Global Electric Ships Market is projected to reach USD 15.7 Billion by 2030 at a CAGR of 10.8% from 2019 to 2030.
The electrical propulsion system offers several advantages over the conventional engine propulsion system such as significant power generation, the limited space requirement for machinery, increased payload capacity, low fuel consumption and emissions, and reduced vibration and noise. The increase in demand for alternative propulsion systems that improve the overall efficiency of ships is driving the growth of the market.
The Global Electric Ships Market has witnessed high growth in recent years owing to an increase in seaborne trade and implementation of the IMO Sulfur 2020 Regulation. Moreover, the growing maritime tourism industry is driving the growth of the market. However, the limited range and capacity of fully electric ships are expected to restrain market growth to some extent.
Increasing need to reduce fuel emissions
- Increase in Seaborne Trade: Maritime transport is considered the backbone of global trade and economy; shipping carried more than 80% of the world’s goods, by volume, in 2017. Seaborne trade continues to expand, bringing benefits to consumers across the world through competitive freight costs. This is expected to drive the growth of the global electric ships market during the forecast period.
- Growing Maritime Tourism Industry
- Implementation of the IMO Sulfur 2020 Regulation
- Use of Renewable Energy for Battery Charging
- Advancements in Hybrid Propulsion Technology
- Fully Electric: Fully electric ships use lithium or lead-acid batteries, solar energy, or fuel cells as a power source. The range and load-carrying capacity of these ships are low. These ships include yachts, tugboats, and ferries. For example, Turkish ship designer and builder Navtek Naval Technologies has developed a battery-powered, all-electric tugboat with an energy storage system (ESS) supplied by Corvus Energy.
- Hybrid: The hybrid-electric propulsion system produces 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.
- Commercial: The segment is expected to register a higher growth rate during the forecast period. The commercial segment includes cargo vessels such as container vessels, tankers, bulk carriers, and general cargo ships; passenger vessels such as cruise ships, yachts, and ferries; and other vessels such as fishing vessels, dredgers, tugs and workboats, research vessels, and submarines. Moreover, due to factors such as an increase in seaborne trade, rising maritime tourism industry, and implementation of the IMO Sulfur 2020 Regulation, the demand for electric ships for commercial applications is expected to increase during the forecast period.
- Defense: The segment dominated the global electric ship market in 2018. The defense segment includes destroyers, frigates, corvettes, offshore support vessels, aircraft carriers, and submarines. Increasing military spending on the development of new and advanced combat vessels is driving the growth of the segment.
- North America: The increasing adoption of electric propulsion naval vessels by the US Navy for tactical missions is expected to drive the growth of the market during the review period. Moreover, the presence of major energy storage systems manufacturers such as Corvus Energy is fueling the growth of the market in North America.
- Europe: Europe dominated the global electric ship market in 2018. This trend is projected to continue during the forecast period due to investments by prominent players such as AKASOL AG, BAE Systems, EST-Floattech, KONGSBERG, and Siemens in the development of electric ships.
- Asia-Pacific: The market in the region is projected to register the highest CAGR during the forecast period. Increasing defense expenditure in India and China and the rising demand for new and advanced naval vessels are driving the regional market growth.
- Middle East & Africa: The increase in defense expenditure in Saudi Arabia, the UAE, and Israel is driving market growth in the Middle East & Africa.
- Latin America: In Latin America, the increase in naval expenditure in Brazil for the procurement of advanced naval vessels is driving the growth of the market.
- AKASOL AG (Germany)
- Anglo Belgian Corporation NV (Belgium)
- BAE Systems (UK)
- Corvus Energy (Canada)
- Echandia Marine AB (Sweden)
- ECO Marine Power (Japan)
- EST-Floattech (Netherlands)
- General Dynamics Electric Boat (US)
- General Electric (US)
- KONGSBERG (Norway)
- Leclanche (Switzerland)
- MAN Energy Solutions (Germany)
- Norwegian Electric Systems (Norway)
- Schottel (Germany)
- Siemens (Germany)
- VARD (Norway)
- Wärtsilä (Finland)
Frequently Asked Questions (FAQ) :
Global Electric Ships market is touted to record a substantial market valuation of USD 15.7 billion by 2030.
Global Electric Ships market is projected to register a moderate 10.8% CAGR in the forecast period.
The fully electric segment is expected to observe substantial demand over the review period.
The commercial segment is slated to expand as the fastest-growing segment.
A few eminent market players operating in the global Electric Ships market are Yara (Norway), CF Industries Holdings Inc. (US), Nutrien Ltd. (Canada), among others.