Electric Ships Market Size By Type of Propulsion (Hybrid Electric Ships, Fully Electric Ships, Plug-in Hybrid Electric Ships), Type of Ship (Ferries, Freight Ships, Service Vessels), Batteries (Lithium-ion Batteries), & Region For 2024-2031

Published Date: August - 2024 | Publisher: MIR | No of Pages: 320 | Industry: latest updates trending Report | Format: Report available in PDF / Excel Format

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Electric Ships Market Size By Type of Propulsion (Hybrid Electric Ships, Fully Electric Ships, Plug-in Hybrid Electric Ships), Type of Ship (Ferries, Freight Ships, Service Vessels), Batteries (Lithium-ion Batteries), & Region For 2024-2031

Electric Ships Market Valuation – 2024-2031

The electric ships market is experiencing significant growth driven by the incorporation of advanced technologies to meet the evolving standards in efficiency, sustainability, and regulatory compliance across various maritime applications. With usage spanning commercial, passenger, and military sectors, electric ships are essential in delivering innovative solutions to a diverse range of maritime needs. Valued at USD 5.42 Billion in 2024, the market is projected to reach approximately USD 22.8 Billion by 2031, highlighting its robust growth trajectory.

The demand for efficient and reliable electric propulsion solutions is propelling advancements in battery technologies and energy management systems. These innovations facilitate seamless integration with automated and smart systems such as autonomous navigation and real-time monitoring, thereby enhancing operational efficiency and reducing environmental impact. This integration is set to strengthen the market with the electric ships market anticipated to achieve a compound annual growth rate (CAGR) of 19.67% between 2024 and 2031.

Electric Ships Market – Definition/ Overview

Electric ships are marine boats propelled primarily by electric propulsion systems which use energy stored in batteries or generated by fuel cells and renewable energy sources. These ships represent a huge step forward in marine technology providing a sustainable alternative to typical fossil fuel-powered vessels. Electric ships are intended for a wide range of applications including commercial transportation, passenger ferries, and military activities. They bring various benefits including lower greenhouse gas emissions, cheaper operating costs, and quieter operation making them a critical component in the transition to greener and more efficient maritime transportation.

Electric ships are used in a variety of applications including commercial cargo transport where they assist cut fuel costs and emissions; passenger ferries which offer a cleaner and quieter method of transportation; and naval operations where they provide stealth and operational efficiency. They are also employed in offshore support vessels for renewable energy projects which increases energy output sustainability. Electric ships also play an important role in scientific research missions allowing for quieter and less obtrusive data collection. These different applications demonstrate the versatility and environmental advantages of electric propulsion in the maritime industry.

The future of electric ships is poised for transformative growth driven by ongoing advancements in battery technology, energy efficiency, and renewable energy integration. Innovations such as solid-state batteries, hydrogen fuel cells, and autonomous navigation systems are expected to enhance the performance, range, and safety of electric vessels. Regulatory pressures and global initiatives to reduce carbon emissions will further accelerate the adoption of electric ships across commercial, passenger, and military sectors. As infrastructure for charging and energy storage improves, and costs continue to decrease, electric ships are set to become a cornerstone of sustainable maritime transportation reshaping the industry with their environmental and economic benefits.

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How Rising Demand for Zero-Emission Solutions Drive the Electric Ships Market?

The growing desire for zero-emission solutions is a major driving force behind the expansion of the electric ship sector. As worldwide awareness of climate change and environmental degradation grows, there is a renewed emphasis on lowering greenhouse gas emissions in all sectors including maritime transportation. Governments and regulatory organisations are enforcing stricter emissions restrictions and providing incentives for cleaner technology leading maritime corporations to invest in electric propulsion systems. Electric ships powered by batteries or renewable energy sources emit no emissions during operation making them an appealing alternative for businesses looking to comply with environmental requirements and decrease their carbon footprint.

Consumer preferences are evolving towards more sustainable products and services prompting the maritime industry to prioritise environmentally friendly solutions. Passengers and customers are increasingly favouring maritime businesses that demonstrate a commitment to sustainability fueling demand for zero-emission vessels. This transition is especially noticeable in the passenger ferry and cruise ship industries where environmental impact is a top priority for travellers. Electric ships provide a peaceful, emission-free alternative to traditional diesel-powered vessels improving the overall passenger experience and meeting the growing need for greener transportation solutions.

Technological developments in energy storage and propulsion systems are also boosting the use of electric ships. High-capacity batteries, efficient electric motors, and smart energy management systems are enhancing electric vessels feasibility and economic viability. These technologies allow for longer ranges, shorter charging periods, and cheaper operational costs making electric ships a viable and competitive choice in the market. As technological breakthroughs continue, the use of electric ships is projected to accelerate driven by the combined imperatives of regulatory compliance and rising demand for sustainable, zero-emission solutions.

