Report Overview

The market for electric ships was valued at USD 8.01 billion in 2021 and is expected to reach USD 26.53 billion, increasing at a CAGR of 11.5 % from 2021 to 2032. Despite the market’s early phases, there are numerous chances for expansion.

Due to the growing desire to decrease carbon footprints and fuel waste, there is a greater demand for maritime ships that are powered by electricity. The market is expanding due to shipbuilders’ increased attention to quieting down the noise produced by marine vessel engine systems.

According to the Environmental Protection Agency (EPA), more than 29% of all greenhouse gases in the United States in 2021 were attributed to transportation. The transportation sector is one of the major causes of the global rise in greenhouse gas emissions. These emissions primarily result from burning fossil fuels in cars, trains, ships, and airplanes.

This electric ship market report gives a detailed analysis of the market size, share, growth, key trends, competitive landscape, Challenges, Covid-19 impact analysis, and other key factors.

Global Electric Ship Market Scope:

Power Source analysis

The hybrid market, which accounted for 82.1% of the whole market, was the leader in sales of electric-powered ships. Throughout the projected period, this share is anticipated to stay robust. Hybrid ships are popular since they offer numerous benefits like higher reliability, better speeds, and fewer failure rates.

The diesel-electric or battery-powered hybrid electric vessel propulsion system can be utilized in either an electrical or mechanical mode (direct diesel driven). Due to their higher fuel efficiency and reduced cost, hybrid electric vessels are preferred by shipowners, shipping, and logistic firms worldwide. Direct diesel-driven power in high power and diesel-electric power in low power are the two possibilities for propulsion.

Today, hybrid propulsion technology is ideal for small vessels, such as cruise ships and ferries. Lower operating expenses are possible in an electric ship using direct diesel-driven propulsion when high power is required instead of diesel-electric propulsion at low power.

You may reduce your reliance on fuel and use the available energy more by employing hybrid electric ship propulsion. Over the projection period, completely electric ships are expected to experience stable expansion because of the rising popularity of electric mobility in inland and nearby locations.

Vessel Type analysis

Electric commercial vessels dominated the industry with a market share of 80% in 2021. Marine vessels have become more prevalent due to growing industrialization and globalization. More sailors result from increased maritime logistics, which could result in higher operational expenses for logistics service providers.

Due to increased competition among logistics service providers and competitive pricing methods, the adoption of automated systems in commercial boats is anticipated to rise. The autonomous ship propelled by electricity lowers operational expenses and increases cargo capacity.

Future years are anticipated to see segment expansion as a result of this. The expansion of maritime trade between Asia Pacific and North America is mostly due to support trade policies and geopolitical changes, such as China’s ascent to prominence as a manufacturing hub.

The United Nations Conference on Trade and Development estimates that marine trade increased by 4% between 2021 and 2032. Over the ensuing few years, it is anticipated to experience tremendous expansion. Up until 2023, volume is expected to expand at a pace of 3.8 % per year, according to the United Nations Conference on Trade and Development.

Power Output Type

The 75-745 KW output segment led the electric ship markets, accounting for 45.0 % of the total market share. The previous ten years have seen the most popular 75-745 KW output ships in the marine business. Low-emission propulsion systems have been developed due to increasing awareness of environmental preservation.

Due to this, the market for medium-sized marine vessels with a power output of 75-745 KW has become more significant. Electric ships for medium-sized passengers and luxury ships are becoming more popular thanks to low vibration and reduced engine noise. Additionally, electric propulsion systems are less in size.

They are hence more desirable for luxury vessels. The cost to operate electric powered vessels is significantly less than for diesel vessels. Solar power vessels are also utilized in power lightweight ships that require low force yield.

During the predicted period, the generation power output segment’s lowest 75 KW segment will expand at a 12.3% annual compound rate. The increase is due to the expansion of current passenger transportation systems and inland transport ships. More consumers have decided to invest because of the technology’s low fuel use, maintenance costs, and fuel usage. The market for recreational boats is enormous and is predicted to expand quickly.

Autonomy Level

Electric-Powered boats can be classified as either semi-autonomous or fully autonomous, depending on their level of autonomy. In 2021, semi-autonomous vehicles held 90% of the market share. Semi-autonomous boats will predominate in the market sales of completely autonomous marine vessels, which are anticipated to be sold by 2020.

Sensors, cameras, and navigational systems are already pre-installed on these ships. Additionally, these systems are simple to install in boats with manual control. Fully autonomous vehicles are expected to increase quickly between 2021 and 2032. This is because these boats have several advantages versus marine craft with limited autonomy.

These advantages include risk reduction, effective use, and reduced human error. Without human interference, navigation systems and cutting-edge maneuvering technology that use GPS and sensors will make efficient maritime transit possible. The segment is anticipated to expand due to fully autonomous electric ships’ quicker operations and lower operational expenses.

