Electric ship market to hit $18.39b by 2032

The passenger ship segment is seen to hold the largest share.

The global electric ship market is expected to reach $18.39b by 2032 from $4.85b in 2025, according to a new report by Markets and Markets.

In its analysis, the company said this expansion reflects a compound annual growth rate of 21.0%.

“Ferries, inland cargo ships, offshore service vessels, and defense platforms are increasingly adopting electric and hybrid engines, driven by advances in energy storage, hybrid systems, and port charging facilities,” Markets and Markets said.

“Higher fuel and maintenance expenses, along with subsidies and green financing, strengthen the case for operators. With regulators, shipowners, and port authorities supporting decarbonisation, electric ships are progressing from trials to becoming a key part of maritime modernisation,” it added.

Per region, Asia Pacific holds the second-largest share in the electric ship industry, supported by a strong shipbuilding industry, increased domestic demand, and government-led decarbonisation efforts.

China is speficially expanding its deployment through large-scale electric ferry projects and port charging infrastructure, whilst Japan and South Korea are developing hybrid-electric applications and next-generation battery solutions for civilian and defense use.

The passenger ship segment is expected to hold the largest share of the electric ship market due to regulatory priorities, operational needs, and cost factors.

Meanwhile, the >7,560 kW segment is expected to lead the electric ship market, fuelled by the popularity of large-capacity vessels in global trade and defense.