Marine Battery Market

The Marine Battery Market size is projected to grow from USD 527 Million in 2022 to USD 2,056 Million by 2030, at a CAGR of 18.6% from 2022 to 2030. The key factor driving the growth of the worldwide Marine Battery Industry is the increase in global commercial trade and the spike in hybrid and fully-electric marine vessels. Additionally, the demand for advanced marine battery onboard vessels with higher specific energy density and low operational costs is driving the adoption of marine battery that can meet the requirements of sustainable marine transportation, while providing quick and hazard-proof rechargeable battery systems.

Marine Battery Market Forecast to 2030

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Marine Battery Market Dynamics

Driver:Implementation of sulfur 2020 rule

As per the International Maritime Organization’s (IMO) MARPOL convention for preventing pollution from ships, the sulfur content in the fuel used by ships needs to be reduced from 3.5% to 0.5% from January 2020. This rule was in response to the increased environmental and health-related concerns raised by various governments and environmental organizations globally. In adherence to this rule, ship operators need to install exhaust cleaning systems or scrubbers on ships that clean emissions before they are released into the atmosphere. They also need to switch from high-sulfur fuel oil (HSFO) to very low-sulfur fuel oil (VLSFO) or use LNG-based fuel. The rule has encouraged ship manufacturers to adopt battery-driven hybrid or electric propulsion.

According to an article by Drewry Shipping Consultants Ltd. (UK) in August 2018, the cost of installing a scrubber on a ship varies from USD 2 million to USD 6 million. Very large crude carriers can consume up to 60–70 metric tons of fuel a day. The price difference in switching from HSFO to VLSFO is approximately USD 238.5 higher per metric ton. As of July 2019, 4% of all vessels have been fitted with scrubbers and are ready for operation. Battery-driven propulsion engines could save shipowners from using expensive fuel and installing scrubbers. Electric propulsion systems installed on ships have a huge market potential as they reduce emissions, fuel consumption, along with the overall cost of operations. Depending on the size of vessels and the amount of electrification carried out, operators can reduce annual fuel costs by 3–5% in a hybrid setup and 80–100% in a fully electric setup. On average, maintenance costs can be reduced by up to 50% with an electric propulsion system.

Restraint : Limited range and capacity of fully electric ships

Limited travel distance and capacity are major restraints of fully electric ships. On average, these ships can?travel 80?km on a single?charge.

The Ellen ferry, the largest fully electric passenger vessel operating in Denmark, can undergo a round trip of 22 nautical miles. A huge limitation regarding electric ships is their short range. Hybrid ships can elevate this constraint to an extent by installing diesel generators that can charge the batteries and propel the ship in times of extra power requirement or when the batteries are depleted. However, this does not solve the problem of zero-emission shipping.

The capacity in terms of deadweight tonnage that fully electric ships can carry is also limited. China’s first fully electric cargo ship can travel 80 kilometers and carry 2,200 tons of cargo. A large container ship can carry approximately 200,000 container loads of cargo. The engine itself weighs approximately 2,300 tons. There is a vast gap between the engine capacity of a diesel ship and an electric ship when it comes to the amount of cargo it can haul. It is also challenging to bridge the gap with the current battery technology.

Opportunity: Hybrid propulsion technology for large ships

Currently, hybrid propulsion technology is suitable for small vessels, such as ferries and cruise ships. With the development of marine electric-propulsion technology and alternate fuels, such as fuel cells, manufacturers have a huge opportunity to work on electric propulsion systems for larger ships.

In UK, shipbuilder Ferguson Marine (UK)built the USD 14 million diesel-electric hybrid ferry, the Catriona, for CalMac to use on its Clyde and Hebridean routes. Catriona’s hybrid system works by combining diesel power with electric battery power. A Smarter Journey, a report published by Siemens and Bellona (Norway) in June 2018, gave further weight to the hybrid argument, claiming that around 70% of the 180-strong Norwegian ferry fleet could be converted to a battery or hybrid propulsion, 84% to all-electric, and 43% to some form of hybrid technology. In June 2019, Leclanché SA entered into a partnership with Comau (Italy), a leading player in advanced industrial automation products and solutions, to build the world’s first automated manufacturing lines for lithium-ion battery modules for transport applications. This partnership is expected to help Leclanché SA produce energy storage solutions for e-transport and e-marine applications at an industrial scale. This would help the company secure a position as a key provider of energy storage solutions to the sizeable and fast-growing electric and hybrid mass transport market.

Challenge: Inadequate charging infrastructure

Inadequate charging infrastructure at ports is a major challenge for the marine battery market. It is more challenging for large ships to power their systems or store energy than for small ships. Large ships require several cables to receive a regular power supply. It is neither time-efficient nor effective to connect 15-20 heavy cables, especially for ships that are berthed for a short period of time. Additional infrastructure onshore (port side) and onboard ships are required for vessels. Electrical power available from onshore grids is not adapted to the requirements of vessels in terms of voltage, frequency, and earthing.

