Market Size of Electric Boat and Ship Industry
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 7.07 Billion |
| Market Size (2029) | USD 12.84 Billion |
| CAGR (2024 - 2029) | 12.65 % |
| Fastest Growing Market | North America |
| Largest Market | Europe |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Electric Boat & Ship Market Analysis
The Electric Boat and Ship Market size is estimated at USD 7.07 billion in 2024, and is expected to reach USD 12.84 billion by 2029, growing at a CAGR of 12.65% during the forecast period (2024-2029).
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.
