Electric ship market is set to grow at a robust rate through 2032 owing to the increasing demand for battery storage systems and electric propulsion in the shipping industry. Besides, increasing usage of advanced technologies in ships, such as 3D printing is also expected to augment the market demand.
Overall, the electric ship market has been segmented on the basis of power source, operation, end-use, system, platform, and region.
Based on power source, the market is likely to be characterized by the hybrid segment, which will grow at a substantial rate through the estimated timeframe. The increasing adoption of hybrid power source is due to its ability to function on both conventional and electric fuel-based systems. There are several advantages of hybrid power source such as easy upgrade, fuel efficiency, and operational flexibility regarding the generator which needs to be run.
Based on system, the market has been defined through power conversion segment, which held more than 15% market share in 2022. Since these systems are laced with higher efficiency and better cost-effectiveness, they assist ship owners to convert renewable energy sources and fossil fuels into electricity to run the ship’s powertrain systems. Additionally, power conversion systems also offer other benefits including optimization of fuel consumption, lowering engine running hours, and reducing engine maintenance costs.
In terms of platform, the electric ship market will be defined by the commercial segment, which is slated to experience a robust growth, owing to the increasing transportation activities and marine logistics. Additionally, the size of the commercial fleet is increasing, which will contribute towards the segmental expansion.
In terms of operation, the market is likely to expand from the manned segment. The growth would come from an increasing adoption of vessels and crewed ships across the commercial market space. These ships are integrated with different operational components for operational efficiency and safety, and offer low-cost benefits, contributing to the market demand.
Based on end-use, the market is likely to be characterized by the retro fit segment. The increasing tendency of retrofitting hybrid or electric engines in existing vessels and ships, coupled with the aim for GHG neutralization by regulatory bodies and state-backed authorities, to save the marine ecosystem and biodiversity, will positively fuel the market growth through the studied timeframe.
In the regional context, the electric ship market is set to gain substantial traction between 2023 and 2032 in the MEA region, where it is anticipated to grow at more than 5% CAGR through the estimated timeframe. The primary driving factor behind this growth is introduction to favorable policies from the local government authorities which encourage the development of more environment-friendly marine transportation systems.