The global electric boat market size is estimated to reach USD 6,954.6 million in 2024. It is predicted to grow at a CAGR of 10.5% during the assessment period to reach a value of USD 18,875.4 million by 2034. The industry is anticipated to witnesses a Y-o-Y growth of 9.8% in 2024.
An electric drive system is the primary source of propulsion in an electric boat. The boat can be a full battery electric, hydrogen fuel cell electric, or electric hybrid boat or ship. These include tugboats, ferries, cargo ships, and barges to tour boats, fishing trawlers, cruising yachts, unmanned underwater vehicles (UUVs), and other types of boats.
These boats can vary in size and function, ranging from small recreational boats like cruising yachts to larger commercial boats such as ferries, and tugboats. Electric hybrid systems cause less pollution compared to conventional mechanical propulsion engine by blending power from both energy storage and generators to give the vessel operator a dual power source for greater vessel operational flexibility.
As of 2023, the European region respectively has over 3 times the number of companies involved in the production of recreational electric ships compared to the United States and Canada. The United States owns approximately two time the number of recreational boats, 11 million boats compared to Europe which has about 6.5 million boats, yet, European manufacturers are actively involved in the production of electric boats.
This surplus production in Europe creates additional demand for electric boats as manufacturers across the globe strive to satisfy the increasing demand of people for environment-friendly and sustainable forms of water transport. This increase in production perfectly aligns with the global guidelines to cut down emissions and also assists in the expansion of electric ships.
| Attributes | Description |
|---|---|
| Estimated Global Electric Boat Market Size (2024E) | USD 6,954.6 million |
| Projected Global Electric Boat Market Value (2034F) | USD 18,875.4 million |
| Value-based CAGR (2024 to 2034) | 10.5% |
2034 is projected to pose a demand for electric boats that will be 2.7 times higher than the present value. Rising awareness regarding the pollution caused from the use of combustion engine boats is gradually making people opt for emission-free electric ships.
These battery-operated boats have emerged as part of solution to replace water transport modes that pollute the water bodies. Improvements in battery performance, range, and charging speed are making the electric ships extra feasible for leisure activities as well. The surge in the sales is attributed to the changing attitude of consumers towards green alternatives, as well as the rising public and government support for electric mobility.
The Norwegian company Evoy actively participates in electric boating industry by incorporating modern outboard and inboard motor systems in its boats. They propose that engaging with their brand will result in an 'unbeatable boating' as they firmly believe that all boating will be pursued in an electric mode once all alternatives to fossil fuel become cheaper and effective.
The growing demand for such products is prominently attributed to the structural changes in the industry, which is expressed in Evoy’s commitment to the promotion of powerful, efficient, and affordable electric propulsion systems.
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The table exhibits the anticipated CAGR for the global electric boat market over semi-annual periods ranging from 2023 to 2024. The analysis provides organizations with a better understanding of the growth over the year by divulging crucial shifts in performance and growth patterns of the industry. The first half (H1) of 2023 spans from January to June. The second half or H2 includes July to December.
Figures presented in the below table showcase the growth rate for each half from 2023 to 2024. The industry is predicted to grow at a CAGR of 10.3% in the first half (H1) of 2023. The second half of the same year is anticipated to witness a slight spike in the CAGR at 10.5%.
| Particular | Value CAGR |
|---|---|
| H1 | 10.3% (2023 to 2033) |
| H2 | 10.5% (2023 to 2033) |
| H1 | 10.4% (2024 to 2034) |
| H2 | 10.5% (2024 to 2034) |
Moving in the following period, from H1 2024 to H2 2034, the CAGR is estimated to slightly decrease to 10.4% in the first half (H1) and then increase to 10.6% in the second half (H2). In the first half (H1), the industry is projected to experience a surge of 10 BPS while the second half (H2) is also estimated to witness a slight increase of 10 BPS.
Shift toward Sustainable Marine Transportation Drives Demand
Stringent regulations implemented by the government bodies in Europe and North America in order to curb greenhouse gas (GHG) emissions from marine vessels, is facilitating the transition to electric boats.
For instance, one of the laws mandates the rise of energy efficiency for GHG intensity of all fuels burnt on board the vessels from a 2% cut starting in 2025 to an 80% cut by 2030. The progression of these reductions is relative to the GHG intensity of energy consumed in 2020 which is 91.16 gCO2e/MJ.
