Electric Ship Market 2022 - Market Size & Forecast, Industry Trends, Manufacturers Analysis, & Opportunities 2030

The global electric ship market is predicted to expand at a compounded annual growth rate (CAGR) of 13.0% from 2022 to 2030.

Electric ships are referred to as ships that are driven electrically, unlike conventional diesel engine ships. These ships are designed to carry off marine operations by utilizing a battery bank as their source of power to operate electric motor rather than by utilizing fuel. These ships typically are ferries, and small passenger or container ships on inland waterways that sail only short distances often need to dock. Electric and hybrid ships are known to cause less emission and protect the environment from getting more polluted.

GROWTH DRIVERS:

Factors such as the expanding seaborne trade and maritime tourism industry across the globe; the growing conversion of propulsion systems in passenger vessels coupled with the rising adoption of electric propulsion systems; the surging demand for environment friendly transport systems; the escalating emphasis of governments on encouraging consumers to adopt eco-friendly ships in order to meet environmental rules and regulations, increasing investment in advanced lithium, nickel and sodium batteries; and the propelling interest among electric vehicle manufacturers to capture the market by enhancing the production of electric ships are primarily driving the growth of the global electric ships market.

In the last few years, the electric ship market players are seen to emphasize developing new and advanced electric ships with innovative features for the market. Advancements such as the utilization of fuel cells, and solar power for providing power to ships, remotely & autonomous modes of operation, and fully electric propulsion for large ships are creating a plethora of opportunities for the growth of the global electric ships market.

Moreover, the support from the governments and organizations in the form of initiatives and subsidies on the purchase of electric operated transportation ships to promote the usage of electric ships and reduce emissions is rapidly surging worldwide. An example of this could be the South Korean governments announcement of a $870.0 million initiative in 2020, to promote the development of eco-friendly shipping for reducing the pollution caused by the marine sector in the country. The 2030 Green Ship-K Promotion Strategy, particularly aims at the advancement and increased use of low-carbon ship technology, including propulsion systems and hydrogen fuel cells. Another example could be that of, The International Maritime Organization, which deployed the global sulfur cap in January 2020. Under this regulation, commercial ships and marine vessels are required to operate on low sulfur fuels outside the emission control areas. These initiatives and regulations are set to comprehensively increase the adoption and usage of electric ships and upscale the overall electric ship market in the next few years.

Furthermore, other factors such as the proliferating adoption of fully electric passenger vessels, the growing usage of renewable energy for battery charging coupled with advancements in hybrid propulsion technology, the rising competition among various end users, the growing research in energy storage devices, the heavy military spending on the enhancement of new and advanced battle vessels and the surging emphasis of shipbuilders on decreasing the noise generated from the marine vessel propulsion systems are also expected to significantly contribute toward the growth of the electric ships market during the forecast period.

However, the limited range and capacity of fully electric ships and the insufficient battery capacity and slow charging process are expected to hinder the growth of the electric ships market to a certain extent during the forecast period.

ELECTRIC SHIP MARKET SEGMENTATION:

By Type:

·         Fully Electric

·         Hybrid

 

By Battery Type:

·         Lead-Acid

·         Lithium-Ion

·         Nickel-based Batteries

By System:

·         Energy Storage Systems

·         Power Conversion

·         Power Generation

·         Power Distribution

 

By Carriage Type:

·         Passenger

·         Cargo

By Mode of Operation:

·         Manned

·         Remotely Operated

·         Autonomous

 

By Ship Vessel Type:

·         Commercial Vessel

o    Passenger Cruise

o    Bulk Carrier & Container Ships

o    Tankers

o    Others

·         Defense Vessel

o    Aircraft Carrier

o    War Ship

o    Submarine

o    Others

·         Special Vessel

 

By Power:

·         <75KW

·         75-150KW

·         151-745KW

·         746-7,560KW

·         >7,560KW

 

By Range:

·         <50Km

·         50-100Km

·         101-1000Km

·         >1,000Km

 

By Tonnage:

