The world’s electric ship market is projected to triple in value from $5.2 billion (£4bn) in 2019 to $15.6 billion (£12bn) by 2030.
That’s the prediction made in a new report from Research And Markets, which highlights a compound annual growth rate of 13.2% between 2025 to 2030 will be driven largely by the “broad adoption” of fully electric passenger vessels and inland cargo ships.
It notes the adoption of electric propulsion systems will significantly step up after 2025, fuelled by an increase in seaborne trade across the globe, further lithium-ion battery development and more hybrid and electric propulsion technology catering to the retrofit market.
It notes while fully electric ferries are becoming increasingly important in North America and Europe, the hybrid segment is estimated to account for a majority of the global electric ships market share in 2019.
The report notes retrofitting vessels with a hybrid-electric propulsion system or a fully electric propulsion system often proves cheaper than purchasing a new ship and allows businesses to begin clean operations faster than ordering a new vessel and potentially waiting years.
Europe is estimated to account for the largest share of the electric ships market in 2019, with the region proving highly competitive, due to large amounts of component and equipment manufacturers.
The report states: “The high adoption rate of electric ferries, yachts, tugs and cruise ships in this region, and the high commitment from companies such as Norway, Denmark, and Germany, among others to reduce emissions are major factors contributing to the growth of the electric ships market in Europe during the forecast period.”