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Electric Ship Market Size, Share & COVID-19 Impact Analysis, By Ship Type (Commercial Ship and Passenger Ship), By Mode of Operation (Semi-autonomous and Fully Autonomous), By Power Output (Up to 745 kW, 746-7560 kW, and Above 7560 kW), By Propulsion Type (Hybrid and Fully Electric), and Regional Forecast, 2023 – 2030

Region : Global | Format: PDF | Report ID: FBI104444



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The global electric ship market size was valued at USD 3.41 billion in 2022. The market is projected to grow from USD 3.83 billion in 2023 to USD 12.87 billion by 2030, exhibiting a CAGR of 18.9% during the forecast period.

An electric ship is powered by an electric drive system, such as full battery electric and electric hybrid ship. Electric vessels use renewable energy sources such as wind turbines and solar panels.  A hybrid ship consists of a fuel-powered engine as the primary source and an electric motor as an auxiliary power source. The market expansion is driven by rising demand for hybrid and fully electric vessels such as ferries, yachts, cruise ships, container ships, and cargo ships. The major factors contributing to the market growth include reducing carbon emissions, push for zero-emission transport systems, and advances in energy storage systems. Moreover, the adoption of electric ships is increasingly becoming popular due to their environment-friendliness, energy efficiency, and cost of running efficiency.

The need for electric ship will arise as conventional ships emit more gasoline substances that cause environmental pollution. Also, most gas carriers, oil tankers, cruises, general cargo, and container ships utilize heavy diesel oil for operation. The worldwide fleet of around 90,000 ships produces nearly 20 million tons (Mt) of sulfur dioxide and consumes about 370 Mt of fuel yearly. Similarly, marine vessels (diesel) are used for inland shipping, which is less polluting than heavy oil. The growing maritime trade and tourism will result in the increased emission of exhaust gases by these ships. Thus, this will result in clean (green-electric) transporting ships in the coming years.


Port Closures, Less Demand Cargos, and Traveling Restrictions Amid COVID-19 Hindered Market Growth

The COVID-19 pandemic caused the shipping and marine industry to encounter the worst circumstances, such as the workforce in these sectors had been closed for the safety/protection and prevention of the escalation of COVID-19. All trade chains, including the major import and export trade, were at a downfall during the pandemic. The container ship traffic dropped by 13% to 14% and passenger ship traffic dropped by 42% to 43% due to traveling restrictions.

The electric ship market witnessed significant challenges during the COVID-19 pandemic. Some of these issues faced by the marine and shipping industry have been summarized below: -

The pandemic had majorly impacted the shipping and maritime industry from the ports of China and across the globe. The electric shipping industry had been majorly influenced due to the below factors that affected the overall shipping industry.

  • Port closures: The ports were closed during the quarantine period. The entry of ships by specific countries were restricted or prohibited, thus causing chaos amongst marine transportation facilities globally.

  • Less demand for cargo: Governments across the globe avoided the risk of spreading COVID-19, which showed a reduction in the import and export of products and goods, and thus limited the demand for cargo vessels.

  • Disputes in laytime settlement: COVID-19 had imposed major difficulties as the ships were restricted from entering specific ports, compelling them to be a party to pay extra prices under dispute, therefore, causing losses to parties.

  • Bankruptcy: Many medium & small companies engaged in the maritime and shipping industry have gone bankrupt due to less demand and the incapability to handle the company's finances during this period of less demand for cargo and shipping. It has majorly impacted medium & small running businesses and even resulted in the shutting down of various companies engaged in this industry.


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Upsurge in Development of Electric Autonomous Ships is the Ongoing Trend in the Market 

Global maritime trade is being transformed by digitalization, artificial intelligence, and developing connectivity, enabling cargo and ships to be remotely monitored in real-time. Digitalization in the marine industry provides operation automation, business process automation, and information processing. In October 2022, Trafikverket and Holland Shipyards Group signed a contract for up to four autonomous, all-electric ferries. The ferries are designed for IMO Autonomy Level 2 and will be operated from a remote control center in Stockholm. With the help of autonomy level 2, the ferry will navigate its route with just the push of a button, according to Holland Shipyards. The contract delivers the entire procurement, including the delivery of two ferries, four automatic mooring facilities, two charging stations, a simulator facility, and a remote control center. This development will foster the electric ship market growth during 2023-2030.


