Electric Ships Market Analysis

Electric Ships Market Analysis

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.
 

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.
 

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.
 

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.
 

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.
 

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.