According to the latest research report published by MarketsandMarkets, an international market research organization, the global marine battery market is estimated to reach 250 million U.S. dollars in 2020 and 812 million U.S. dollars by 2025, with a compound annual growth rate of 26.5% during the period.
The implementation of the 2020 sulfur limit order and the addition of passenger ship propulsion system conversion are important factors driving the increase in demand for marine batteries. At the same time, the global increase in maritime trade, maritime tourism and the development of lithium-ion batteries are also driving factors that promote the rise of the marine battery market.
From the power point of view, during the forecast period, the 75-150kW market segment is expected to achieve the highest compound annual rate of increase. With the requirements of various countries for reduced emissions or zero-emission transportation systems, ships with power between 75 and 150kW should consider using medium-sized passenger ferries.
According to the MARPOL Convention of the International Maritime Organization for the Prevention of Pollution from Ships, starting from January 2020, the sulfur content in ship fuel will be reduced from 3.5% to 0.5%. Countries such as Japan, New Zealand, and Australia are also moving towards the use of battery-powered all-electric ferries to transport passengers. Norway has included all-electric and hybrid technology in its ferries.
From the perspective of the voyage, it is expected that the 50-100 km segment will achieve the highest compound annual ascent rate. This part includes inland container ships, small cruise ships, fishing ships and research ships. For example, Yara Birkeland in Norway is a 120TEU container ship that can travel 56 kilometers and is an all-electric ship. Guangzhou Shipyard International Co., Ltd. built another fully electric boat in December 2017. The ship can travel 80 kilometers on a single charge, saving operating costs and fuel costs are the benefits of all-electric ships for operators, but high capital expenditures and port development are important challenges for ship manufacturers.
From the perspective of regional markets, the European marine battery market is expected to achieve the highest compound annual growth rate from 2020 to 2025. Europe will witness a substantial rise in the marine battery market during the forecast period. International shipping is a huge and rising source of greenhouse gas emissions. Therefore, the European Union and the International Maritime Organization have put forward regulations on carbon dioxide emissions and sulfur content in fuels. The awareness of carbon emissions is prompting ship owners and integrators to switch from traditional diesel-powered engines to battery-powered propulsion systems. Domestic transportation industries in European countries are already experimenting with battery-powered propulsion, and this trend is expected to continue.