Electric Boat and Ship Market Hits $24.77 Bn by 2034

Electric Boat and Ship Market Size and Growth Forecast 2034

The electric boat and ship industry is projected to rise from USD 7.65 billion in 2024 to USD 24.77 billion by 2034, reflecting a CAGR of 12.47% over the next decade. Electric boats and ships use electric propulsion systems, reducing emissions and noise compared to traditional vessels. These eco-friendly innovations are powered by batteries, fuel cells, or hybrid systems, offering a sustainable alternative for marine transport while promoting cleaner waterways and efficient operations.

Last Updated: 14 February 2025 Category: Automotive Services Insight Code: 1075 Format: PDF / PPT / Excel

Electric Boat and Ship Market Size & Growth Analysis

The electric boat and ship market is projected to reach USD 24.77 billion by 2034, growing from USD 8.60 billion in 2025, at a CAGR of 12.47% during the forecast period from 2025 to 2034.

Electric Boat and Ship Market Size 2023 to 2034

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The growing imperative to reduce carbon emissions and fuel consumption has spurred increased demand for electric ships within the maritime industry. Additionally, shipbuilders' efforts to mitigate noise from propulsion systems are further driving growth in the sector. Transportation stands as a major contributor to the rise in global greenhouse gas emissions, predominantly from the combustion of fossil fuels in planes, trains, ships, and automobiles. With approximately 90% of transportation fuel derived from gasoline, primarily gasoline and diesel, initiatives aimed at curbing carbon emissions, such as subsidies for electric ship purchases, are poised to stimulate economic growth in the foreseeable future.

The COVID-19 pandemic has left a notable impact on the electric boat and marine equipment market, precipitated by widespread factory closures and trade restrictions. Nonetheless, the downturn in maritime transport, ship abandonment, and port access restrictions have led to a surge in business for shipping companies. Estimates indicate a significant decline in cargo and passenger traffic, as well as the number of ships, due to travel restrictions. However, market recovery is anticipated as governments facilitate economic resurgence. Many electric propulsion ship manufacturers are embracing digitalization to enable remote ship monitoring in real-time, opening up new revenue streams for OEMs.

For Instance,

  • In June 2020, Kongsberg Gruppen's digital software company, Kongsberg Digital, introduced a new measurement application empowering ship owners with real-time ship status information and remote operation capabilities. Short-term factors, such as the sustained rise in shipping activities and governmental emphasis on promoting environmental practices among ships to reduce emissions, are expected to bolster market sentiment.

Norway emerges as a pivotal player in the industry's growth trajectory, with the Norwegian government aiming to deploy at least 60 electric boats by 2021 and prohibiting the use of fossil fuel-powered boats on designated routes. Norway's significance extends to Europe, expected to emerge as a major market due to burgeoning demand for electric ships and the region's substantial fleet. Furthermore, the United Kingdom's commitment to achieving net-zero greenhouse gas emissions by 2050, inclusive of electric ship adoption, positions it as a significant market player.

Overall, the aforementioned factors are anticipated to drive substantial growth in the electric boat industry over the next five years. Moreover, the integration of generators alongside diesel engines optimizes boat performance while reducing fuel consumption, notwithstanding the additional weight. This configuration not only enhances fuel efficiency but also promotes revenue growth and operational balance among various end-users, such as businesses, transportation, and industries.

Traditionally, propulsion engines directly connected the ship's main shaft, leading to vibration and friction, thereby diminishing efficiency. However, electric propulsion eliminates direct connections, reducing vibration and enhancing power output. Additionally, electric drive systems require less space, allowing for compact installations and freeing up additional space for other purposes, thereby enhancing revenue generation.

Governmental agencies and regulatory bodies worldwide, including the International Maritime Organization (IMO), the United Nations Conference on Trade and Development (UNCTAD), and the China Maritime Safety Administration, are actively formulating regulations to safeguard the environment from ship pollution. The growth of global cruise travel has drawn attention to greenhouse gas emissions, prompting environmental conservation efforts. According to the European Union Committee on Energy, Climate Change, and Environment, shipping accounts for 2.5% of global CO2 emissions, with cruise ships contributing significantly.

Marine tourism has witnessed growth in recent years, driven by rising personal incomes and increased spending on maritime activities. This trend is particularly evident among yacht enthusiasts and luxury yacht users. The global cruise industry has experienced steady growth, with the Cruise Lines International Association (CLIA) reporting a 7% increase in passenger numbers. Larger ships, such as cruise ships, operating longer routes pose challenges for electric propulsion due to battery capacity limitations and high energy consumption, thereby hindering widespread adoption, especially for vessels with high energy demands during extended voyages.

The ship electrical business is characterized by cooperation between large corporations and local players. In recent years, many new companies focusing on electric boat production have emerged in the market, particularly in Europe. Key players in this market include ABB Limited, Siemens AG, Kongsberg AG, General Dynamics Electric Boat, Corvus Energy, among others. These major players often collaborate with other companies in the ship energy sector and engage in mergers and acquisitions to strengthen their market position.

