Marine Battery Market

Marine Battery Market Size (2022 to 2027)

The global market size for marine batteries was estimated at around USD 414.8 million in 2021 and is anticipated to grow to USD 810.1 million by 2027, growing at a CAGR of 11.8% from 2022 to 2027. The global marine battery market has seen strong growth in recent years due to an increase in maritime trade and the implementation of the IMO Sulphur Regulation 2020. In addition, the growing marine tourism industry is driving this business growth. Additionally, factors such as using renewable energy sources for battery charging and advances in hybrid drive technology are expected to provide lucrative opportunities for market growth.

Marine batteries are designed for use in boats and speedboats with heavier plates and rugged construction, designed to resist vibration and shock. As a result, marine batteries last longer and are more reliable. Batteries are a crucial component of ships. It is used to provide starter service and deep cycle service. Absorbed glass mat (AGM) batteries, gel electrolyte batteries, and flooded lead-acid batteries are commonly used for marine applications.

Impact of COVID-19 on the global marine battery market:

There is hardly any place in the world that has not been affected by the brutality of the coronavirus pandemic; almost every company suffers from a severe new disease. To encompass the pandemic, many countries and governments worldwide have imposed closures, restricting gatherings and the movement of people. The lockdown has multiple consequences, further amplifying problems for a diverse sector, such as reverse migration, disruption of supply chains, manufacturing industries, machinery and equipment industry, healthcare industry, agricultural industry, medical and pharmaceutical industry, construction sector, food industry sector, chemical industry, cosmetic and personal care industry, etc.

Market Drivers:

The breakneck shipping rate has increased the efforts of market leaders to improve the efficiency, backup power, and reliability of marine batteries. The growing fondness for water sports globally is a significant growth driver in the market. In addition, global initiatives to reduce harmful emissions have forced market players to develop new designs and technologies for these batteries that contribute to sustainability. Complete electric boats positively affect the environment, as the inclusion of high energy storage in batteries and optimized power control can reduce fuel consumption, maintenance, and emissions. The growth of the all-electric segment can be attributed to the growing demand for small and medium-sized passenger ships and all-electric cargo. Several manufacturers are jointly investing in manufacturing ships that comply with the IMO 2020 standard.

MARKET RESTRAINTS:

Marine batteries are more expensive than car batteries. As a result, some boat owners purchase car batteries instead of marine batteries, a significant constraint in the global marine battery market.

REPORT COVERAGE:

This research report on the global marine battery market has been segmented and sub-segmented based on the ship type, application, and region.

Marine Battery Market - By Ship Type:

• Commercial            
• Defense    

The commercial segment dominated the global marine battery market in 2020. The commercial segment includes cargo ships such as container ships, bulk carriers, tankers, and general cargo ships; passenger ships such as yachts, cruise ships, and ferries; and other vessels such as fishing boats, tugboats, and workboats, dredgers, research vessels, and submarines. Furthermore, due to factors such as the increase in maritime trade, the growth of the maritime tourism industry, and others, demand for advanced marine batteries for commercial applications is expected to increase over the forecast period.

The defense segment is anticipated to register a higher growth rate during the projection period. The defense segment includes destroyers, corvettes, frigates, offshore support vessels, aircraft carriers, and submarines. In addition, increased military spending on developing new advanced combat ships is expected to increase the demand for high-performance marine batteries.

Marine Battery Market - By Application:

• Marine Starting Service       
• Deep Cycle Service
• Dual Purpose Service

The marine starting service segment is expected to grow at the highest CAGR during the forecast period. These batteries deliver several hundred amps of power to the starter in seconds.

The deep cycle service segment accounted for a significant market share in 2020. A deep cycle battery provides an extended, slow discharge of fewer amps over several minutes or hours. The demand for these batteries has increased with the electrification of ships.

The dual-purpose service segment is projected to grow at a steady CAGR during the outlook period. Dual-purpose batteries are used for beginning and deep cycle applications. Provides powerful cranking amperage for easy starting and low-drain service for consistent auxiliary power.

Marine Battery Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

The North American region accounted for a substantial share of the global marine battery market in 2021. The increasing adoption of electrically powered craft by the US Navy for tactical missions is expected to drive market growth during the outlook period. Additionally, the presence of leading marine battery manufacturers such as EnerSys, East Penn Manufacturing Co., and Exide Technologies is driving market growth in North America.

Europe is the second biggest market for marine batteries. This trend is foreseen to continue during the forecast period due to investments by leading players such as Saft Groupe SA and Systems Sunlight SA in developing marine batteries.

The Asia-Pacific accounted for a significant market share in 2020. The region's market will also likely record the highest CAGR during the forecast period. Increasing defense spending in India and China and growing demand for new and advanced warships drive regional market growth.

The Middle East and Africa are expected to register a moderate CAGR during the forecast period. Hike in defense spending in Saudi Arabia, the United Arab Emirates, and Israel fuels business growth in the Middle East and Africa.

Latin America is another lucrative region for marine batteries. In Latin America, increased naval spending in Brazil to acquire advanced warships supports this industry growth.

Competitive Landscape:

Market players rely on cutting-edge technologies to develop batteries that meet environmental standards the government sets against emissions of atmospheric polluting gases such as NOx and SOx. Lithium-ion battery technology is one of the important introductions in marine batteries as a green initiative. Manufacturers are developing batteries that provide increased safety and trouble-free operation in various personal vessels. In addition, they are introducing new technologies in marine batteries to increase their profitability prospects in the market.

A few of the notable players in the global marine battery market are East Penn Manufacturing Co. (US), EnerSys (US), EverExceed Industrial Co., Ltd (China), Exide Technologies (US), GS Yuasa (Japan), HBL Power Systems Limited (India), Korea Special Battery (South Korea), Manbat Ltd (UK), Saft Groupe SA (France), Systems Sunlight SA (Greece) and Zibo Torch Energy (China).

Recent Developments:

• In March 2020, Corvus Energy was awarded a contract from Westcon Power & Automation to supply a lithium-ion battery-based energy storage system (ESS) for a new hybrid offshore cargo ship under production for Arriva Shipping to Dayang Offshore Equipment in China. This agreement shall help strengthen the company's relationship with Westcon Power & Automation.
• In October 2019, EST-Floattech received a contract from Bijlsma Wartena (Netherlands) for supplying 1,050 Green Orca batteries, with an energy storage capacity of polymer lithium-ion NMC batteries of more than 2.5 MWh. This contract should aid the establishment in strengthening its presence in the marine battery market in the Netherlands.