Marine Electric Vehicle Market by Technology (Fully electric, Hybrid), Ship Type (Commercial, Defense, UMV), Mode of Operation (Manned, Remotely Operated, Autonomous), Vessel Transport (Seafaring, Inland), Range and Region - Global Forecast to 2030
[299 Pages Report] The Marine Electric Vehicle Market size is projected to grow from USD 10.1 Billion in 2023 to USD 29.1 Billion by 2030, at a CAGR of 16.4% from 2023 to 2030. The rise in global regulations aimed at mitigating emissions and promoting sustainable maritime solutions is a pivotal factor driving the growth in Marine Electric Vehicle Market
Marine Electric Vehicle Market Forecast to 2030
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Marine Electric Vehicle Market Dynamics
Driver: Growing maritime tourism, including underwater and surface water sport industry
The growth of the global maritime tourism industry has led to an increased demand for cruises, ferries, motorboats, and other marine passenger transport vessels. In 2022, according to UNWTO (United Nations World Tourism Organization), international tourism receipts surged past the USD 1 trillion mark, registering a remarkable 50% growth in real terms compared to 2021. This impressive rebound in international travel fueled the resurgence of international visitor spending, which reached 64% of pre-pandemic levels, representing a decline of 36% compared to 2019. Europe emerged as the top-performing region, generating nearly USD 550 billion (EUR 520 billion) in tourism receipts, equivalent to 87% of pre-pandemic levels. Africa, the Middle East, and the Americas also showcased significant recovery rates, achieving 75%, 70%, and 68% of their pre-pandemic receipts. However, Asian destinations faced greater challenges due to prolonged border closures, resulting in a modest 28% of pre-pandemic earnings. These figures underscore the resilience and gradual revitalization of the global tourism industry.
Restraints: Limited resources of raw materials used in the manufacturing of batteries
The production of batteries for MEVs requires significant quantities of certain raw materials, such as lithium, cobalt, and nickel. The availability of these materials can be limited, and their extraction and processing can face environmental and social challenges. Dependence on a limited number of geographic sources for these raw materials can create supply chain vulnerabilities and price fluctuations, impacting the cost and availability of batteries for MEVs.
Some raw materials used in batteries, such as cobalt, are associated with environmental and social challenges. Environmental concerns arise from the extraction and processing of raw materials, such as the carbon emissions and water pollution associated with lithium mining. Democratic Republic of the Congo (DRC) is the world's top cobalt producer, providing a sizable percentage of the market. However, because of worries about child labor, hazardous working conditions, and environmental degradation, cobalt mining in the nation has come under attention. Standards are being raised, and responsible sourcing methods are being followed.
Opportunity: Increasing adoption of electric propulsion technologies into the UUV market
Improved operational capabilities, increased endurance, and improved environmental sustainability may result from the adoption of electric technology in the UUV market. In fields including environmental monitoring, offshore energy, underwater exploration, defense, and others, this creates chances for cooperation, knowledge transfer, and market expansion.
UUVs are used for a variety of purposes in defense and security, such as submarine detection, underwater surveillance, mine countermeasures, and intelligence gathering. Utilizing electric technologies allows UUVs to operate for extended periods of time, increasing their efficacy and lowering the logistical difficulties related to refueling or changing power sources while on missions. Defense contractors, IT companies, and military organizations can benefit from the integration of MEV capabilities in UUVs.
Electric technology innovations and developments can be used for UUVs and vice versa, promoting cross-domain cooperation and information sharing. This partnership has the potential to quicken the pace of innovation and support the overall expansion of the MEV and UUV sectors. Both sectors call for effective energy management, navigation and control algorithms, and underwater communication systems.
Challenge: High initial capital expenditure
Compared to conventional marine boats, MEVs may have higher initial expenditures, including the purchase of electric propulsion systems and related infrastructure. Particularly, the price of batteries continues to represent a sizeable amount of the overall cost of MEVs. Although the costs are anticipated to decline with time, it is currently difficult to match the costs of conventional boats. Particularly, the price of batteries continues to represent a sizeable amount of the overall cost of MEVs. Even while economies of scale and technology developments are predicted to drive down costs over time, affordability is still a problem for many prospective users.
Due to the necessity for vessel modifications, infrastructure integration, and potential electrical system constraints, retrofitting existing vessels with electric propulsion systems can be difficult. Some vessel owners may be discouraged from making the switch to MEVs by the complicated and expensive retrofitting process.
