucial benchmark by which businesses can compete is the implementation of a marine hybrid propulsion system. Other elements, such as collaboration and technical advancements, assist businesses in lowering manufacturing and installation costs and increasing the number of system installations.
Key Industry Development:
February 2025 – In a significant move toward cleaner maritime operations, ADNOC Logistics & Services (L&S) is investing in hybrid propulsion and battery-powered vessels to support its offshore energy activities across the Middle East. From large cable-laying ships to smaller utility and workboats, shipowners in the region are increasingly integrating hybrid systems to cut fuel consumption and emissions. ADNOC L&S, the offshore logistics arm of Abu Dhabi National Oil Company, is considering a new order for modern Offshore Support Vessels (OSVs) equipped with hybrid propulsion technologies to expand and modernize its fleet, reinforcing its commitment to sustainable offshore operations.
