According to the latest research report titled “Electric Ships Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type, Power, Range and Ship Type,” the market is expected to grow from US$ 3.82 billion in 2021 to US$ 7.76 billion by 2028; it is estimated to grow at a CAGR of 10.3% from 2021 to 2028.
Increasing Regulatory Support from Government Authorities and Industry Associations to Favor Market Growth
Several marine industry associations are focusing on reducing the gas emission from the shipping industry. As per a report published by the Norwegian Ministry of Climate and Environment, in April 2018, International Maritime Organization (IMO) adopted a plan to reduce greenhouse gas emissions from international shipping by ~50% compared with the level in 2008 by the end of 2050. Additionally, the IMO strategy aims to improve the energy efficiency of each ship and to reduce the carbon intensity of the whole marine industry by reducing emissions per unit of transport work done by ~40% by 2030, and further toward 70% by 2050, according to a report published by the Norwegian Ministry of Climate and Environment. Further, several governments are focusing on reducing the gas emission from the shipping industry. For instance, according to a report published by the Norwegian Ministry of Climate and Environment, in 2019, the Norway government’s focus is on reducing greenhouse gas emissions from domestic shipping and fishing ships by half by 2030 and promoting the development of zero- and low-emission solutions for all vessel categories. For this, the government had allocated NOK 7 million (US$ 0.77 million) to the Green Shipping Programme in the 2019 budget. Therefore, the increasing regulatory support from government authorities and industry associations for reducing greenhouse gas emissions in the shipping industry supports the growth of electric ships by adopting electric or hybrid propulsion systems.
North America has the highest adoption rate of advanced technologies due to governments’ favorable policies to boost innovation and strengthen infrastructure capabilities. The COVID-19 pandemic forced the US government to impose several limitations on industrial, commercial, and public activities in the initial phases to control the spread of COVID-19. The record-long US economic expansion came to an end as a result of the COVID-19 pandemic, with effect of a deep recession in 2020. The outlook remains highly uncertain, as it is difficult to determine the social and economic impact of the COVID-19 pandemic, which will depend on the success of containing the outbreak and the measures to restart economic activities. 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. A South Florida-based cruise ship was affected for the third time, as Florida recorded its highest number of COVID-19 cases. SARS-CoV-2 infected an undisclosed number of passengers and crew of the Carnival Freedom cruise, so the ship was denied entry to Bonaire and Aruba. 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.
The electric ships market has been segmented into five major regions - North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In North America and Europe, the demand for electric ships increases due to its rising demand for fully electric passenger vessels, tugs, yachts, and cruise vessels. Norway, Finland, the US, and Denmark are replacing conventional passenger ferries with fully electric passenger ferries. Significant developments in autonomous electric vessels that use fuel cells and remotely controlled electric vessels are also driving the market growth.
In APAC, the demand for electric ships increases due to the rising sea trade activities and growing government focus on reducing gas emissions from the shipping industry. This has resulted in ship integrators and owners switching the existing diesel-driven engines with electric or hybrid propulsion systems. Therefore, these factors create a vast opportunity for the APAC electric ships market players to produce more electric ships. According to the UN Merchant Fleet 2020 statistics, ~93% of the global new shipbuilding occurred in China, Japan, and South Korea in 2019. The global shipping and offshore energy equipment industry has shifted unequivocally toward Asia. South Korea, Japan, and China now dominate with ~80% of orders. According to IHS Maritime, 134 liquefied natural gas (LNG) tankers built since 2009 - 133 were built in Asia, 100 in South Korea, 20 in China, and 13 in Japan. While domination by Asian manufacturers is expected to continue, it is important to recognize that each of Asia’s shipping giants has distinct strengths and challenges. Shipbuilding in Japan is going through a renaissance. Focus on shipbuilding and port development is driving the growth of the electric ships market in the region.
