Electric Ship Market Size, Share, Analysis, Trends, Growth, 2032

Electric Ship Industry Prospective:

The global electric ship market size was worth around USD 3.96 billion in 2023 and is predicted to grow to around USD 18.73 billion by 2032 with a compound annual growth rate (CAGR) of roughly 18.86% between 2024 and 2032.

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Electric Ship Market: Overview

An electric ship is a powered water vehicle that runs on electric motors. These environmentally friendly ships are significantly different from traditional diesel engine vehicles due to the higher reliance of the former on renewable energy. Electric motors are either powered by on-board generators, solar panels, or battery packs. Electric ships are expected to register higher investments during the forecast period due to a growing shift among consumers toward environmentally friendly solutions and changing fuel prices. Additionally, the rise in electric battery technologies focusing on developing more powerful batteries with long-lasting battery life may aid higher market growth during the projection period. Currently, electric ships are mainly divided into two categories that are fully autonomous and semi-autonomous. Each segment offers specific advantages contributing to the overall electric ship market growth rate. A major factor that may limit the adoption of electric ships on a global scale is the lack of charging infrastructure which may take years for complete development.

Key Insights:

• As per the analysis shared by our research analyst, the global electric ship market is estimated to grow annually at a CAGR of around 18.86% over the forecast period (2024-2032)
• In terms of revenue, the global electric ship market size was valued at around USD 3.96 billion in 2023 and is projected to reach USD 18.73 billion, by 2032.
• The electric ship market is projected to grow at a significant rate due to fluctuations in fuel availability and prices
• Based on the power source, the hybrid segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the power output, the 75 kW to 745 kW segment is anticipated to command the largest market share
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period

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Electric Ship Market: Growth Drivers

Fluctuations in fuel availability and prices will drive investments in electric water vehicles

The global electric ship market is expected to witness high growth due to the increasing volatility in the oil & gas industry. Fuel prices, especially diesel and petrol have surged in the last few years. The extreme instability in fuel availability and corresponding prices has been further instigated by the violent events observed in certain parts of the world, especially in areas known for oil reserves, production, and distribution. At the beginning of the Russia-Ukraine war, several countries reported facing problems in meeting oil demands which further complicated the economic aspects of the industry such as fuel prices and overall expense associated with oil procurement. Traditional water vehicles are powered by diesel and hence any disruption in the supply chain or oil and fuel can severely disrupt business operations.

Significant advantages offered by electric ships over traditional counterparts may positively affect the market demand rate

Electric ships offer several key advantages over traditional diesel-powered ships. These electric versions are more eco-friendly since they do not rely on non-renewable fuel. In addition to this, electric ships do not lead to any form of pollution, unlike fuel-based versions. The ships that are fuel-powered cause noise, air, and water pollution. Each of these impacts is generated due to fuel burning. However, electric ships reduce noise pollution since they do not generate excessive sound during operations. Moreover, they are powered using electric batteries and hence have a lesser impact on the marine ecosystems in the water channels that these ships pass through. Apart from environmental benefits, there are other advantages associated with electric ships including low operational expense. They do not take more space for construction in comparison to traditional ships. Additionally, electric water vehicles are considered future-proof since they are compliant with all climate-related regulations that are dramatically changing across the globe. The companies operating in the global electric ship industry have tremendous growth possibilities in the near future.

Electric Ship Market: Restraints

Lack of supporting charging infrastructure will limit the market adoption rate

The global industry for electric ships will witness restricted growth during the projection period. Conventional ships enjoy the perks of an established fueling infrastructure where ships have access to fuel at all ports spread across the globe. However, electric ships also require regular fueling in the form of charging battery packs. This is one of the major current drawbacks of electric ships since most international ports are not well developed to encourage the charging of electric ships thus causing more companies to favor diesel-powered water vehicles.

Electric Ship Market: Opportunities

Growing investments in the commercial development of large-scale and efficient ships may generate expansion opportunities

The global electric ship market is projected to generate high growth opportunities due to the growing investments in the development of heavy-duty and efficient water vessels. In May 2024, China-based COSCO Shipping announced the launch of the world’s first ever 10,000 DWT pure electric container ships. The construction of the ships is being conducted at the Heavy Industrial Shipyard located in Yangzhou province. The combined battery power of Green Water 02 and Green Water 01 is more than 50,000 kWh. In the same month, the Mumbai city of India witnessed the launch of two new electric boats as the Mazagon Dock Shipbuilders Limited (MDL) celebrated 250 years of existence. In May 2024, Barcelona, a major city in Spain, hosted an electric boat show organized by the Port Oli´mpic along with the International Electric Marine Association (IEMA) and Asociacio´n Nacional de Barcos Ele´ctricos (ANBE).

