The electric ships market is projected to register significant expansion by 2027 on account of increasing integration of information technology in the marine industry. Moreover, introduction of favorable regulations to reduce GHG emissions is likely to drive product adoption over the forecast timeline.

Electric ships are powered using electricity and can be either fully electric or hybrid depending on the battery capacity and efficiency. Recently, surging emphasis on reducing carbon emissions in the shipping industry has spurred several technological advancements focused on energy storage devices, thereby positively influencing product outlook. Moreover, to address growing concerns regarding rising CO2 emissions, industry players have been actively engaging in lucrative strategies, which has favorably impacted business growth.

For instance, in August 2021, Wellington Electric Boat Building Co., a leading manufacturer of fully electric passenger ferries, launched the first electric passenger ferry in the Southern Hemisphere for a local ferry company named East by West. The electric passenger ferry has been designed to replace the loud engine noise and emissions produced by the conventional diesel-fueled passenger boats that are commonly seen in New Zealand.

The electric ships market has been segmented based on end-use, power source, platform, system, operation, and region. With respect to power source, the market has further been divided into hybrid and electric.

The hybrid sub-segment held a substantial market share of over 90% in 2020 and is slated to exhibit robust growth through the assessment period. Hybrid power systems help cover a longer range in terms of nautical miles, which is likely to drive segmental growth in the coming years.

On the basis of system, the electric ships market has been categorized into power distribution, energy storage, power generation, and power conversion. The power distribution sub-segment is anticipated to showcase a solid growth trajectory over the forecast period. The capacity of power distribution systems to draw power from multiple sources and channelize it across the vessel effectively is estimated to augment segmental expansion over 2021-2027.

From the operation point of view, the market has been classified into autonomous and manned. The manned sub-segment dominates the industry with more than 90% share and is poised to grow steadily over the review timeline. This growth is attributed to limited developments in automation technologies and a lack of regulations for autonomous ships.

With respect to platform, the electric ships market has been segregated into commercial and defense. In 2020, the commercial sub-segment held a considerable share in the industry and is speculated to observe steady growth at a CAGR of approximately 9% through the analysis timeline. Mounting focus on electrification of ships in the commercial sector is likely to facilitate revenue growth of the segment through 2027.

In terms of end-use, the electric ships market has been bifurcated into retro fit and line fit. The retro fit sub-segment is foreseen to garner notable gains by 2027 owing to the prevalent trend of electrification of conventional ships.

On the regional spectrum, the Middle East & Africa electric ships market is expected to reach a sizable valuation by the end of 2027. The booming defense industry in countries like Israel and Turkey is set to foster regional market growth over the study period.