Electric Boat & Ship Market Size
|Market Size (2023)||USD 6.28 Billion|
|Market Size (2028)||USD 11.40 Billion|
|CAGR (2023 - 2028)||12.65 %|
|Fastest Growing Market||North America|
*Disclaimer: Major Players sorted in no particular order
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Electric Boat & Ship Market Analysis
The Electric Ships Market size is expected to grow from USD 6.28 billion in 2023 to USD 11.40 billion by 2028, at a CAGR of 12.65% during the forecast period (2023-2028).
The COVID-19 pandemic hampered the growth of the electric boat and ship market due to the shutdown of manufacturing facilities and trade restrictions imposed worldwide. Maritime transport registered a massive decline since the ships were stranded on the sea and were prohibited from entering the ports resulting in significantly higher operating costs for the shipping companies.
According to some estimates, the container ship traffic dropped by 13.77% and passenger ship traffic dropped by 42.77% due to the traveling restrictions. However, with relaxations allowed by governments to improve economic conditions, the market is expected to revive during the forecast period. many electric marine propulsion ship companies invested in digitalization to help their clients remotely monitor their fleets on a real-time basis to generate new revenue streams for these OEMs. For instance
- In June 2020, Kongberg Digital , the digital software subsidiary of Kongsberg Gruppen launched a new benchmarking application which provides real time insights on the location and performance of the fleets remotely to the fleet owners.
Over the long term factors such as the increasing boat and ship fleet and governments' focus on encouraging the adoption of eco-friendly boats and ships to reduce emissions are anticipated to propel the demand in the market. For instance
- In 2018 the Government of Norway set a target to have atleast 60 electric ships operating in the country by 2021 and ban all the fossil fuel powered ships operating in UNESCO Heritage listed tourist sites like fjords in the country by 2026.
Norway being a significant contributor to the market growth, Europe is expected to hold the largest share in the market due to the highest demand for new electric ships and boats in the region. In addition, the United Kingdom became the first country among the major G7 countries to target net-zero greenhouse gas emissions by 2050, which includes the adoption of electric boats and ships.
Thus the aforementioned factors are projected to produce significant growth in the elctric boat and ship market over the next five years.
Electric Boat & Ship Market Trends
This section covers the major market trends shaping the Electric Boat & Ship Market according to our research experts:
Growing Adoption of Electric Boats and Ships due to Environmental Concerns
The driving factors of the electric boat and ship market include factors like increased maritime tourism and increased seaborne trade, as 80% of the world's trade is carried by ships. As the global economy is dependent on the shipping market, the electric boat market is expected to play a bigger role in this sector as environmental causes have increasingly come to the forefront in this sector. Electric and hybrid types of ships cause less emission and save the environment from getting polluted more.
Moreover, growing government support and shipowners' willingness to promote the usage of electric boats and ships to reduce emissions is likely to help the market growth during the forecast period. For instance:
- In May 2022, The Ministry of Economic Affairs and Employment of Finland launched a development program for a sustainable maritime industry. The program aims to accelerate the adoption of low-carbon technologies and digital solutions for the maritime industry in the country. The program will be carried out in the cooperation with Ministry of Transport and Communications, Business Finland, Finnish Industry Investment, Finnvera, VTT Technical Research Centre of Finland and Finnish Marine Industries Federation. The progarm will run till the end of 2023.
- In April 2022, the Government of the Netherlands announced a ban on all fossil fuel powerd boats in the cities of Amsterdam, Rotterdam and all the national parks in the country, by 2025. The country has also announced plans to convert all the fleet of leisure boats operating in the country to electric boats.
- In April 2021, South Korea invested USD 33 million to build the first testbed for green marine vessels.
- The 2030 Green Ship-K Promotion Strategy, a central part of South Korea's plans to achieve carbon-neutrality by 2050, specifically targets the advancement and wider use of low-carbon ship technology, including hydrogen fuel cells and propulsion systems. The initiative has set a goal of reducing the country's shipping greenhouse gas emissions by 40% in the next 25 years and 70% by 2050.