Furthermore, there is a strong emphasis among industry players on the development of battery technology to enhance performance. Various collaborations and partnerships have been announced to advance battery technology, particularly for marine applications.

For example:

  • In October 2022, global battery innovator Enevate partnered with ship propulsion company Sealence to jointly develop high-performance batteries for marine use.
  • Swedish luxury electric car manufacturer Polestar, affiliated with Volvo Cars Ltd., signed a multi-year contract with Swedish electric boat manufacturer Candela in August 2022. The contract entails Polestar supplying batteries to Candela for its electric boats.
  • In March 2022, DeepSpeed, a leader in electric propulsion systems, announced the development of a new battery in collaboration with eDriveLab, an electric vehicle company based at the University of Parma in Italy. DeepSpeed acquired eDriveLab to leverage its expertise in battery technology to enhance fleet power.

These initiatives underscore the significance of battery technology in the electric ship industry and demonstrate the industry's commitment to fostering innovation in maritime transportation.

Growing Adoption of Electric Boats and Ships due to Environmental Concerns

The electric ship market is being driven by several key factors that are shaping its growth trajectory. One significant factor is the rising importance of maritime trade, which accounts for approximately 80% of global trade. As environmental concerns become increasingly prominent, there is a growing demand for electric and hybrid ships that produce fewer emissions and have a lesser environmental impact.

Government support and initiatives aimed at reducing pollution are also playing a crucial role in driving the adoption of electric ships. For instance, in May 2022, the Finnish Ministry of Economic Affairs and Labor launched the Sustainable Maritime Industry Development Programme to promote the uptake of low-energy technology and digital solutions in the country's maritime industry. Similarly, the Dutch government announced plans to ban all diesel-powered boats in cities like Amsterdam and Rotterdam by 2025, further encouraging the transition to electric boats.

Countries like South Korea have made significant investments in developing green ship technology as part of their efforts to achieve carbon neutrality. The Green Ship-K 2030 initiative in South Korea aims to advance low-carbon technologies such as hydrogen fuel and propulsion technology to reduce carbon emissions from ships.

International regulations, such as those set by the International Maritime Organization, have also contributed to the growth of the electric ship market. Regulations mandating the use of low-sulfur fuel in emission control zones have incentivized the adoption of electric ships as an alternative, cleaner solution.

Additionally, the entry of new startups into the electric boat market, particularly in regions like Europe, is further driving market growth. For example, Swedish electric boat startup X Shore launched the X Shore 1 electric speedboat, offering different configurations and sizes powered by battery technology.

Overall, the combination of government support, international regulations, and innovation from startups is expected to propel the growth of the electric ship market significantly in the coming years.

Europe is Anticipated to Maintain the Largest Market Share Throughout the Forecast Period

Electric Boat and Ship Market NA, EU, APAC, LA, MEA Share, 2024

Europe is poised to dominate the electric ship market, holding the largest market share and experiencing significant growth over the forecast period. This growth is attributed to several factors, including the tightening of environmental regulations and emissions standards across the region. Countries like Norway, Finland, Sweden, and the Netherlands are at the forefront of adopting electric vehicles, including ships, as part of their efforts to reduce carbon emissions and promote sustainability.

The rise in recreational boating activities for marine tourism, water adventures, and recreational fishing further contributes to the market's growth in Europe. Government initiatives and policies, particularly in countries like Sweden, Finland, Norway, and the Netherlands, aim to incentivize the adoption of electric shipping to achieve environmental targets. With the goal of reducing carbon emissions from transportation, Europe emerges as a pivotal market for electric ships.

Following Europe, North America is expected to witness significant growth, driven by the United States' status as a hub for boating enthusiasts. With a considerable portion of the American population enjoying boating and recreational activities, there is a growing demand for electric ships in the region.

In the Asia-Pacific region, new technologies such as advancements in battery storage systems, coupled with the growth of the maritime industry and ocean tourism, are fueling market expansion. Countries like India, China, and Japan are expected to contribute substantially to the region's economic growth through the adoption of electric ships.

Overall, the electric ship market is poised for significant growth globally, with Europe leading the way due to stringent environmental regulations and a strong focus on sustainability. North America and Asia-Pacific regions are also expected to witness substantial growth, driven by factors such as recreational boating trends and technological advancements.

