$4550
The electric ships market was valued US$ 3.82 billion in 2021, it is estimated to grow at a CAGR of 10.3% from 2021 to 2028.
An electric boat is any boat or ship whose primary propulsion technology is an electric drive system. It can be a full-battery electric, hydrogen fuel cell electric, electric hybrid boat or ship, from tugboats, ferries, cargo ships, and barges to tour boats, fishing trawlers, cruising yachts, and unmanned underwater vehicles (UUVs). Electric ships are driven electrically, unlike conventional diesel engine ships. These ships use a battery storage device as their power source to drive electric motors. Numerous types of batteries can be used in an electric ship, including lithium-ion batteries, lead-acid batteries, and fuel cells. Electric ships are mainly ferries and small passenger ships on inland waterways that sail entirely with electricity. They travel only short distances with ~80 km in a single charge. Further, solar-powered ships are also used in lightweight ships that require low power output. However, the power requirements of cargo ships cannot be fulfilled by a fully electric system due to heavyweight; hence cargo ships are utilizing a hybrid diesel-electric system.
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Electric Ships Market: Strategic Insights
Market Size Value in US$ 3.82 billion in 2021 Market Size Value by US$ 7.76 billion by 2028 Growth rate CAGR of 10.3% from 2021 to 2028. Forecast Period 2021- 2028 Base Year 2021
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Electric Ships Market: Strategic Insights
| Market Size Value in | US$ 3.82 billion in 2021 |
| Market Size Value by | US$ 7.76 billion by 2028 |
| Growth rate | CAGR of 10.3% from 2021 to 2028. |
| Forecast Period | 2021- 2028 |
| Base Year | 2021 |
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Impact of COVID-19 Pandemic on Electric Ships Market
The COVID-19 pandemic adversely affected the electric ships market. The pandemic led to unparalleled global impacts on human mobility. In the ocean, ship-based activities are affected due to severe restrictions on human movements and changes in consumption of goods. A few countries have closed their cruise industry due to the COVID-19 pandemic. However, some cruise lines are trying to resume their activities during the pandemic. Human activities in the ocean have been radically changed by the COVID-19 pandemic, with reports of port restrictions and shifts in consumption patterns impacting multiple maritime sectors, fisheries, passenger ferries, and cruise ships. However, in some regions, the shipping of goods was declared essential during the lockdown, which created a lucrative opportunity for the electric ships market.
Lucrative Regions for Electric Ships
Providers
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Electric Ships Market Insights
Rise in Adoption of Hybrid and Electric Propulsion Systems for Retrofitting Ships
Retrofitting ships is gaining interest and attracting shipowners/shipbuilders to extend the lifetime of their existing ships. Such a process provides a chance to reduce fuel consumption and stay updated with the latest eco-friendly solutions as a cost-effective procedure. Retrofitting is becoming a common practice in the maritime industry. Shipbuilders are moving toward automation, integrating newly built ships, and retrofitting existing ships with hybrid and electric propulsion systems. This system is a convenient choice for retrofitting outdated ships with enormous retrofit potential, including ferries, container vessels, cruise ships, tugboats, and general cargo ships. Shipbuilders choose to retrofit ships with a hybrid-electric propulsion system or a fully electric propulsion system as it is a relatively cheaper option than purchasing a new ship. Further, several European shipbuilders are actively retrofitting their current ship fleet with hybrid and electric propulsion systems. For instance, according to the article published by the Riviera Maritime Media Ltd, in March 2020, the offshore supply vessel (OSV) owners invested in retrofitting diesel-electric/LNG-powered fleets with battery-hybrid propulsion in a move that is paying off for the charterer, owner, and the environmental issues in Norway. These factors have resulted in the adoption of hybrid and electric propulsion systems for retrofitting ships.
Type-Based Market Insights
Based on type, the electric ships market is segmented into battery electric ships, plug-in hybrid electric ships, and hybrid electric ships. The hybrid electric ships segment led the market in 2020. The reliability offered by hybrid electric ships supports its demand owing to the use of supplementary propulsion systems and higher speed, which can reduce the risk of failure and cover greater distances in less time. Besides, hybrid electric vessel propulsion can be propelled in two ways—electrical (via diesel-electric or battery power-driven) or mechanical (direct diesel drove). Furthermore, ship owners or shipping and logistic companies across the globe prefer hybrid electric ships as they enable lower fuel consumption and help reduce operational costs. The use of diesel-electric propulsion at low power and direct diesel-driven propulsion in need of high power that is inland water sailing with different speed conditions enables a reduction in operational cost in the electric ship. This is a smarter way to use available energy and save on fuel costs by using hybrid electric ship propulsion.
