ID: MRFR/A&D/8038-CR | March 2020 | Region: Global | 193 pages
Europe Electric Ships Market is expected to register an 11.05% CAGR during the forecast period.
The Europe electric ships market has witnessed significant traction 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. Electric ships are used for commercial and defense applications and include fully electric ships and hybrid ships. Conventional ships can be electrified by retrofitting electrical systems in existing ships and newly built ships and can be operated manually, remotely, or automatically.
The Europe electric ships market is growing at a rapid rate due to the increase in seaborne trade and the growing maritime tourism industry. In addition, the implementation of the IMO Sulfur 2020 regulation and the development of lithium-ion batteries are also expected to drive the growth of the market. However, the limited range and capacity of fully electric ships and the high downtime in retrofitting ships are expected to hamper the growth of the market during the forecast period.
The maritime industry has gained traction over the years. Maritime transport enables trade and contact between several countries, across the globe, and is considered a key asset for the import and export of goods in several countries. Particularly in European ports, more than 400 million passengers embark and disembark each year. With the rapid growth of the industry, it becomes crucial for maritime organizations and authorities to ensure high standards of safety, security, and emission.
Europe Electric Ships Market Growth, 2018–2030
The increase in seaborne trade and the growing maritime tourism industry are some of the major drivers for the growth of the Europe electric ships market. The UK accounted for 11.39% of the Europe electric ships market in 2018, followed by Germany. Germany is expected to be the fastest-growing market for electric ships during the review period. France accounted for the third-largest market share in 2018.
The Europe Electric Ships Market has been segmented based on Type, System, Ship Type, Power, Range, Operation, End-Use, and Country. By type, the market has been segmented into fully electric and hybrid. Based on the system, the market has been segmented into energy storage systems, power generation, power conversion, and power distribution systems. Based on ship type, the market has been segmented into commercial and defense. By power, the market has been categorized into <75 kW, 75–150 kW, 151–745 kW, and 746–7,560 kW. Based on range, the market has been segmented into <50 km, 50–100 km, 101–1,000 km, and >1,000 km. Based on operation, the market has been segmented into manned, remotely operated, and autonomous. Based on end-use, the market has been segmented into newbuild & line fit and retrofit.
Europe Electric Ships Market Segmentation
The commercial segment is expected to dominate the market during the forecast period.
This segment covers the market for electric ships used in the commercial sector. Commercial ships include 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 dredgers, fishing vessels, tugs and workboats, submarines, and research vessels. 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. For example, in 2019, General Electric entered a partnership with Nedstack Fuel Cell Technology BV, a global fuel cell solutions provider, to develop hydrogen fuel cell power systems for cruise vessels. The commercial segment accounted for a larger market share of 64.29% in 2018, with a market value of USD 1,702 million.
The Europe electric ships market has been segmented, by country, into the UK, Germany, France, Russia, Italy, Norway, Turkey, Sweden, Greece, and the rest of Europe.
Europe Electric Ships Market Share, by Region, 2018 (%)
In Norway, the presence of prominent electric ships companies such as KONGSBERG MARITIME, Vard, and Norwegian Electric Systems is expected to drive the market growth in the country. Furthermore, investments made by companies such as Siemens for the development of electric ships in the country are also expected to drive the growth of the market in Norway. For example, in 2019, Siemens inaugurated its new battery module factory in Norway. The factor will focus on the development of batteries for marine and offshore markets.
Additionally, increasing initiatives undertaken by the Norwegian government for the development of environment-friendly maritime solutions is also expected to drive the electric ship's market in Norway. In 2019, the International Maritime Organization (IMO) and the Norwegian government launched a new project named GreenVoyage-2050 to develop solutions that assist in reducing greenhouse gas (GHG) emissions from shipping. Therefore, such factors are expected to drive the electric ship's market in Norway. Thus, the electric ship's market in Norway is estimated to register a CAGR of 10.75% during the forecast period.
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 Questions Addressed by the Report
Frequently Asked Questions (FAQ) :
The market can gain impetus at a rate of 11.05% in the years to come.
The Europe electric ships market has gained impetus owing to the surge in seaborne trade and the expanding maritime tourism sector. Also, the advent of the IMO Sulfur 2020 regulation along with the advancements in lithium-ion batteries also benefits the worldwide market.
The United Kingdom is expected to be the biggest market in Europe.
The key types of electric ships considered in the market study are fully electric as well as hybrid.
The operation-based segments in the market include remotely operated, autonomous and manned.
The market in Norway is thriving because of the extensive presence of highly established electric ships vendors like Vard, Norwegian Electric Systems and KONGSBERG MARITIME, who make sizeable investments in the development of advanced electric ships.
The Norway market can advance at a rate of 10.75% during the appraisal period.