Global Electric Ship Market - 2020-2027
The global electric shipmarket size was worth US$ XX billion in 2018 and is estimated to reach US$ XX billion by 2027, growing at a CAGR of XX % during the forecast period (2020-2027).
Ships are operated by diesel engines andgasoline engines generally, but nowadays, electrically operated ships are also gaining popularity as they provide advantages:flexibility in weight and space, freedom in the power system layout, enhanced operating life, and less noise. The use of battery storage systems, which could also be charged by renewable energy sources mostly on-shore, may reduce fossil fuels for some ship applications.
Moreover, advanced electrical power systems involve converting all shipboard systems to electric power, even the most demanding systems.It also provides the enabling science, technology, and design tools to allow electrical power systems, electric propulsion, and auxiliary systems to meet the future mission and affordability requirements.
The global electrical shipmarket growth is driven by increasing exhaust gas concerns, and continuous government support is among the key factors driving the market growth.
The increasing exhaust gas from regular ships pays wave for the growth of electric shipmarket over the forecast period
Electric ships are gaining popularity worldwide as diesel-operated ships produce massive exhaust gases, such as carbon dioxide, sulfur oxides, nitrogen oxides and various dust. According to the International Maritime Organization, 2019, diesel-operated ships are responsible for almost 2.5 percent of greenhouse gas emissions; it produces one billion tons of CO2 each year. The maritime industry, among all other sectors, is being forced to reduce its emissions gradually. From 1 January 2020, it focuses on lowering sulfur % in the heavy fuel oil-powered vessels to 0.5%. Hence these factors will play a vital role in the growth of the electric ship market in the forecast period. Moreover, in 2018, the International Maritime Organization decided to decrease exhaust gases emissions drastically. By 2050, the UN organization 173 member states are willing to reduce CO2 emissions from ships compared to 2008.
The extra cost associated with the electric shipis likely to hinder the market growth.
On the contrary, the electric ship can result in high installation cost, battery inefficiency, lack of battery charging infrastructure and a high energy storage cost restrain the electric ship market growth.According to Infineon Technology report, 2021, electric ship's energy density is still too low, which creates the problem in long routes as the ship has to travel vast distances with one battery charge. The batteries are generally too large and too heavy.
COVID-19 Impact Analysis
Due to the pandemic, all the seaports across the countries have seen a notable impact, considering the slowdown in transportation due to safety and prevention from the spread of the virus. As the electric ship is a developing field and it procures extra cost, it would be challenging for the companies to resume the practices with the same pace asall the chain, including the significant import and export trade, in the face of a downfall. During this time, various countries have also forced a ban on the entry of vessels and containers operated from other ports, especially those transported from China. Such operations have hindered the logistics and functions of these industries. Moreover, workers and staff have to face strict quarantine rules due to the respective country protocols. The ports are working at a low capacity, and the storage facilities have been highly full.
By mode of operation, the electric ship market isclassified into manual, remote operated and autonomous ship.
The autonomous shipsegment is expected to grow at the fastest CAGR during the forecast period (2020-2027)
The increasing demand for the autonomous electric ship is due to the following advantages: eliminating human error, reducing crewing costs, more safety, allowing more effective use of space utilization and efficient fuel use. As autonomous ship utilizes artificial intelligence, it has further potential to drive the market towards more reliable products.
For instance, according to the Kongsberg report, 2021, the company has developed the first fully electric autonomous container ship with zero emissions. It will include all enabling technologies with sensors and integration required for remote and autonomous ship operations. Moreover, it has also developed the 120 TEU (Twenty-foot Equivalent Units) open-top container ship. It will be a fully battery-powered solution, prepared for autonomous and crewless operation. The vessel will reduce NOx and CO2 emissions by reducing diesel-powered truck transport by around 40,000 journeys per year. This initiative will help to reach the UN sustainability goals and improve road safety and congestion.
The Europe region holds the largest market shareglobal electric shipmarket
The European region dominates the electric ship market globally and is expected to grow during the forecast period.Due to the increase in demand for electric ships for fully electctric passenger vessels, yachts, tugs, and cruise vessels, various countries like Norway and Denmark have actively started shifting towards fully electric passenger ship. Moreover, significant progress in autonomous electric vessels and remotely controlled electric vessels are also expected to boost the market globally.
For instance, according to The Next Web report, 2021, Norway's top cruise ship operator has manufactured two fully operational electric-powered ships, 60 by 2021, and by 2023 the country's entire long route ship will either be all-electric or equipped with hybrid technology. Moreover, it will soon launch two expedition cruise liners with hybrid propulsion planned to travel the Arctic. Several Norwegian firms have teamed up to construct an electric container ship that could replace 40,000 diesel truck trips annually. Eidesvik Offshore, a firm supplying off-shore oil rigs, has converted a supply vessel to operate electrically and liquefied natural gas.
The electric ship market is consolidated and highly competitive with the presence of a few local players followed by the global companies who contribute to the major share in the market. Leading key players contributing to the growth of the market areGeneral Dynamics Electric Boat, Austal, Wartsila, Schottel Group, Anglo Belgian Corporation NV, Eco Marine Power, Akasol AG, Kongsberg, Norwegian Electric Systems AS, Corvus Energy, General Dynamics, Vard, Siemens, and Leclanche SA.The major players are adopting various new strategies to dominate the market, such as launching new products, acquisitions and collaborations, which are responsible for the growth of the electric ship market globally.
Overview:Austal has designed and created over 300 vessels for over 100 defence and commercial operators, earning an enviable reputation for innovative building ships using advanced technologies. The company was started in 1988 in Australia.
Product Portfolio:TheCompany manufactures ships used in commercial, defence, and off-shore fields.The company also provides spare parts, information vessel control systems and consultancy services.
Key Development:In 2021, Austal has launched a new range of Volta electric-powered high-speed ship, with the first design offered being the fully electric 46-meter Passenger Express 46V. It would also provide utterly integrated design, construction and support solution, including on-shore charging infrastructure and in-service support programs for operators.
The global electric shipmarket report would provide access to an approx: 63 market data table, 53 figures and 240 pages.
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