Marine Electric Vehicle Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of Marine Electric Vehicles. These companies have established a strong foothold in the market through diversified product portfolios, advanced technologies, and robust global sales and marketing networks. The prominent companies are ABB (Switzerland), Siemens AG (Germany), BAE Systems (UK), General Electric (US), and Kongsberg Gruppen (Norway). Commercial Passenger vessel operators, Cargo and tanker operators, defense organizations, private watercraft users, fishing organizations, oil and gas exploration companies, and research companies are some of the major consumers of marine electric vehicles.
Commercial Segment to dominate market share during the forecast period
Based on Ship Type, the Marine Electric Vehicle Market has been segmented into commercial and defense. Commercial Segment is witnessing high growth and market share due to the increasing adoption of electric vehicles for passenger transportation, recreational use, and other commercial usage such as fishing and research.
Hybrid electric segment is expected grow the highest during the forecast period
Based on technology, the hybrid electric segment is expected to grow the highest during the forecast period. In larger vessels, it becomes difficult to provide fully electric solutions due to lower load-bearing capacity and lower range. Also, since more adoption is being made in larger vessels to curb emissions, hybrid is being considered as the best option in larger maritime vessels.
The inland vessels segment is to witness higher growth during the forecast period
Based on vessel transport, the Marine Electric Vehicle Market has been segmented into seafaring and inland vessels. Inland vessels are either being converted into electric or more users are opting for electric vessels to reduce localized emissions in waterways closer to civilization.
Europe is projected to witness the highest market share during the forecast period.
Europe leads the Marine Electric Vehicle Market due presence of key players, vessel manufacturers, and component manufacturers, which are a few factors expected to boost the growth of the Marine Electric Vehicle Market in the region. These players invest in extensive R&D to develop electric maritime solutions with improved efficiency and reliability. Major manufacturers and suppliers of Marine Electric Vehicles in this region include ABB (Switzerland), Leclanché S.A. (Switzerland), Siemens AG (Germany), Wartsila (Finland), and Kongsberg Gruppen (Norway).
Marine Electric Vehicle Market by Region
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Key Market Players
Major players operating in the Marine Electric Vehicle companies include ABB (Switzerland), Siemens AG (Germany), BAE Systems (UK), General Electric (US), and Kongsberg Gruppen (Norway).
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Report Metric |
Details |
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Market size available for years |
2019-2030 |
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Base year considered |
2022 |
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Forecast period |
2023-2030 |
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Forecast units |
Value (USD Million/Billion) |
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Segments Covered |
Technology, Ship Type, Mode of Operation, Vessel Transport, Range, and Region |
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Geographies Covered |
North America, Europe, Asia-Pacific, Rest of the World |
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Companies Covered |
ABB (Switzerland), Siemens AG (Germany), BAE Systems (UK), General Electric (US) and Kongsberg Gruppen (Norway). |
Marine Electric Vehicle Market Highlights
This research report categorizes the Marine Electric Vehicle Market based on Technology, Ship Type, Mode of Operation, Vessel Transport, Range, and Region
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Segment |
Subsegment |
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By Ship Type |
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By Technology |
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By Mode of Operation |
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By Vessel Transport |
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By Range |
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By Region |
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Recent Developments
- In March 2023, Wärtsilä supplied the main propulsion machinery along with a range of other electrical solutions for two new 110-meter-long amphibious transport vessels that were built for the Chilean Navy.
- In February 2023, Kongsberg Maritime (KONGSBERG) announced it would provide electrical solutions to a newbuild ship named SDO-SuRS (Special and Diving Operations - Submarine Rescue Ship) to be built by the Italian shipyard T.Mariotti for Marina Militare Italiana (The Italian Navy).
- In February 2023, GE's subsidiary in India announced that it had signed a contract with Cochin Shipyard to provide a digital solutions package to increase the capabilities of the LM2500 marine gas turbines that will power the Indian Navy's first Indigenous Aircraft Carrier-1 (IAC-1) Vikrant, which was commissioned in August 2022.
Frequently Asked Questions (FAQ):
What are your views on the growth prospect of the Marine Electric Vehicle Market?
The Marine Electric Vehicle Market is being driven by the electrification of fleets and the need for reduced emissions.
What are the key sustainability strategies adopted by leading players operating in the Marine Electric Vehicle Market?
Key players have adopted various organic and inorganic strategies to strengthen their position in the Marine Electric Vehicle Market. The major players include ABB (Switzerland), Siemens AG (Germany), BAE Systems (UK), General Electric (US), and Kongsberg Gruppen (Norway). These players have adopted various strategies, such as acquisitions, contracts, expansions, new product launches, and partnerships & agreements, to expand their presence in the market.
What are the new emerging technologies and use cases disrupting the Marine Electric Vehicle Market?
