According to the latest research report titled "Electric Ships Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type, Power, Range and Ship Type," the market is expected to grow from US$ 3.82 billion in 2021 to US$ 7.76 billion by 2028; it is estimated to grow at a CAGR of 10.3% from 2021 to 2028.  

Government authorities and industry associations are providing increasing regulatory support to reduce gas emissions from the shipping industry, which is driving the growth of electric ships. The International Maritime Organization (IMO) adopted a plan in 2018 to reduce greenhouse gas emissions from international shipping by 50% compared to 2008 levels by the end of 2050. Additionally, the IMO aims to improve energy efficiency and reduce carbon intensity by 40% by 2030 and 70% by 2050. Governments, such as Norway, are also focusing on reducing emissions from domestic shipping and fishing ships by half by 2030 and promoting zero- and low-emission solutions for all vessel categories. This is evidenced by Norway's allocation of NOK 7 million (US$ 0.77 million) to the Green Shipping Programme in 2019. These initiatives support the adoption of electric or hybrid propulsion systems for ships.

Due to favourable government policies and infrastructure capabilities, North America has the highest rate of advanced technology adoption. However, the COVID-19 pandemic caused the US government to impose limitations on industrial, commercial, and public activities to control the spread of the virus, resulting in a deep recession in 2020. The impact of the pandemic on the global electric ships market was adverse, with shutdowns of manufacturing facilities and trade restrictions leading to short-term operational issues for ship manufacturers. The shipping industry, which is an important part of many countries' supply chains, was significantly affected by the pandemic. Maritime tourism, which supports the growth of the electric ships market, was also impacted. However, it is expected that the pandemic will have a positive impact on the market growth during 2021 and 2022, and the market is expected to normalize and grow during the forecast period of 2021-2028.

Key Findings of Study:

The global electric ships market has been segmented into five key regions, namely North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). The demand for electric ships in North America and Europe is on the rise due to the increasing demand for fully electric passenger vessels, tugs, yachts, and cruise vessels. Countries like Norway, Finland, the US, and Denmark are replacing their conventional passenger ferries with fully electric ones. Furthermore, the development of autonomous electric vessels using fuel cells and remotely controlled electric vessels is driving the market growth.

In the APAC region, the electric ships market is witnessing growth due to the rising sea trade activities and the focus of governments on reducing gas emissions from the shipping industry. Ship integrators and owners are switching to electric or hybrid propulsion systems from existing diesel-driven engines, creating significant opportunities for the APAC electric ships market players to produce more electric ships. According to the UN Merchant Fleet 2020 statistics, China, Japan, and South Korea accounted for around 93% of the global new shipbuilding in 2019. These countries dominate the global shipping and offshore energy equipment industry, with around 80% of orders. Notably, Japan is going through a shipbuilding renaissance, and its focus on shipbuilding and port development is driving the growth of the electric ships market in the region. It is crucial to recognize that each of Asia's shipping giants has distinct strengths and challenges, even though Asian manufacturers' domination is expected to continue.

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