Electric Boat Market

The Global Electric Boat Market had a value of $5.0 billion in 2021 and is expected to reach $16.6 billion by 2030, experiencing a compound annual growth rate (CAGR) of 12.9% from 2023 to 2030.

Electric boats are watercraft that utilize electric propulsion technology, using battery power to drive the rotor and achieve optimal speed. These boats can be categorized as pure electric, hydrogen fuel cell electric, or hybrid electric, depending on their power source. Key components of electric boats include the electric charger, battery bank, controller, and electric motor. The electric charger manages and regulates the charging process based on the battery's capacity. The battery bank stores the energy required for propelling electric boats. The transformer controller is an electrical device that transfers energy between two circuits. The motor controller converts direct current into alternating current, while the electric motor enables precise control and maneuverability of the boat. Moreover, electric boats operate on clean energy, emitting no pollution. The batteries used in electric boats are similar to those found in electric vehicles.

The COVID-19 pandemic has had various repercussions on the development and launch of electric boats and propulsion systems, including delays, operational slowdowns among key players, and component shortages. The pandemic has disrupted supply chains, leading to postponed production of electric boats. The maritime industry, which plays a vital role in the supply chains of different countries, has been heavily impacted by the pandemic. Manufacturing, a crucial aspect of the shipping industry, was halted to protect individuals from the SARS-CoV-2 virus, resulting in significant obstacles. Additionally, regulations related to the import and export of goods have caused component shortages, further delaying the manufacturing and release of electric boats. Repairing vessels has also become a primary issue for the shipping and boating sector, leading to operational failures and delays caused by unexpected breakdowns. Furthermore, travel restrictions imposed due to the pandemic have posed challenges for engineers in conducting routine maintenance. However, with governments implementing relaxations to improve economic conditions, the boating sector has experienced substantial growth in 2021. Boating and fishing remain the most popular leisure activities in the United States, with nearly 100 million Americans participating in boating each year. With the growing trend of remote work and flexible schedules, people are increasingly seeking water adventures.

The rise in pollution levels and the growing awareness of climate conservation have prompted businesses worldwide to adopt green technology in their applications. Electric boats contribute to the reduction of harmful gas emissions in the atmosphere. Many governments have implemented emission regulations or standards to control air pollution and define the permissible levels of air pollutants released into the atmosphere. Consequently, numerous countries have shifted towards battery-based technologies. Battery-powered boats operate without smoke, noise, or odor. However, electric boats have limited range as they require frequent docking to charge their batteries. One notable advantage of electric engines over combustion engines is their quick initial acceleration. While electric engines can achieve high speeds rapidly, they require a certain speed threshold to ignite and generate sufficient power for boat operation.

The global electric boat market is driven by several factors, including the growing environmental concerns and stringent emission regulations, the rise in seaborne trade activities, and the expansion of the marine tourism industry worldwide. However, the market growth is hindered by the limited battery capacity in electric boats and the high cost of electric propulsion systems. Nevertheless, there are opportunities for growth in the market, such as the development of charging infrastructure, government support to promote the adoption of electric boats, and technological advancements.

The electric boat industry is still in its early stages, with significant potential for future growth. As the majority of transportation fuels rely on petroleum, governments are taking initiatives to reduce carbon emissions and encourage consumers to embrace eco-friendly boats and ships, thereby driving the growth of the electric boat market. The environmental impact of emissions has led to a strong demand for alternative and environmentally beneficial products, further supporting market expansion. Additionally, regulations aimed at limiting greenhouse gas emissions from the freight industry contribute to the market's growth. The increased use of boats for transportation, leisure boat leasing, improving standards of living, and urbanization also contribute to the market's growth. Technological advancements in energy storage devices, coupled with increased investments from the defense sector, play a significant role in driving market growth. Furthermore, electric boats are incorporating various technological advancements, such as remote monitoring, warning systems, and dashboard monitoring, to meet consumer demands.

The electric boat market is categorized into various segments based on propulsion type, battery type, range, power output, application, and region. In terms of propulsion type, it is divided into pure electric boats and hybrid electric boats. The battery type segment includes lead-acid batteries, lithium-ion batteries, and nickel-based batteries. The range segment is further fragmented into four categories: less than 50 km, between 50 and 100 km, between 101 and 1,000 km, and greater than 1,000 km. Power output is classified into three groups: below 5kW, between 5kW and 30kW, and above 30kW. The application segment consists of passenger boats, cargo boats, and others. Geographically, the report analyzes the market across North America, Europe, Asia-Pacific, and LAMEA.

The report profiles several leading companies in the electric boat market, including: ABB Ltd., Aquawatt (Aquawatt Green Marine Technologies), Boesch Motorboote AG, Boote Marian GmbH, Candela Technology AB, Corvus Energy, Domini Yachts, Duffy Electric Boat Company, Echandia AB, ElectraCraft, Inc., Frauscher Bootswerft GmbH & Co KG, Greenline Yachts, Grove Boats SA, LearBoats USA, Inc., NavAlt Solar & Electric Boats Pvt. Ltd., Quadrofoil d.o.o., RAND Boats ApS, Ruban Bleu, Soel Yachts B.V., Torqeedo GmbH, Vision Marine Technologies Inc., X Shore, and Yamaha Motor Co., Ltd.

