Electric Ship Market Size To Reach $17.91 Billion By 2030

Electric Ship Market Growth & Trends

The global electric ship market size is projected to reach USD 17.91 billion by 2030, growing at a CAGR of 10.9% during the forecast period, according to a recent analysis from Grand View Research, Inc. The growing sensitivity of various international maritime authorities toward a cleaner environment has supported the demand for a zero-emission marine electric vessel. Additionally, the rising adoption of electric ships for inland cargo and passenger transportation is anticipated to boost the market’s growth over the forecast period.

Marine vessels with conventional internal combustion engine-based propulsion systems and propellers are directly connected to the engine with the shaft, creating a high friction and vibration level, thereby decreasing the ship's overall efficiency. Also, the vibrations created by this connection generate structural fatigue in the vessel structure and discomfort to the crew/passengers. However, in electric ship propulsion, there is no physical connection of the power source to the propeller, which reduces noise, vibration, and friction generated from this link. Moreover, the increased focus of international maritime authorities to limit the noise and vibration in the ship has compelled shipbuilders to invest and adopt alternative technologies in accordance with environmental regulations. Also, the high adoption of low-vibration propulsion systems in luxury passenger cruises and yachts is expected to significantly boost the electric ship industry’s growth over the forecast period.

The conventional internal combustion engine encapsulates much space compared to an electric propulsion system owing to its physically connected machines from the power source and propeller through a shaft. The shift from conventional engines to the electrical propulsion system can save much space in the ship, which can be used to carry extra cargo and passengers to earn more profit in this competitive era. Moreover, the internal combustion engine of big marine vessels runs on bunker fuel owing to its low cost, although it generates a high volume of sulfur emission. However, increased focus shipbuilders on reducing sulfur emissions, with higher effectiveness and efficiency, is expected to impact the market for electric ships over the forecast period positively.

Moreover, the increasing adoption of electric-based defense technology in naval defense, such as laser gun and rail guns, are also expected to boost the electrically propelled ship. The technology, such as laser guns and medium to large-caliber rail guns, energy requirement in millions of amps. These systems cannot be installed on conventional ships owing to their huge power requirement, and none of the vessels can generate or store such an amount of energy. Besides, in an electric boat, the energy generated can be diverted to these new technology weapons, leading to the adoption of the electric ship in the naval defense forces.

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Electric Ship Market Report Highlights

• By power source, a hybrid electric segment is expected to be a key segment, exhibiting the highest CAGR over the forecast period. The primary factor for high growth is the presence of an additional propulsion option, which reduces the risk during long route voyages.

• Less than 75KW power output segment is expected to dominate the market in the upcoming years, and it is expected to retain its dominance throughout the forecast period owing to its adoption rate in maritime tourism, border patrol, and specialized purpose vessels.

• Europe accounted for the largest revenue share of 35.8% in 2022 and is expected to grow at the fastest CAGR of 11.9% during the forecast period.

Electric Ship Market Segmentation

Grand View Research has segmented the global electric ship market based on type, length, power output, power source, autonomy type, vessel type, application, and region:

Electric Ship Power Output Outlook (Revenue, USD Million, 2017 - 2030)

• <75 kW

• 75 kW-745kW

• 746 kW-7,560 kW

• >7,560 kW

Electric Ship Power Source Outlook (Revenue, USD Million, 2017 - 2030)

• Fully Electric

• Hybrid

Electric Ship Type Outlook (Revenue, USD Million, 2017 - 2030)

• Semi Autonomous

• Fully Autonomous

Electric Ship Vessel Type Outlook (Revenue, USD Million, 2017 - 2030)

• Commercial vessel

• Defense vessel

• Special vessel

Electric Ship Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • UK

  • Germany

  • France

• Asia Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

• Latin America

  • Brazil

  • Mexico

• Middle East and Africa

  • Saudi Arabia

  • South Africa

  • UAE

List of Key Players of Electric Ship Market

• Boesch Motorboote AG

• Bureau Veritas

• Canadian Electric Boat Company

• Corvus Energy.

• Yara

• Duffy Electric Boat Company.

• General Dynamics Electric Boat

• KONGSBERG

• Electrovaya

• TRITON

• VARD AS

• Baltic Workboats AS