Electric Boat and Ship Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Electric Boat and Ship Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The electric boat and ship market (hence referred to as market studied) was valued at USD 4.58 billion in 2020 and is expected to reach USD 9.01 billion by 2026, growing at a CAGR of 12.65% during the forecast period (2021 – 2026).

The COVID-19 pandemic hampered the growth of the electric boat and ship market due to the shutdown of manufacturing facilities and trade restrictions imposed worldwide. However, with relaxations allowed by governments to improve economic conditions, the market is expected to revive during the forecast period. However, limited range anxiety and high purchase costs to act as restraints for the growth of the market.

Growing government focus on encouraging consumers to adopt eco-friendly boats and ships in order to meet environmental rules and regulations anticipated to propel demand in the market. In addition, rising interest among electric vehicle (EV) manufacturers to capture the growing market by increasing the production of electric boats is expected to supplement the market's growth during the forecast period.

Europe is expected to hold largest share in the market owing to highest demand for new electric ships & boats, and with Germany being a significant contributor to market growth in the region. In addition, United Kingdom became the first country in major G7 countries to target net-zero greenhouse gas emissions by 2050, which includes the adoption of electric boats and ships.

Key Market TrendsGrowing Adoption of Electric Boats and Ships due to Pollution

The driving factors of the electric boat and ship market include factors, like increased maritime tourism and increased seaborne trade, as most of the world’s goods are carried by ships. As the global economy is dependent on the shipping market, the electric boat market is expected to play a bigger role in this sector as environmental causes have increasingly come to the forefront in this sector. Electric and hybrid types of ships cause less emission and save the environment from getting polluted more.

Moreover, growing government support to promote the usage of electric boats and ships to reduce emissions is likely to help market growth during the forecast period. For instance,

• In 2020, the South Korean government announced a USD 870 million initiative to encourage the development of eco-friendly shipping to reduce pollution caused by the country’s marine sector.
• The 2030 Green Ship-K Promotion Strategy, a central part of South Korea’s plans to achieve carbon-neutrality by 2050, specifically targets the advancement and wider use of low-carbon ship technology, including hydrogen fuel cells and propulsion systems. The initiative has set a goal of reducing the country’s shipping greenhouse gas emissions by 40% in the next 25 years and 70% by 2050.

Additionally, international regulations, like The International Maritime Organization, deployed the global sulfur cap in January 2020. Under this regulation, ships, mainly commercial ships and marine vessels, may require low sulfur fuels to operate outside the emission control areas, which may propel electric ship adoption.

Europe Expected to Hold Largest Market Share During Forecast Period

Europe is expected to hold the largest market share and is anticipated to witness considerable growth over the forecast period. Germany is playing a significant role along with the United Kingdom in propelling the adoption of electric boats and ships in the region in wake of growing environmental regulations and emission standards. Moreover, the growing popularity of electric recreational and leisure vessels in marine tourism, water adventures, and fishing activities in the region is expected to propel regional market growth.

However, the COVID-19 pandemic, which recently spread across European countries, especially Italy, United Kingdom, Spain, and Germany, is expected to have a short-term impact on market growth. Next to Europe, North America to witness the highest growth followed by the Asia Pacific. In North America, the United States is considered a big place for boaters as majority of population in United States is fond of boating and leisure activities.

New technologies, such as improved battery storage systems, rising seaborne trade, and marine tourism drive growth in the Asia-Pacific region. India, Crahina, and Japan anticipated to contribute significantly for the

Competitive Landscape

The market of Electric Boats and Ships is moderately consolidated due to the presence of several major and local players in the market. Several Key market players are entering into collaborations and engaging in mergers and acquisitions with other electric ship companies to strengthen their position in the market. Furthermore, the market participants focus on improving the battery technology to attain a competitive edge over other players. For instance,

• In June 2021, Discover Battery launched Lithium Blue Series batteries for marine boat and ship applications. These batteries also have a high current Battery Management System (BMS) that manages safety and lightning-fast charge performance. The BMS also has a connectivity feature enabling users to check various parameters via a smartphone app.
• In September 2020, Holland Ship Electric selected Corvus Energy to deliver lithium-ion battery-based energy storage systems (ESS). The company is meant for five new all-electric ferries developed by Holland Shipyards Group for GVB, the municipal public transport operator for Amsterdam.
• In February 2019, Energy storage systems supplier, Corvus Energy Holding, acquired all shares in Grenland Energy, a maker of lightweight lithium-ion batteries for the maritime, offshore, and subsea industry.

Some of the key players in the market are ABB Limited, Siemens AG, Kongsberg Gruppen, General Dynamics Electric Boat, Corvus energy, and many more.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Vision Marine Technologies Inc.
Grove Boats SA
Ruban Bleu
ElectraCraft Boats
Greenline Yachts
Domani Yachts
Ganz Boats GmbH
Quadrofoil
Duffy Electric Boats
Groupe Beneteau
Hyundai Heavy Industries (Hyundai Electric Limited)
Daewoo Shipbuilding and Marine Engineering (DSME)
ABB Ltd.
Corvus Energy

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