Will Energy Density and Range Limitations Hamper the Electric Ships Market?

Energy density and range limits pose substantial barriers to the expansion of the electric ship sector. Despite breakthroughs in battery technology, energy density remains a challenge limiting the range and endurance of electric ships. Long-haul commercial shipping which requires extended durations without recharging is especially affected. Electric ships are less tempting for long-distance operations than traditional fuel-powered vessels because they require frequent recharging or carry huge, heavy batteries which restrict cargo capacity and increase costs.

The infrastructure for charging electric ships is insufficient. Many ports and harbours lack the essential infrastructure for quickly and efficiently charging huge batteries resulting in longer turnaround times and worse operational efficiency. Without significant investment in a comprehensive charging network, range limitations could hinder the widespread adoption of electric ships especially in regions with extensive maritime trade routes and underdeveloped port facilities.

Continuous improvements in battery technology such as solid-state batteries and hydrogen fuel cells provide hope in solving these obstacles. These advancements may increase energy density and shorten charging times enhancing the range and operational feasibility of electric ships. Furthermore, improvements in port infrastructure and hybrid systems that combine batteries with renewable energy or conventional fuels have the potential to reduce range constraints. While existing challenges exist, ongoing technical advancement and infrastructure development are critical for the electric ship market’s future growth.

Category-Wise Acumens

Will Reliability and Extended Range of Traditional Fuels Drive the Type Of Propulsion Segment?

Hybrid Electric Ships dominate the market. Traditional fuels’ durability and wide range have a considerable impact on the maritime industry’s choice of propulsion technologies. Diesel and heavy fuel oil offer established infrastructure and proven performance which is critical for vessels operating on long-distance routes or in remote places with few refuelling choices. This dependability allows uninterrupted operations and adherence to shipping schedules making traditional fuels preferable due to their consistent availability and durability.

Hybrid propulsion systems which combine traditional fuels with electric power are becoming increasingly popular. They combine the dependability and range of traditional fuels with the environmental advantages of electric power such as lower emissions and increased fuel efficiency. Vessels equipped with hybrid systems can convert between fuel sources to optimise performance in response to operational needs and environmental laws. This versatility makes hybrid propulsion systems a pragmatic solution for meeting both operational and sustainability objectives in diverse maritime settings.

The progress of hybrid propulsion technology is being driven by continued advances in energy management, battery storage, and alternative fuels such as LNG. These advancements improve fuel economy, lower operational costs, and lessen environmental impact, adding to the appeal of hybrid systems in the maritime sector. As regulatory demands and sustainability goals continue to impact industry practices, the dependability and expanded range of traditional fuels in hybrid configurations will be critical in determining the future of maritime propulsion.

Will Increasing Demand For Efficient And Sustainable Transportation Solutions Drive the Type Segment?

Ferries and Passenger Vessels dominate the market. The growing need for efficient and sustainable transportation solutions is causing changes in the type section of the maritime industry. As environmental concerns grow and restrictions tighten, there is a clear shift towards cleaner propulsion systems. This tendency is especially noticeable in the passenger ferry and cruise industries where operators are under pressure to cut emissions while increasing operational efficiency.

Electric and hybrid propulsion systems are gaining popularity due to their capacity to produce zero or lower emissions than typical diesel engines. Electric propulsion using batteries or renewable energy sources is a peaceful and environmentally beneficial choice for short-distance ferry routes and urban waterways. Meanwhile, hybrid systems combine the reliability of conventional fuels with the efficiency of electric propulsion offering flexibility and reduced environmental impact across varying operational conditions.

Advances in battery technology and shore-side infrastructure for charging electric vessels are promoting the use of sustainable transportation alternatives. Governments and port authorities are promoting the switch to cleaner technologies through grants, subsidies, and carbon trading programmes. These incentives combined with the economic benefits of lower fuel usage and maintenance costs are encouraging fleet owners to invest in more environmentally friendly propulsion systems. As these trends persist, the type segment of the maritime industry is likely to favour efficient and sustainable transportation solutions resulting in a greener and more resilient maritime transport sector.

Gain access into Electric Ships Market Report Methodology

Country/Region Wise Acumens

How Large Marine Industry Presence Drive the Electric Ships Market in Europe Region?

Europe dominates the electric ships market. The marine industry’s strong presence in Europe is critical to the growth of the electric ship sector. Europe has a strong maritime history and a dense network of ports making it an important centre for marine trade, passenger transportation, and naval activities. As environmental restrictions tighten and sustainability goals gain prominence, the marine industry faces increased pressure to embrace cleaner and more efficient technology such as electric propulsion systems.

