Major Players and Technologies Shaping the Europe Electric Ships Market
The European electric-ships market is on a robust upward trajectory. According to MRFR, the region’s market is projected to grow from USD 7.78 billion in 2024 to USD 31.6 billion by 2035, reflecting a compelling Compound Annual Growth Rate (CAGR) of approximately 13.59% over the forecast period (2025-2035). This growth is underpinned by regulatory pressure (in particular through the International Maritime Organization’s sulfur regulations), the shift to zero-emission or low-emission maritime transport, and the retrofit and new-build demand for electric and hybrid propulsion systems.
Breaking down the growth: the 2024 baseline of USD 7.78 billion signals the market is already substantial. The leap to USD 31.6 billion by 2035 implies more than a quadrupling of market value across roughly a decade. That suggests large-scale uptake of electric ships, especially in Europe where environmental and decarbonisation mandates drive shipping sector transformation.
MRFR segments highlight that the fully-electric type leads currently (versus hybrid) on account of suitability for short-range passenger vessels and silent, low-emission operation. By system: energy storage systems (ESS) are anticipated to register the highest CAGR during the forecast period—reflecting the importance of battery systems, power-storage, and supporting infrastructure in enabling electric ship adoption.
By ship type: the commercial segment (passenger, cargo, other commercial shipping) is projected to grow the fastest compared to defence. Again, this signals that many operators of passenger ferries, short-sea ships and inland vessels will lead the transition.
By power rating, ships in the 75-150 kW band are expected to record highest growth—this is interesting because that power band often corresponds to large passenger ferries or smaller commercial vessels, so not the ultra-large ocean-going vessels, but rather short-haul, regional vessels.
By range: vessels with range <50 km are anticipated to post the highest growth rate—again consistent with short-haul ferries, coastal vessels, possibly cargo feeders, where electrification is most viable.
Regionally within Europe, the U.K. market is expected to dominate. Germany holds the second-largest share due to its ship-building prowess and commercial shipping infrastructure. France is expected to grow the fastest in the forecast period, driven by maritime tourism.