Electric vessels would require high-voltage superchargers to ensure an adequate turn-around time. However, superchargers place high demands on local power grids, and most cannot supply such power in the required timeframe. As a result, the initial deployments of fully electric ferries require adequate storage capacity to enable a faster turn-around.

Marine Battery Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of Marine Battery. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. The prominent companies are Corvus Energy (Norway), Leclanché S.A. (Switzerland), Siemens AG (Germany), Saft SA (France) and Shift Clean Energy (Canada). Commercial Passenger vessel operators, cargo operators, oil tanker operators, private cruise liners, global naval forces, MROs, and chartered operators are some of the leading consumers of Marine Battery.

Commercial Segment to dominate market share during the forecast period

Based on Ship Type, the Marine Battery market has been segmented into commercial, defense and unmanned vessels. One of the primary factors propelling this segment is the increased global tourism. The need to design safe battery systems with high energy capacity, minimum volume, high performance, and improved life is driving this segment.

Fuel-Cells to have the highest CAGR for Marine Battery during the forecast period

Based on Battery Type, the Marine Battery market has been segmented into Lithium, Lead-Acid, Nickel-Cadmium, Sodium-ion, and Fuel-Cells. Hydrogen fuel cell technology is a critical zero-emission propulsion option for a wide range of medium- and heavy-duty applications. According to Ballard (Canada), a major fuel-cell producer, the first fuel cells are already beginning to demonstrate their worth at sea and in ports, already powering several smaller vessels and port handling equipment.  

>500 WH/kg segment to witness higher demand during the forecast period

Based on Energy Density, the marine battery market has been classified into < 100WH/Kg, 100-500 WH/Kg and > 500 WH/Kg. Batteries over 500 WH/kg capacity fall in the category of high performance. Lithium-ion, sodium-ion, LFP, and solid-state batteries fall in this category. They are integrated into systems above the capacity of 50 KW/hr. These systems are generally used for propulsion. Lithium-ion batteries have a larger energy density than other systems, sometimes above 500 WH/kg.

OEM to acquire the largest market share during the forecast period

Based on Sales Channel, the Marine Battery market has been classified into OEM and Aftermarket. The ongoing fleet expansion programs of several end users, such as cargo and freight operators and global naval force, drive the OEM segment of the market. Several inland and sea-faring vessel operators are adopting hybrid and fully-electric propulsion systems that lower their operational costs as well as result in lesser environmental degradation.

Europe is projected to witness the highest market share during the forecast period

Europe leads the marine battery market due presence of big players, OEMs, and component manufacturers which are some of the factors expected to boost the growth of the marine battery market in the region. These players continuously invest in R&D to develop Marine Battery with improved efficiency and reliability. Additionally, the growing demand for higher specific energy and energy density in marine batteries for civil & commercial applications and their increasing utility in the defense sector for carrying out persistent transport and surveillance activities are additional factors influencing the growth of the European Marine Battery market. Key manufacturers and suppliers of Marine Battery in this region include Corvus Energy (Norway), Leclanché S.A. (Switzerland), Siemens AG (Germany), Saft SA (France).

Marine Battery Market by Region

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Key Market Players

Major players operating in the Marine Battery Companies include Corvus Energy (Norway), Leclanché S.A. (Switzerland), Siemens AG (Germany), Saft SA (France), Shift Clean Energy (Canada), Echandia Marine AB (Sweden), and EST Floattech (Netherlands).

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Scope of the Report

Marine Battery Market Highlights

This research report categorizes the Marine Battery market based on Ship Type, Battery Function, Nominal Capacity, Propulsion Type, Ship Power, Battery Design, Battery Type, Sales Channel, Energy Density, and Region.

Recent Developments

• In January 2023, Leclanché SA was selected as the battery technology provider for two hybrid vessels for Stena RoRo and Brittany Ferries. Each battery system has a capacity of 11.3 MWh. The RoPax (roll-on/roll-off passenger) ferries will be the largest hybrid vessels worldwide.
• In August 2022, Corvus Energy announced an order from Ulstein Power & Control to deliver energy storage systems for two Construction Service Operation Vessels (CSOVs) to be built for Norwegian shipowner Olympic.
• In December 2022, Shift Clean Energy (Shift) announced that it has entered into a Channel Partner Agreement with Billion Electric, a prominent and experienced provider of power electronics and network communication technology, utilizing Shift’s PwrSwäp technology. As a result of this partnership, Billion Electric now has the exclusive rights to distribute energy storage solutions of Shift in Taiwan.
• In August 2021, Spear Power Systems entered into an agreement to be acquired by Sensata Technologies, Inc. Spear Power Systems develops next-generation scalable lithium-ion battery storage systems for demanding land, sea, and air applications. The acquisition of Spear Power Systems advances Sensata’s electrification portfolio and strategy into new clean energy markets.

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