Introduction of stringent emission regulations

Electric boats utilize battery-powered rotors for propulsion, serving as a viable alternative to fuel-powered boats due to the implementation of strict government regulations aimed at reducing carbon emissions and increasing environmental awareness. Traditional boats emit significant amounts of exhaust gases, including nitrogen oxide, sulfur oxide, and CO2. Given that cargo ships are major contributors to pollution in seaports, there is a growing emphasis on minimizing emissions from boats and ships.

To address this issue, organizations like the International Maritime Organization (IMO) have implemented regulations to reduce emissions, which in turn, promotes the adoption of electric boats. For example, South Korea's 2030 Green Ship-K promotion strategy, a crucial part of their plans to achieve carbon-neutrality by 2050, focuses on advancing and expanding the use of low-carbon ship technology, including hydrogen fuel cells and propulsion systems.

Furthermore, electric boats operate on clean energy and offer advantages such as noiseless engines, lower maintenance costs, and other appealing features. These factors contribute to the increasing adoption of electric boats. Therefore, the growth of the electric boat industry is driven by the rising demand for environmentally friendly alternatives and the enforcement of stringent emission regulations.

Rise in seaborne trade activities

The shipping sector plays a crucial role in global trade, transporting approximately 90% of goods worldwide. However, it is also responsible for approximately 3% of global greenhouse gas emissions. According to the United Nations Conference on Trade and Development (UNCTAD), the annual growth in maritime trade is projected to slow down to 2.4% between 2023 and 2026, compared to the 2.9% growth observed from 2000 to 2020. Despite this slowdown, the adoption of electric boats is expected to increase due to the rise in seaborne trade activities, driven by increased consumer spending on goods and the growth of the e-commerce industry.

Traditionally, ships used in sea transportation rely on diesel engines, contributing to pollution through the emission of harmful gases. However, ship manufacturers are now focusing on the development and introduction of electric ships for goods transportation, which is anticipated to contribute to the market's growth. For example, in 2021, Asahi Tanker, a Japanese shipping company, unveiled a new electric vessel powered solely by lithium-ion batteries supplied by Corvus Energy. This innovative ship is expected to help the Japanese shipping industry address carbon dioxide emissions and air pollution caused by traditional ships. Therefore, the increasing seaborne trade activities are expected to drive the growth of the electric boat market.

Growth in marine tourism industry across the globe

Maritime tourism encompasses a range of sea-based tourist activities, including boating, cruising, yachting, and nautical sports. This sector has experienced significant growth worldwide in recent years. According to a review conducted by the World Economic Forum, maritime and coastal tourism is projected to grow globally at a rate of 3.5% by 2030.

Governments around the world have also taken initiatives to promote maritime travel and tourism. For example, in 2021, the Indian government announced plans to develop 78 maritime tourism landmarks across the country, aiming to enhance the development of existing lighthouses and their surrounding areas into unique maritime tourism destinations.

Furthermore, maritime tourism activities heavily rely on yachts, ferries, and cruise ships. Typically, these vessels operate using traditional fossil fuel-based engines, which emit harmful pollutants such as nitrogen oxide, sulfur oxide, and CO2. However, boat manufacturers have begun introducing electric-powered boats and ships to support marine tourism activities while also reducing carbon footprints and pollution. This trend contributes to the growth of the electric boat market. As an illustration, in 2023, Candela unveiled the P-8 Voyager electric boat, designed as a long-range water taxi for tourism purposes. It boasts a range of 40 nautical miles at a speed of 22 knots, showcasing the potential of electric boats in the maritime tourism sector.

Electric Boat Market Report Highlights

The electric boat market is segmented into Propulsion, Battery Type, Range, Power and Application.

By Propulsion  

• Pure Electric Boats
• Hybrid Electric Boats

By Battery Type             

• Lead-acid Battery
• Lithium-ion Battery
• Nickel-based Battery

By Range           

• Less than 50 km
• 50 to 100 km
• 101 to 1,000 km
• More than 1,000 km

By Power          

• Below 5 KW
• Between 5 KW to 30 KW
• Above 30 KW

By Application 

• Passenger Boats
• Cargo Boats
• Others

By Region          

• North America  (U.S., Canada, Mexico)
• Europe  (United Kingdom, Germany, France, Italy, Rest of Europe)
• Asia-Pacific  (China, Japan, India, South Korea, Rest Of Asia Pacific)
• LAMEA  (Latin America, Middle East, Africa)

Key Benefits For Stakeholders

• This report presents a comprehensive quantitative analysis of the electric boat market, covering market segments, current trends, estimations, and dynamics from 2021 to 2030. Its primary objective is to identify prevailing opportunities in the electric boat market.
• The report provides market research along with valuable information about key drivers, restraints, and opportunities influencing the market.
• Porter's five forces analysis is employed to highlight the power dynamics between buyers and suppliers, enabling stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer relationships.
• Through an in-depth analysis of the electric boat market segmentation, the report assists in identifying the existing market opportunities.
• Revenue contributions of major countries in each region are meticulously mapped to offer insights into their impact on the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the current market position of key players.
• The report includes a comprehensive analysis of regional and global electric boat market trends, key players, market segments, application areas, and market growth strategies.