February 22, 2024

Electric Boats & Ships Market Set to Grow at a Significant 11% CAGR, Reaching US$10.87 Billion by 2030

The global electric boats & ships market is poised for remarkable growth, with an anticipated CAGR of approximately 11% during the forecast period from 2023 to 2030. The market is expected to reach a valuation of around US$10.87 billion by the end of 2030. Electric boats and ships, powered by clean energy sources, have gained traction as environmentally friendly alternatives to conventional marine vessels.

Key Market Insights:

  • The market is forecasted to expand more than fourfold in revenue between 2023 and 2030.
  • Hybrid propulsion technology, combining electric and conventional systems, is driving demand in the electric boats & ships market.
  • Lithium-ion batteries remain the preferred choice in this market segment.
  • Passenger boats represent the largest revenue share in 2022.
  • Europe leads the market, while North America is expected to exhibit the strongest growth by 2030.

Global Expansion of Maritime Tourism Business:

Maritime tourism, encompassing activities such as boating, cruising, yachting, and nautical sports, has gained popularity worldwide. Governments have initiated campaigns to promote maritime travel and tourism. Electric boats and ships have become crucial in reducing carbon footprints and pollution in support of maritime tourism. For example, Candela introduced the P-8 Voyager electric yacht in 2022, designed for long-distance tourist water transport.

Increase in Maritime Trade Activity:

Maritime trade, responsible for a significant portion of global greenhouse gas emissions, is experiencing growth due to rising consumer expenditure and the expansion of the eCommerce sector. To reduce emissions, manufacturers are focusing on electric ships for transporting goods. For instance, Japanese shipping company Asahi Tanker introduced an electric ship powered solely by lithium-ion batteries in 2021, contributing to efforts to combat air pollution and carbon dioxide emissions.

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Market Challenges:

Retrofitting ships with electric or hybrid propulsion systems requires substantial time and investment, posing challenges to ship owners. The average payback period for passenger ferries is estimated at five to six years. Shipowners must consider the ship’s remaining lifespan, its potential to recoup capital expenditure, and the scrap value when retrofitting.

Overview of Key Segments:

Hybrid Propulsion Technology Dominates: Hybrid propulsion, which combines electric and conventional systems, leads the electric boats & ships market. It reduces fuel usage by over 20% and emissions by up to 15%, offering enhanced range and load capabilities.

Passenger Boats Maintain Momentum: The passenger category is expected to dominate the market, driven by recreational and commercial vessels. Passenger ferries are growing at the fastest rate due to expanding tourism and recreational activities.

Growth Opportunities Across Regions:

Europe Spearheads: Europe leads the market due to the presence of major players, OEMs, and component manufacturers. Technological advancements and growing demand in civil, commercial, and defense sectors contribute to market growth.

Asia Pacific Develops a Lucrative Market: Asia Pacific is set to display significant growth, especially in South Asian countries, driven by environmental regulations, emission standards, technological advancements, and increased demand for electric recreational and leisure vessels.

Electric Boats & Ships Market: Competitive Landscape:

Leading players in the electric boats & ships market include Vision Marine Technologies Inc., Wärtsilä, Grove Boats SA, Leclanché S.A., Siemens AG, Navalt, Inc., 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, and Corvus Energy.

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Similar Reports:

Electric Bus Market: https://www.fairfieldmarketresearch.com/report/electric-bus-market

Electric Vehicle Market: https://www.fairfieldmarketresearch.com/report/electric-vehicle-market

 

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This press release first seen on Brilad