Marine Lithium-ion Battery Market Size, Share & Industry Analysis By Type (12V, 24V, 36V, 48V, 60V, 72V, Others) By Application (Fishing Boats, Cargo Ships, Luxury Yachts, Military Ships, Others)And Regional Forecast, 2024-2032

Marine lithium-ion batteries can be used for workboats, ferries, offshore support, cruise ships, and cargo ships. They perform better than many lead-acid batteries, have a longer service life, are lighter, and take up less space. Li-ion batteries can provide a higher percentage of the nominal capacity than lead-acid batteries without shortening their service life. They maintain voltage for most of the discharge cycle.

More and more ships are switching to hybrid or fully electric, relying more and more on lithium batteries and energy storage as power sources. The technology has proven to be reliable and robust. In recent years, the number of hybrid and fully electric ships in the maritime industry has increased. It is estimated that almost all merchant ships will soon install some energy storage system as part of their power system, and lithium-ion batteries are becoming one of the most popular options for ship operators. These factors will help drive the market during the forecast period.

• According to DNV GL, a provider of quality assurance and risk management services to the marine industry, 356 all-electric or hybrid vessels were either in operation or under construction as of July 2019. There were 318 liquefied natural gas (LNG) ships sailing or on order by July 2019.

There are some restraints for the market as well. Thermal runaway is the most significant risk associated with the use of lithium-ion batteries. If the battery cell is damaged or receives intense heat, it will undergo an exothermic reaction, which will generate more and more heat. This risk is prevalent in marine environments due to the large batteries required for ship operations than batteries used in automobiles or airplanes. For shipping, the possibility of people near the battery is very high. Lithium battery failure can also release explosive gas, especially when water is involved. Water can react with lithium to produce highly flammable hydrogen, and since ship battery systems are often indoors, the risk of explosion is significantly increased.

• In October 2019, the Norwegian Maritime Authority published an alert regarding a fire in a lithium-ion battery room on a passenger ferry called MF Ytterøyningen. The subsequent gas explosion caused the ferry significant damage.


• In September 2018, a superyacht My Kanga, in Croatia, caught fire due to the lithium-ion batteries.

As leisure activities drive the market's demand for marine lithium batteries and the need for water activities continues to increase, North America is expected to see significant growth during the forecast period.

• As of 2019, the United States boasts of having 158 superyachts, the highest globally, and many other marine vessels and boats. Spain and Greece are the fastest growing countries in terms of the number of superyachts.

IMPACT OF COVID-19 ON THE MARINE LITHIUM-ION BATTERY MARKET

The marine lithium-ion battery market is expected to take a significant amount of time before recovering from the COVID-19 pandemic due to the reduction of cross-border trade and a general reduction in the marine industry.

• According to the United Nations Conference for Trade and Development (UNCTAD), global maritime trade plunged by 4.1% in 2020 due to the various nationwide lockdowns and stopping cross-border trades.

Although the maritime industry is slowly gaining momentum due to the easing of COVID-19 restrictions, marine lithium-ion battery demand is anticipated to rise slower. With the need for further technological developments, coupled with slow growth in the electric maritime sector, marine lithium-ion batteries will slowly gain traction.

KEY INSIGHTS

The report will cover the following key insights:

• Recent Advancements in Marine Lithium-ion Battery


• Key Industry Trends


• Regulatory Landscape for Marine Lithium-ion Battery


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

ANALYSIS BY TYPE

The global marine lithium-ion battery market can be divided into 12V, 24V, 36V, 48V, 60V, 72V, and others based on type. The 12V segment is anticipated to dominate the market. Deep Cycle Lithium Battery maintains a 12.5V-13.4V voltage when discharged to 95% or more. Then the voltage drops rapidly. As the current increases, the voltage of the other marine batteries, such as the lead-acid battery, which is an alternative to the lithium battery, drops from 13 volts to below 11.5 volts. Once fully charged, the marine battery maintains a relatively low voltage to keep it charged, usually 13.2 to 13.4 volts. Higher voltage levels will "wear out" the battery and cause the electrolyte to evaporate, again shortening the battery's life.

REGIONAL ANALYSIS

Europe is an important region for growth during the forecast period, as tourism, entertainment, and leisure activities have increased significantly. It is expected that the European marine lithium-ion battery market will have the highest growth during the forecast period. The development of the European shipbuilding industry is one of the most critical factors driving the demand for hybrid ships in the region. The increase in investment in ship electrification and the restructuring of shipbuilding companies are additional factors driving the growth of the European marine battery market. The European Commission stated that the European shipbuilding industry is the largest market globally, with over 150 shipyards and over 120,000 people employed.

KEY PLAYERS COVERED

The report will include key players such as Corvus Energy, Siemens - Industrial Automation, RELiON Battery, Mastervolt, MG Energy Systems, Super B Lithium Power B.V., Trojan Battery Company, Battery Smart, Saft, Samsung SDI, and Eve Energy Co. Ltd.

SEGMENTATION

KEY INDUSTRY DEVELOPMENTS

• In March 2020, Corvus Energy won a contract from Westcon Power & Automation to provide a lithium battery-based energy storage system (ESS) for the new hybrid marine cargo ship built by Dayang Arriva Shipping. The contract will help strengthen the company's relationship with Westcon Power & Automation.


• In October 2019, ESTFloattech received a contract from Bijlsma Wartena (Netherlands) to supply 1,050 Green Orca batteries. The energy storage capacity of NMC lithium-ion polymer batteries exceeds 2.5 MWh. The contract is expected to help the company strengthen its influence in the Dutch marine battery market.