Report Code: A09173 | Pages: 231 | ||
Tables: 125 | Charts: 68 |
|
The global electric ships market size was valued at $4.6 billion in 2022, and is projected to reach $23.8 billion by 2032, growing at a CAGR of 18% from 2023 to 2032.
Report Key Highlighters:
An electric ship refers to a ship that primarily relies on an electric drive system for propulsion. Electric ships are maritime vessels that utilize electricity for propulsion and power generation, instead of conventional fossil fuel engines such as diesel or steam. They rely on electrical energy to drive their propulsion systems, auxiliary machinery, and onboard systems. The rise in awareness and concern about climate change and environmental pollution has led to a growing demand for cleaner and more sustainable transportation solutions. Electric-driven vessels have a positive environmental impact by reducing fuel consumption and minimizing oil emissions. Moreover, the compact nature of electrical propulsion systems requires less space, freeing up additional load capacity on the ship. In addition, electric ships offer reduced life cycle costs due to lower fuel consumption and maintenance expenses.
Factors such as environmental regulations, an increase in demand for high efficiency and less life cycle cost, and a surge in the retrofitting of hybrid systems in ships drive the growth of the electric ships market. However, limited infrastructure and charging facilities, and high initial investment costs hinder the growth of the market. Furthermore, the technological advancements and growing popularity of autonomous electric ships offer remarkable growth opportunities for the players operating in the electric ships industry.
The electric ships market is segmented on the basis of propulsion type, mode of operation, system, and region. By propulsion type, it is bifurcated into fully electric, and hybrid. By mode of operation, it is fragmented into autonomous, and non-autonomous. By system, it is categorized into energy storage, power conversion, power generation, and power distribution. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The leading companies profiled in the electric ships market report include Leclanché SA, Siemens, Wartsila, ECHANDIA AB, KONGSBERG, ABB, Corvus Energy, HOLLAND SHIPYARDS GROUP, Brodrene Aa, and Norwegian Electric Systems. To strengthen their market standing, the corporations have implemented strategies including product development, expansion, agreement, contract, and others. China, India, Japan, South Korea, and the rest of Asia-Pacific are included in the region known as Asia-Pacific. The promotion of electric ferries, are fueled by the implementation of renewable energy and emissions reduction targets developed by government. Through initiatives such as incentives, subsidies, and regulatory frameworks, ship operators are encouraged to invest in electric technology. The development of the electric ship sector is fueled by government policies that make it easier to use electric ferries and support the switch to clean, low-emission transportation.
A sustainable and emission-free alternative to conventional diesel-powered ships is provided by electric ships. With the use of electric ships, many nations in the region intend to drastically cut air pollution and fight climate change. Additionally, public transportation organizations in various nations want to invest in low-emission ferries to lessen the environmental impact of their fleet and its carbon footprint. For instance, Auckland Transport, Auckland, New Zealand's public transport provider, ordered a fourth low-emission boat in July 2023. The low-emission ferry is expected to be built by Q-West; a boatbuilding company based in New Zealand. The vessel is expected to be designed to operate with reduced emissions compared to conventional ferries, contributing to improved air quality, and reduced environmental impact.
Europe comprises the UK, Germany, France, Russia, and the rest of Europe. The surge in the public demand for sustainable and eco-friendly transportation options is expected to accelerate the growth of the electric ships market in the region. Passengers actively seek greener alternatives, and electric ferries have emerged as a popular choice. To meet the expectations of customers, ferry operators, and authorities make huge investments in electric ferries, recognizing the need to provide environmentally friendly modes of transportation.
The growth in the global emphasis on reduction of greenhouse gas emissions and climate change concerns has generated greater interest in sustainable transportation options. Electric ferries, which produce no direct emissions, play a significant role in improving air quality and minimizing the environmental effects associated with conventional fossil fuel-powered vessels. This trend is further fueled by a rise in the demand for autonomous and electric transportation solutions, particularly within the maritime sector.
For instance, in October 2022, Holland Shipyards, a shipbuilding company based in the Netherlands received a contract to build four ferries that are autonomous and powered by electricity. The contract was reportedly awarded by GVB, the public transport operator in Amsterdam, Netherlands. The four ferries are expected to be delivered by Holland Shipyards to GVB for operational use by 2023. Therefore, such developments shift towards cleaner and more efficient modes of maritime transportation are expected to drive the growth of the market in the region during the forecast period.
Stringent environment regulations
Approximately 90% of the world's trade relies on around 90,000 marine vessels that traverse the oceans. Around 1,000 metric tonnes of CO2 are emitted annually by the maritime sector, making up about 3% of all CO2 emissions worldwide. The International Maritime Organisation estimates that by 2050, shipping emissions are expected to increase by up to 50% if severe emission reduction measures are not implemented.
Growing public concern over environmental issues, particularly air pollution and climate change, has increased pressure on the shipping sector to cut back on harmful emissions and carbon emissions. As a result, many countries and international organizations have implemented stricter regulations and emission standards for ships. Electric ships emit no direct emissions, making them a suitable alternative for businesses looking to adhere to environmental standards and strengthen their sustainability credentials. By switching to electric ships, the shipping industry may significantly reduce its emissions of carbon dioxide and other hazardous pollutants, assisting global efforts to combat climate change and improve air quality. The usage of electric ships is anticipated to rise as governments and international organizations continue to advocate for environmentally friendly shipping practices, fueling the expansion of the industry.
Increase in demand for high efficiency and less life cycle cost
As environmental concerns and regulatory pressures continue to grow, the shipping industry is seeking more efficient and sustainable solutions. Electric ships offer higher energy efficiency compared to conventional vessels using internal combustion engines. Electric propulsion systems can convert a larger percentage of energy from the power source into useful work, resulting in reduced energy waste and lower operating costs. The higher efficiency of electric ships makes them an attractive choice for companies aiming to optimize their operations and reduce fuel consumption. Electric ships can provide cost savings over their lifetime due to reduced fuel consumption and lower maintenance requirements. While the initial investment in electric ship technology may be higher than traditional vessels, the lower operating costs and fewer maintenance needs can lead to significant savings over time.
Limited infrastructure and charging facilities
One of the significant challenges for electric ships is the need for adequate charging infrastructure. Unlike conventional fueling stations, charging points for electric ships require substantial investment and specialized facilities. The establishment of efficient charging infrastructure in ports and along shipping routes may take time and considerable financial resources. The absence of a robust charging network can limit the range and flexibility of electric ships, making them less appealing for certain long-haul or remote routes.
High initial investment cost
While electric ships can lead to long-term cost savings, the initial investment required to adopt electric propulsion technology can be significant. Electric vessels typically have higher upfront costs compared to conventional ships with internal combustion engines. The cost of advanced battery systems and electric propulsion equipment can be a barrier for some shipowners and operators, particularly for smaller companies or those with tight budget constraints. The higher upfront investment may deter some stakeholders from transitioning to electric ships, at least in the short term
Growing popularity of autonomous electric ships
There is a rise in research and development to develop autonomous ships that can leverage advanced sensors, artificial intelligence, and machine learning to navigate more efficiently and safely. Removing the human factor from ship operations reduces the risk of human errors and accidents, leading to improved safety records and enhanced operational efficiency. Autonomous electric ships offer a double advantage in terms of environmental impact. Electric propulsion reduces emissions and air pollution, while autonomy optimizes navigation and route planning, further reducing fuel consumption and environmental impact.
The combination of these two technologies aligns with the industry's sustainability goals and enhances the reputation of shipping companies as environmentally responsible. Autonomous ships generate vast amounts of data through sensors and onboard systems. This data can be analyzed and utilized to optimize vessel performance, maintenance scheduling, and route planning. The insights derived from this data can lead to continuous improvements in operational efficiency and overall fleet management. Therefore, the widespread adoption of fully autonomous electric ships is expected to offer lucrative opportunities for the growth of the market.
Recent Developments
The outbreak of COVID-19 resulted in economic uncertainty and disruptions to global supply chains that led to delays in investments and projects related to electric ships. Shipping companies and shipbuilders may have postponed or scaled back their plans for developing or retrofitting electric vessels due to financial constraints and market uncertainties. However, economic conditions gradually improved as economies reopened and stabilized. Governments worldwide prioritize sustainable development and green initiatives as part of their recovery plans, which boosted the growth of the market.
Electric Ships Market Report Highlights
Aspects | Details |
---|---|
Market Size By 2032 | USD 23.8 billion |
Growth Rate | CAGR of 18% |
Forecast period | 2022 - 2032 |
Report Pages | 231 |
By Propulsion Type |
|
By Mode of Operation |
|
By System |
|
By Region |
|
Key Market Players | ABB, HOLLAND SHIPYARDS GROUP, ECHANDIA AB, Siemens, Wartsila, Brodrene Aa, Corvus Energy, Norwegian Electric Systems, Leclanché SA, KONGSBERG |
Loading Table Of Content...
A. The global electric ships market was valued at $4,631.7 million in 2022, and is projected to reach $23,794.8 million by 2032, registering a CAGR of 18.0% from 2023 to 2032.
A. The top companies to hold the market share in electric ships are Leclanché SA, Siemens, Wartsila, ECHANDIA AB, KONGSBERG, ABB, Corvus Energy, HOLLAND SHIPYARDS GROUP, Brodrene Aa, and Norwegian Electric Systems
A. The largest regional market for electric ships is Asia-Pacific.
A. The leading propulsion type of electric ships market is hybrid.
A. The upcoming trends of electric ships market in the world are technological advancements, and growing popularity of autonomous electric ships.
Start reading instantly.
This Report and over 71,335+ more Reports, Available with Avenue Library. T&C*.
Enterprise
License/PDF
Library
Membership
*Taxes/Fees, if applicable will be added during checkout. All prices in USD
To ensure high-level data integrity, accurate analysis, and impeccable forecasts
For complete satisfaction
On-demand customization of the scope of the report to exactly meet your needs
Targeted market view to provide pertinent information and save time for readers
Get insights on topics that are crucial for your business. Stay abreast of your interest areas.
Get Industry Data AlertsTo ensure high-level data integrity, accurate analysis, and impeccable forecasts
For complete satisfaction
On-demand customization of the scope of the report to exactly meet your needs
Targeted market view to provide pertinent information and save the time of readers