Кеу Маrkеt Ѕеgmеntѕ

By Power Source Type

• Fully Electric
• Hybrid

By Power Output

• <75 kW
• 75-745 kW
• 746-7,560 kW
• >7,560 kW

Autonomy Level

• Semi-Autonomous
• Fully Autonomous

Vessel Type

• Commercial Vessel
  • Passenger Cruise
  • Bulk Carrier & Container Ships
  • Tankers
  • Others

• Defense Vessel
  • Aircraft Carrier
  • War Ship
  • Submarine
  • Other
• Special Vessel

Market Dynamics:

Approximately 90% of all transportation fuel, including gasoline and diesel, is made of petroleum-based materials. Government actions have been taken to lower carbon emissions, including incentives for electric-powered cargo ships. This will probably boost the market’s growth in the future.

Additionally, a diesel engine generator (Genset) or electric generator increases ship efficiency under heavy loads. Additionally, this configuration consumes less fuel than a traditional marine engine powered by an internal combustion engine (diesel motor).

Service providers are compelled to reduce operating expenses to increase profit margins and break even. It is anticipated that the market expansion will be aided by the transportation and logistics service providers’ efforts to reduce operational costs.

The ship’s main propulsion system was directly connected to the shaft in the conventional propulsion engine. Vibrations and friction were produced, which decreased the electric ship’s effectiveness. An electric propulsion motor’s lack of a direct connection between its prime movers lowers vibrations and boosts system performance.

In addition, installing electric propulsion systems equipment takes up less room than installing conventional propulsion systems. You can increase your revenue by using the area that these machines take up.

The rise of the manned market is attributed to the growing demand for hybrid and electric propulsion systems from commercial ships, including cruise vessels, ferryboats, cargo ships, and container ships, to name a few. Ship owners from countries like Norway, the US, Greece, China, and France are involved in retrofitting of current ship fleet with advance technologies such as hybrid and electric.

Regional Analysis

In 2021, Europe held 35% of the market, and this share is anticipated to increase throughout the projected period. Germany made a substantial contribution to the expansion of Europe. The population’s growing environmental consciousness and government attempts to promote electric-powered transportation modes were to blame for this.

Due to the growing demand for electric recreational or leisure vessels in marine tourism, water sports, fishing, and other activities, the regional market is anticipated to expand. Nevertheless, the COVID-19 epidemic has lately expanded throughout Europe, Spain, the United Kingdom, and Italy, which is anticipated to hurt regional market expansion.

Over the course of the forecast period, Asia Pacific is anticipated to have the second-fastest expanding regional market. Due to the area’s robust economic growth and high manufacturing rate, it is anticipated to remain a prominent manufacturing hub. The COVID-19 impact on the financial markets and other exposed industries like manufacturing, travel, and hospitality has caused significant economic damage.

Industry experts believe COVID-19 pandemic has had an impact on electric ship production and services all over the world in 2020. Countries like China and Japan in the Asia Pacific have experienced this. The majority of the market growth in Asia Pacific comes from these nations. Pandemic-related slow growth in these nations is anticipated to restrain regional market expansion.

However, the impacts of the epidemic on China’s future market growth are expected to be less than anticipated because China is in the recovery stage. A significant growth rate of 11.4 % to 12.2 % will be experienced in South Korea, Japan, and South Korea.

This is due to the growing focus on creating and implementing electric ships to lower global greenhouse gas emissions. The Nordic nations provide excellent prospects for expanding the electric ship sector due to the shift toward hybrid and electric powerboats.

Key Regions and Countries covered іn thе rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

Hanwha, LG Hausys, and China National Building Material Co. Ltd. are major players in the Electric Ship market. Nora, Milliken Floor Covering is also a participant. Other key players are Novalis, Tajima Tkflor, NOX Corporation, and Toli flooring. Vendors are continually innovating new goods to help customers choose the right product for their needs.

Due to the global presence of many manufacturers, this industry is fragmented. In 2021, prominent market shares were held by Tarkett, Mohawk Industries, Armstrong Flooring, Inc., Interface, Inc., and Tarkett. These companies offer a wide range of flooring options. These companies accounted for 22.6% of the total 2021 share.

Electric shipping companies aim to increase their market share by expanding their customer base. These manufacturers also focus on distribution, new product launches, and product expansion to gauge future demand patterns for emerging applications. Key players in the market are expected to benefit from the existing and emerging applications.

Companies are also working on expanding their product range by improving the quality of existing flooring materials and introducing new value-added products that meet end-user needs. Key industry players also employ other strategies to expand their operations, such as collaborations and acquisitions.

Маrkеt Кеу Рlауеrѕ:

• BoeschMotorboote
• Bureau Veritas
• Canadian Electric Boat Company
• Corvus Energy Ltd.
• Yara Birkeland
• Duffy Electric Boat
• General Dynamics (Electric Boat)
• Kongsberg Gruppen ASA
• Eco Marine Power Co. Ltd.
• Marine Power Co. Ltd.
• Norwegian Electric Systems
• Other Key Players