Electric Ships Market, by Type – during 2020–2028 (%)
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Players operating in the electric ships market adopt strategies, such as mergers, acquisitions, and market initiatives, to maintain their positions in the market. A few developments by key players are listed below.
- In November 2021, BAE Systems launched a next-generation power and propulsion system to help marine operators reach zero emissions. It provides a flexible solution improving electrical efficiency and vessel range, increasing propulsion power, and simplifying installation.
- In September 2020, Kolumbus (a mobility company) and Fjellstrand (shipbuilder) signed a contract to deliver the world’s first fully electrical fast ferry. This project had received funding from the European Union’s Horizon 2020 research and innovation program.
Based on type, the electric ships market is segmented into battery electric ships, plug-in hybrid electric ships, and hybrid electric ships. Based on the power, the electric ships market is segmented into less than 75 kW, 75-150 kW, 151-745 kW, 746-7560 kW, and more than 7560 kW. Based on range, the electric ships market is categorized into less than 50 km, 50-100 km, 101-1000 km, and more than 1000 km. Based on ships type, the electric ships market is segmented into cruise ship, ferries, tankers, bulk carriers, fishing vessels, destroyers, aircraft carriers, and others. By geography, the electric ships market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM).
Company Profiles
- BAE Systems
- Duffy Electric Boat Company
- Fjellstrand AS
- X Shore
- General Dynamic Electric Boat
- Hurtigruten
- MAN Energy Solutions
- PortLiner
- Siemens Energy
- VARD AS
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Power, Range, and Ship Type
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Australia, Canada, China, France, Germany, Italy, Japan, Middle East and Africa, South America, South Korea, United Kingdom, United States
Frequently Asked Questions
Europe dominated the Electric Ships market in 2020 with a share of 48.6% and is expected to continue its dominance by 2028. North America is the second-largest contributor to the global Electric Ships market in 2020, followed by Asia Pacific.
The major companies in Electric Ships market are BAE Systems, Duffy Electric Boat Company, Fjellstrand AS, X Shore, General Dynamic Electric Boat, Hurtigruten, MAN Energy Solutions, PortLiner, Siemens Energy, and VARD AS
The major Application in Electric Ships includes cruise ship, ferries, tankers, bulk carriers, fishing vessels, destroyers, aircraft carriers, and others. In terms of market share, the electric ships market was dominated by the ferries segment in 2020.
The electric ships market, by type is segmented into battery electric ships, plug-in hybrid electric ships, and hybrid electric ships. The Electric Ships market was dominated by the hybrid electric ships segment in 2020.
Nowadays, hybrid propulsion technology is commonly used for small vessels such as ferries. For instance, according to the article published by the Institution of Engineering and Technology, in January 2019, the UK shipbuilder Ferguson Marine had built Catriona, a £12.3 million (US$ 15.82 million) diesel-electric-battery-power hybrid ferry for CalMac to use on its Clyde and Hebridean routes. However, with the development of marine electric propulsion technology and alternative fuels such as fuel cells, there is a massive opportunity for manufacturers to work on hybrid-electric propulsion systems for larger ships. The stricter emissions targets have encouraged shipbuilders to install a hybrid propulsion system on existing or new vessels. The research & development (R&D) department for ABB marine activities in Norway stated that the hybrid propulsion systems significantly reduce both fuel consumption and emissions, according to the article published by the Institution of Engineering and Technology in January 2019. Therefore, with the growing emission control norms, the adoption of hybrid-electric propulsion systems is increasing among larger ships, creating a massive opportunity for manufacturing larger ships using hybrid-electric propulsion systems.
The idea of retrofitting ships is gaining interest and is attracting shipowners/shipbuilders to extend the lifetime of their existing ships. Such a process provides a chance to reduce fuel consumption and stay up to date with the latest eco-friendly solutions as a cost-effective procedure. Retrofitting is becoming a common practice in the maritime industry. Shipbuilders are moving toward automation, integrating new build ships, and retrofitting existing ships with hybrid and electric propulsion systems. A hybrid-electric propulsion system is a convenient choice for retrofitting outdated ships. Ships have a large retrofit potential, including ferries, container vessels, cruise ships, tugboats, and general cargo ships. Shipbuilders choose to retrofit ships with a hybrid-electric propulsion system or a fully electric propulsion system as it is a relatively cheaper option than purchasing a new ship. These factors mentioned above have resulted in the adoption of hybrid and electric propulsion systems for retrofitting ships.
The List of Companies - Electric Ships Market
- BAE Systems
- Duffy Electric Boat Company
- Fjellstrand AS
- X Shore
- General Dynamic Electric Boat
- Hurtigruten
- MAN Energy Solutions
- PortLiner
- Siemens Energy
- VARD AS
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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