Reasons to Buy
Increasing Regulatory Support from Government Authorities and Industry Associations to Favor Market Growth
Several marine industry associations are focusing on reducing the gas emission from the shipping industry. As per a report published by the Norwegian Ministry of Climate and Environment, in April 2018, International Maritime Organization (IMO) adopted a plan to reduce greenhouse gas emissions from international shipping by ~50% compared with the level in 2008 by the end of 2050. Additionally, the IMO strategy aims to improve the energy efficiency of each ship and to reduce the carbon intensity of the whole marine industry by reducing emissions per unit of transport work done by ~40% by 2030, and further toward 70% by 2050, according to a report published by the Norwegian Ministry of Climate and Environment. Further, several governments are focusing on reducing the gas emission from the shipping industry. For instance, according to a report published by the Norwegian Ministry of Climate and Environment, in 2019, the Norway government’s focus is on reducing greenhouse gas emissions from domestic shipping and fishing ships by half by 2030 and promoting the development of zero- and low-emission solutions for all vessel categories. For this, the government had allocated NOK 7 million (US$ 0.77 million) to the Green Shipping Programme in the 2019 budget. Therefore, the increasing regulatory support from government authorities and industry associations for reducing greenhouse gas emissions in the shipping industry supports the growth of electric ships by adopting electric or hybrid propulsion systems.
North America has the highest adoption rate of advanced technologies due to governments’ favorable policies to boost innovation and strengthen infrastructure capabilities. The COVID-19 pandemic forced the US government to impose several limitations on industrial, commercial, and public activities in the initial phases to control the spread of COVID-19. The record-long US economic expansion came to an end as a result of the COVID-19 pandemic, with effect of a deep recession in 2020. The outlook remains highly uncertain, as it is difficult to determine the social and economic impact of the COVID-19 pandemic, which will depend on the success of containing the outbreak and the measures to restart economic activities. 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. A South Florida-based cruise ship was affected for the third time, as Florida recorded its highest number of COVID-19 cases. SARS-CoV-2 infected an undisclosed number of passengers and crew of the Carnival Freedom cruise, so the ship was denied entry to Bonaire and Aruba. 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.
Key Findings of Study:
The electric ships market has been segmented into five major regions - North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In North America and Europe, the demand for electric ships increases due to its rising demand for fully electric passenger vessels, tugs, yachts, and cruise vessels. Norway, Finland, the US, and Denmark are replacing conventional passenger ferries with fully electric passenger ferries. Significant developments in autonomous electric vessels that use fuel cells and remotely controlled electric vessels are also driving the market growth.
In APAC, the demand for electric ships increases due to the rising sea trade activities and growing government focus on reducing gas emissions from the shipping industry. This has resulted in ship integrators and owners switching the existing diesel-driven engines with electric or hybrid propulsion systems. Therefore, these factors create a vast opportunity for the APAC electric ships market players to produce more electric ships. According to the UN Merchant Fleet 2020 statistics, ~93% of the global new shipbuilding occurred in China, Japan, and South Korea in 2019. The global shipping and offshore energy equipment industry has shifted unequivocally toward Asia. South Korea, Japan, and China now dominate with ~80% of orders. According to IHS Maritime, 134 liquefied natural gas (LNG) tankers built since 2009 - 133 were built in Asia, 100 in South Korea, 20 in China, and 13 in Japan. While domination by Asian manufacturers is expected to continue, it is important to recognize that each of Asia’s shipping giants has distinct strengths and challenges. Shipbuilding in Japan is going through a renaissance. Focus on shipbuilding and port development is driving the growth of the electric ships market in the region.
Reasons to Buy
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the electric ships market
- Highlights key business priorities in order to assist companies to realign their business strategies
- The key findings and recommendations highlight crucial progressive industry trends in the electric ships market thereby allowing players across the value chain to develop effective long-term strategies
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
- Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing, and distribution
Table of Contents
1. Introduction
3. Research Methodology
4. Electric Ship Market Landscape
5. Global Electric Ship Market - Key Industry Dynamics
6. Electric Ship Market - Global Analysis
7. Electric Ships Market Analysis and Forecast to 2028 - By Type
8. Electric Ships Market Analysis and Forecast to 2028 - By Power
9. Electric Ships Market Analysis and Forecast to 2028 - By Range
10. Electric Ships Market Analysis and Forecast to 2028 - By Ship Type
11. Electric Ship Market - Geographic Analysis
12. Impact of COVID -19 Pandemic - Electric Ship Market
13. Industry Landscape
14. Company Profiles
15. Appendix
List of Tables
List of Figures
Executive Summary
The global electric ships market is expected to grow from US$ 3.82 billion in 2021 to US$ 7.76 billion by 2028; it is estimated to grow at a CAGR of 10.3% from 2021 to 2028.The electric ships market is expected to grow rapidly in the coming years due to the rise in the adoption of hybrid and electric propulsion systems for retrofitting ships and increasing regulatory support from government authorities & industry associations. Asia Pacific includes large emerging countries, such as China and India, where government and private sector investments in shipyard construction increase quickly. Similarly, governments in smaller countries, such as Indonesia and the Philippines, attract investors that boost the growth of the electric ships market. In APAC, the demand for electric ships increases due to the rising sea trade activities and growing government focus on reducing gas emissions. industry This has resulted in ship integrators and owners switching the existing diesel-driven engines with electric or hybrid propulsion systems. Therefore, these rising sea trade activities and increasing government focus on reducing gas emissions factors create a vast opportunity for the APAC electric ships market players to produce more electric ships.