Growing adoption of new technologies on electric ships is showing exceptionalhttps://www.zionmarketresearch.com/report/lithium-titanate-batteries-market signs of growth

Modern electric boats are equipped with high-end technologies including sensors, advanced charging solutions, highly efficient propulsion systems, and energy management tools among others. In addition to this, the market players are also experimenting with developing battery technology to reduce the dependence on charging ports for smooth and continuous running. In 2023, a new solar-powered mouette was launched. The vehicle is equipped with photovoltaic (PV) modules on the roof. The solar panels are spread across 40 square meters and the vehicle runs on a lithium battery. Without charging, the system can run for around 13 hours as per official claims thus helping the global electric ship market to new heights.

Electric Ship Market: Challenges

Competition from existing ships may challenge the market expansion trend

The global electric ship industry is expected to be challenged by the competition it faces from the existing ship industry dominated by fuel-powered water vessels. The global shipping industry will take decades to completely shift to electric versions since the currently operating ships are built on heavy investments. Moreover, the industry also faces challenges in terms of a lack of regulations surrounding smoother acceptance and operations of electric ships.

Electric Ship Market: Segmentation

The global electric ship market is segmented based on power source, type, power output, vessel type, and region.

Based on the power source, the global market segments are hybrid and fully electric. In 2023, the highest growth was observed in the hybrid segment. It held control over 80% of the total market share. Hybrid vehicles run on electric batteries as well as transition fuel and hence have witnessed higher market adoption since they are considered relatively safe for operations. The lack of charging infrastructure is limiting the adoption of fully electric vehicles along with the limited run-time offered by 100% electric variants.

Based on type, the global electric ship industry is divided into fully autonomous and semi-autonomous.

Based on the power output, the global market segments are more than 7560 kW, 746 kW to 7560 kW, 75 kW to 745 kW, and less than 75 kW. In 2023, around 44.25% of the total market share was dominated by the 75 kW to 745 kW segment. These vehicles have shown exceptional applications in inland transportation and passenger transport. Moreover, factors such as low cost of maintenance and reduced investment rate have worked in the favor of the segment. During the forecast period, the less than 75 kW segment will grow at a CAGR of more than 12.04%.

Based on vessel type, the electric ship industry divisions are special vessels, defense vessels, and commercial vessels.

Electric Ship Market: Report Scope

Electric Ship Market: Regional Analysis

Asia-Pacific to be led by China during the projection period

The global electric ship market will be dominated by Asia-Pacific during the projection period. The growth is expected to be heavily concentrated in China as it is currently the world’s largest producer of electric ships. The country has been delivering exceptional results in terms of electric ship technology throughout the last decade. In July 2023, China launched the world’s first 700 TEU electric containership for the Yangtze service. Additionally, the latest launch of the world’s biggest fully electric container ship by China has further strengthened the country’s hold in the domestic electric ship industry.

Europe is projected to emerge as one of the most significant nations in building and adopting electric ships. Germany is one of the most prominent producers of electric-battery-powered ships. In January 2024, DFDA, a Danish ferry and logistics company, announced an investment of €1 billion for the construction of battery electric vessels as the company aims to contribute to decarbonizing the English channel. Europe has been taking heavy strides in reducing the environmental impact of the commercial world by encouraging the development and adoption of renewable energy-powered vehicles.

Electric Ship Market: Competitive Analysis

The global electric ship market is led by players like:

• Mitsubishi Heavy Industries
• General Dynamics Electric Boat
• Damen Shipyards Group
• ABB (Asea Brown Boveri)
• Huntington Ingalls Industries
• Thales Group
• DCNS (now Naval Group)
• Rolls-Royce
• Siemens
• Kawasaki Heavy Industries
• Saab AB
• BAE Systems
• Finmeccanica
• Wärtsilä
• Navantia

The global electric ship market is segmented as follows:

By Power Source

• Hybrid
• Fully Electric

By Type

• Fully Autonomous
• Semi-autonomous

By Power Output

• More than 7560 kW
• 746 kW to 7560 kW
• 75 kW to 745 kW
• Less than 75 kW

By Vessel Type

• Special Vessel
• Defense Vessel
• Commercial Vessel

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa