Electric Ships Market Report 2026

The electric ships market size has grown rapidly in recent years. It will grow from $9.78 billion in 2025 to $10.81 billion in 2026 at a compound annual growth rate (CAGR) of 10.5%. The growth in the historic period can be attributed to environmental regulations, pilot electric vessel projects, urban waterway transport growth, fuel cost volatility, port electrification initiatives.

The electric ships market size is expected to see rapid growth in the next few years. It will grow to $16.15 billion in 2030 at a compound annual growth rate (CAGR) of 10.6%. The growth in the forecast period can be attributed to decarbonization targets, battery energy density improvements, smart marine systems adoption, government incentives for green shipping, autonomous navigation development. Major trends in the forecast period include growth of battery-powered vessels, expansion of hybrid and electric ferries, adoption of autonomous electric ships, integration of advanced energy storage, demand for zero-emission marine transport.

The growth in recreational boating and water sports is expected to propel the growth of the electric ship market going forward. Recreational boating and water sports include leisure activities conducted on water, such as boating, sailing, fishing, kayaking, jet skiing, and other water-based sports for enjoyment and relaxation. The rising adoption of these activities is driven by increased disposable incomes and a growing interest in outdoor and adventure experiences. Electric motors are increasingly used in leisure crafts and tourist boats, providing quiet, clean, and environmentally friendly experiences for passengers. For instance, in May 2023, according to the National Marine Manufacturers Association (NMMA), a US-based trade organization, recreational boating experienced a significant economic surge, with annual economic activity rising by 36% from $170 billion to $230 billion in 2023. Therefore, the growth in recreational boating and water sports is driving the growth of the electric ship market.

Leading companies in the electric ship market are emphasizing technological innovations such as all-electric tugs to gain a competitive edge. An all-electric tug is a type of tugboat powered entirely by electric propulsion systems, which eliminates the need for traditional fossil fuel engines. For example, in April 2024, Damen Shipyards Group, a Netherlands-based shipbuilder, introduced the fully electric RSD-E Tug 2513, specifically built for the Port of Antwerp-Bruges. This cutting-edge tugboat aims to enhance sustainability in port operations by using electric propulsion technology, significantly reducing emissions and minimizing environmental impact. With its advanced maneuverability and powerful performance, the RSD-E Tug 2513 will assist in various harbor activities, including towing and berthing, while promoting a greener maritime industry.

In January 2024, Yamaha Motor Co., Ltd., a Japan-based mobility manufacturer, acquired Torqeedo for an undisclosed sum. This acquisition is intended to strengthen Yamaha's capabilities in the electric marine sector as part of its Marine CASE Strategy, which emphasizes innovation and sustainability in marine products. Torqeedo is a Germany-based manufacturer of electric marine propulsion systems.

Major companies operating in the electric ships market report include Cochin Shipyard Limited, Western India Shipyard, Hindustan Shipyard Ltd, Shanghai Waigaoqiao Shipbuilding Co. Ltd., China Shipbuilding Industry Co Ltd, Duffy Electric Boats, Canadian Electric Boat Company, SPRK Electric Boats, Crown Electric Ships and Boats, Astillero Río Santiago, Tandanor, SPI Astilleros, Navtek Naval Technologies, Majix Marine, The Damen Group, Southern African Shipyards, Nigerdock FZE, ABB Limited, Siemens Energy, Wärtsilä, Kongsberg Gruppen ASA, Leclanché SA, Neptun Ship Design GmbH.

Western Europe was the largest region in the electric ship market in 2025. The regions covered in the electric ships market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric ships market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

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