- In January 2021, a group of thirteen companies across the entire shipping elctrification chain launched a new project named as ' Current Direct'. The project aims to reduce the cost of battery-electric propulsion systems in shipping and build an 'Energy as a Service' platform. The project is financed by European Commission with a grant of EUR 12 million (USD 12.36 million).
- In 2020, the South Korean government announced a USD 870 million initiative to encourage the development of eco-friendly shipping to reduce pollution caused by the country's marine sector.
- In 2019 Swedish Shipowners' Association ( Svensk Sjöfart) announced to phase out all the fossil fuel powered ships in Sweden by 2045.
Additionally, international regulations, like the International Maritime Organization, deployed the global sulfur cap in January 2020. Under this regulation, ships, mainly commercial ships and marine vessels, may require low sulfur fuels to operate outside the emission control areas, which may propel electric ship adoption.
The market is also driven by the entry of new startups which manufacture and sell eletcric boats espaecially in geographies like Europe. For instance,
- In September 2022, Swedish electric boat startup X Shore launched X Shore 1 an electric speedboat in two configurations: Top and Open and three specifications: Utility, Performance and Premium. The X Shore 1 has top speed of 30 knots, cruising speed of 20 knots, range of 50 nautical miles at lower speeds and is powered by a single 63 kWh battery pack. The X Shore 1 is available for delivery from the second quarter of 2023.
Thus the confluence of all the aforementioned factors is likely to induce healthy growth in the electric boat and ship market over the next five years.
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Europe is Expected to Hold the Largest Market Share During the Forecast Period
Europe is expected to hold the largest market share, and it is anticipated to witness considerable growth over the forecast period. Sweden is playing a significant role along with Norway and Finland in propelling the adoption of electric boats and ships in the region in the wake of growing environmental regulations and emission standards. Moreover, the growing popularity of electric recreational and leisure vessels in marine tourism, water adventures, and fishing activities in the region is expected to propel regional market growth.
The government initiatives and policies adopted by various European countries like Sweden, Finland, Norway, and the Netherlands to promote eco-friendly and electric marine mobility to achieve their transportation-related carbon neutrality goals are anticipated to be a very major factor in making Europe one of the dominant markets for electric boats and ships.
Next to Europe, North America is expected to witness the highest growth, followed by Asia-Pacific. In North America, the United States is considered a big place for boaters as the majority of the US population is fond of boating and leisure activities.
New technologies, such as improved battery storage systems, rising seaborne trade, and marine tourism drive growth in the Asia-Pacific region. India, China, and Japan are anticipated to contribute significantly to the market growth.
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Electric Boat & Ship Industry Overview
The electric boats and ships market is moderately consolidated due to the presence of several major and local players in the market. The market has also seen the entry of some startups that manufacture leisure electric boats in recent years, especially in Europe. Some of the key players in the market are ABB Limited, Siemens AG, Kongsberg Gruppen, General Dynamics Electric Boat, Corvus Energy, and many more. Several key market players are entering collaborations and engaging in mergers and acquisitions with other electric ship companies to strengthen their positions in the market. Furthermore, the market participants focus on improving battery technology to attain a competitive edge over other players. For instance:
- In October 2022, Enevate a global battery innovation company, and boat propulsion company Sealence announced a collaboration to develop high-performance battery cells for marine applications.
- In August 2022, Swedish luxury electric vehicle manufacturer Polestar, a subsidiary of Volvo Cars Ltd., signed a contract with the Swedish electric boat manufacturer Candela to provide battery and charging systems in a multi year deal.
- In March 2022, DeepSpeed launched a new new high power liquid cooled electric boat battery with energy storage capacity of 83 kiloWatt hours and the 400V electric boat battery. The new battery is developed by eDriveLab, the e-mobility spinoff from University of Parma in Italy which is acquired by DeepSpeed.