Electric Boat & Ship Market Key Players

  • 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 

Electric Boat & Ship Market Recent Developments

  • In November 2022, Kongsberg Group clinched a lucrative contract worth NOK 300 million (US$30 million) from Pelagic Air Services for the construction of two cutting-edge wind energy CSOVs (Construction and Operation Services) at Cochin Shipyard in India. This comprehensive agreement encompasses advanced shipbuilding services and robust support provisions. The vessels will be crafted based on Kongsberg Maritime's renowned UT 5519 HL design and will boast a wide array of equipment, including a sophisticated hybrid propulsion system that drives permanent magnet azimuth thrusters.
  • Simultaneously, General Dynamics Electric Boat secured a significant maintenance contract valued at US$37.3 million during the same month.
  • Furthermore, in November 2022, Samsung Heavy Industries made strides in maritime innovation by developing a novel liquid hydrogen fuel cell system for ship propulsion. The groundbreaking system, which garnered approval from the DNV authorization department, harnesses electricity generated from liquid hydrogen and polymer electrolyte fuel cells to efficiently power ships.
  • In May 2022, Swedish electric boat manufacturer Candela introduced a next-generation fleet of C-8 flying electric boats specifically tailored for deployment in Venice, Italy. Meanwhile, China announced a substantial expansion of its electric ship construction initiatives following the successful delivery of China's maiden 100-meter-long battery-powered vessel capable of accommodating 1,300 passengers in March.
  • In April 2022, Swedish electric boat maker X Shore has received a $50 million investment to boost manufacturing and R&D. In September 2021, Indian shipyard Chowgule and Company Pvt. Ltd. and Finnish shipbuilder ESL Shipping Ltd. signed a $82 million deal with AtoB@C Shipping AB for the delivery of six hybrid electric boats, with the possibility to increase the order for additional vessels.

Electric Boat & Ship Industry Segmentation

An electric boat is a type of electric vehicle specifically designed to propel boats for various outdoor activities using batteries as the primary source of power instead of traditional fuel. These batteries, similar to those used in other electrical appliances, supply the necessary energy for the boat's operation. Electric boats are commonly found in the form of ferries and small watercraft that navigate waterways utilizing electricity. They are typically used for short trips and may require frequent breaks to recharge or swap batteries.

The report encompasses a comprehensive analysis of the electric boat market, with segmentation based on drive type, battery type, transport mode, and geographical region. In terms of drive type, the market is segmented into hybrid electric boats, which utilize a combination of electric and traditional propulsion systems, and pure electric boats, which solely rely on electric power. Battery type segmentation includes lead-acid batteries, lithium-ion batteries, and nickel-based batteries, each offering unique performance characteristics. The mode of transportation segment differentiates between passenger electric boats and cargo electric boats, reflecting their intended use. Geographically, the market is segmented into North America, Europe, Asia Pacific, and the Rest of the World, highlighting regional variations in market dynamics.

The report provides comprehensive market size estimates and forecasts for each segment, offering valuable insights into the current state and future prospects of the electric boat industry across different regions and market segments.

Market Segmentation

By Propulsion Type

  • Hybrid
  • Pure Electric

By Battery Type

  • Lead-acid
  • Lithiumion
  • Nickel-based Batteries

By Carriage Type

  • Passenger
  • Cargo

By Geography

  • North America
    • United States
    • Canada
    • Rest of North America
  • Europe
    • United Kingdom
    • Germany
    • Italy
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia-Pacific
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle-East and Africa
    • South Africa
    • Rest of Middle-East and Africa
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About The Author

Dr. Arjun Patel is a distinguished expert in the automotive industry, holding advanced degrees in Automotive Engineering and Mechanical Engineering. His expertise spans automotive market dynamics, technological advancements, and sustainable practices. Dr. Patel excels in conducting in depth research and analysis on market trends, consumer preferences, and the economic implications within the automotive sector. He is renowned for his insightful publications on topics such as electric vehicles, autonomous driving technologies, and the evolution of sustainable transportation solutions. Dr. Patels research contributions have significantly advanced understanding in the field, earning him recognition as a leading authority in automotive research and analysis.

FAQ's

An electric boat or ship is powered by one or more electric motors, drawing energy from batteries, fuel cells, or shore-based power sources. Unlike traditional vessels with internal combustion engines, electric boats produce zero emissions during operation, resulting in lower environmental impact and reduced reliance on fossil fuels.

Electric propulsion systems for boats and ships include battery-electric, hybrid-electric, and hydrogen fuel cell systems. Battery-electric propulsion relies solely on rechargeable batteries for power, offering zero emissions and quiet operation. Hybrid-electric systems combine batteries with a backup generator, providing extended range and flexibility. Hydrogen fuel cell systems generate electricity from onboard hydrogen tanks, offering longer range and faster refueling times for larger vessels.

Advances in battery technology, including higher energy density, faster charging capabilities, and improved safety features, are driving the adoption of electric propulsion in boats and ships. Additionally, the development of shore-based charging infrastructure, portable charging solutions, and battery-swapping stations enhances the accessibility and convenience of electric marine transportation, reducing range anxiety and downtime for vessel operators.

Electric propulsion offers several economic and operational advantages for boat and ship owners, including lower fuel costs, reduced maintenance expenses due to fewer moving parts, and compliance with stringent environmental regulations governing emissions and noise pollution. Additionally, electric vessels may qualify for incentives, subsidies, and tax breaks aimed at promoting sustainable transportation and reducing greenhouse gas emissions.

Challenges facing the widespread adoption of electric marine propulsion include the need for standardized charging protocols, infrastructure investment in ports and marinas, regulatory harmonization across jurisdictions, and industry collaboration to address technical and logistical challenges. Government incentives, public-private partnerships, and research and development initiatives can facilitate market growth and overcome barriers to entry for electric boat and ship manufacturers and operators.

Mid-Shore Electronics, Federal Register, General Dynamics Electric Boat, USA Spending.

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