Electric ships make a perfect fit in such a case as they do not emit any pollutants while reducing the risk of oil spills. Other than that, the expenditure is also reduced in the process thereby making them ideal for property blue-collar transportation working on a ferry basis and for inshore clients.
In Norway, for example, such a transition is observed in large-scale electric ferry projects which demonstrates the growing acceptance and merits of electric marine transport systems as the environmental policies of the population keep becoming stringent.
Higher Battery Lifecycle Propelling the Adoption of Lithium-Ion Batteries
Lead acid batteries are traditionally being used in propulsion systems for power generation in boats. There are, however, numerous disadvantages associated with the use of lead-acid batteries in the propulsion systems of electric boats. These downsides include the bulky nature and low cycle time of these batteries.
Lithium-ion batteries have therefore emerged as an alternative source of power generation in electric ships. Presently, lithium-ion batteries with phosphate technology are trending in the global market.
It is estimated that these cells have a life of nearly 10 times that of deep-cycle lead acid batteries. Lithium-ion batteries are also lightweight, enable faster charging, and require low maintenance. These batteries also have a sustainable disposal compared to traditional batteries. The toxicity limits for lithium-ion batteries are low. Such features have increased the popularity of lithium-ion batteries for use in electric boats.
Government Policies and Initiatives Worldwide are Accelerating Growth
Governments around the world are playing a crucial role in boosting the electric boats market by implementing supportive policies, subsidies, and infrastructure development. The European Green Deal, for instance, promotes decarburization, thereby encouraging the maritime sector to shift to cleaner energy solutions.
Norway’s Electric Ferry Initiative has successfully introduced electric ferries, reducing emissions in coastal transport. In the United States, the EPA’s stringent emissions standards for marine vessels, combined with California’s incentives for electric ships, are fostering the adoption of sustainable marine transport.
In August 2023, India accelerated the shift to eco-friendly boating with a 20% subsidy for solar electric boats over 12 meters and a 30% subsidy for boats utilizing green fuels like methanol, hydrogen, and ammonia.
These initiatives are aimed at reducing maritime emissions, promoting the use of clean energy, and expanding electric ship infrastructure. The combination of regulatory support and financial incentives is encouraging manufacturers and consumers to adopt electric propulsion technologies, thereby driving global growth.
Growing Demand for Electric Recreational Boats Driven by Eco-Conscious Consumers
The demand for electric recreational boats is experiencing significant growth as eco-conscious consumers seek environmentally friendly leisure activities. In 2023, the global recreational boat market saw 11 million boats in the United States and 6.5 million in Europe, with electric variants gaining popularity owing to their quieter operation, lower maintenance, and reduced environmental impact.
Manufacturers such as Candela and Greenline Yachts are developing energy-efficient electric yachts, thereby boosting the demand in the luxury segment. The expansion of marine charging stations, particularly in Europe and North America, is expected to accelerate the adoption of electric boats, further contributing to this growing trend.
Consumers are increasingly opting for electric ships not only because of the environmental benefits they provide but also for enhanced user experience, which includes reduced vibration and easier handling. With the growing awareness regarding sustainability, the market for electric recreational boats is poised for further expansion, supported by technological advancements and improved infrastructure.
Principal Consultant
The global electric boat industry grew at a CAGR of 4.6% during the assessment period. Growth of the marker was positive as it reached USD 6,333.9 million in 2023.
During the historical period ranging between 2019 and 2023, the global market witnessed a slower growth rate. This can largely be attributed to the economic challenges posed by the COVID-19 pandemic, which caused widespread disruptions in manufacturing, supply chains, and consumer demand.
Several industries, including electric ships, faced halts in production and delays in technological advancements. Additionally, the absence of significant regulatory changes and infrastructure development further slowed growth.
The market is predicted to reach USD 6,954.6 million by 2024 and is further estimated to grow at a CAGR of 10.5% during the forecast period. It is anticipated to reach USD 18,875.4 million by 2034.
Looking ahead, during the forecast period, the industry is estimated to rebound significantly. This accelerated growth is likely to be driven by increasing consumer demand for sustainable transportation options, rising environmental awareness, and advancements in electric propulsion technologies.
Government incentives, stricter emissions regulations, and growing investments in charging infrastructure are further fueling this shift. Post-pandemic economic recovery and technological innovations, such as improved battery efficiency and longer ranges, are projected to bolster the adoption of these boats across recreational and commercial sectors.
