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), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Electric Ships Market size exceeded USD 4 billion in 2020 and is projected to grow at a CAGR of over 9% between 2021 and 2027. The market representation of electric ships is steadily growing in commercial and defense applications, supporting the industry growth. Increasing developments in battery management technologies are assisting in improving the range of electric ships, in terms of nautical miles, driving the market expansion during the forecast period.
 

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The growing fuel consumption and increasing climate pollutants in the shipping industry have encouraged the development of new regulations for reducing gas emissions across the industry in the coming years. The International Maritime Organization (IMO) is continuously working toward adopting mandatory measures for the shipping sector. Increasing regulatory support from government authorities and industry associations will positively influence the market progression.
 

The rising demand for electric propulsion and battery storage systems in the shipping sector is fostering the market value. Various market players from suppliers to OEMs are actively focusing on development of new batteries and technologies, contributing to the market statistics.
 

The limited range and capacity are the major market factors hindering the growth of electric ships market. The fully electric ships can travel approximately 80 km on a single charge. Deficient battery limit and slow charging are also restraining the market development. Market players are focusing on developing hybrid electric ships by installing diesel generators to charge the batteries whenever extra power is required.
 

The market experienced a moderate slowdown in 2020 due to the COVID-19 pandemic. Limitations on global trade, limited R&D operations due to lack of funds, and temporary shutdown of manufacturing facilities are the major market factors restricting the growth.
 

Advancements in battery technologies are propelling the electric segment growth

The electric segment is slated to witness 10% growth rate through 2027. Companies are emphasizing on developing energy storage devices and integrating electric power sources. For instance, in October 2020, Kawasaki Heavy Industries, Ltd. received its first order for large-capacity battery propulsion systems, which are designed for integration into coastal ships. The new system includes Lithium-ion (Li-ion) batteries with 3,480 kWh power.
 

High demand for maintaining energy balance in electric ships

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The energy storage segment held 40% of the market share in 2020. Market leaders are developing energy storage systems, which can be charged using renewable energy resources to stay competitive in the industry.
 

Upward market trend of fully autonomous electric ships

Autonomous ships is estimated to attain a CAGR of 12% till 2027. Several market participants are highly involved in the development and launch of fully autonomous electric ships.
 

Increasing electrification of commercial ships

The commercial segment dominated more than 90% of the market share in 2020. The rising marine logistics and transportation activities will boost electric ships demand in the commercial sector. According to the Organization for Economic Co-operation and Development (OECD), around 90% of the global trade is carried over ocean shipping. The growing commercial fleet size will further add new market opportunities.
 

Rise in ship-building activities will spur the line-fit segment expansion

The line-fit segment is poised to expand at 11% CAGR by 2027 on account of the increasing new ship construction along with the integration of electric/hybrid engines. According to the UN Merchant Fleet 2020 statistics, around 93% of the global new shipbuilding occurred in China, Japan, and South Korea in 2019.
 

High growth in the European shipping industry

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Europe electric ships market size was over USD 2 billion in 2020. In Europe, the growth of manufacturing industries and commercial & defense maritime sectors is encouraging electric ship manufacturers to introduce technologically advanced & efficient vessels. The increasing demand from Germany for ships with hydrogen fuel cell propulsion systems is stimulating the market in the region.
 

High focus of market players on new product launches

The prominent companies operating in the market include Damen Shipyards Group, Holland Shipyard Group, Wellington Electric Boat Building Co., Tersan Shipyard, Remontowa Shipbuilding S.A., SSCmarine, Fjellstrand AS, Brodrene AA, Tuco Marine Group, SØBY VÆRFT A/S., HURTIGRUTEN GROUP, and Guangzhou Shipyard International Company Ltd. Market leaders are focusing on collaboration with technology providers and other industry players to gain a competitive edge.
 

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 2027 for the following segments:

Market, By Power Source:

• Electric
• Hybrid

Market, By System:

• Energy storage
• Power conversion
• Power generation
• Power distribution

Market, By Operation:

• Manned
• Autonomous

Market, By Platform:

• Commercial
• Defense

Market, By End-Use:

• 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
• Asia Pacific
  • China
  • Japan
  • South Korea
  • New Zealand
• Latin America
  • Brazil
  • Colombia
• MEA
  • Iran
  • Egypt
  • Israel
  • Turkey