Electric Ship Market Likely To Touch At .12 Billion By 2030: Grand View Research Inc.

Posted by Mrudula Anil Karmarkar on September 11th, 2023

San Francisco, 11 September 2023: The ReportElectric Ship MarketSize, Share & Trends Analysis By Type (Inboard, Outboard), By Length, By Power Source (Fully Electric, Hybrid), By Power Output, By Autonomy Type, By Vessel Type, By Application, By Region, And Segment Forecasts, 2023 - 2030

The global electric ship market size is projected to reach USD 14.12 billion by 2030, growing at a CAGR of 11.9% 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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This market is in its introductory stage and offers enormous scope for growth in the forecast period. The rising need for the reduction of carbon footprints as well as lower fuel wastage has led to the need for an electrically operated marine vessel. Furthermore, the increasing focus of shipbuilders on reducing the noise generated from the marine vessel propulsion system is also supporting the growth of the electric vessel market.

Electric Ship Market Report Highlights

  • The type segment market is expected to witness substantial growth with a CAGR of 11.9% on account of the growing emphasis on a cleaner environment and demand for zero-emission marine vessels.
  • 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.
  • Fully autonomous ship is expected to commercialize in the year 2020 owing to the fact market is majorly driven by semi-autonomous technologies.
  • Asia Pacific is anticipated to register a higher CAGR over the forecast period owing to the high rate of manufacturing and industrialization coupled with huge trade volume from this region across the globe.
  • The yacht market is oligopolistic and is dominated by key players such as The Bureau Veritas, Canadian Electric Boat Company, Yara Birkeland, Duffy Electric Boat, General Dynamics (Electric Boat), Kongsberg Gruppen ASA, among others.

Electric ships produce lower emissions than their traditional fossil fuel-powered counterparts, making them an appealing option for boat owners and operators conscious of their environmental impact. Advancements in battery technology have been instrumental in making electric propulsion more viable for 25-60ft vessels. With higher energy density, faster charging capabilities, and longer battery life, electric ships in this size range now offer extended range and usability. These technological improvements have addressed some of the early limitations of electric vessels, making them more practical for various applications, including leisure cruising and small-scale commercial operations.

Electric Ship Market Report Scope

Report Attribute

Details

Market size value in 2023

USD 6.44 billion

Revenue forecast in 2030

USD 14.12 billion

Growth rate

CAGR of 11.9% from 2023 to 2030

Base year for estimation

2022

Historical data

2017 - 2021

Forecast period

2023 - 2030

List of Key Players in the Electric Ship Market

  • BoeschMotorboote
  • Bureau Veritas
  • Canadian Electric Boat Company
  • Corvus Energy Ltd.
  • YaraBirkeland
  • Duffy Electric Boat
  • General Dynamics (Electric Boat)
  • Kongsberg Gruppen ASA
  • Electrovaya Inc.

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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