European countries are in the forefront of enforcing high emissions rules and supporting projects to reduce carbon footprints in the maritime industry. This legal framework encourages the use of electric ships which emit no emissions during operation and are in line with Europe’s ambitious climate goals. Government incentives such as grants, subsidies, and tax breaks, further encourage shipowners and operators to invest in electric and hybrid propulsion solutions.

Europe’s excellent research and development skills in marine technology and renewable energy help to drive progress in electric ship technologies. Collaborations among industry players, academic institutes, and technology providers promote advancements in battery storage, energy management systems, and shore-side infrastructure. These advancements improve the efficiency, range, and reliability of electric ships making them more viable for a variety of maritime applications in Europe and elsewhere. As a result, Europe’s substantial marine sector presence not only encourages the use of electric ships, but also positions the region as a global leader in sustainable maritime transportation.

Will Rising Demand for Harbor Vessels and Electric Ferries Boost the Electric Ships Market in North America Region?

The North America region is the fastest-growing region in the electric ships market. The electric ships market in North America is expected to grow due to increased demand for harbour vessels and electric ferries. Urbanisation and environmental concerns are putting pressure on harbour vessels such as tugboats and pilot boats which have historically been powered by diesel engines. Electric propulsion produces no emissions making it an appealing choice for port operators looking to decrease local pollution.

Electric ferries are also gaining popularity in North America particularly in areas that rely on water transport for commuting and tourism. When compared to diesel engines, they operate more quietly with less vibrations, and at lower running expenses. Government incentives and budgetary support are accelerating the use of electric ferries helping the transition to sustainable maritime transportation alternatives.

Technological breakthroughs in battery storage and charging infrastructure are increasing the viability of electric ships throughout North America. Investing in renewable energy sources for shore-side charging stations helps to ensure the overall sustainability of electric ship operations. As regulatory restrictions and environmental awareness rise, the electric ships market in North America is expected to increase significantly driven by rising demand for cleaner harbour vessels and electric ferries.

Competitive Landscape

The Electric Ships Market is a dynamic and competitive industry, marked by a diverse array of players striving to capture market share. These companies are actively engaged in efforts to solidify their presence by implementing strategic initiatives such as collaborations, mergers, acquisitions, and garnering political support. With a focus on innovation, these organizations are continuously enhancing their product offerings to meet the diverse needs of consumers across various regions.

Some prominent players in electric ships market include

  • ABB (Switzerland)
  • Siemens AG (Germany)
  • Wärtsilä (Finland)
  • Kongsberg Gruppen (Norway)
  • Leclanché S.A. (Switzerland)
  • General Dynamics Electric Boat (USA)
  • Corvus Energy (Norway)

Latest Developments

  • In April 2023, ABB inked a contract with Sembcorp Marine Ltd. to provide complete electrical system automation for the Petrobras vessel’s floating production storage and offloading (FPSO) facility. ABB is providing both topside and hullside electrical systems for P-82, ensuring seamless project integration.
  • In June 2023, Corvus Energy got DNV approval for its containerised solution, the Corvus BOB (Battery-On-Board). The Corvus BOB system is designed for use with the marine battery system with the biggest global installation count, such as the Corvus Orca Energy.
  • In March 2023, Brodrene Aa secured a deal with Norled to build a new hybrid electric vessel called MS Bre. The hybrid vessel has dual sustainable functions i.e., it is used both as a reserved vessel on connection and as an electric sightseeing boat.

Report Scope

REPORT ATTRIBUTESDETAILS
Study Period

2021-2031

Growth Rate

CAGR of~19.67%

Base Year for Valuation

2024

Historical Period

2021-2023

Historical Period

2024-2031

Quantitative Units

Value in USD Billion

Report Coverage

Revenue Forecast, Growth Factors, Competitive Landscape, key Players, Segmentation Analysis

Segments Covered
  • Type of Propulsion
  • Type of Ships
  • Batteries
Region Covered
  • North America
  • Europe
  • Asia Pacific
  • Middle East And Africa
Key Players

ABB (Switzerland), Siemens AG (Germany), Wärtsilä (Finland), Kongsberg Gruppen (Norway), Leclanché S.A. (Switzerland), General Dynamics Electric Boat (USA), Corvus Energy (Norway)

Customization

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Electric Ships Market, By Category

Type of Propulsion

  • Hybrid Electric Ships
  • Fully Electric Ships
  • Plug-in Hybrid Electric Ships

Type of Ships

  • Ferries and Passenger Vessels
  • Freight Ships
  • Service Vessels

Batteries

  • Lithium-Ion Batteries

Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa

Research Methodology of Market Research

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

Customization of the Report

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Pivotal Questions Answered In the study

Some of the key players leading in the market include ABB, Siemens AG, Wärtsilä, Kongsberg Gruppe

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