electric ships Market

The global electric ships 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.

The electric ships market is poised for rapid growth in the coming years due to the increasing adoption of hybrid and electric propulsion systems for retrofitting ships and the growing regulatory support from government authorities and industry associations. In the Asia Pacific region, which includes emerging countries such as China and India, investments in shipyard construction by both government and private sectors are rising rapidly, while smaller countries such as Indonesia and the Philippines are also attracting investors that boost the growth of the electric ships market. With rising sea trade activities and growing government focus on reducing gas emissions, ship integrators and owners in APAC are switching their existing diesel-driven engines with electric or hybrid propulsion systems. This presents a significant opportunity for APAC electric ships market players to produce more electric ships.

Although the Asia Pacific electric ships market is highly fragmented, some companies have emerged as key players in this region, including ABB, General Electric, and Wartsila. These major players are investing heavily in research and development to develop new products and deliver mobile cranes globally. For instance, Vallianz, SeaTech, Shift Clean Energy, and ABS have collaborated to design and build the first all-electric harbor tug in Asia Pacific. The vessel, which is based on the E-Volt Electric Tug design by SeaTech, will be powered by a fully classed electric battery system provided by Shift. This partnership follows a recent memorandum of understanding between Vallianz and Shift Clean Energy to collaborate on vessels that require electrification solutions.

The electric ship market ecosystem comprises various stakeholders, including raw material suppliers, component providers, propulsion system manufacturers, shipbuilders/electric ship manufacturers, and end-users. Propulsion system manufacturers play a critical role in the growth of the electric ship market by continuously developing advanced systems to enhance electric power generation. Raw materials suppliers provide various metals, such as steel, plastics, GRP, ferrous metals, and wood, which are used to improve the shipbuilding and component quality for better performance and lifespan.

Component providers offer various parts such as electric motors, propellers, switchboards, filters, generators, and control systems. Propulsion system manufacturers procure these components and assemble them into a single system that can be installed in ships. Key market players developing hybrid and electric propulsion systems include YANMAR HOLDINGS CO., LTD, BAE Systems, Siemens AG, Wartsila Corporation, and ZF Friedrichshafen AG.

Shipbuilders/electric ship manufacturers, including BAE Systems, Hurtigruten, MAN Energy Solutions, Siemens Energy, and General Dynamics Electric Boat, focus on customers' requirements to integrate advanced technology into ships that end-users can use. These systems can also be customized as per specific requirements and operations of different end-users involved in the electric ships market. Overall, each stakeholder in the electric ships market ecosystem plays a crucial role in the market's growth and development.

Impact of COVID-19 Pandemic on Electric Ships Market

The COVID-19 pandemic had a significant impact on the Asia Pacific region, which is highly populated and has experienced widespread infections. Major economies in the region, such as China, India, Australia, and Japan, have been affected by the pandemic and are experiencing inflation. The tourism industry has been hit hard due to supply chain disruptions and the high demand for COVID-19 treatments. Measures have been taken to contain the spread of the virus through waterways, affecting the demand for electric ships as the restrictions have resulted in a decline in the demand for goods in various countries.

Despite the challenges posed by the pandemic, the electric ships market in Asia Pacific has shown resilience, and demand from various end-users surged at the end of 2020 as lockdowns were lifted and industries resumed operations. The market size for electric ships has been derived using both primary and secondary sources, including exhaustive secondary research and primary interviews with industry participants such as VPs, business development managers, and market intelligence managers. Major players in the market include BAE Systems, Duffy Electric Boat Company, Fjellstrand AS, X Shore, General Dynamic Electric Boat, Hurtigruten, MAN Energy Solutions, PortLiner, Siemens Energy, and VARD AS.