Increasing Need for Reduced CO2 Emissions and Eco-friendly Ships Propels Demand for Electric Powered Ships

The fundamental driving forces behind electric ship adoption are environmental concerns, energy efficiency, and cost-effectiveness. Ecological problems, driven by the escalating apprehensions of climate change, have increased the demand for eco-friendly modes of transportation. Electric vessels produce no greenhouse gas emissions compared to their traditional fossil fuel-powered counterparts, rendering them an optimal substitute. The adoption of electrified vessels increases due to high fossil fuel prices, tighter population regulation, and others. Improved battery technology is allowing shipping firms to reduce carbon, cost, and pollution. Governments are also executing policies targeting marine insurance and air pollution in port cities, further incentivizing the adoption of electric vessels. The ships offer opportunities to rethink domestic and international transport systems. For instance, in October 2022, Amasus signed a contract with compatriot Handelskade Shipsales and Turkish Boğaziçi Shipyard for a series of four multipurpose (MPP) shortsea cargo ships.


Current Battery Technology and High Capital Expenditure to Restrain Market Growth

The current battery technology is the primary restraint for adopting fully-electric vessels. Even ships sailing over short distances require a large amount of energy. Current batteries' energy density/capacity cannot accommodate the energy needs of large ships. Similarly, the capital expenditure for ship owners is also extensively high owing to the battery charging infrastructure shortage and high energy storage cost, as the current battery capacity is still low. Hence, these factors are anticipated to restrain the growth of the market. Another challenge is the high initial expenses associated with electric ships, which stem from costly batteries and electric propulsion systems required. Additionally, there are infrastructure complications that need to be resolved. For instance, the current infrastructure for electric vessels, including charging stations, is yet to be widely available, making it difficult to operate them on a large scale.


By Propulsion Type Analysis

Hybrid Propulsion Technology Dominates the Market Owing to Reduced Risk of Failure

Based on propulsion type, the market is segmented into hybrid and fully electric. Hybrid propulsion can reduce fuel consumption by nearly 20% and lower up to 15% of CO2 emissions from ships. The major factors contributing to the dominance of the hybrid segment include reducing carbon emissions and pushing for zero-emission transport systems. The hybrid propulsion technology combines electric and traditional propulsion systems.

The fully electric segment is anticipated to show significant growth in the market owing to the increased adoption of fully-electric propulsion for small passenger ships and ferries operating on inland waterways. Additionally, its CO2 emissions are only 5%, compared to a conventional ferry. The operating costs are around 80% lower and the ship saves nearly 1 million liters of diesel every year, which is anticipated to foster the market during the forecast period.

By Power Output Analysis

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746-7560 kW to Dominate due to Development of Related Power Output and New Expansion Strategy for Higher Capacity Power Output

Based on power output, the market is divided into up to 745 kW, 746-7560 kW, and above 7560 kW. The 746-7560 kW segment has the highest market share globally. The segment is projected to grow faster over the forecast period due to the rising adoption of electric/hybrid propulsion in vessels. For instance, In March 2023, Norled and Brødrene signed a contract to construct a new hybrid electric vessel named MS "Bre." The top speed will be around 30 knots, and the vessel's length is 24 meters. It will be equipped with 1.2 MWh of batteries and an all-electric powertrain with diesel-powered range extenders. These factors are anticipated to fuel the segment's growth during the forecast period.

The up to 745 kW segment held the second-largest share of the market in 2022. Vessels with this power have more excellent selection in the shipping industry. However, the increasing emphasis on reducing the carbon footprint has boosted the adoption of propulsion systems that produce minimal emissions and provide advantages such as low engine noise and vibrations. These factors are attributable to the high share of this segment.

