The electric ships market size is expected to reach US$ 7.76 billion by 2028, registering at a CAGR of 10.3% from 2021 to 2028, according to a new research study conducted by The Insight Partners.
Rise in Adoption of Hybrid and Electric Propulsion Systems for Retrofitting Ships Drives Electric Ships Market
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.
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.
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).
Impact of COVID-19 Pandemic on Electric Ships Market
In 2020, the COVID-19 pandemic adversely affected the growth of the global electric ship market due to the shutdown of manufacturing facilities and trade restrictions. Ship manufacturers had faced short-term operational issues due to supply chain disruption caused by several government initiatives to slow the spread of COVID-19. The shipping industry had become a significant part of several countries’ supply chains; it was significantly affected by the COVID-19 pandemic. The shipping industry depends on production, which was discontinued to prevent people from being affected by SARS-CoV-2, resulting in significant challenges. According to United Nations Conference on Trade and Development (UNCTAD) (UNCTAD 2020), coastal and maritime tourism is the largest blue economy sector, and 50% of the tourists choose a coastal destination for their holidays. Flights and cruises have been canceled; entire crews and passengers have been under quarantine; country borders were closed; and in many tourist areas, hotels, restaurants, and resorts were forced to close for a few months. This led to a sharp economic decline in this sector. Therefore, the overall impact of the COVID-19 pandemic on the electric ships market was negative.
In 2021 and 2022, with relaxations of restrictions allowed by governments to improve economic conditions, the production of electric ships and all associated components resumed. Also, the growing maritime tourism industry helps in supporting the electric ships market growth. Thus, during 2021 and 2022, the COVID-19 pandemic will positively impact the market growth. This is expected to normalize the electric ships market growth over the forecast period of 2021–2028.
BAE Systems, Duffy Electric Boat Company, Fjellstrand AS, X Shore, General Dynamic Electric Boat, Hurtigruten, MAN Energy Solutions, PortLiner, Siemens Energy, and VARD AS are among the major companies operating in the electric ships market.
Electric Ships Market – by Region
Electric Ships Market Size, Share, Growth & Trends 2022, 2028
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Electric Ships Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Battery Electric Ships, Plug-In Hybrid Electric Ships, and Hybrid Electric Ships), Power (Less Than 75 KW, 75 - 150 KW, 151 - 745 KW, 746 - 7560 KW, and More Than 7560 KW), Range (Less Than 50 Km, 50 - 100 Km, 101 - 1000 Km, and More Than 1000 Km), and Ship Type (Cruise Ships, Ferries, Tankers, Bulk Carriers, Fishing Vessels, Destroyers, Aircraft Carriers, and Others)
Electric Ships Market Size, Share, Growth & Trends 2022, 2028
Download Free SampleElectric Ships Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Battery Electric Ships, Plug-In Hybrid Electric Ships, and Hybrid Electric Ships), Power (Less Than 75 KW, 75 - 150 KW, 151 - 745 KW, 746 - 7560 KW, and More Than 7560 KW), Range (Less Than 50 Km, 50 - 100 Km, 101 - 1000 Km, and More Than 1000 Km), and Ship Type (Cruise Ships, Ferries, Tankers, Bulk Carriers, Fishing Vessels, Destroyers, Aircraft Carriers, and Others)
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