Gas-powered engines have been the backbone of boating since the advent of the internal combustion engine, but electric-powered boats could soon be claiming a significant share of the market.
Most of the fuel used in transportation is petroleum-based, but initiatives by many governments to reduce carbon emissions and to encourage consumers to adopt eco-friendly boats and ships is expected to boost growth of the electric boat market. The electric boat industry is still in early stages of development and there is a potential for growth.
Electric boats are defined as marine vessels with electric drive as propulsion. Electric boats can be only electric, hydrogen fuel cell electric, or hybrid electric.
E-Boats run on clean energy and do not create any pollution. Batteries used in electric boats are very similar to those used in electric vehicles. A battery bank stores energy to propel electric boats. The motor controller converts direct current into alternating current, while the electric motor allows boats to operate, offering control of the boat.
The global electric boat market was valued at $5.0 billion in 2021 and is projected to reach $18.5 billion by 2031, growing at a CAGR of 12.9% from 2022 to 2031.
Demand Drivers:
- INCREASED pollution levels and a growing awareness of climate conservation has caused many businesses/consumers to shift to green technology using battery powered boats.
- governments are implementing emission regulations that regulate air pollution.
- Organizations such as the International Maritime Organization (IMO) have implemented numerous regulations.
- Growth in the marine tourism/recreational industry.
- Growth and development of battery charging infrastructure.
- Technological advancements, especially in battery technology.
- Electric boats run on clean energy and offer quiet engines, lower operating costs and reduced maintenance.
- increased “staycations” due to Covid.
Restraints on Electric Boat Market Growth:
- Limited capacity of batteries
- High cost of electric propulsion systems
- Limited number of charging stations
Solar electric boats offer numerous benefits, including low maintenance requirements, fewer vibrations, fuel economy, no oil/gas contamination, and a decrease in overall weight.
Solar energy helps control the flow of electricity to rechargeable batteries, and solar-electric boats can run at low operational costs, making them the most preferred option for users compared to fuel-based boats with a high need for regular maintenance. These benefits are expected to bolster the demand for solar-electric boats in the coming years.
Electric boating is still in its infancy, and it is experiencing some growing pains. Electric boating is sorting out how it can produce key performance metrics such as range, total energy output, and reliability that are on par with gas-powered boats, but the advantages of electric boating are emerging as a viable alternative to gas-powered engines. PSR
Michael Aistrup is Senior Analyst at Power Systems Research
