Marine Lithium-ion Battery Market Size, Share, Analysis, Trends, Growth, Forecasts, 2032

Marine Lithium-ion Battery Industry Prospective:

The global marine lithium-ion battery market size was worth around USD 275 million in 2023 and is predicted to grow to around USD 1087 million by 2032 with a compound annual growth rate (CAGR) of roughly 16.5% between 2024 and 2032. 

Request Free Sample      

Marine Lithium-ion Battery Market: Overview

A marine lithium-ion battery is a rechargeable battery developed for maritime applications and environments, including boats, ships, and other watercraft.

These batteries use lithium-ion technology known for its high energy density, long cycle life, and low weight compared to lead-acid batteries. They are broadly used in electric propulsion systems, onboard power storage, and backup power for various marine devices.

The marine lithium-ion battery industry is majorly driven by several variables, including a rising number of electric & hybrid marine vessels, stringent regulations for the environment, advancements in battery technology, and growth in maritime tourism & recreational activities. However, the high initial cost and limited energy density for large vessels are expected to hamper the market.

Key Insights

• As per the analysis shared by our research analyst, the global marine lithium-ion battery market is estimated to grow annually at a CAGR of around 16.5% over the forecast period (2024-2032).
• In terms of revenue, the global marine lithium-ion battery market size was valued at around USD 275 million in 2023 and is projected to reach USD 1087 million by 2032.
• The rising environmental concern is expected to drive the Marine Lithium-ion Battery market over the forecast period.
• Based on the type, the 12V segment is expected to dominate the marine lithium-ion battery market over the forecast period.
• Based on the application, the luxury yachts segment is expected to dominate the market over the forecast period.
• Based on region, Europe is expected to dominate the market during the forecast period.

Marine Lithium-ion Battery Market: Growth Drivers

Growth in electric and hybrid marine vessels drives market growth

One of the main elements driving the marine lithium-ion battery market is the growth in the number of electric and hybrid boats.

Electric and hybrid boats are becoming very popular as the global marine sector is looking for alternate options to reduce its carbon footprint and comply with stringent regulations regarding the environment.

Compared to conventional internal combustion engines, lithium-ion batteries have a higher energy density, a longer lifespan, and produce fewer emissions.

Without compromising performance or range, hybrid systems that integrate lithium-ion batteries with traditional engines provide maritime vessels with an eco-friendly substitute.

For instance, according to The Liquid Grid, approximately 13.6 million metric tons of CO2 emissions are produced annually by 11 million powered recreational boats in the United States.

Marine Lithium-ion Battery Market: Restraints

High initial cost of the batteries may hinder market growth

The high initial cost of the battery hampers the marine lithium-ion battery industry growth. Materials such as lithium, cobalt, nickel, and graphite are used to manufacture Li-ion batteries.

Although these components are essential to the battery's operation, supply and demand might cause fluctuations in prices. Complex procedures are also required for the mining and refinement of these materials, which raises expenses and ultimately affects the cost of marine lithium-ion batteries.

Furthermore, despite the growing popularity of lithium-ion battery technology, the production scale for batteries designed for maritime applications is still quite small compared to other industries like consumer electronics or electric automobiles.

Manufacturers cannot effectively lower unit costs due to limited economies of scale, resulting in a smaller maritime market for these batteries. As a result, marine prices increase.

Marine Lithium-ion Battery Market: Opportunities

Increasing product launches offer a lucrative opportunity for market growth

The increasing product launches are expected to offer a lucrative opportunity for the marine lithium-ion battery market over the forecast period.

In April 2023, Exide Technologies introduced three new chargers designed especially for the Exide Marine & Leisure Equipment Li-Ion battery line.

Two chargers with maximum charging currents of 20A and 30A for 12V Li-Ion batteries and one with a current of 27A for 24V batteries are included in the range.

Customers can use it to charge their Li-Ion batteries on a seasonal or periodic basis before they are put in the car or put away for the winter.

Marine Lithium-ion Battery Market: Challenges

Limited energy density for large vessels poses a major challenge to market expansion

The limited energy density for large vessels poses a major challenge to marine lithium-ion battery industry growth. Although lithium-ion batteries have a higher energy density than other counterparts, they are still unable to supply the necessary power and range for bigger vessels traveling long distances.

Despite improvements, the energy density of lithium-ion batteries, which is commonly expressed in watt-hours per kilogram (Wh/kg), is still insufficient to meet the energy requirements of big vessels.

For instance, using only batteries is difficult for huge cargo ships and tankers that need a lot of energy to run over long distances.

Marine Lithium-ion Battery Market: Segmentation

The global marine lithium-ion battery industry is segmented based on type, application, and region.

Based on the type, the global marine lithium-ion battery market is segmented into 12V, 24V, 36V, 48V, 60V, 72V, and others. The 12V segment is expected to dominate the marine lithium-ion battery market over the forecast period.

Small and medium-sized marine vessels that frequently employed 12V lithium-ion batteries included fishing boats, yachts, and pleasure boats.

As the market for recreational boating and smaller commercial vessels grows, so does the demand for 12V batteries. These 12V lithium-ion batteries are initially more expensive than traditional lead-acid batteries, but their longer lifespan, lower maintenance requirements, and higher efficiency make them an appealing option for boat owners searching for long-term, affordable alternatives.

Based on the application, the global marine lithium-ion battery industry is bifurcated into fishing boats, cargo ships, luxury yachts, military ships, and others. The luxury yachts segment is expected to dominate the market over the forecast period.

Along with performance and design, sustainability is becoming a top priority for owners of luxury yachts. Lithium-ion batteries and other environmentally friendly alternatives are in high demand as environmental concerns develop.

Compared to conventional marine batteries, these batteries are thought to be more environmentally friendly because of their longer lifespans, cheaper maintenance requirements, and cleaner energy storage.

Marine Lithium-ion Battery Market: Report Scope

Marine Lithium-Ion Battery Market: Regional Analysis

Europe dominates the market over the projected period

Europe is expected to dominate the global marine lithium-ion battery market during the forecast period. The region's growing tourist, entertainment, and leisure industries are responsible for the market expansion. Another key element influencing the region's demand for hybrid ships is the growth of the European shipbuilding sector.

Other factors propelling the expansion of the European marine battery market include the rise in investments in ship electrification and the reorganization of shipbuilding firms.

According to the European Commission, with more than 150 shipyards and more than 120,000 employees, the European shipbuilding sector is the largest market in the world.

However, the Asia Pacific is anticipated to grow at a faster rate in the marine lithium-ion battery industry over the projected period. Some of the biggest and busiest ports and shipping hubs in the world are located in Asia Pacific.

Lithium-ion batteries are becoming more and more necessary for hybrid and completely electric ships as commercial maritime corporations investigate more environmentally friendly and effective propulsion options.

Due to their robust maritime industries and technological breakthroughs, nations like China, Japan, and South Korea are spearheading the adoption of electric and hybrid marine boats.

Marine Lithium-ion Battery Market: Competitive Analysis

The global marine lithium-ion battery market is dominated by players like:

• EST-Floattech
• Corvus Energy
• Spear Power Systems
• Forsee Power
• Akasol
• EVE Battery
• XALT Energy
• Furukawa Battery
• Saft
• Lithium Werks
• Gotion High-tech Co Ltd
• Toshiba Corporation
• Siemens
• CATL

The global marine lithium-ion battery market is segmented as follows:

By Type

• 12V
• 24V
• 36V
• 48V
• 60V
• 72V
• Others

By Application

• Fishing Boats
• Cargo Ships
• Luxury Yachts
• Military Ships
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa