The global electric ship market was valued at USD 7.98 billion in 2022 and is projected to grow significantly, reaching a value of USD 17.91 billion by 2030. This translates to a compound annual growth rate (CAGR) of 10.9% from 2023 to 2030. The industry is currently in the introductory phase, which indicates it is still emerging with vast untapped potential for expansion over the forecast period.

One of the primary drivers of this growth is the growing demand to reduce carbon emissions and limit fuel wastage. Conventional ships primarily rely on fossil fuels, which contribute significantly to environmental pollution. As a result, there is a rising interest in electric-powered marine vessels, which offer a cleaner and more sustainable alternative. These vessels help reduce harmful greenhouse gases and improve overall fuel efficiency.

In addition to reducing emissions, another important factor contributing to the growth of electric ships is the effort by shipbuilders to minimize noise pollution. Traditional marine vessel propulsion systems produce substantial noise, which can disrupt marine ecosystems. Electric propulsion systems, in contrast, are quieter and more environmentally friendly, making them an attractive option for both commercial and recreational maritime operations.

The transportation sector, including shipping, is known to be a major contributor to global greenhouse gas emissions. Most of these emissions arise from the burning of petroleum-based fuels like diesel and gasoline. In fact, approximately 90% of the fuel used in the global transportation sector comes from petroleum-based sources. This heavy dependence on fossil fuels further emphasizes the need for a transition to sustainable alternatives, such as electric ships. Governments around the world are also taking proactive steps to support the shift toward greener marine transportation. These efforts include financial incentives, subsidies, and favorable regulatory frameworks aimed at encouraging the adoption of electric-operated ships. Such initiatives are expected to accelerate market growth in the coming years.

Key Market Trends & Insights:

• Europe held the largest share of global revenue, accounting for 35.8% in 2022. The region is also projected to experience the fastest growth during the forecast period, with a CAGR of 11.9%.
• The Asia Pacific region is also poised for robust expansion, anticipated to grow at a CAGR of 11.5% from 2023 to 2030. Growing maritime trade, rising demand for sustainable shipping solutions, and increasing government support are fueling this growth.
• Semi-autonomous vessels dominated the electric ship market with a commanding share of 97.2% in 2022. These vessels require limited human intervention and are currently more commercially viable compared to fully autonomous alternatives. However, the fully autonomous segment is expected to register the fastest CAGR of 24.7% during the forecast period.
• When analyzed by propulsion type, the hybrid segment emerged as the leader with a market share of 81.5% in 2022. Hybrid ships combine electric and conventional propulsion systems, offering greater flexibility and range, making them a preferred choice during the early stages of electrification. The fully electric segment is projected to expand at a notable CAGR of 10.7%, indicating increasing demand for zero-emission vessels as battery technology continues to improve.
• By application, commercial vessels led the market with a share of 77.3% in 2022. On the other hand, the defense vessel segment is forecasted to grow at the fastest CAGR of 11.9%, driven by defense agencies’ efforts to adopt cleaner technologies and improve stealth operations through low-noise electric propulsion.
• Based on power output, the 75-745 KW segment accounted for the largest revenue share at 44.2% in 2022. Meanwhile, the <75 KW power output segment is expected to record the fastest CAGR of 12.0%, owing to the growing adoption of smaller electric boats for recreational and short-distance transport purposes.

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Market Size & Forecast:

• 2022 Market Size: USD 7.98 Billion
• 2030 Projected Market Size: USD 17.91 Billion
• CAGR (2023-2030): 10.9%
• Europe: Largest market in 2022

Key Companies & Market Share Insights:

Leading companies in the electric ship market are actively pursuing collaborations, partnerships, and mergers & acquisitions to enhance their market position. These strategic moves enable them to expand their technological capabilities, customer base, and product portfolios.

Additionally, there is a strong focus on advancing automation technologies in shipbuilding to gain a competitive edge. One notable example is Hurtigruten, a well-known Norwegian cruise operator. In June 2023, the company revealed plans to develop the Sea Zero, a zero-emission cruise ship. This innovative vessel will feature retractable sails equipped with solar panels designed to harness both solar and wind energy, which will be stored in high-capacity onboard batteries. Such groundbreaking developments are setting new benchmarks in sustainable marine transportation and are expected to significantly impact the future growth of the market.

Key Players

• 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

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Conclusion:

In conclusion, the global electric ship market is poised for substantial growth, driven by the need to reduce carbon emissions, fuel consumption, and noise pollution. Supportive government policies, technological advancements, and increasing adoption across commercial and defense sectors are further accelerating market expansion. With regions like Europe and Asia Pacific leading the way, and innovations such as zero-emission vessels emerging, the market is set to grow steadily through 2030.