Europe Electric Ships Market Share

Europe Electric Ships Market Share Analysis

Over time, the maritime industry has experienced notable growth, facilitating global trade and connections among nations. This mode of transport stands as a pivotal asset, facilitating the import and export of goods across numerous countries. As the industry expands, ensuring stringent standards pertaining to safety, security, and emissions becomes imperative for maritime authorities and organizations.

The United Nations Conference on Trade and Development underscores the prominence of ship transport, contributing to over 80% of global transportation. Forecasts indicate a continual rise in oceanic transportation by 3.8% per annum until 2022. However, ships are substantial contributors to exhaust emissions, releasing sulfur oxides (Sox), nitrogen oxides (NOx), soot particles, fine dust, and carbon dioxide (CO2). A single large vessel emits the equivalent CO2 of 70,000 cars, NOx comparable to 2 million cars, and fine dust and carcinogenic particles equivalent to 2.5 million cars. Consequently, ships account for 15% of global nitrogen oxide emissions, posing a significant pollution challenge in seaports.

Addressing these concerns, the International Maritime Organization (IMO) has enforced the IMO 2020 regulation. Effective from January 1, 2020, this regulation reduces the permissible sulfur limit in fuel oil used aboard ships operating outside designated emission control areas from 3.50% m/m to 0.50% m/m. The primary objective is to curtail total greenhouse gas (GHG) emissions by 2050. This stringent regulation aims to notably diminish sulfur oxides emitted from ships, promising considerable health and environmental advantages, particularly for populations residing near ports and coastal areas.

Furthermore, in a bid to further mitigate greenhouse gas (GHG) emissions, shipbuilders and component manufacturers have been dedicatedly developing fully electric and hybrid ships over recent years. This initiative has encouraged ship operators to transition towards adopting fully electric and hybrid ships. Consequently, the implementation of the IMO 2020 regulation is anticipated to act as a catalyst propelling the growth of the global electric ships market during the forecast period.