Electric Ships Global Market Report 2024

The electric ships market size has grown rapidly in recent years. It will grow from $8.06 billion in 2023 to $8.99 billion in 2024 at a compound annual growth rate (CAGR) of 11.4%. The historical growth can be attributed to several factors, including robust economic expansion in emerging markets, a rise in global commercial trade, and increased government support.

The electric ships market size is expected to see rapid growth in the next few years. It will grow to $13.63 billion in 2028 at a compound annual growth rate (CAGR) of 11.0%. Projected growth is fueled by the increasing adoption of hybrid and electric propulsion for ship retrofitting, higher defense spending, growing environmental concerns, and a rise in seaborne trade. Key trends include advanced bass boats, a focus on battery-hybrid and zero-emission vessels, technological innovations, AI integration, the emergence of electric foiling water taxis, and increased strategic partnerships.

The surge in the adoption of hybrid and electric propulsion systems for retrofitting ships is poised to be a key driver for the growth of the electric ship market. Electric propulsion in eco-friendly ships entails the use of a hybrid system incorporating dual-fuel engines, batteries, and fuel cells as multiple power sources. However, the successful implementation of these power sources on ships requires concurrent development of technologies such as fuel storage facilities, gas vaporizers, and battery thermal runaway avoidance. Notably, in February 2021, South Korea's 2030 Green Ship-K Promotion Strategy, a crucial component of the country's ambition to achieve carbon neutrality by 2050, emphasizes the advancement and widespread adoption of low-carbon ship technologies, including hydrogen fuel cells and propulsion systems. The strategy aims to reduce the nation's shipping greenhouse gas emissions by 40% in the next 25 years and by 70% by 2050. Additionally, Kawasaki has secured its initial order for large-capacity battery propulsion systems for coastal ships, encompassing large-capacity lithium-ion (Li-ion) marine batteries, a propulsion control system, and an electric power management system.

The escalating environmental concerns are expected to act as a catalyst for the growth of the electric ships market. Electric ships present a viable solution for significantly reducing water pollution, given their minimal use of oil and absence of traditional fuel. According to a 2022 study from the Royal Institute of Technology in Stockholm, ships employing electric hydrofoil technology have the potential to reduce emissions from marine transport by 97.5% compared to diesel vessels. The key factor contributing to emission reduction lies in the combination of hydrofoil technology and electric propulsion. Consequently, the increasing environmental concerns are anticipated to propel the growth of the electric ships market.

The electric ship market is undergoing transformation driven by notable technological advancements. In the welding consumables market, there is a growing demand spurred by the introduction and application of new technologies and updated software across various industries. The automotive sector, in particular, is prioritizing the integration of smarter and safer safety systems in vehicles to enhance safety across diverse terrains and conditions. For instance, in November 2021, the Yara Birkeland, the world's inaugural electric and self-propelled container ship with zero emissions, marked its maiden voyage in the Oslo fjord. KONGSBERG, leading the development and delivery of newly created technologies on the ship, is a key player in this multi-actor project. Massterlys' monitoring and operations center in Horten is responsible for overseeing the ship, with KONGSBERG and Wilhelmsen collaborating to establish Massterly.

Companies engaged in the electric ships market are increasingly directing their focus toward battery-hybrid ships. These vessels feature an electric battery system alongside a traditional engine. As the ship travels and expends excess energy, it is stored in battery packs, refilling these systems. In scenarios of low power demand, the vessel can operate solely on battery power or draw additional power from the batteries to reduce peak demand. For instance, in 2022, Hurtigruten, a Norway-based company specializing in environmentally sustainable hybrid technology for new expedition ships, launched its first upgraded battery-hybrid ship. To decrease CO2 emissions, substantial battery packs with a combined capacity of 1,120kWh each were installed at the Myklebust Yard in northwest Norway. In addition to installing Selective Catalytic Reduction (SCR) systems to reduce nitrogen oxides (NOX) by 80%, Hurtigruten modified the ship's hull to minimize drag and enhance efficiency.

In October 2021, Groupe Beneteau, a French company specializing in the construction of sailing yachts and motorboats, acquired Starfisher for an undisclosed sum. This strategic move enables Beneteau to increase its production capacity for small motorboats and establish a presence in Portugal, complementing its existing plants in Poland and the United States dedicated to these markets. Starfisher, the acquired Portuguese company, is known for designing and building two types of motorboats - pleasure-fishing boats and recreational cruisers - ranging from 6 to 12 meters in length.

Major companies operating in the electric ships market report are ABB Limited, Siemens Energy, BAE Systems, Wärtsilä, Kongsberg Gruppen ASA, MAN Energy Solutions SE, Schottel GmbH, Corvus Energy, Anglo Belgian Corporation (ABC) NV, Leclanché SA, Cochin Shipyard Limited, Western India Shipyard, Hindustan Shipyard Ltd., Adani Kattupalli Shipyard (Larsen & Toubro), Shanghai Waigaoqiao Shipbuilding Co. Ltd., Qingdao Captain Marine Co Ltd., HBM-Huanan Building Materials (Shenzhen) Co Ltd., COSCO Shipping, Headway Technology Co. Ltd., Star MarinePro Corp Limited, China Shipbuilding Industry Co Ltd., Duffy Electric Boats, Wartsila, Kongsberg, General Dynamics Electric Boat, Leclanche SA, Tamarack Lake Electric Boat Company, SPRK Electric Boats, Canadian Electric Boat Company, Westport LLC, Midwest Lake Management Inc., Craig Catamaran Corporation, Astillero rio Santiago, Tandanor, Neptun Ship Design Gmbh, Spi astilleros, Lamwec Colombia, Navtek Naval Technologies, Empire Marine International LLC, Majix Marine, Al-Ghawas, Aries Marine, Ocean Boats, Royal Yachting, Crown Electric Ships and Boats, Alexandria, Joemarine Nautical Company Nigeria Limited, The Damen Group, Southern African Shipyards, Nigerdock FZE.

Western Europe was the largest region in the electric ship market in 2023. The regions covered in the electric ships market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric ships market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of electric ships include fully electric and hybrid models. Fully electric ships operate solely on electricity, utilizing electrical power to drive propeller blades in electric propulsion systems. This technology has gained popularity in various maritime applications, spanning commercial and research vessels to fishing boats, particularly in Europe and Japan. These electric ships can operate in manned, remotely operated, or autonomous modes, utilizing energy storage systems, power conversion, power generation, and power distribution. The power requirements for these ships range from less than 75 kW to greater than 7,560 kW, covering distances from less than 50 km to greater than 1,000 km.

The electric ships market research report is one of a series of new reports that provides electric ships market statistics, including electric ships industry global market size, regional shares, competitors with an electric ships market share, detailed electric ships market segments, market trends, and opportunities, and any further data you may need to thrive in the electric ships industry. This electric ships market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The electric ship market consists of sales of battery electric vehicle, hybrid electric vehicle, plug-in hybrid electric vehicle, and fuel cell electric vehicle. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.