Wednesday 28 September 2016

Marine Hybrid Propulsion Market:Growth Expected as Nations Implement Tighter Emission Norms on Vessel Operators, reports TMR

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The global marine hybrid propulsion market is currently exhibiting a moderate degree of competition. Not many manufacturers in the global market owns capital-intensive businesses, which provides considerable opportunities for the entry of new players. Caterpillar Inc., BAE Systems Plc., and Aspin Kemp & Associates are a few of the prominent players operating in the market, finds Transparency Market Research (TMR), in a new study.
TMR forecasts the global marine hybrid propulsion market to exhibit a CAGR of 8.02% between 2014 and 2022. The market is projected to generate about US$2.77 bn by the end of 2016 and reach US$4.45 bn by the end of 2022.
The leading companies operating in the market show a consolidated effort towards developing marine hybrid propulsion technologies. According to TMR, the threat of new entrant is poised to increase with time as companies start recognizing the importance of patented technologies and aim for brand loyalty among consumers.
Regionally, Europe and North America have been holding dominance in the global marine hybrid propulsion market. Europe is expected to take up over 31.4% of the market in terms of value by the end of 2022. Likewise, diesel-electric marine hybrid propulsion systems will continue leading the market in terms of system configuration through the forecast period. By the end of 2022, the segment is expected to reach US$2.24 bn.
Demand for Fuel Efficiency among Vessel Operators Augur Well for Marine Hybrid Propulsion Manufacturers
“The cost incurred on fuel constitute a substantial share in any vessel operator’s bill. This, coupled with fluctuating fuel prices, has compelled operators to explore options supporting reduction in fuel consumption,” states a lead TMR analyst. This is driving the installation of marine hybrid propulsion to enable vessel operators derive best out of the given power input.
The vessel operators are also under pressure to curb emissions. Stringent regulations are in place across developed economies in Europe and North America to ensure the same. With emission control norms getting more stringent, installation of marine hybrid propulsion systems is expected to increase considerably in the forthcoming years. For instance, the ECAs implemented by the IMO in 2015, reduced the limit of maximum sulfur emission from previous 0.5% to 0.1%. As marine hybrid propulsions provide the best technologies to cohere to the norms, their installation has considerably increased across small and medium scale vessels.
Rising Adoption of Clean Fuels to Dampen Demand for Marine Hybrid Propulsion Systems
Besides the technological advancements paving way for increased installation of marine hybrid propulsion systems, considerable improvements are made bolstering the adoption of cleaner fuels. Modern clean fuels are created with the technology that allows them being used in conventional marine propulsion systems. This provides vessel operators with an extremely cheap alternative over installing hybrid propulsion systems.
The threat of vessel operators opting for clean fuels over marine hybrid propulsion systems is expected to increase over time. This threatens the market’s growth potential to an extent.
ECA Declarations across Coasts Hold Promise for Market’s Growth
The marine hybrid propulsion companies still witness considerable opportunities to capitalize on. Recently, ECAs are implemented across North American waters and are likely to be implemented in the Gulf of Mexico, the Turkish Strait, the Strait of Malacca, and the Sea of Japan over the forthcoming years. “The stringency of ECAs will push vessel operators to invest in marine hybrid propulsion systems,” adds the analyst. This has been identified as a key opportunity for the market.
The report segments the global marine hybrid propulsion market as:
Global Marine Hybrid Propulsion Market, by Configuration
  • Diesel-electric
  • Parallel Hybrid
  • Serial Hybrid
Global Marine Hybrid Propulsion Market, by End-users
  • Ferries
  • Tugboats and OSVs
  • Defense Vessels
  • Others

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