Electric Boat & Ship Market Leaders
ABB Marine and Port Solutions
General Dynamics Electric Boat
*Disclaimer: Major Players sorted in no particular order
Electric Boat & Ship Market News
- In November 2022, Kongsberg Gruppen won a NOK 300 million (USD 30 million) contract from Pelagic Wind Services to supply advanced vessel design and equipment for two new wind farm support CSOVs to be built at Cochin Shipyard in India. The vessels will be based on Kongsberg Maritime's UT 5519 HL design and the comprehensive equipment package includes a complete hybrid propulsion system driving highly efficient, permanent magnet azimuth thrusters.
- In November 2022, General Dynamics Electric Boat won a USD 37.3 million modification contract from US Navy.
- In November 2022, Samsung Heavy Industries developed a liquid hydrogen fuel cell system for ship propulsion and received approval in principle from the classification society DNV. The system uses the electric power generated by liquid hydrogen and polymer electrolyte fuel cells to propel a vessel.
- In May 2022, Swedish electric boat maker Candela launched its new generation C-8 flying electric boat for water taxi operations in Venice, Italy.
- In May 2022, China announced the expansion of the production of electric ships after Yichang Xin Hui Shipbuilding delivered China's first 100-meter-long battery-powered cruise ship with a capacity of carrying 1300 passengers.
- In April 2022, Swedish electric boat manufacturer X Shore raised USD 50 million to ramp up electric boat production in Sweden and expand their R&D and new product development activities.
- In September 2021, Indian shipbuilder Chowgule and Company Pvt. Ltd. won a contract of USD 82 million from AtoB@C Shipping AB, the Swedish unit of Finland's ESL Shipping Ltd for the delivery of six highly energy-efficient electric hybrid vessels. AtoB@C Shipping has the option to expand the order with more such ships of 5,350 dead weight tonmes (DWT) capacity each.
Electric Boat & Ship Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Buyers/Consumers
4.3.2 Bargaining Power of Suppliers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Propulsion Type
5.1.2 Pure Electric
5.2 Battery Type
5.2.3 Nickel-based Batteries
5.3 Carriage Type
5.4.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.4.4 Rest of the World
22.214.171.124 South America
126.96.36.199 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Vision Marine Technologies Inc.
6.2.2 Grove Boats SA
6.2.3 Ruban Bleu
6.2.4 ElectraCraft Boats
6.2.5 Greenline Yachts
6.2.6 Domani Yachts
6.2.7 Ganz Boats GmbH
6.2.9 Duffy Electric Boats
6.2.10 Groupe Beneteau
6.2.11 Hyundai Heavy Industries (Hyundai Electric Limited)
6.2.12 Daewoo Shipbuilding and Marine Engineering (DSME)
6.2.13 ABB Ltd
6.2.14 Corvus Energy
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Electric Boat & Ship Market Research FAQs
How big is the Electric Boat and Ship Market?
The Electric Boat and Ship Market size is expected to reach USD 6.28 billion in 2023 and grow at a CAGR of 12.65% to reach USD 11.40 billion by 2028.
What is the current Electric Boat and Ship Market size?
In 2023, the Electric Boat and Ship Market size is expected to reach USD 6.28 billion.
Who are the key players in Electric Boat and Ship Market?
Siemens SE, Kongsberg Gruppen, ABB Marine and Port Solutions, Corvus Energy and General Dynamics Electric Boat are the major companies operating in the Electric Boat and Ship Market.
Which is the fastest growing region in Electric Boat and Ship Market?
North America is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Electric Boat and Ship Market?
In 2023, the Europe accounts for the largest market share in Electric Boat and Ship Market.
Electric Boat & Ship Industry Report
Statistics for the 2023 Electric Boat & Ship market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Electric Boat & Ship analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.