(EnergyIndustry.Net, October 13, 2021 ) The report on the Global Electric Ships Market provides an analysis of the market from 2017 to 2030. It discusses industry and technology trends currently prevailing in the market, along with drivers, restraints, challenges, and opportunities that influence the growth of the market. The global electric ships market size is projected to grow from USD 4.7Billion in 2021 to USD 16.2Billion by 2030, at a CAGR of 14.9% from 2021 to 2030. (Two forecast periods, i.e., 2021 to 2025 and 2025 to 2030 are considered in this report, as the adoption of electric propulsion systems is estimated to grow at a higher rate post-2025).
Based on type, the hybrid segment of the electric ships market is projected to grow at a higher CAGR during the forecast period as compared to the fully electric segment. The growth of this segment can be attributed to the adoption of hybrid propulsion systems in cargo ships, defense ships, and passenger cruise ships due to the cost benefits of using a hybrid propulsion system. This could also be attributed to the fact that the bulk cargo traded and transported through sea routes across the globe has increased over the years, as ships are economical as compared to other means of transportation. This, in turn, has led to the growth of the global seaborne trade. For instance, 90% of the world’s trade is carried out through seaways as they offer competitive freight costs and are ideal for transporting heavy and bulky goods. Additionally, the International Maritime Organization’s (IMO) new ruling on acceptable sulfur emissions on ships has made cargo ship operators retrofit some of their existing fleet with hybrid propulsion to adhere to the new decision.
Based on ship type, the commercial segment of the electric ships market is projected to grow at a higher CAGR during the forecast period as compared to the defense segment. Shipbuilders and operators are moving toward automation and integration of new build ships, and retrofit the existing ships with the hybrid and electric propulsion. This is in response to adhere the IMO 2020 rule. Thus, ship integrators and owners are switching their existing diesel-driven engines with electric or hybrid propulsion. The growth of this segment can be attributed to a large number of ships available for retrofit, especially in the cargo segment. The IMO 2020 ruling affects the commercial shipping industry the most, and as such, a significant portion of the retrofit market is expected to come from the retrofitting of cargo vessels such as container vessels, gas tankers, general cargo ships, among others with electric propulsion systems.
Based on range, less than 50 km segment of the electric ships market is projected to account for the largest share of the market during the forecast period. The growth of this segment can be attributed to the wide adoption of fully electric ships in North America and Europe. There is a large luxury sailing community in these regions. Pollution caused by emissions due to burning fossil fuels is a major contributor to the increase in greenhouse gases. Hence, several yacht owners, passenger ferry operators, and cruise ship operators are switching from conventional propulsion systems to a fully electric or hybrid propulsion system.
Key Market Players
The major players in the electric ships market are Kongsberg (Norway), ABB (Switzerland), Wartsila (Finland), Norwegian Electric Systems AS (Norway), Corvus Energy (Canada), General Dynamics Electric Boat (US), MAN Energy Solutions SE (Germany) Vard (Norway), Siemens (Germany), and Leclanché SA (Switzerland), among others. These players have adopted various growth strategies such as contracts, acquisitions, expansions, new product launches, and partnerships & agreements to expand their presence in the electric ships market further.
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