Driven by various factors, such as the rise in the conversion of the propulsion system in passenger vessels, increasing seaborne trade across the globe, and the growing maritime tourism industry, the electric ship market size is anticipated to grow at a CAGR of 14.9% from 2021 to 2030.
According to a research report, Electric Ship Market by type, system, mode of operation, ship, power, range, tonnage, end-use, and region - Global Forecast to 2030', published by MarketsandMarkets, the market size is projected to grow from $ 4.7 billion in 2021 to $ 16.2 billion by 2030.
The electric ship market includes major players such as Siemens, General Electric, ABB, Wartsila and Vard. These players have spread their business across various countries includes North America, Europe, Asia Pacific, and the Rest of the World.
COVID-19 has impacted their businesses as well. Industry experts believe that the pandemic affected electric ship production and services globally in 2020.
According to MarketsandMarkets, the fully electric type is projected to witness a higher CAGR during the forecast period, as they are much more capable of operating passenger vessels when compared to other hybrid propulsion systems in passenger vessels. Moreover, these engines have a lower amount of noise than others and are the most suitable engine for short-range operations because of their lighter weight.
Battery-operated Vessels
Based on the power source, the battery-operated vessels are projected to grow at the highest CAGR rate for the electric ship market during the forecast period. With the increasing demand for commercial vessels across regions throughout the industry, the demand for battery-operated vessels is also increasing. In addition, a battery-operated vessel helps in giving a more eco-friendly solution to maritime operations and more efficiency and reliability.
The research firm finds that the 500-5000 DWT segment will witness the highest CAGR till 2030. Various cargo vessels such as small container vessels, Roll-on and Roll-off vessels for wheeled cargo and others are considered under the 500-5000 DWT category. Container vessels are one of the most used modes of transportation and one of the most pollution causing vessels. Hence, container vessels were the first to get a fully electric set up to reduce marine pollution. Hence, major companies are trying to find more efficient technology and power solutions to develop better long-range vessels.
MarketsandMarkets noted that based on ship type, the commercial vessels segment is projected to grow at the highest CAGR rate for the electric ship market during the forecast period. Commercial vessels are as varied as the jobs they are required to do. Different type of commercial vessels is passenger vessels, cargo vessels, and others. Further, passenger vessels are segmented into yachts, ferries, cruises and others. Under which the passenger and cargo vessels will be seeing the maximum growth as these are the short-ranged vessels that require less power to operate efficiently.
The report identified that the 75-150kW segment is projected to witness the highest CAGR in the next nine years. Medium-size passenger ferries are considered under ships having power between 76–150kW. The need for a reduced or zero-emission transport system across countries is high. Countries like Japan, New Zealand, and Australia are also moving toward using fully electric ferries for passenger transport. Norway has incorporated fully electric and hybrid technology in its ferries.
European Market
Europe is projected to be the largest regional share of the electric ship market during the forecast period. The key factor responsible for Europe is leading the electric ship market due to the rapid growth of the technologically advanced electric ships in the region. In Europe, the rise in manufacturing industries and the growing commercial and defence maritime industry encourage manufacturers of electric ships to introduce technologically advanced and efficient products across various vessel types. The increasing demand for electric ships and some of the leading players operating in the market, such as Vard, ABB, Wartsila, and Norwegian Electric Systems, is expected to drive the electric ship market in Europe. These players are focusing on R&D to increase their product lines and using technologically advanced systems, subsystems, and other components for manufacturing electric ships, the research firm noted.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Vard.