The global Electric Boat and Ship Market is estimated to surpass $10.4 billion mark by 2026 growing at an estimated CAGR of more than 11.1% during the forecast period 2021 to 2026. The market growth is mainly driven by the factors such as increased maritime transport and commercial ships demand, increased seaborne trades, and increased disposable income. Increased investments in hybrid and electric boat and ship building coupled with advanced technology are expected drive the global market.
The factors such as less pollution and less damage to aquatic animals, as the electric marine vessels does not emit harmful gases are also set to drive the market growth. These factors are set to boosts the market growth for Electric Boat and Ship during the forecast period 2021-2026.
Electric Boat and Ship Market Segment Analysis- By Type
Fully electric ships and boats use batteries or solar power and are projected to grow at the fastest rate of 14.2% through 2026. The carrying capacity of electric ships and boats are low compared to the conventional marine vessels which hinders market growth. However the Hybrid-Electric propulsion system produces less pollution which drives adoption. The power supplied to the propulsion is supplied from the natural gas generator. Hybrid technology is capable of reducing fuel consumption by 20%. It also lowers around 15% of carbon dioxide emission from ships and Is thus witnessing growing penetration.
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Electric Boat and Ship Market Segment Analysis- By Mode of Operation
Market is segmented based on Mode of operation into Manual, Autonomous, Remote controlled. Based on the mode of operation the manned segment has largest market share at 61% in 2020 but the lowest growth in the forecast period also in the future. Increasing demand for the electric and hybrid propulsion systems by commercial ships are the major reasons driving the market.
Electric Boat and Ship Market Segment Analysis- By Geography
Europe region dominates the market with a share of 34.9% in 2020 due to the highest demand for new electric ships & boats. Germany is a significant contributor to market growth in the region. UK became the first country in major G7 countries to set a target to reach net-zero greenhouse gas emissions by 2050 which includes adoption of electric boats. UK announced clean maritime by equipping water with zero-emission technology.
Next to Europe, North America dominates the market where technology adoption continues to drive the market. New technologies such as improved battery storage system are driving the market in this region.
Electric Boat and Ship Market Drivers
Increased adoption of electric boat due to pollution
The driving factors of Electric Boat and Ship Market include factors like increased maritime tourism, increased seaborne trade as most of world’s goods are carried by ships. As the global economy is dependent on the shipping market, the electric boat market will play a bigger role in this sector as environmental causes have increasingly come to the forefront in this sector. Electric and hybrid types ships cause less emission and save the environment from getting polluted more.
These are the driving factors that improve the market during the forecast period. The International Maritime Organization deployed the global sulphur cap in January 2020. Under this regulation, ships, mainly commercial ships and marine vessels would require low sulphur fuels to operate outside the emission control areas which will propel electric ship adoption.
Rise in the growth seaborne business
The rise in business through seaborne routes is one of the major factor driving the growth of the market. Owing to the efficient delivery of delicate manufacturing materials and other materials along with lower cost is driving the market growth. The seaborne routes are chosen for import and export purposes by many countries at a global level as the cargo and commercial ships can carry huge materials through just at one single voyage saving the cost of transportation.
Furthermore, the small companies are extensively using cargo shipping for trade purposes as they generally opt for tramp shipping as they do not have enough fleet to run linear voyages and also to save the transportation costs that require several transportations. These factors are driving the growth of the market.
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Electric Boat and Ship Market Challenges
Higher Manufacturing Cost
The challenges in Electric Boat and Ship Market are battery operation as they are not equivalent to conventional power sources such diesel and gas. Low power consumption and speed at sea. As a result to meet capability of conventional ships, manufacturing cost of electric boats and ships are higher. The market of electric marine vessels is highly fragmented with more than 100 players in the market. The fragmentation is further expected to increase during the forecasted period as their numbers are expected to increase. This can be highly challenging competitive environment for the players to sustain in the market.
Electric Boat and Ship Market Landscape
The market of electric ships uses the key strategies such as partnership and product launch to improve the growth. The market for Electric Boat and Ship market is consolidated with very less players Corvus Energy, Kongsberg, General Dynamics, Leclanche, Echandia Marine, Fincanteiri SpA, Siemens, Norweigian Electric Systems, General Electric and others. These are the companies are subsequently planning to expand its market globally.
Acquisitions/Technology Launches/Partnerships
In November, 2020, Hyundai Motors partnered with Vinssen, a start-up based in Korea to develop a new vessel powered by hydrogen fuel cells.
In February, 2019, Energy storage systems supplier Corvus Energy Holding acquired all shares in Grenland Energy, a maker of lightweight lithium-ion batteries for the maritime, offshore and subsea industry.
Key Takeaways
Development of new technologies like propulsion technology and increase in the seaborne trade across the globe and growing maritime tourism industry are the major factors influencing the growth of electric boats and ship market.
Europe has the highest share in the market. Government regulation has been imposed on shipping industry for the increased fuel emission. European commission published compliance with the sulphur standards for marine fuels. Such regulation has made the increased investments on electric ships and boats.
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