Electric Ship Market size is set to surpass USD 7 billion by 2027, according to a new research report by Global Market Insights Inc.
The growing adoption of cloud computing technology in the shipping sector is creating ample growth opportunities for the market players. For instance, in July 2021, China Merchants Energy Shipping Co., Ltd. launched V1.0, a ship management digital IMP cloud platform. The platform is designed with ship-shore integration, cloud-side coverage, rule-driven mobile interaction, and eco-linkage.
The rising trend of digitalization and increasing government spending on technology development for the marine industry is fostering the electric ship market growth. The government authorities are actively investing in the marine industry for accelerating digitalization.
The high-performance in electric ships is achieved through high-capacity batteries. The high cost of these batteries adds up to the overall cost of the ships, restraining the market expansion. The electric ships are integrated with highly advanced parts & components to achieve the required performance. Additionally, high-quality materials used in the manufacturing of ships to reduce weight and provide aesthetics will increase the initial purchasing costs, further hindering the market development.
The market statistics of electric ships have been marginally impacted attributed to the COVID-19 pandemic. The engineering industries have been impacted by the short-term supply shortages due to closed borders. The quarantine measures during the first and second waves of the pandemic led to partial shutdowns of factories. This has impacted the development of various ship components, hampering the industry size. Post COVID-19, the market is expected to show lucrative growth credited to the increasing focus on reducing emissions.
High market share of hybrid ships due to enhanced range
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Hybrid ships dominated more than 90% of the electric ship market share in 2020. Market leaders are emphasizing on integrating hybrid engines into their upcoming ships to target the growing commercial marine transportation market. For instance, in October 2021, Royal Caribbean Group announced to launch hybrid-power cruise ships under its luxury brand, Silversea by 2023. The new ship will be the industry’s first hybrid ship that will incorporate fuel-cell technology and achieve emission-free port operations.
Browse key industry insights spread across 260 pages with 263 market data tables & 42 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, Defense), By End-Use (Line Fit, Retro Fit), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Innovations in power conversion systems for electric ships
The power conversion segment will showcase 11% growth rate through 2027. Industry participants are focusing on launching technically advanced power conversion systems to improve product offerings.
Growing demand for electric ships in the defense segment
The defense segment captured more than 3% of the electric ship market share in 2020 led by the increasing partnerships between market players and defense agencies. For instance, in October 2021, Rolls-Royce announced a strategic partnership with the Indian Navy for the development of electric warships. Similarly, in June 2020, General Electric announced to provide a propulsion drive-train and High-Voltage system (HV) for the U.S. Navy’s first fully electric warship.
Supportive government policies for EVs in APAC will enhance the market revenue
Asia Pacific electric ship market is estimated to attain a CAGR of 9% during 2021 to 2027 owing to the growing focus on reducing pollution and green-house emissions. In December 2019, the International Maritime Organization (IMO) announced a new regulation that permits a maximum of 0.5% of sulfur content in marine fuels around the globe. This factor encouraged several maritime companies in the region to emphasize on upgrading their existing fleet systems including ships, ferries, and cruises into either fully-electric or hybrid propulsion systems.
Key market players operating in the market include Tersan Shipyard, Damen Shipyards Group, ABB, Warsitla, Holland Shipyard Group, Remontowa Shipbuilding S.A, Wellington Electric Boat Building Co., SSCmarine, Brodrene AA, Fjellstrand AS, and Tuco Marine Group. The companies are focusing on signing long-term contracts with customers to maintain a steady revenue stream.