Europe Electric Ships Market Outlook and Opportunities in Grooming Regions with Forecast 2030

March 2023, Research Report on the Global Europe Electric Ships Market.

Overview

Europe's Electric Ships Market Size is USD 15.703 billion by 2030, exhibitinga compound annual growth rate (CAGR) of 15.01% during the forecast period (2023 - 2030).

There has been significant development of hybrid cruise ships in the last few years to reduce acoustic pollution, emission, and vibrations. In February 2018, Hurtigruten, a Norwegian expedition cruise company, unveiled the world's first hybrid cruise ship. It reduces fuel consumption and CO2 emissions on the ships by 20% by sailing with electrical propulsion.

Segmental Analysis

The Europe Electric Ships Market has been segmented based on Type, System, Range, Operation, Ship Type, Power, and End-Use.

Based on type, the electric ship's market has been segmented into fully electric and hybrid. The hybrid segment dominated the market with a valuation of USD 1,421.9 million in 2018 and is expected to reach USD 3,966 million by 2030. Ships with hybrid-electric propulsion systems produce less pollution as compared to conventional marine propulsion systems that involve the burning of heavy oil. In this system, the propeller shaft of the ship is connected to large propulsion motor, which can be driven by DC/AC power. The power for the propulsion motor is supplied by a diesel/natural gas generator and prime mover assembly.

Based on ship type, the Europe electric ship market has been classified as commercial and defense. The commercial segment is expected to exhibit a higher CAGR of 11.36% during the forecast period. Factors such as an increase in seaborne trade, rising maritime tourism industry, and implementation of the IMO Sulphur 2020 Regulation, the demand for electric ships for commercial applications is expected to increase during the forecast period. Additionally, the growing development of hydrogen fuel cell power systems for cruise vessels is also likely to drive the growth of the segment.

By end-use, the Europe electric ship market has been divided into newbuild & line fit and retrofit. The newbuild & line-fit segment is expected to register a higher CAGR of 12.05% during the forecast period. The newly build & line fit of electric or hybrid ships includes the design of ships according to its application and integration of electric or hybrid propulsion systems. The demand for newly-built electric or hybrid ships has been increasing in the last few years, but the initial cost of such vessels is very high.

Regional Analysis

The country-wise analysis of the Europe electric ships market covers the UK, Germany, France, Russia, Italy, Norway, Turkey, Sweden, Greece, and the rest of Europe.

Germany led the market with a valuation of USD 354.5 million in 2018, and the market is expected to reach USD 1,460.4 Million by 2030 at a CAGR of 12.52% during the forecast period. Market growth in the country is driven by increasing investments by companies such as Siemens, Kongsberg Maritime, and AKASOL AG.

The UK was the second-largest market with a valuation of USD 301.5 million in 2018. The market in the country is projected to exceed USD 1,116 million by 2030 at 11.52% CAGR.  This can be attributed to the presence of major manufacturers such as BAE Systems plc and Rolls-Royce PLC in the country.

Competitive Analysis

The Key Players in the Europe Electric Ships Market are BAE Systems plc (UK), Kongsberg Maritime (Norway), Wärtsilä (Finland), Siemens (Germany), ABB (Switzerland), General Electric (US), Leclanché (Switzerland), AKASOL AG (Germany), Norwegian Electric Systems (Norway), and Volvo Penta (Sweden).

Key Developments

• In January 2020, Norwegian Electric Systems signed a contract with Fjord1 ASA, a global transport company to provide battery systems, and electrical and automation packages for the latter’s three ferries.

• In December 2019, Volvo Penta provided its marine engines to GS Marine Production AS for its three hybrid ferries. This contract enabled the company to strengthen its customer base.

• In December 2017, Wärtsilä signed a Memorandum of Understanding (MOU) with Mitsubishi Heavy Industries Marine Machinery & Equipment Co., Ltd to develop advanced power and propulsion systems for ships.