Market Outlook

The electric vessel market is expected to experience robust growth over the next decade. According to a (MRFR) report, the global electric vessel market size is projected to grow from USD 10.586 billion in 2024 to USD 31.15585 billion in 2035, representing a compound annual growth rate (CAGR) of approximately 10.39% from 2025 to 2035.

This growth demonstrates the growing importance of sustainable maritime transport as the shipping industry strengthens its commitment to environmental protection.

Industry Overview

The shipping industry is moving towards electrification, driven by stricter emission regulations, rising fuel costs, and advancements in battery and hybrid propulsion technology. The electric ship market is growing in response to this trend, with shipbuilders, navies, and commercial ship operators actively considering the adoption of electric vessels to reduce energy costs and carbon emissions. According to MRFR research, hybrid systems currently account for the majority of the electric ship market, reflecting the industry's transition from diesel-based systems to full electrification.

Major companies

Key players in the electric vessel market include AKASOL AG, Anglo Belgian Corporation NV, ABB Group, Echandia Marine AB, Siemens AG, BAE Systems plc, Corvus Energy Inc., General Dynamics Electric Boat, KONGSBERG MARITIME AS, MAN Energy Solutions SE, and Wärtsilä Corporation. These companies are driving the shift to electric propulsion systems and are actively pursuing innovations to secure market share.

Market Segmentation and Growth Drivers

The electric vessel market is segmented by type, system, vessel type, power output, cruising range, operating mode, and end-use. For example:

By type: all-electric (lithium-ion batteries, lead-acid batteries, solar power, fuel cells) and hybrid (diesel + batteries, LPG/LNG + batteries). Hybrid systems accounted for approximately 90% of the market share as of 2022.

By system: energy storage systems, power generation systems, power conversion systems, and power distribution systems. In 2022, the energy storage device segment accounted for the largest share.

By vessel type: merchant ships (cargo ships, passenger ships, and others) and warships (destroyers, frigates, corvettes, coast guard ships, submarines, and aircraft carriers). In 2022, the merchant ship sector accounted for the largest share.

By output: <75kW; 75–150 kW; 151–745 kW; 746–7,560 kW. In 2022, the 75–150kW segment will account for the largest share.

By range: <50 km; 50–100 km; 101–1,000 km; >1,000 km. In 2022, the 1,000 km+ range segment accounted for the largest share.

By operation type: manned, remotely controlled, and autonomous. In 2022, the manned vessel segment accounted for the largest share.

By end-use: Newbuild and initial fitment, retrofit. In 2022, the newbuild and initial fitment segments accounted for the largest share.

Growth factors include rising oil prices, strengthening environmental regulations such as those from the International Maritime Organization (IMO), advancements in battery system technology, and increased investment in electric ship infrastructure.

Outlook Summary

The growth prospects for the electric ship market are very bright for businesses and stakeholders. With a high compound annual growth rate (CAGR) of 10.39% and a market size of over USD 31 billion by 2035, it presents significant opportunities for manufacturers, battery and system suppliers, shipping companies, and port infrastructure developers. By developing strategies tailored to specific market trends, such as focusing on hybrid systems or targeting merchant vessels with a range of over 1,000 km, market entrants will be able to secure a competitive edge in this rapidly evolving industry.

Read more: https://www.marketresearchfuture.com/reports/electric-ships-market-8674