Market Outlook
The Europe electric ships market is charting a brisk upward trajectory. Having reached an estimated USD 7.78 billion in 2024, it is forecast to grow to around USD 31.6 billion by 2035 — reflecting a healthy compound annual growth rate (CAGR) of approximately 13.59% from 2025 to 2035. This strong growth outlook is underpinned by mounting environmental regulation, rising pressure to decarbonise marine transport and increased investment in electric propulsion systems across Europe.
Industry Overview
In Europe, shipbuilding and marine-maritime operators are increasingly embracing electric and hybrid technologies. Traditional diesel-powered shipping is facing regulatory headwinds (for example, limits on sulphur content, emissions regulation), which is accelerating the shift toward electric ship propulsion Europe-wide. The industry is not only about new builds of fully electric vessels, but also the retrofitting of existing platforms with hybrid or fully electric systems. Furthermore, the marine tourism, ferry and short-range cargo segments are becoming early adopters of these technologies.
Key Players
The market features a robust roster of major players driving innovation in electric ship solutions. Among them are BAE Systems plc (UK), Kongsberg Maritime (Norway), Wärtsilä (Finland), Siemens AG (Germany), ABB Group (Switzerland), Leclanché SA (Switzerland), AKASOL AG (Germany), Norwegian Electric Systems (Norway) and Volvo Penta (Sweden). These companies bring expertise in propulsion systems, battery and energy storage systems, power conversion and distribution – all critical to the electric ship ecosystem.
Segmentation Growth
The segmentation of the Europe electric ships market Trends spans several axes: type (fully electric vs hybrid), system (energy storage, power generation, conversion, distribution), ship type (commercial vs defence), power classification (<75 kW, 75–150 kW, 151–745 kW, 746–7,560 kW) and range (<50 km, 50–100 km, 101–1,000 km, >1,000 km). Among these, the fully electric segment is currently dominant because such vessels are particularly suited for short-range operations (e.g., ferries) and produce lower noise. For systems, energy storage systems (ESS) are forecast to grow at the highest CAGR, given their role in enabling efficient electric propulsion. On ship type, the commercial segment (which includes passenger ferries, small cargo vessels) is expected to grow fastest, largely driven by the short-range operational profile that suits fully electric solutions. In range terms, vessels operating under 50 km hold strong growth potential due to the low barrier for deploying electric propulsion in this regime.
Conclusion
For stakeholders in the maritime and marine-technology sectors, the Europe electric ships market offers a compelling growth arena. The convergence of regulatory push, technological maturity in batteries and power systems, and a practical case for short-range electric vessels is creating a robust growth runway. As key players invest in R&D and demonstration projects, and as segmentation trends (fully electric, ESS, commercial vessels) gain solid ground, the market is positioned for a transformational decade ahead.