Electric Ship Market

According to Stratistics MRC, the Global Electric Ship Market is accounted for $4.75 billion in 2022 and is expected to reach $14.18 billion by 2028 growing at a CAGR of 20.0% during the forecast period. An electric ship is a type of electric vehicle built to perform nautical tasks using batteries as propulsion rather than fuel. Electric ship batteries are comparable to those used in electric vehicles. Ferries and smaller passenger ships on interior rivers are the most common types of electric ships. They only make short voyages and dock frequently. The need for an electric-powered marine ship has increased due to the desire to reduce carbon footprints and reduce fuel consumption.

According to the International Maritime Organization (IMO), the shipping industry is responsible for around 2-3% of global greenhouse gas emissions, with emissions expected to increase by up to 250% by 2050 if no action is taken.



Market Dynamics:

Driver:

Reducing carbon emissions is necessary

One of the key factors propelling the demand for electric ships is carbon emissions. Around 2 to 3% of the world's greenhouse gas emissions are attributable to the shipping sector, and as global trade and shipping volumes expand, this percentage is anticipated to rise. Climate change, which is a result of carbon emissions, can have major and far-reaching effects on ecosystems, economies, and society. Governments all over the globe have put in place rules and goals targeted at cutting carbon emissions from the shipping sector to address this issue. Investments by shipping corporations in low-carbon technologies, such as electric ships, are required.

Restraint:

Long downtime for ship modifications

The need to lower greenhouse gas emissions from ships is a result of the escalating climate changes. Alternate propulsion or scrubber installation, however, is a time-consuming and expensive process. When installing scrubbers and modifying the propulsion system, the ship must stop operating, which could mean losing money. However, for small operators, it would be difficult to convert ships due to financial constraints. Ship-owners with large revenue pockets can bear the conversion expense. The system that is installed to upgrade the ship's propulsion will affect the installation expenses.

Opportunity:

Large ship hybrid propulsion technology

Storage of energy is essential to optimize its use in hybrid ships; it is also critical for the use of electric propulsion. Propulsion systems powered by batteries are designed for and commonly used in smaller ships, while engine manufacturers are focusing on hybrid battery solutions for larger vessels. Parameters such as safety, availability of materials used, and durability should be checked and ensured that battery-driven vessels are competitive as compared to conventional ones.

Threat:

High initial investment costs

It takes time and money to retrofit ships with electric or hybrid propulsion systems. Depending on the type of ship and configuration chosen, the capital expenditure needed to retrofit the ship alone is substantial and can reach millions of dollars. An additional element to take into account while retrofitting is revenue loss resulting from the non-operation of their old ships. Therefore, to help reduce capital expenditure, ship owners should consider the current estimated life of the ship, the ship's potential to earn enough to repay the capital expenditure in the shortest amount of time, and the scrap value at the end of the life.

Covid-19 Impact

Financiers and original equipment manufacturers have been forced to delay funding for cutting-edge initiatives like independent vessel operations because of the COVID-19 pandemic. The worrying effect on the supply of materials for battery systems has also been a big worry for a very long time. Only a few raw materials, mainly from China and Japan, are imported, cobalt, nickel, and lithium. Some nations have been placed fully under lockdown because of the pandemic.

The fully electric segment is expected to be the largest during the forecast period

The fully electric segment is estimated to have a lucrative growth, due to the rising use of totally electric propulsion for small passenger ships and ferries operating on interior waterways are expected to support an increase in demand for fully electric ships. Additionally, the primary power source for these goods is typically solar energy, lithium or lead-acid batteries, or fuel cells.

The commercial segment is expected to have the highest CAGR during the forecast period

The commercial segment is anticipated to witness the highest CAGR growth during the forecast period. In the commercial section are goods ships such as holder's ships, big haulers, mass transporters, and general goods ships. Travelling ships like yachts and ships are also mentioned, along with other types of ships like fishing boats, workboats, dredger pulls, research vessels, and submarines.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the region's demand for these ships is said to have increased over the course of the study because more important vendors, particularly in China and Japan, are emphasising the promotion of electrification in large-sized vessels, along with booming trade from seaports and the establishment and growth of ports in those nations.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the growing acceptance and use of these ships, rising concern about maritime emissions, increased presence of modern or digitalized ports, and the availability of the items on the market from top shipbuilding vendors. Additionally, the growing demand for electric leisure and recreational vessels in water sports, fishing, and marine tourism is supporting the product supply in this region, which is expanding the market at a quick rate given the state of the global economy.


Key players in the market

Some of the key players profiled in the Electric Ship Market include Kongsberg, MAN Energy Solutions SE, Leclanché SA, ABB, Corvus Energy, Wartsila, Siemens, Norwegian Electric Systems AS, General Dynamics Electric Boat, Vard, BAE Systems, SAFT, Echandia Marine AB, General Electric and Anglo Belgian Corporation

Key Developments:

In September 2020, Corvus Energy secured a contract from Holland Ship Electric to supply lithium-ion-based energy storage systems for five new ships being built by Holland Shipyards Group for GVB, Amsterdam’s municipal public transport provider.

In April 2019, Kongsberg completed the acquisition of Rolls-Royce Commercial Marine (RRCM) from Rolls-Royce plc. It integrated the company into its Kongsberg Maritime division. The acquisition would further strengthen the company's expertise in autonomous vessel and maritime digitalization technologies.

Power Sources Covered:
• Hybrid
• Fully Electric

Tonnages Covered:
• <500 DWT
• 500–5,000 DWT
• 5,001–15,000 DWT
• >15,000 DWT

Power Outputs Covered:
• Less than 75 kW
• 75-745 kW
• 746-7560 kW
• More than 7560 kW

Range Covered:
• <50 km
• 50–100 km
• 101–1,000 km
• >1,000 km

Vessel Types Covered:
• Commercial Vessel
• Defense Vessel

Level of Autonomies Covered:
• Semi-Autonomous
• Fully Autonomous

Systems Covered:
• Power Generation
• Energy Storage
• Power Distribution
• Power Conversion

Mode of Operations Covered:
• Remotely Operated
• Manned
• Autonomous

End Users Covered:
• Newbuild & Line Fit
• Retrofit

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances