
Electric Ship Market Forecasts to 2028 – Global Analysis By Power Source (Hybrid and Fully Electric), Tonnage (<500 DWT, 500–5,000 DWT, 5,001–15,000 DWT and >15,000 DWT), Power Output (Less than 75 kW, 75-745 kW, 746-7560 kW and More than 7560 kW), Range,
Description
Electric Ship Market Forecasts to 2028 – Global Analysis By Power Source (Hybrid and Fully Electric), Tonnage (<500 DWT, 500–5,000 DWT, 5,001–15,000 DWT and >15,000 DWT), Power Output (Less than 75 kW, 75-745 kW, 746-7560 kW and More than 7560 kW), Range, Vessel Type, Level of Autonomy, System, Mode of Operation, End User and By Geography
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
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
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
Table of Contents
175 Pages
- 1 Executive Summary
- 2 Preface
- 2.1 Abstract
- 2.2 Stake Holders
- 2.3 Research Scope
- 2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
- 2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions
- 3 Market Trend Analysis
- 3.1 Introduction
- 3.2 Drivers
- 3.3 Restraints
- 3.4 Opportunities
- 3.5 Threats
- 3.6 End User Analysis
- 3.7 Emerging Markets
- 3.8 Impact of Covid-19
- 4 Porters Five Force Analysis
- 4.1 Bargaining power of suppliers
- 4.2 Bargaining power of buyers
- 4.3 Threat of substitutes
- 4.4 Threat of new entrants
- 4.5 Competitive rivalry
- 5 Global Electric Ship Market, By Power Source
- 5.1 Introduction
- 5.2 Hybrid
- 5.3 Fully Electric
- 6 Global Electric Ship Market, By Tonnage
- 6.1 Introduction
- 6.2 <500 DWT
- 6.3 500–5,000 DWT
- 6.4 5,001–15,000 DWT
- 6.5 >15,000 DWT
- 7 Global Electric Ship Market, By Power Output
- 7.1 Introduction
- 7.2 Less than 75 kW
- 7.3 75-745 kW
- 7.4 746-7560 kW
- 7.5 More than 7560 kW
- 8 Global Electric Ship Market, By Range
- 8.1 Introduction
- 8.2 <50 km
- 8.3 50–100 km
- 8.4 101–1,000 km
- 8.5 >1,000 km
- 9 Global Electric Ship Market, By Vessel Type
- 9.1 Introduction
- 9.2 Commercial Vessel
- 9.3 Defense Vessel
- 10 Global Electric Ship Market, By Level of Autonomy
- 10.1 Introduction
- 10.2 Semi-Autonomous
- 10.3 Fully Autonomous
- 11 Global Electric Ship Market, By System
- 11.1 Introduction
- 11.2 Power Generation
- 11.3 Energy Storage
- 11.4 Power Distribution
- 11.5 Power Conversion
- 12 Global Electric Ship Market, By Mode of Operation
- 12.1 Introduction
- 12.2 Remotely Operated
- 12.3 Manned
- 12.4 Autonomous
- 13 Global Electric Ship Market, By End User
- 13.1 Introduction
- 13.2 Newbuild & Line Fit
- 13.3 Retrofit
- 14 Global Electric Ship Market, By Geography
- 14.1 Introduction
- 14.2 North America
- 14.2.1 US
- 14.2.2 Canada
- 14.2.3 Mexico
- 14.3 Europe
- 14.3.1 Germany
- 14.3.2 UK
- 14.3.3 Italy
- 14.3.4 France
- 14.3.5 Spain
- 14.3.6 Rest of Europe
- 14.4 Asia Pacific
- 14.4.1 Japan
- 14.4.2 China
- 14.4.3 India
- 14.4.4 Australia
- 14.4.5 New Zealand
- 14.4.6 South Korea
- 14.4.7 Rest of Asia Pacific
- 14.5 South America
- 14.5.1 Argentina
- 14.5.2 Brazil
- 14.5.3 Chile
- 14.5.4 Rest of South America
- 14.6 Middle East & Africa
- 14.6.1 Saudi Arabia
- 14.6.2 UAE
- 14.6.3 Qatar
- 14.6.4 South Africa
- 14.6.5 Rest of Middle East & Africa
- 15 Key Developments
- 15.1 Agreements, Partnerships, Collaborations and Joint Ventures
- 15.2 Acquisitions & Mergers
- 15.3 New Product Launch
- 15.4 Expansions
- 15.5 Other Key Strategies
- 16 Company Profiling
- 16.1 Kongsberg
- 16.2 MAN Energy Solutions SE
- 16.3 Leclanché SA
- 16.4 ABB
- 16.5 Corvus Energy
- 16.6 Wartsila
- 16.7 Siemens
- 16.8 Norwegian Electric Systems AS
- 16.9 General Dynamics Electric Boat
- 16.10 Vard
- 16.11 BAE Systems
- 16.12 SAFT
- 16.13 Echandia Marine AB
- 16.14 General Electric
- 16.15 Anglo Belgian Corporation
- List of Tables
- Table 1 Global Electric Ship Market Outlook, By Region (2020-2028) ($MN)
- Table 2 Global Electric Ship Market Outlook, By Power Source (2020-2028) ($MN)
- Table 3 Global Electric Ship Market Outlook, By Hybrid (2020-2028) ($MN)
- Table 4 Global Electric Ship Market Outlook, By Fully Electric (2020-2028) ($MN)
- Table 5 Global Electric Ship Market Outlook, By Tonnage (2020-2028) ($MN)
- Table 6 Global Electric Ship Market Outlook, By <500 DWT (2020-2028) ($MN)
- Table 7 Global Electric Ship Market Outlook, By 500–5,000 DWT (2020-2028) ($MN)
- Table 8 Global Electric Ship Market Outlook, By 5,001–15,000 DWT (2020-2028) ($MN)
- Table 9 Global Electric Ship Market Outlook, By >15,000 DWT (2020-2028) ($MN)
- Table 10 Global Electric Ship Market Outlook, By Power Output (2020-2028) ($MN)
- Table 11 Global Electric Ship Market Outlook, By Less than 75 kW (2020-2028) ($MN)
- Table 12 Global Electric Ship Market Outlook, By 75-745 kW (2020-2028) ($MN)
- Table 13 Global Electric Ship Market Outlook, By 746-7560 kW (2020-2028) ($MN)
- Table 14 Global Electric Ship Market Outlook, By More than 7560 kW (2020-2028) ($MN)
- Table 15 Global Electric Ship Market Outlook, By Range (2020-2028) ($MN)
- Table 16 Global Electric Ship Market Outlook, By <50 km (2020-2028) ($MN)
- Table 17 Global Electric Ship Market Outlook, By 50–100 km (2020-2028) ($MN)
- Table 18 Global Electric Ship Market Outlook, By 101–1,000 km (2020-2028) ($MN)
- Table 19 Global Electric Ship Market Outlook, By >1,000 km (2020-2028) ($MN)
- Table 20 Global Electric Ship Market Outlook, By Vessel Type (2020-2028) ($MN)
- Table 21 Global Electric Ship Market Outlook, By Commercial Vessel (2020-2028) ($MN)
- Table 22 Global Electric Ship Market Outlook, By Defense Vessel (2020-2028) ($MN)
- Table 23 Global Electric Ship Market Outlook, By Level of Autonomy (2020-2028) ($MN)
- Table 24 Global Electric Ship Market Outlook, By Semi-Autonomous (2020-2028) ($MN)
- Table 25 Global Electric Ship Market Outlook, By Fully Autonomous (2020-2028) ($MN)
- Table 26 Global Electric Ship Market Outlook, By System (2020-2028) ($MN)
- Table 27 Global Electric Ship Market Outlook, By Power Generation (2020-2028) ($MN)
- Table 28 Global Electric Ship Market Outlook, By Energy Storage (2020-2028) ($MN)
- Table 29 Global Electric Ship Market Outlook, By Power Distribution (2020-2028) ($MN)
- Table 30 Global Electric Ship Market Outlook, By Power Conversion (2020-2028) ($MN)
- Table 31 Global Electric Ship Market Outlook, By Mode of Operation (2020-2028) ($MN)
- Table 32 Global Electric Ship Market Outlook, By Remotely Operated (2020-2028) ($MN)
- Table 33 Global Electric Ship Market Outlook, By Manned (2020-2028) ($MN)
- Table 34 Global Electric Ship Market Outlook, By Autonomous (2020-2028) ($MN)
- Table 35 Global Electric Ship Market Outlook, By End User (2020-2028) ($MN)
- Table 36 Global Electric Ship Market Outlook, By Newbuild & Line Fit (2020-2028) ($MN)
- Table 37 Global Electric Ship Market Outlook, By Retrofit (2020-2028) ($MN)
- Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
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