·         <500DWT

·         500-5,000DWT

·         5,001-15,000DWT

·         >15,000DWT

 

By End Use:

·         New Build and Line fit

·         Retrofit

 

By Region:

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East and Africa

 

Based on mode of operation, the manned segment led the global electric ship market in 2021 and is projected to further retain its lead in the market over the forecast period. Factors such as

the surging demand for electric & hybrid propulsion systems by commercial ships and the presence of a huge retrofit market potential for manned cargo vessels are the key factors attributed to the high segment’s high market share. However, the autonomous segment is projected to attain the highest CAGR in the market during the forecast period due to several advantages that these vessels offer as compared to the semi-autonomous marine ships.

 

Based on type, the hybrid segment led the global market for electric ship with a share of 82.0% in 2021 and is expected to further retain its dominance in the market throughout the forecast period. The segment’s growth can be ascribed to the increasing preference of shipowners or shipping and logistic companies worldwide for hybrid electric ships due to their advantages and lower fuel consumption. However, the fully electric segment is anticipated to witness growth at the highest growth rate in the electric ship market during the forecast period. The growing usage of these ships due to their high capability and lighter weight is attributable to the segment’s high growth.

 

Based on power, the 75-150KW segment led the global market for electric ship in 2021.  The segment is anticipated to maintain its lead during the forecast period. The surging need for a reduced or zero-emission transport system is the major factor contributing to the segment's growth. The <75 KW segment is expected to expand at the fastest CAGR of 12.7% over the forecast period. Advancements in existing passenger transport and inland transportation ships and low fuel consumption and lower maintenance cost as compared to diesel propulsion are factors attributed to the growth of this particular segment.

 

REGIONAL OUTLOOK:

The European region accounted for the largest share in the global electric ship market in 2021. The region is predicted to further retain its dominance in the market over the forecast period of 2022-2030. The growth of the market in the region can be attributed to the burgeoning demand and adoption of  electric ships in the region; the increasing replacement of conventional passenger ferries with fully electric passenger ferries by major countries in the region; the escalating developments in autonomous electric vessels that use fuel cells and remotely controlled electric vessels; the surging expansion of technologically advanced electric ships in the region, and the expanding manufacturing industries and growing commercial and defense maritime industry in the region. Furthermore, the rising popularity of electric recreational and leisure vessels in marine tourism, the presence of various well-established market players coupled with their enhancing emphasis on R&D and the growing environmental regulations and emission standards in the region are expected to further bolster the growth of the electric ship market in the region during the period of forecast. Countries such as the Germany, U.K, Norway, Finland, and Denmark are the major contributors to the growth of the market in the region.

 

The North American region is anticipated to emerge as the fastest-growing regional market for electric ship during the forecast period. The high popularity of leisure activities, including boating in the region; the rising consideration of electric ships by US Navy for their strategic missions and the presence of well-established market players in the region are a few factors among others attributable to the growth of the electric ship market in the region. The U.S. is the major contributor to the growth of the market in the region.

 

The Asia Pacific region is anticipated to emerge as the second fastest-growing regional market for electric ships over the forecast period. Factors such as the advent of electric ships with new & advanced technologies and the expanding seaborne trade & marine tourism are the key factors ascribed to the growth of the market in the region. Moreover, a robustly growing economy and a strong manufacturing hub in the region are expected to further contribute to the growth of the market in the region during the forecast period. Countries such as India, China, and Japan are the major contributors to the growth of the market in the region.

 

KEY COMPANIES IN ELECTRIC SHIP MARKET:

·         MAN Energy Solutions SE

·         Vard

·         Leclanché SA

·         ABB Limited

·         Siemens AG

·         Wartsila

·         Norwegian Electric Systems

·         Corvus Energy

·         General Dynamics Electric Boat

·         Kongsberg Gruppen

·         AKASOL AG

·         Anglo Belgian Corporation NV

·         Corvus Energy

·         Scandia Marine AB

·         EST-Floattech

·         Schottel

·         General Electric

·         Eco Marine Power

·         BAE Systems

·         Other Players