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Electric Ships Market size to surpass $10 billion by 2032
- Published Date: December 13, 2022
Electric Ships Market size valuation is anticipated to cross USD 10 billion by 2032, as per a recent research report announced by Global Market Insights Inc.
Rising number of regional government initiatives to maintain eco-friendly and cleaner waterways is positively affecting the market outlook. Moreover, the regional governments are focusing on creating a sustainable maritime network for passenger and cargo ship transportation, which is expected to push product penetration.
Fuel efficiency to bolster hybrid power source segment demand
Based on the power source, electric ships market is segmented into hybrid and electric. Hybrid power source segment accounted for over 90% market share in 2022 and is speculated to observe robust expansion owing to its increasing adoption due to its capability to run on both conventional and electric fuel-based systems. The growth is also attributed to its various benefits, such as easy upgrade, fuel efficiency, and operational flexibility, in selecting which generator should operate to supply the required power.
Reduced fuel emissions with power distribution system to bring high revenues
In terms of system, electric ships market is divided into power generation, power distribution, energy storage, and power conversion. Power distribution segment is likely to capture over 5% market share by 2032. These systems improve the ship’s energy efficiency and reduce fuel emissions, which greatly favors their adoption. In addition, they are used to pull electricity from different power sources and channel it across various systems in the electric ship.
Surging adoption of crewed ships to augment manned operation segment revenues
In terms of operation, market is categorized into manned and autonomous. Manned segment registered over USD 4 billion in revenue in 2022 owing to the rising adoption of crewed ships and vessels across commercial space. In addition, these ships provide low-cost benefits over fully autonomous electric ships, elevating the segment expansion. These ships also include different operational components, such as communication systems, navigation controllers, and power distribution panels, for passenger & cargo safety and operational efficiency.
Browse key industry insights spread across 260 pages with 263 market data tables and 42 figures & charts from the report “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”, in detail along with the table of contents:
Rise in marine transportation activities to fuel the platform segment expansion
On the basis of platform, electric ships market is classified into commercial and defense. Commercial segment was valued at over USD 4.5 billion in 2022 and is set to witness substantial progress from 2023 to 2032 on account of the upsurge in marine logistics and transportation activities in the commercial space. As per OECD, around 90% of global trade is performed over ocean shipping. Also, according to the International Chamber of Shipping, around 11 billion tons of goods are transported by ships every year. Moreover, the expanding commercial fleet will further pave the way for segment growth.
Rising GHG emissions from maritime shipping to benefit the retro fit segment
Based on end-use, industry is bifurcated into line fit and retro fit. The retro fit segment accounted for more than 90% market share in 2022 owing to the surging trend of retrofitting hybrid/electric engines in existing vessels and ships. Increasing greenhouse gas (GHG) emissions from the maritime shipping sector have resulted in severe global warming concerns. Subsequently, prominent efforts by many regulatory and government authorities towards GHG neutrality to conserve the marine ecosystem and biodiversity is likely to propel segment growth.
Surging demand for battery storage systems to strengthen the APAC market scenario
Asia Pacific electric ships market is anticipated to register over 10% market share by 2032 backed by the escalating demand for battery storage systems and electric propulsion in the regional shipping industry. Additionally, the soaring focus of different business enterprises from suppliers to shippers on implementing and commercializing advanced technologies, such as marine batteries, internal combustion engines, and others.
Product development to outline the competitive landscape
Some key players in the electric ships market include TSUNEISHI SHIPBUILDING Co., Ltd, Guangzhou Shipyard International Company Ltd, Tersan Shipyard, and Damen Shipyards Group, among others. These companies are investing in developing sustainable yet advanced electric ships to attain a competitive edge.