Electric Ship Market worth over $5bn by 2026
Published Date: April 24, 2020 Authors: Ankita Bhutani, Preeti Wadhwani
Electric Ship market size is set to surpass USD 5 billion by 2026, according to a new research report by Global Market Insights, Inc.
Growth in market is due to rising concern of carbon footprint generated due to maritime activities. Ships, on an average, generate 3% of global CO2 emission, which approximately one billion tons of CO2 every year. Stringent regulations are being implemented to reduce carbon emission, impacting the market positively.
The rising maritime activities pertaining to increasing global trade and marine tourism activities will also cater to electric ship market growth. For instance, as of 2019, there were approximately 53,000 merchant ships trading internationally, and the number is continuously increasing. Ship operators are actively looking to retrofit their ships with alternate power sources, positively influencing the market revenue.
Broad adoption of electric ships in passenger vessels and tourist activities will create market demand in the coming years. Low operational cost and low maintenance are some of the major factors stimulating market penetration of electric ships in the commercial market. Major industry participants are extensively investing in R&D of batteries to cater to the market.
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Technological development in electric propulsion systems of ships
Long-lasting battery life and stable electronics systems are the most crucial aspects in the development of electric propulsion systems. Companies operating in the market are actively investing in advancement of energy storage devices, propelling the segment growth.
Establishment of new regulations to cut down carbon emission
Governments across the globe are releasing various regulations, policies, and mission statements to reduce the carbo footprint generated by the shipping industry and mitigate environmental problems. For instance, under the Sulphur 2020 norm, ships are forced to reduce their carbon and Sulphur emissions. After January 2020, “the limit for Sulphur in fuel oil used on board ships operating outside designated emission control areas is reduced to 0.50% m/m (mass by mass)”. Another goal set by various regulatory bodies is to halve the carbon emission generated from ships by 2050.
Browse key industry insights spread across 280 pages with 352 market data tables & 27 figures & charts from the report, Electric Ship Market Size, By Power Source (Electric, Hybrid), By System (Energy Storage, Power Conversion, Power Generation, Power Distribution), By Operation (Manned, Autonomous), By Platform (Commercial [Passenger vassals, Cargo Vessels], Defense), By End-Use (Line Fit, Retro Fit), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Participation of major industry players in electric ship exhibitions is supporting the market transparency
The electric ship industry in Europe will register a growth rate of more than 10% during the forecast timeframe on account of active participation of regional players in various ship exhibitions and conferences. Governments of various countries including Russia, the Netherlands, and Germany are taking efforts by supporting these exhibitions, which ensure smooth transfer of technological knowledge and expertise.
Increasing efforts to bring in electric ships to regular application by Asia Pacific
The Asia Pacific electric ship market is set to witness around 7% CAGR from 2020 to 2026. The growth can be attributed to efforts taken by major organizations and government bodies to develop and summon operations of electric ships.
For instance, in August 2019, e5 Lab Inc., consortium of Exeno Yamamizu Corp., Asahi Tanker, Mitsui O.S.K. Lines Ltd., and Mitsubishi Corp. announced their plans to build all electric zero-emission tankers by 2021. The ship will be powered by large capacity batteries and will operate in Tokyo Bay.
Increasing product offerings by major industry players in the electric ship vertical
Major strategies practiced by companies operating in the market include improving their product offerings to serve the broader market. Companies are engaged in the development of new and technologically advanced batteries and capacitors, which can serve as alternate sources, allowing them to capture future market prospects.
Major vendors operating 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.