Marine Electric Vehicle Market

[284 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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Scope of the Report

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

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.

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