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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, Application Potential, Competitive Market Share & Forecast, 2023 – 2032

  • Report ID: GMI4640
  • Published Date: Dec 2022
  • Report Format: PDF

Industry Drivers

Electric Ships Market size was valued at over USD 4 billion in 2022. Driven by the increasing environmental consciousness, the industry is poised to register more than 9% CAGR from 2023 to 2032.
 

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Rising concerns about carbon emissions from the marine industry prompted ship manufacturers to develop innovative electric ship technologies, which is shaping the industry landscape. For instance, in August 2021, All American Marine, Inc. (AAM), a U.S.-based boat builder, in collaboration with SWITCH Maritime (SWITCH), a builder of zero-carbon vessels that supports clean fueling infrastructure, introduced its new hydrogen-fueled cell-powered electric drive ship. As per the International Maritime Organization (IMO), ships release nearly 1 billion metric tons of CO2 into the atmosphere annually, which is likely to increase the demand for electric ships.
 

Expensiveness of high-capacity batteries may hinder industry development

High performance in electric ships can be attained through high-capacity batteries. However, the high cost of these batteries increases the overall costs of ships, impeding the electric ships market statistics. Also, hybrid propulsion is highly complex and incurs higher capital costs and knowledge for efficient operation, which may affect the industry negatively. Spare part procurement and maintenance of hybrid propulsion systems may also pose challenges in the long run. However, mounting government expenditure on technological development in the industry is foreseen to help manufacturers combat this restraint.
 

Cleaner power source-related regulations to bolster the electric power source segment demand

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Based on the power source, industry is bifurcated into electric and hybrid. Electric power source segment is anticipated to grow at a 10% CAGR from 2023 to 2032 owing to strict regulations that are pushing ship manufacturers to replace traditional heavy fuel oil engines with cleaner & alternative power sources, such as lithium-ion-based electric propulsions. Moreover, this replacement is also likely to increase the integration of stable electronic systems and large-capacity battery packs in ships’ electric propulsion systems.
 

Reduced emissions to augment energy storage system segment revenues

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In terms of systems, electric ships market is classified into power conversion, energy storage, power generation, and power distribution. Energy storage segment is projected to grow at over 8% CAGR from 2023 to 2032 driven by reduced fuel consumption and emission volumes with efficient energy storage systems. Furthermore, integrating such systems with electrical propulsion drives reduces the risks of blackouts, increases the vessel’s operational lifespan, and improves ship safety. In addition, these storage systems offer different operational modes, allowing operators to improve the ship’s energy balance.
 

High integration of advanced sensors in ships to favor the autonomous operation segment

With respect to operation, electric ships market is bifurcated into autonomous and manned. Autonomous operation segment is poised to grow at more than 15% CAGR from 2023 to 2032 on account of rising deployment of microelectronic systems and advanced sensors in ships to attain autonomy. In addition, autonomous electric ships are extensively integrated with advanced systems and sensors, including GPS, LiDAR system, Automatic Identification System (AIS), sonar, radar, and others, to attain complete autonomy with crewless transportation, which is speculated to facilitate segment expansion.
 

Rising investments in electric vessel integration to propel the defense segment expansion

On the basis of platform, industry is classified into defense and commercial. The electric ships market share from the defense segment is slated to witness over 5% CAGR from 2023 to 2032 owing to rising investments by defense organizations to integrate electric vessels and warships in their naval fleets. Moreover, electric ships present a host of benefits, such as lower maintenance and upkeeping, low GHG emissions, stealth operations, and low noise, which helps navies safeguard their borders, positively influencing the industry scenario.
 

Mounting trade activities to fuel product adoption for line fitting

In terms of end-use, electric ships market is categorized into line fit and retro fit. Line fit segment is anticipated to grow at more than 10% CAGR through 2032 propelled by growing number of new ship construction projects, coupled with the integration of electric/hybrid engines. The growth can also be credited to increasing trade and logistics activities worldwide. In addition, prominent efforts by companies to engage with customers for launching end-to-end hybrid/electric ships are likely to present notable growth opportunities for the segment.
 

Prevalent digitalization trend to strengthen LATAM electric ships industry statistics

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Latin America electric ships market is poised to register over USD 300 million in revenue by 2032 owing to rising government investments toward developing advanced technology for the marine sector. Furthermore, governments in various nations, such as Mexico and Brazil, are investing heavily to expedite digitalization in the region’s marine industry, which is expected to support regional business share.
 

Strategic partnerships to define the competitive landscape

Some electric ships market players include TSUNEISHI SHIPBUILDING Co., Ltd, Guangzhou Shipyard International Company Ltd, Siemens, ABB, and Damen Shipyards Group, among others. These firms are prioritizing partnerships to gain a competitive edge in the sector. Citing an instance, in October 2022, ABB Limited, a Swedish-Swiss multinational corporation, joined forces with Incat Tasmania, a high-speed craft (HSC) catamaran ferries manufacturer, to manufacture lightweight hybrid-electric ferries. As part of the partnership, ABB agreed to supply zero-emission propulsion and power solutions and analyze a future commercial setup for building a 148 m-long ferry to Incat Tasmania.
 

Impact of COVID-19 on the electric ships market trends

COVID-19 pandemic had a negative impact on the electric ships business due to the decline in maritime trade. In addition, the restrictions introduced in wake of the pandemic caused disruptions affecting ports, supply chains, and shipping. As per the United States International Trade Commission, in the first half of 2020, U.S. maritime container imports dropped by 7% in volume. However, with the resumption of trade in the post-pandemic era, the market is recovering gradually.
 

The electric ships market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2018 to 2032 for the following segments:

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

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

 

Authors: Preeti Wadhwani, Aayush Jain

Frequently Asked Questions (FAQ) :

In 2022, global market size for Electric Ships held a valuation of over USD 4 billion and is expected to grow at over 9% CAGR between 2023 and 2032 backed by the increasing environmental consciousness.
Some key firms in the electric ships business include Akasol AG, ABB Limited, Anglo Belgian Corporation (ABC), Corvus Energy, BAE Systems PLC, Damen Shipyards Group N.V., Eco Marine Power Co. Ltd., Echandia Marine AB, and EST Floattech, among others.
Latin America electric ships market is anticipated to be worth over USD 300 million by 2032 driven by a surging digitalization trend across regional sectors, coupled with heavy investments by the regional governments toward developing the latest technology for the marine industry.
Electric power source segment is slated to grow at a 10% CAGR from 2023 to 2032 on account of stringent regulations that are urging ship manufacturers to replace traditional heavy fuel oil engines with cleaner power sources.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 24
  • Tables & Figures: 305
  • Countries covered: 17
  • Pages: 260
  • Upcoming Report: Details can be customized to meet your information and data needs. Feel free to share your detailed research requirements via this form.

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