Electric Ships Market Size By Power Source (Electric, Hybrid), By System (Energy Storage, Power Conversion, Power Generation, Power Distribution), By Operation (Manned, Autonomous), By Platform (Commercial, Defense), By End-Use (Line Fit, Retro Fit) Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020-2026

Electric Ships Market size exceeded USD 3 billion in 2019 and is anticipated to grow at a CAGR of over 8% between 2020 and 2026. The market growth is attributed to rapid adoption of electric ships by various cargo, passenger, and defense sectors.
 

Major developed countries are investing in development of various power sources for the shipping industry in order to align themselves toward the goal of reducing carbon emission. The development in a complex power train and more efficient semi-conductors will support the electric ships market revenue. Companies operating in the market are engaged in design and development of ships, resulting in increased automation and reduced energy consumption.
 

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The electric ships industry will experience a moderate slowdown in 2020 due to recent COVID-19 pandemic. Global trade limitation, temporary shutdown of manufacturing facilities, and reduction in fund allocation towards R&D activities are major reasons limiting the growth. The retro fit segment will experience accelerated growth after conclusion of COVID-19 pandemic to cater demand to resume operations in shipping industry.
 

Versatile scope of operation due to dual power source will fuel the electric ships market growth

The hybrid ships segment will dominate the market with around 90% share by 2026. High penetration of hybrid ships can be attributed to their abilities to operate on both power sources, electric as well as conventional. This has resulted in more efficient and reliable source of operation, catering to the market demand.
 

For instance, in February 2019, Hurtigruten’s cruise ship announced the nearing completion of first hybrid cruise ship. The 140m long cruise ship can accommodate 530 guests and is built to sail in extreme conditions. The ship features integration of battery packs, allowing it to be 20% more efficient compared to the conventional ships. The ships plan to conclude three extreme expeditions including Antarctica by 2021.
 

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Miniaturization of components supporting the demand for power distribution system segment

The power distribution segment in the electric ships market will observe over 7% growth from 2020 to 2026 owing to its ability to draw power from various sources and effectively channelize it across the vessel to improve efficiency of the ship and reduce emissions.
 

Conventional-powered distribution systems are required in big vessels, which have complex mechanisms. Various industry participates are targeting small vessels operation on electric or hybrids source, establishing a new market space.
 

Increasing investments and collaboration towards development of electric ships

The manned electric ships market size in Asia Pacific is estimated to expand at more than 7% CAGR during the forecast timeframe. Continuous efforts made by various corporate, educational and government organizations towards development of electric/hybrid ships will boost the market revenue.
 

For instance, in April 2020, a collaborated effort of South Korea’s Ministry of Oceans and Fisheries, Korea Research Institute of Ships & Ocean Engineering and University of South-Eastern Norway will be placed towards development of fully electric ferry. The project is estimated at the value of USD 21.9 million.
 

Rise in investment by the defense sector for acquisition of electric vessels

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Defense organizations across the globe are engaged in increasing their naval defense capabilities to safeguard their borders. Properties, such as stealth operation and low maintenance, along with being ecofriendly in nature will influence the electric ships market growth. Industry participants are engaged in development of electric-hybrid ships exclusively for Navy.
 

Possibility to create novel design and establish a new ecosystem will support the line fit segment

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The line fit segment within the European electric ships market held over 8% revenue share in 2019 and is poised to register 11% gains through 2026. The market growth can be credited to rising efforts of companies to develop new electric/hybrid ships and set records to gain confidence of customers.
 

For instance, in April 2020, MS Roald Amundsen became the first electric-hybrid ship to cross Antarctic circle. The ship operates on large battery packs and features a specially designed ice-strengthened hull which allowed the vessel to carry such operation. The second ship is expected to be launched by 2021.
 

Collaboration of corporate and educational bodies to support technological development of electric ships in APAC

North America accounted for more than 20% market share in 2019. Efforts by regional defense bodies to increase automation in naval ships will drive the market across the region. Various programs released by government to facilitate research & development toward automation of ship are positively augmenting the market size.
 

The Asia Pacific electric ships market revenue is slated to grow at over 7% CAGR till 2026 due to efforts taken by various government, corporate, and educational bodies toward technological development of electric ships. For instance, in January 2020, the SM Group of Korea signed a Memorandum of Understanding (MoU) with Korea Maritime University for development of electric ships. The MoU will serve as a bridge between corporate bodies and educational institutions, allowing them to focus on developing ships as per the market demand.
 

MoUs and agreements for data sharing and increasing market transparency

Major players in the market are Kongsberg Gruppen ABB, Wartsila, Norwegian Electric Systems AS, Corvus Energy, General Dynamics Electric Boat, MAN Energy Solutions SE, Vard, Siemens, Leclanché SA, Bae Systems, Echandia Marine AB, Anglo Belgian Corporation (ABC) NV, Schottel GmbH, Visedo, ECO Marine Power Co Ltd., Akasol AG, EST Floattech, and Saft.
 

The companies operating in the industry are signing Memorandum of understanding (MoU) and agreements to share crucial data, which will increase transparency in the shipping industry and increase operational efficiency of ship operators.
 

The electric ships market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2026 for the following segments:

Market by Power Source, 2017 - 2026 (USD Million)

• Electric
• Hybrid

Market by System, 2017 - 2026 (USD Million)

• Energy Storage
• Power Conversion
• Power Generation
• Power Distribution

Market by Operation, 2017 - 2026 (USD Million)

• Manned
• Autonomous

Market by Platform, 2017 - 2026 (USD Million)

• Commercial
• Defense

Market by End-Use, 2017 - 2026 (USD Million)

• Line Fit
• Retro Fit

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada

• Europe
  • France
  • Norway
  • Netherlands
  • UK
  • Russia
• APAC
  • China
  • Japan
  • South Korea
  • New Zealand
• Latin America
  • Brazil
  • Colombia
• MEA
  • Iran
  • Egypt
  • Israel
  • Turkey