The Marine Battery market is projected to reach $812 million by 2025, grwoing at a CAGR of 26.5% from 2020 to 2025, says an exclusive report by MarketsandMarkets. In 2020 the market size was estimated to be $250 million.
According to a research report 'Marine Battery Market by Battery Type (Lithium, Fuel Cell, Lead-acid), Propulsion Type (Fully Electric, Hybrid, Conventional), Application, Sales Channel, Ship Range, Nominal Capacity, Battery Design, Battery Function and Region - Global Forecast to 2025,' the major factors for the growth include implementation of Sulphur 2020 Rule and rise in the conversion of propulsion systems in passenger vessels.
The rise in seaborne trade across the globe, the growing maritime tourism industry, and the development of lithium batteries are the other factors anticipated to fuel the growth of the marine battery market.
Highest growth in 75–150 kW
By ship power, the 75–150 kW segment of the marine battery market is projected to register the highest CAGR during the forecast period. Medium-size passenger ferries are considered under ships having power between 75 and 150 kW. The need for a reduced or zero-emission transport system is high across countries. As per the International Maritime Organisation's MARPOL convention for preventing pollution from ships, the sulphur content present in ships' fuel needs to be reduced from 3.5% to 0.5% from January 2020. Countries such as Japan, New Zealand, and Australia are also moving toward using battery propelled fully electric ferries for passenger transport. Norway has incorporated fully electric and hybrid technologies in its ferries.
Highest growth in 50–100 KM segment
According to the report, the 50–100 km segment is estimated to witness the highest CAGR during the forecast period by ship range. This segment includes inland container vessels, small cruise ships, fishing vessels, and research vessels. Yara's (Norway) 120 TEU container ship, Yara Birkeland, can travel 56 km and is a fully electric ship. Another all-electric ship was constructed by Guangzhou Shipyard International Company in December 2017. This ship can travel 80 km on a single charge. Operational and fuel cost savings are benefits offered by fully electric ships for operators, but the high capital expenditure and port side development are significant challenges faced by ship manufacturers.
European market to register highest CAGR
By region, Europe is expected to witness substantial growth in the marine battery market during the forecast period. International shipping is a large and growing source of greenhouse gas emissions. Thus, the European Union and the International Maritime Organisation have come up with regulations on CO2 emissions and the presence of sulphur in fuel. Awareness about carbon emissions is leading shipowners and integrators to switch from traditional diesel-driven engines to battery propulsion systems. Domestic shipping in European countries has already been experimenting with battery-electric propulsion, and this trend is expected to continue.
The marine battery market has been gaining traction over the past few years due to the presence of several established companies as well as startups. Some of the major market players are Corvus Energy (Canada), Akasol AG (Germany), EST-Floattech (Netherlands), Siemens (Germany), Spear Power Systems (US), Echandia Marine (Sweden), Sterling PBES Energy Solutions (Canada), Furukawa Battery Solutions (Japan), Lithium Werks (Netherlands), Exide Technologies (US), Craftsman Marine (Netherlands), PowerTech Systems (France), Kokam Co. Ltd. (South Korea), Toshiba Corporation (Japan), XALT Energy (US), EverExceed Industrial Co. Ltd. (China), U.S. Battery (US), Lifeline Batteries (US), Saft (France), Forsee Power (France) and Leclanché (Switzerland), the report added.
Courtesy: MarketsandMarkets.
Photos are representational.