Electric Ship Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Electric Ship Market Market Is Segmented By Type (Fully Electric, Hybrid), By Mode of Operation (Autonomous, Remote operated, Manual), By Power Output (Less than 75KW, 75 to 745KW, 746 to 7560 KW, More than 7560 KW), By End Users (Defence, Commercial, Submarines, Dredgers, Cargo Vessels, Others), and By Region (North America, South America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Electric Ship Market Overview

180 pages report analyses the Electric Ship Market Size, Growth and Analysis. The Global Electric Ship Market is expected to grow at a high CAGR of 14% during the forecasting period (2023-2030). Electric ships are gaining popularity worldwide as diesel-operated ships produce massive exhaust gases, such as carbon dioxide, sulfur oxides, nitrogen oxides and various dust. Due to the increase in demand for electric ships for fully electric passenger vessels, yachts, tugs, and cruise vessels, various countries like Norway and Denmark have actively started shifting towards fully electric passenger ships. Competitive rivalry intensifies with General Dynamics Electric Boat, Austal, Wartsilaand others operating in the market.

Ships are operated by diesel engines and gasoline engines generally, but nowadays, electrically operated ships are also gaining popularity as they provide advantages: flexibility in weight and space, freedom in the power system layout, enhanced operating life, and less noise. The use of battery storage systems, which could also be charged by renewable energy sources mostly on-shore, may reduce fossil fuels for some ship applications.

Moreover, advanced electrical power systems involve converting all shipboard systems to electric power, even the most demanding systems. It also provides the enabling science, technology, and design tools to allow electrical power systems, electric propulsion, and auxiliary systems to meet the future mission and affordability requirements.

Electric Ship Market Scope

To Know More Download Sample

Electric Ship Market Dynamics

The global electrical ship market growth is driven by increasing exhaust gas concerns, and continuous government support is among the key factors driving the market growth.

The increasing exhaust gas from regular ships pays wave for the growth of the electric ship market over the forecast period

Electric ships are gaining popularity worldwide as diesel-operated ships produce massive exhaust gases, such as carbon dioxide, sulfur oxides, nitrogen oxides and various dust.  According to the International Maritime Organization, 2019, diesel-operated ships are responsible for almost 2.5 per cent of greenhouse gas emissions; it produces one billion tons of CO2 each year. The maritime industry, among all other sectors, is being forced to reduce its emissions gradually. From 1 January 2020, it focuses on lowering sulfur % in the heavy fuel oil-powered vessels to 0.5%. Hence these factors will play a vital role in the growth of the electric ship market in the forecast period. Moreover, in 2018, the International Maritime Organization decided to decrease exhaust gases emissions drastically. By 2050, the UN organization 173 member states are willing to reduce CO2 emissions from ships compared to 2008.

The extra cost associated with the electric ship is likely to hinder the electric ship market growth.

On the contrary, the electric ship can result in high installation cost, battery inefficiency, lack of battery charging infrastructure and a high energy storage cost restrain the electric ship market growth. According to Infineon Technology report, 2021, an electric ship's energy density is still too low, which creates a problem in long routes as the ship has to travel vast distances with one battery charge. The batteries are generally too large and too heavy.

COVID-19 Impact On Electric Ship Market

Due to the pandemic, all the seaports across the countries have seen a notable impact, considering the slowdown in transportation due to safety and prevention from the spread of the virus. As the electric ship is a developing field and it procures extra cost, it would be challenging for the companies to resume the practices with the same pace as all the chains, including the significant import and export trade, in the face of a downfall.

During this time, various countries have also forced a ban on the entry of vessels and containers operated from other ports, especially those transported from China. Such operations have hindered the logistics and functions of these industries. Moreover, workers and staff have to face strict quarantine rules due to the respective country protocols. The ports are working at a low capacity, and the storage facilities have been highly full.

Electric Ship Market Segmentation Analysis

By mode of operation, the electric ship market is classified into manual, remotely operated and autonomous ships.

The autonomous ship segment is expected to grow at the fastest CAGR during the forecast period (2021-2028)

The increasing demand for the autonomous electric ship is due to the following advantages: eliminating human error, reducing crewing costs, more safety, allowing more effective use of space utilization and efficient fuel use. As autonomous ship utilizes artificial intelligence, it has further potential to drive the market towards more reliable products.

For instance, according to the Kongsberg report, 2021, the company has developed the first fully electric autonomous container ship with zero emissions. It will include all enabling technologies with sensors and integration required for remote and autonomous ship operations. Moreover, it has also developed the 120 TEU (Twenty-foot Equivalent Units) open-top container ship. It will be a fully battery-powered solution, prepared for autonomous and crewless operation. The vessel will reduce NOx and CO2 emissions by reducing diesel-powered truck transport by around 40,000 journeys per year. This initiative will help to reach the UN sustainability goals and improve road safety and congestion.

Electric Ship Market Geographical Share

The Europe region holds the largest market share global electric ship market

The European region dominates the electric ship market globally and is expected to grow during the forecast period. Due to the increase in demand for electric ships for fully electric passenger vessels, yachts, tugs, and cruise vessels, various countries like Norway and Denmark have actively started shifting towards fully electric passenger ships. Moreover, significant progress in autonomous electric vessels and remotely controlled electric vessels are also expected to boost the market globally.

For instance, according to The Next Web report, 2021, Norway’s top cruise ship operator has manufactured two fully operational electric-powered ships, 60 by 2021, and by 2023 the country's entire long route ship will either be all-electric or equipped with hybrid technology. Moreover, it will soon launch two expedition cruise liners with hybrid propulsion planned to travel the Arctic. Several Norwegian firms have teamed up to construct an electric container ship that could replace 40,000 diesel truck trips annually. Eidesvik Offshore, a firm supplying off-shore oil rigs, has converted a supply vessel to operate electrically and liquefied natural gas.

Electric Ship Market Companies and Competitive Landscape

The electric ship market is consolidated and highly competitive with the presence of a few local players followed by the global companies who contribute to the major share in the market. Leading key players contributing to the growth of the market are General Dynamics Electric Boat, Austal, Wartsila, Schottel Group, Anglo Belgian Corporation NV, Eco Marine Power, Akasol AG, Kongsberg, Norwegian Electric Systems AS, Corvus Energy, General Dynamics, Vard, Siemens, and Leclanché SA. The major players are adopting various new strategies to dominate the market, such as launching new products, acquisitions and collaborations, which are responsible for the growth of the electric ship market globally.

Austal

Overview: Austal has designed and created over 300 vessels for over 100 defence and commercial operators, earning an enviable reputation for innovative building ships using advanced technologies. The company was started in 1988 in Australia.

Product Portfolio: TheCompany manufactures ships used in commercial, defence, and off-shore fields. The company also provides spare parts, information vessel control systems and consultancy services.

Key Development: In 2021, Austal has launched a new range of Volta electric-powered high-speed ships, with the first design offered being the fully electric 46-meter Passenger Express 46V.  It would also provide utterly integrated design, construction and support solution, including on-shore charging infrastructure and in-service support programs for operators.

Why Purchase the Report?

• Visualize the segmentation of the electric ship market segmentation by type, end-users, mode of operation and, region highlighting the key commercial assets and players.
• Identify commercial opportunities in the electric ship market by analyzing trends and co-development deals.
• Excel data sheet with thousands of data points of electric ship market-level 4/5 segmentation.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

Target Audience

• Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals
• Emerging Companies
• Manufacturers