By Mode of Operation Analysis

Semi-autonomous Segment to Dominate Owing to Increasing Retrofitting on Existing Vessels

Based on mode of operation, the market is segmented into semi-autonomous and fully autonomous. The semi-autonomous segment held the leading market share in 2022. As fully autonomous vessels are anticipated to be commercialized during the forecast period, the sales have been primarily driven by semi-autonomous ships. The systems can improve the operational efficiency of vessels. Additionally, they can be retrofitted on manually operated existing vessels.

The fully autonomous segment is expected to witness higher CAGR during the forecast period. They allow efficient load transportation using advanced systems and contribute to a reduction in human errors. Also, it decreases operational costs by eliminating labor costs. Faster operation and shortage of mariners are some of the factors expected to fuel the growth of this segment.

By Ship Type Analysis

Commercial Ship Segment Held Largest Share Fueled by Growing Trade Liberalization

Based on ship type, the market is divided into commercial ship and passenger ship. The commercial ship segment held the largest market share. The growing trade liberalization has improved the maritime trade volume over the last few years. The number of ships, such as oil tankers, bulk carriers, and container ships, added to the existing fleet has also increased considerably.

However, concerns about air pollution, climate change, and fuel efficiency have resulted in the rising adoption of electric vessels, particularly hybrid ships.


Europe Electric Ship Market Size, 2022 (USD Billion)

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The global market is analyzed across North America, Europe, Asia Pacific, and the rest of the world.

The market size of Europe in 2022 was valued at USD 1.85 billion. Europe holds the largest electric ship market share due to the rising adoption of electric vessels by major countries. For instance, Norway holds the maximum market share while other nations, including Finland, the Netherlands, China, Denmark, and Sweden are also beginning to launch electric ships; this development drives the market growth during the forecast period.

For instance, in June 2022, Cochin Shipyard Limited announced that the company delivered two autonomous electric barges for Norway ASKO Maritime AS. The company offers 67m long vessels that are full-electric transport ferries powered.

Asia Pacific is expected to show substantial growth in the market. According to the International Maritime Organization (IMO), China, Japan, and South Korea account for over 90% of global ship production, including massive merchant vessels such as cargo and tanker vessels. Recent regulatory developments such as the global sulfur cap and voluntary initiatives by OEMs, specifically in Japan and China, to enhance electrification in large vessels are expected to influence the market growth in this region.

The market in North America shows sustainable growth due to rising demand for fully-electric cruise ships, yachts, and ferries. The market in the rest of the world is anticipated to exhibit steady growth over the forecast period owing to increasing naval expenditure in countries such as Brazil, the UAE, and Saudi Arabia, with a focus on the procurement of smaller vessels such as all-electric patrol boats and hybrid frigates.


Companies Focus on Development & Acquisitions and Partnerships to Gain Competitive Edge

The major electric ship market players include ABB, Leclanche, Siemens AG, Kongsberg, and MAN Energy Solutions SE. Majority of them are focusing on developing autonomous systems that can increase operational efficiency via features such as advanced navigational systems and comprehensive route planning.

Kongsberg Gruppen supplies technology systems and solutions to customers in the merchant marine, defense, aerospace, offshore oil, gas, renewable, and utility industries. The company operates through three business segments, Kongsberg Maritime, Kongsberg Defense and Aerospace, and Kongsberg Digital. The Kongsberg Maritime segment develops and delivers positioning, monitoring, navigation, and automation systems for merchant vessels and the offshore industry.

List of Key Companies Profiled: 

  • Kongsberg (Norway)

  • Leclanche (Switzerland)

  • Corvus Energy (Canada)

  • Echandia Marine AB (Sweden)

  • Siemens (Germany)

  • Vard (part of Fincantieri SpA) (Norway)

  • Norwegian Electric Systems (Norway)

  • General Dynamics Electric Boat (U.S.)