Some of the major emerging technologies and use cases disrupting the market include high-energy batteries and research to find the adoption of hydrogen fuel cells. Recreational boating manufacturers are already incorporating solar panels to drive their boats and are finding ways to use renewable energy sources to drive low-load vessels.
Who are the key players and innovators in the ecosystem of the Marine Electric Vehicle Market?
The key players in the Marine Electric Vehicle Market include ABB (Switzerland), Siemens AG (Germany), BAE Systems (UK), General Electric (US), and Kongsberg Gruppen (Norway), to name a few.
Which region is expected to hold the highest market share in the Marine Electric Vehicle Market?
The Marine Electric Vehicle Market in Europe is projected to hold the highest market share during the forecast period due to the presence of several large marine electric vehicle solution providers in the region. The region also has some of the major shipyards that manufacture electric vessels, both manned and autonomous.
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The study involved four major activities in estimating the current market size for the Marine Electric Vehicle Market. Exhaustive secondary research was conducted to collect information on the market, the peer markets, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation procedures were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources, such as D&B Hoovers, Bloomberg, BusinessWeek, and different magazines, were referred to identify and collect information for this study. Secondary sources also included annual reports, press releases & investor presentations of companies, certified publications, articles by recognized authors, and simulator databases.
Primary Research
The Marine Electric Vehicle Market comprises several stakeholders, such as raw material providers, Electric Ship manufacturers and electrical system providers, and regulatory organizations in the supply chain. While the demand side of this market is characterized by various end users, the supply side is characterized by technological advancements in electric maritime vessels. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the Marine Electric Vehicle Market. These methods were also used extensively to estimate the size of various subsegments of the market. The research methodology used to estimate the market size includes the following:
- Key players in the industry and markets were identified through extensive secondary research.
- The industry’s supply chain and market size, in terms of value, were determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
Market size estimation methodology: Bottom-up Approach
The market sizing was undertaken from the demand side. The market was sized based on the retrofit potential of the existing fleet and the year-on-year growth rate of ships of all categories considered in the report, along with the newly built ships and unmanned maritime vessels.
Market size estimation methodology: Top-down Approach
In the top-down approach, the overall market size was used to estimate the size of individual markets (mentioned in the market segmentation) acquired through percentage splits from secondary and primary research. For the calculation of specific market segments, the size of the most appropriate, immediate parent market was used to implement the top-down approach. The bottom-up approach was also implemented to validate the revenue obtained for various market segments.
- Companies supplying marine electric vessels, as well as components, were included in the report.
- The total revenue of these companies was identified through their annual reports and other authentic sources. In cases where annual reports were not available, company earnings were estimated based on the number of employees, press releases, and any publicly available data.
- Company revenue was calculated based on the various operating segments.
- All publicly available company contracts related to marine electric vehicles were mapped and summed up.
- Based on these parameters (contracts, agreements, partnerships, joint ventures, product matrix, secondary research), the share of electric ships in each segment was estimated.
Data Triangulation
After arriving at the overall market size-using the market size estimation process explained above-the market was split into several segments and subsegments. Data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides of the Marine Electric Vehicle Market.
Report Objectives
- To identify and analyze key drivers, restraints, challenges, and opportunities influencing the growth of the Marine Electric Vehicle Market
- To analyze the impact of macro and micro indicators on the market
- To forecast the market size of segments for four regions, namely, North America, Europe, Asia Pacific, and the Rest of the World, along with major countries in each of these regions
- To strategically analyze micro markets with respect to individual technological trends, prospects, and their contribution to the overall market
- To strategically profile key market players and comprehensively analyze their market ranking and core competencies
- To provide a detailed competitive landscape of the market, along with an analysis of business and corporate strategies, such as contracts, agreements, partnerships, and expansions.
- To identify detailed financial positions, key products, unique selling points, and key developments of leading companies in the market
Market Definition
The marine electric vehicle (MEV) market refers to the segment of the maritime industry that focuses on the development, production, and utilization of electrically powered vessels. MEVs encompass a wide range of watercraft, including but not limited to ships, boats, submarines, and other marine vehicles that rely on electric propulsion systems.
Market Stakeholders
- System/Component Manufacturers
- Passenger Vessel Operators
- Shipping Vessel Operators
- Government Organizations
- Shipbuilders
- System Integrators
Available customizations
Along with the market data, MarketsandMarkets offers customizations as per the specific needs of companies. The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis
- Further breakdown of the market segments at country-level
Company Information
- Detailed analysis and profiling of additional market players (up to 6)
Growth opportunities and latent adjacency in Marine Electric Vehicle Market