The Asia Pacific electric ships market has many players accounting for small market shares. A few of the prominent companies in the market in this region are ABB, General Electric, and Wartsila. The major players are spending heavily on research and development of new products and delivering mobile cranes globally. For instance, Vallianz, SeaTech, Shift Clean Energy, and ABS are teaming up to design and build an all-electric harbor tug. Vallianz has cut steel on the first all-electric harbor tug in Asia Pacific at its shipyard in Batam, Indonesia. Based on the E-Volt Electric Tug design by SeaTech, the vessel will be driven by a fully-classed electric battery system provided by Shift. This follows a recent memorandum of understanding between Vallianz and Shift Clean Energy to collaborate on vessels that require electrification solutions.
The key stakeholders in the global electric ship market ecosystem include raw material suppliers, component providers, propulsion system manufacturers, Shipbuilders/electric ship manufacturers, and end users. The propulsion system manufacturer plays a crucial role in the growth of the electric ship market as they are continuously developing an advanced system to enhance electric power generations. The raw materials suppliers are the initial stakeholders of the electric ship market as they provide various metals, such as steel, plastics, GRP (Glass Reinforced Plastic), ferrous metals, and wood. The material improves the shipbuilding and components' quality for better performance and lifespan. The components providers offer various parts, including electric motors, propellers, switchboards, filters, generators, and control systems. Propulsion system manufacturers procure the components and assemble them into one system to be installed in the ships. YANMAR HOLDINGS CO., LTD; BAE Systems; Siemens AG; Wartsila Corporation; and ZF Friedrichshafen AG are among the key market players developing hybrid and electric propulsion systems in the market. The shipbuilders/electric ship manufacturers include BAE Systems, Hurtigruten, MAN Energy Solutions, Siemens Energy, and General Dynamics Electric Boat. They mainly focus on customers' requirements to integrate the advanced technology into ships that end users can use. These systems can also be customized as per specific requirements and operations of different end users involved in the electric ships market.
Impact of COVID-19 Pandemic on Electric Ships Market
The COVID-19 pandemic severely impacted APAC due to the widespread infection. Countries in this region are highly populated, subjecting them to a greater risk of spreading and contracting this contagious disease. According to the Organization for Economic Co-operation and Development (OECD), the pandemic affected major economies, such as China, India, Australia, and Japan, which are experiencing inflation. The supply chain disturbances and the tremendous demand for efficient treatments for the therapy of COVID-19 have put the tourism industry in a crucial situation in Asia Pacific. Prohibited measures have been taken to contain the spread of COVID-19 through waterways also. COVID-19 spread has affected the electric ships demand as there was decline in demand of goods in various countries due to the restrictions imposed. This restrictions on trade and tourism through waterways has affected the growth of the electric ships market in Asia Pacific. However, as the countries uplifted lockdown and industries resumed their operations, the demand for electric ships from various end-users surged at the end of 2020.
The overall electric ships market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the electric ships market with respect to all the market segments. Also, primary interviews were conducted with industry participants to validate data and gain more analytical insights. The participants of this process include VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders—specializing in the electric ships market. A few major players operating in the 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.
Companies Mentioned
- Bae Systems
- Duffy Electric Boat Company
- Fjellstrand As
- X Shore
- General Dynamic Electric Boat
- Hurtigruten
- Man Energy Solutions
- Portliner
- Siemens Energy
- Vard As
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 164 |
| Published | March 2022 |
| Forecast Period | 2021 - 2028 |
| Estimated Market Value ( USD | $ 3913.2 Million |
| Forecasted Market Value ( USD | $ 7765.4 Million |
| Compound Annual Growth Rate | 10.3% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