  • MAN Energy Solutions SE (Germany)

  • Wartsila (Finland)

  • Schottel Group (Germany)

  • Anglo Belgian Corporation NV (Belgium)

  • Eco Marine Power (Japan)

  • Akasol AG (Germany)


  • March 2023 - ABB signed a contract with Fincantieri to deliver eight mid-range Azipod propulsion systems for four medium-sized cruise vessels. The passenger ships will have two 7.7-megawatt Azipod propulsion units per vessel. The company will deliver ships in 2024, 2025, 2026, and 2027. With the electric drive motor accommodated within a pod beyond the ship hull, the Azipod system can turn 360 degrees, allowing vessels to dock in harbors where turning circles are restricted.

  • November 2022 - UECC introduced a new Auto Archive vessel at Gothenburg, offering short-sea shipping services. The vessel is almost 170 meters long, and it will have the capacity to transport 3,600 cars. The vessel will also be able to transport other kinds of heavier vehicles and project cargo. The Auto Archive is powered by a hybrid of LNG and battery power. This reduces emissions not only by improving operational efficiency but also by peak shaving.

  • November 2022 - ABB announced that it has been selected to provide the shaft generator system with permanent magnet technology for vessels. The Dalian Shipbuilding Industry Company (DSIC) will construct the vessels. The permanent magnet shaft generator system will increase the fuel efficiency of these vessels.

  • November 2022 - Echandia signed a contract with Molslinjen to supply energy storage solutions for two new fully-electrified vessels. Echandia has a high degree of battery system of installed capacity utilization, resulting in an overall system size and weight. Also, battery systems will have a total capacity of around 7 MWh.

  • October 2022 - Kongsberg Maritime signed a contract with Holland Shipyards Group to deliver control systems and electrification with automated functionalities for up to four new all-electric ferries. The contract also has the option to deliver the systems for two more ferries. The company will also deliver the technology for a remote monitoring and operation center in Stockholm and to secure communication between ferries, ports, and the control center.


An Infographic Representation of Electric Ships Market

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The report provides a detailed analysis of the market and focuses on key aspects such as leading market players, competitive landscape, ship type, and product applications. Besides, the report includes insights into the electric ship market trends and highlights key industry developments. In addition, the report encompasses several factors that contributed to the market's growth in recent years




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 18.9% from 2023 to 2030


Value (USD Billion)


By Ship Type

  • Commercial Ship

  • Passenger Ship

By Mode of Operation

  • Semi-autonomous

  • Fully Autonomous

By Power Output

  • Up to 745 kW

  • 746-7560 kW

  • Above 7560 kW


By Propulsion Type

  • Hybrid

  • Fully Electric


By Region

  • North America (By Ship Type, By Mode of Operation, By Power Output, By Propulsion Type)

    • U.S. (By Propulsion Type)

    • Canada (By Propulsion Type)

    • Mexico (By Propulsion Type)

  • Europe (By Ship Type, By Mode of Operation, By Power Output, By Propulsion Type)

    • U.K. (By Propulsion Type)

    • Germany (By Propulsion Type)

    • France (By Propulsion Type)

    • Rest of Europe (By Propulsion Type)

  • Asia Pacific (By Ship Type, By Mode of Operation, By Power Output, By Propulsion Type)

    • Japan (By Propulsion Type)

    • China (By Propulsion Type)

    • India (By Propulsion Type)

    • South Korea (By Propulsion Type)

    • Rest of Asia Pacific (By Propulsion Type)

  • Rest of the World (By Ship Type, By Mode of Operation, By Power Output, By Propulsion Type)

Frequently Asked Questions

As per the Fortune Business Insights study, the market size was USD 3.41 billion in 2022.

The market is expected to grow at a CAGR of 18.9% over the forecast period (2023-2030).

The hybrid segment is expected to lead the market due to the adoption of commercial hybrid ships globally.

The market size in Europe stood at USD 1.85 billion in 2022.

Kongsberg (Norway), Leclanche (Switzerland), and Wartsila (Finland) are some of the top players in the market.

Europe held the largest share of the market in 2022.

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