Electric ship market CAGR will be 19% between 2026 and 2032

From January 2026, visitors to the Trondheim fjords will be able to travel by electric hydrofoil. Uber Boat by Thames Clippers has introduced the electric passenger ferry Orbit Clipper to the Thames. It is the first fully electric ferry with zero emissions in the UK. The Busan Port Authority (BPA) has taken delivery of a passenger ferry from the Kangman Corporation shipyard, which is the first stage of replacing 140 diesel-engine vessels with electric-powered ferries by 2030. Demand for electric vessels will grow at an average annual rate of approximately 19% over the next five years.

CRIST has delivered a series of electric ferries, which have proven their worth in Finnish waters. Remontowa recently secured an order to build a series of 50-meter electric ferries for Caledonian Maritime Assets Limited. In July of last year, Remontowa Shipbuilding SA has launched a passenger and car ferry for Torghatten Nord AS. The market for electric ferries continues to grow. The competence and potential of the Polish shipbuilding industry therefore offers opportunities.

Fastest Electric Ship Sails in the Fjords

For now, the world’s fastest electric passenger ship will be sailing between Frosta Brygge and Trondheim. This is the result of the Frostabåten project, implemented in collaboration with local authorities, NTNU, and private partners. The P-12 is no ordinary ferry. With a cruising speed of 25 knots and a range of 40 nautical miles on electric propulsion, it is the fastest and longest electric passenger ship in the world. Advanced hydrofoil technology floats the hull above the water, reducing energy consumption by 80% compared to conventional ferries and ensuring a quiet, emission-free journey, explains the manufacturer.

The ferry will significantly improve transport connections between Frosta and Trondheim. Currently, the journey to Trondheim city center by car or bus takes approximately 90 minutes. The P-12 ferry service reduces this time to 30 minutes. This will save commuters almost two hours a day, emphasizes the Trondheim administration. The electric hydrofoil connection reactivates a ferry service that was closed in 1970. Transport was also provided by a hydrofoil, then powered by a diesel engine.

The designers emphasize that the P-12 charges using a standard DC car charger. This means operations are affordable and scalable. Norway is a world leader in the electrification of land and water transport. Electric car use is widespread here, thanks to a dense network of charging stations.

“Waterways are another area where breakthroughs will occur.” Thanks to our technology, this shift could not only become significantly cheaper than operating diesel-powered vessels, but also make new routes profitable—or, as in the case of Frost, revitalize routes that were not economically sustainable in competition with road traffic,” says Alexander Sifvert of Candela.

The Frostabåten project will begin in January 2026, and its partners include the Port of Trondheim, the Ocean Autonomy Cluster, and the NTNU Shore Control Lab. If successful, it could accelerate the development of waterborne transport services in the Norwegian fjords. Norway’s increasing investment in the commercial development of electric ships could present an opportunity for Polish design offices, shipyards, and their partners.

Asia is Electrifying

The global electric ship market is expected to generate significant demand for shipyards experienced in producing innovative vessels. Demand isn’t limited to small electric ships. Over a year ago, COSCO Shipping launched the world’s first 10,000-tonne electric container ship.

The ship was built at the Heavy Industrial Shipyard in Yangzhou Province. The combined battery capacity of the Green Water 02 and Green Water 01 ships is over 50,000 kWh. Candela recently announced the sale of 11 P-12 electric ferries to JalVimana Shuttles in Mumbai. This is the largest contract to date for the delivery of such a large series of electric vessels. The P-12 hydrofoils will serve two of Mumbai’s busiest routes: the Gateway of India – Alibaug and the Gateway of India – Elephanta Island.

The Thames Clippers Uber Boat ferry was built with partial funding from the Department for Transport and Innovate UK. The ferry was built by Wight Shipyard Company, a manufacturer of high-speed aluminum vessels. Engineers from Beckett Rankine, a civil engineering consultancy, participated in the vessel’s development. The Aqua SuperPower team was responsible for the design of the electrical infrastructure-based systems.

The market is growing rapidly. According to a new report by Markets and Markets, the global electric ship market is expected to grow from $4.85 billion in 2025 to $18.39 billion by 2032. ZION experts predict it could reach as much as $18.73 billion. Markets and Markets estimates that the market will grow at a compound annual growth rate of 21%. ZION more conservatively forecasts a CAGR of 18.86% from 2024.

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

Analysts at the firm attribute the growing demand for electric ships to the fact that “higher fuel and maintenance costs, while subsidies and funding for green [water transport – MG] strengthen operators’ arguments for replacing ships with electric ones.”

The growth in demand for electric ships is accelerating “thanks to support from regulators, shipowners, and port authorities for decarbonization, electric ships are moving from the testing phase to becoming a key element of the maritime sector’s modernization.”

By region, the Asia-Pacific region ranks second in the process of introducing electric ships into service. But the situation could quickly change, as in Mumbai. The governments of China, India, and South Korea are supporting the shipbuilding industry to overcome barriers related to demand and production costs.

China, in particular, is expanding its deployment through large-scale electric ferry projects and port charging infrastructure. Meanwhile, Japan and South Korea are widely deploying hybrid electric propulsion and next-generation battery solutions for civilian and defense use. Research indicates that the segment of ships with a power output >7,560 kW is expected to lead the electric ship market. Demand is already being recorded in the large-capacity vessel segment. A study is underway to assess the demand for vessels used for the protection and defense of maritime areas and borders.

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. Electric ships are currently considered dual-purpose products, and this is worth considering in our shipping industry as well.