Electric Ship Market to Reach $23.8 Billion, Globally, by 2032
Industrial Strength
Allied Market Research published a report, titled, “Electric Ship Market by Propulsion Type (Fully Electric, and Hybrid), Mode of Operation (Autonomous, and Non-autonomous), and System (Energy Storage, Power Conversion, Power Generation, and Power Distribution: Global Opportunity Analysis and Industry Forecast, 2023–2032.” According to the report, the global electric ship industry generated $4.6 billion in 2022 and is anticipated to generate $23.8 billion by 2032, witnessing a CAGR of 18.0% from 2023 to 2032.
An electric ship relies on electricity for both generating power and propelling themselves, contrasting with traditional ships that employ fossil fuel engines like diesel or steam. With the growing awareness and concern regarding climate change and environmental pollution, there is an increasing demand for transportation solutions that are cleaner and more sustainable. Electric-powered ships contribute to this by decreasing fuel usage and minimizing emissions from oil-based sources. Furthermore, the compact design of electric propulsion systems takes up less space, creating additional cargo capacity on the ship. Moreover, electric ships offer cost savings over their lifetime due to lower fuel consumption and reduced maintenance expenses.
Prime determinants of growth
The growth of the global electric ship market is driven by factors such as environmental regulations, an increase in demand for high efficiency and less life cycle cost, and a surge in the retrofitting of hybrid systems in ships. However, limited infrastructure and charging facilities, and high initial investment costs hamper the growth of the market. On the contrary, technological advancements and the growing popularity of autonomous electric ships are expected to offer remunerative opportunities for the expansion of the electric ship market during the forecast period.
The hybrid segment to maintain its leadership status throughout the forecast period.
Based on propulsion type, the hybrid segment held the highest market share in 2022, accounting for around two-thirds of the global electric ship market revenue, and is estimated to maintain its leadership status throughout the forecast period, as there is a rise in the adoption of hybrid electric ships owing to its benefits such as reduced emissions compared to conventional vessels. However, the fully electric segment is projected to manifest the highest CAGR of 19.0% from 2023 to 2032, owing to the rise in the demand for electric ships in ports for environmental and economic benefits.
The non-autonomous segment to maintain its leadership status throughout the forecast period.
Based on the mode of operation, the non-autonomous segment held the highest market share in 2022, accounting for more than two-thirds of the global electric ship market revenue, and is estimated to maintain its leadership status throughout the forecast period as there is a surge in the redesigning of vessels and ferries with electric or hybrid propulsion system. However, the autonomous segment is projected to manifest the highest CAGR of 19.5% from 2023 to 2032, owing to rise in the number of contracts and agreements of shipyards with manufacturers to design autonomous electric ships for the transportation of goods with low greenhouse gas emissions.
The energy storage segment to maintain its lead position during the forecast period
Based on system, the energy storage segment accounted for the largest share in 2022, accounting for around one-third of the global electric ship market revenue, and is estimated to maintain its leadership status throughout the forecast period as there is a growing interest in electric ships and energy storage systems due to stricter environmental regulations and a push toward sustainable transportation solutions. However, the power distribution segment is projected to manifest the highest CAGR of 19.8% from 2023 to 2032, owing to a incorporation of advanced control systems and algorithms in power distribution system to optimize power flow and manage electrical loads efficiently.
See the full report here.