Tier 1 segment consists of reputed companies that have a annual revenue exceeding USD 200 million. These organizations capture a substantial share ranging between 25% to 30% in the global market. These companies are characterized by their expertise in production and a broad geographical reach that is underpinned by a robust consumer base.
These businesses have an extensive product portfolio and deploy state-of-the-art technologies in their manufacturing processes to ensure regulatory compliance. Renowned companies in Tier 1 include Ferretti Group, Correct Craft, White River Marine Group, LLC, Cobalt Boats, Dalian ODC Marine Manufactory Co., Ltd, and others.
Tier 2 segment comprises of small-scale enterprises that function within the regional sphere and cater to the needs of the industry. These companies have a revenue ranging between USD 100 million to USD 200 million. They account for a global share of 30% to 35%. These businesses use their in-depth knowledge to meet the local demands. Manufacturers in Tier 2 include Naviwatt, Misty Harbor Boats, SVP YACHTS, Habbeke Shipyard, RAND Boats, and others.
Tier 3 segment is made up companies that operate at the local presence. These enterprises have a revenue below USD 100 million and are estimated to hold a share ranging between 40% to 45%. Businesses in Tier 3 are oriented toward serving niche markets and fulfilling local demand.
This segment is distinguished by a lack of extensive organization and formal structure compared to companies in Tier 1 and Tier 2 segments. Key players in Tier 3 include HABBEKÉ SHIPYARD, and White River Marine Group, LLC.
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The below section offers organizations with an overview of the industry. It consists a detailed examination of the emerging trends and opportunities in the market on a country-by-country basis. This country-specific analysis of the dynamics of the market is anticipated to assist organizations in understanding the complex nature of the industry.
The analysis comprises key factors, potential challenges, and forecasts impacting the demand, production, and consumption of the market within each country. This section aims to helps businesses in making informed decisions and developing strategies customized to individual countries.
China is predicted to dominate the country-wise growth in the industry during the assessment period with an anticipated CAGR of 12.1%. India, Germany, and the United States are estimated to follow behind the China to become the key countries in the industry with projected CAGRs of 11%, 10.4%, and 9.7% respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| China | 12.1% |
| India | 11% |
| Germany | 10.4% |
| United States | 9.7% |
| Spain | 8.7% |
The electric boat market in China is poised to exhibit a CAGR of 12.1% during the assessment period. It is expected to attain a value of USD 1,645.9 million by 2034.
The 14th Five-Year Plan (2021 to 2025) of China emphasizes the electrification of multiple transportation sectors, including waterborne transport, as part of its broader strategy to combat climate change and decrease emissions. The government has set a target to decrease carbon emissions by 18% by 2025. Policies encouraging the adoption of electric boats for commercial transport, tourism, and ferry services are driving demand.
For instance, the government offers subsidies for electric ship manufacturers and operators, which incentivizes adoption, especially in China’s vast inland waterways and coastal regions.
In June 2022, the Ministry of Transport (MOT) in China took action announcing its inland water transport development strategy, and mentioned that it will achieve it until 2050. These guidelines support decarburization goals and are geared towards faster uptake of electric boats.
India is rapidly becoming a significant operator in the domain of electric boats, with a special attention to sustainable inland water transport infrastructure. Government subsidies for solar electric ships and green hydrogen fuels are accelerating the use of electric ships.
India has designated 111 national waterways spanning approximately 20,375 kilometers across 24 states and union territories. This extensive network provides a foundation for developing eco-friendly transportation options, including electric vessels.
The government aims to improve the navigability and infrastructure of these waterways to support increased cargo and passenger movement. Government subsidies for electric ships and green fuel technologies, coupled with regulatory policies promoting eco-friendly transport, are driving India’s growth in the market.
Sales of electric boats in India are projected to soar at a CAGR of 11% during the forecast period. The total value of the industry in the country is anticipated to reach USD 664.4 million by 2034.
The United States electric boat size is anticipated to reach USD 5,941.5 million by 2034. Over the forecast period, the demand for the electric ships in the country is set to rise at a CAGR of 11.3%.
The country’s status as one of the largest recreational boating industry, with 11.84 million registered recreational vessels in 2021, is significantly driving the growth of the electric boat market. This rising trend is directly tied to the increasing consumer demand for sustainable and eco-friendly leisure.
The United States has an advanced marine technology industry that is occupied by companies that innovate on new propulsion systems, propulsion energy systems, and autonomous guidance.
Over the last few decades, the technological development in the field of battery management systems and electric drivetrains has enabled boat manufacturers in the United States to build electric ships that are capable of performing at high speeds and capacities. Electric boats that are powerful, quicker to recharge and wear-resistant are already being manufactured by key players like Pure Watercraft, Arc Boats, and X Shore USA.
The below section offers organizations with insightful data and analysis of the two leading segments of the target industry. Segmentation of these categories is likely to help businesses in understanding the dynamics of the industry and investing in beneficial zones.
Analysis of the growth is predicted to helps companies in gaining a thorough understanding of the trends, opportunities, and challenges. This examination is projected to help businesses in navigating the complex environment of the business world and making informed decisions.
Pure electric boats are estimated to lead the product type segment with a value share of 87.4% in 2024. In terms of battery type, lead acid battery is projected to dominate with a value share of 87.5% in the same year.
| Segment | Pure Electric Boats (Product Type) |
|---|---|
| Value Share (2024) | 87.4% |
Pure electric boats is projected to lead with a share of 87.4% in 2024. The reason for this growth is the increased demand for nature preservation as well as the need to comply with the stringent standards concerning the reduction of emissions. The shipbuilding industry is undergoing a shift by adopting electrical propulsion amid stringent environmental regulations and increasing penetration of clean energy alternatives.
Pure electric ships are gaining popularity owing to their eco-friendly nature and quiet operation. By eliminating the need for fossil fuels, these boats assist in reducing air and water pollution, making them a sustainable choice for environmentally conscious boaters. The quiet electric motors also provide a peaceful and serene boating experience, allowing passengers to enjoy the sounds of nature without the noise of a traditional engine.
| Segment | Lead Acid Battery (Battery Type) |
|---|---|
| Value Share (2024) | 87.5% |
Lead acid battery segment is estimated to maintain a remarkable share of 87.5% in 2024. Conventionally, the lead acid battery has been preferred for marine application owing to its convenience, price and usage over the years.
These batteries have a good reputation due of their ruggedness and performance within the different environments and are therefore a common and reliable battery technology in boat propulsion systems.
The unique function of lead acid batteries has also generated an efficient network of production and supply for the batteries which further enhances their use. Their comparatively low cost of acquisition against most recent devices makes them the first option to price sensitive end users and operators.
Although they have limitations, such as bulkiness and lower cycle life compared to lithium-ion batteries, their entrenched market position and extensive infrastructure contribute to the continued dominance.
Key players in the industry include FRAUSCHER BOOTSWERFT GmbH & Co KG, Duffy Electric Boat Company, RAND Boats ApS, Echandia, Lillebror Marine, and Vision Marine Technologies.
Key players in the electric boats system are actively enhancing their capabilities and resources to cater to the growing demand across diverse applications. Leading companies are leveraging partnerships and joint venture strategies to co-develop innovative products and bolster their resource base.
Manufacturers are further introducing new products to address the increasing need for cutting-edge solutions. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2034, thereby making it extra competitive.
Key companies are investing in continuous research and development activities to produce new products and increase their production capacity to meet end-user demand. They are also showing an inclination toward adopting strategies, including acquisitions, partnerships, mergers, and facility expansions to strengthen their footprint.
Industry Updates
Product type is segmented into in pure electric and hybrid. Pure electric is classified in below 5KW, 5KW to 30KW, and above 30KW. Hybrid is segmented in below 5KW, 5KW to 30KW, and above 30KW.
Lead acid battery, lithium ion battery, and nickel based batteries are the battery type.
Boat size is segmented in up to 20 feet, 20 to 50 feet, and above 50 feet.
End-use includes recreational boats, commercial boats, military & law enforcements boats and others end use.
The industry is spread across North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, and the Middle East and Africa.
The market is predicted to reach USD 6,954.6 million in 2024.
The industry is anticipated to reach a size of USD 18,875.4 million by 2034.
FRAUSCHER BOOTSWERFT GmbH & Co KG, Duffy Electric Boat Company, RAND Boats ApS, Echandia, Lillebror Marine, and Vision Marine Technologies.
Aditya (baot) is the first solar-powered ferry operating between Vaikkom and Thavanakkadavu in Kerala.
The market is predicted to experience a CAGR of 10.5% during the assessment period.
China is estimated to lead with a CAGR of 12.1% during the forecast period.
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