Rise of Electric Boats: Steering toward a Sustainable Future

In the last few years, the maritime industry has seen a significant transformation with the advent of electric boats. With the growing concerns over climate change and environmental sustainability, electric boats are offering a promising solution. They help reduce carbon emissions and minimize the ecological footprint of maritime activities. According to a data published by the Commerce Department’s U.S. Bureau of Economic Analysis (BEA) in 2022, the outdoor recreation economy reached around $1 Trillion. The growth in the outdoor recreational industry is largely driven by the expansion of the tours and travel industry.

Additionally, the development of transportation, hotels, and restaurants has contributed significantly to this growth. Over the past decade, outdoor recreational activities have seen immense development. Moreover, governments across the world are also implementing strategic initiatives to boost tourism in their country. Keeping in tab with some data, the Department of Commerce’s 2022 National Travel and Tourism Strategy aims to support a wide range of activities to boost travel and tourism across the United States. This strategy sets a five-year goal to achieve these objectives. The department also anticipates welcoming 90 million international visitors, estimated to spend $279 billion annually by 2027.

Recreational vehicle travel is one of the largest outdoor activities in the U.S. It accounted for $35.5 billion across 22 states. Boating and fishing generated $32.4 billion in 24 states, making it the second-highest contributor. Motorcycling and ATVing were valued at $11.5 billion, with Wisconsin leading among all states. Snow activities, valued at $7.0 billion, were led by Colorado, California, and Utah. The graph below depicts the amount of money spent on outdoor recreational activities in the U.S. Boating and fishing ranked second, and there is a growing trend of utilizing electric boats in the industry to reduce operational costs and provide quieter operation. With the growing trends toward fishing and boating activities, companies operating in the electric boat industry are anticipated to experience lucrative growth opportunities.

The above image represents the activity-based penetration of different outdoor sports for the year 2021 and 2022. Among them, the river activity held the major penetration of nearly 32% in the year 2021 & 37% in the year 2022. Other activities such as boating/fishing also holds a considerable penetration to sustain the race.

The projected growth of the maritime industry raises concerns about emissions, with the industry currently producing an estimated 1 billion metric tons annually—a figure that is expected to increase. To address these environmental challenges, governments and regulatory bodies have implemented several measures. One notable example is the International Maritime Organization's (IMO) 2020 sulphur cap, which limits the sulphur content in marine fuels to 0.5%. Such regulations are compelling fleet operators to adopt more environmentally friendly shipping practices.

In a significant development in 2021, Norway launched the world's first fully electric autonomous cargo vessel, the Yara Birkeland. This innovative ship, measuring 80 meters in length and weighing 3,200 tonnes, transported 120 containers of fertilizers from Porsgrunn to Brevik port. The Yara Birkeland, equipped with eight batteries totalling 6.8 MWh in capacity, marks a notable advancement in sustainable maritime technology.

Traditional ships have a significant environmental impact. A single ship can emit as much carbon dioxide as 70,000 cars, as much nitrogen oxide as two million cars, and other fine dust and carcinogenic particles equivalent to 2.5 million cars. Recognizing the potential for electric boats to mitigate these emissions, companies like Siemens AG and General Electric ABB are heavily investing in the development of electric boats and related technologies. The regulatory norms are getting tightened day by day. Accordingly, the demand for these boats is also expected to rise, promoting a more sustainable future for maritime transport.

This growing demand for cruise ships has prompted major countries worldwide to support the expansion of the cruise industry. India, with its extensive 7,500 km coastline and an interconnected network of 400 navigable rivers, is one such country taking advantage of its extensive waterways. The nation boasts a well-developed maritime infrastructure with 12 major ports and 200 minor ports. Recognizing the potential for growth, the Indian government has implemented the 'National Strategy for Cruise Tourism'. This initiative aims to transform India into a prime cruising destination for deep-sea, coastal, river, and yacht cruises by utilizing the country's natural, historical, and cultural tourism assets.

A major milestone in the Modi government's strategic initiatives was announced on January 13, 2023, with the inauguration of the world's longest cruise ship journey. This cruise embarks from Varanasi in Uttar Pradesh and travels to Dibrugarh in Assam, covering 3,200 km over 51 days. The journey explores through various northeastern states of India, showcasing the region's diverse landscapes and cultures before reaching its destination.

In another notable development, April 2019 witnessed the launch of Jalesh Cruises, an international-style cruise ship that sails from Mumbai to Goa. This launch marked a significant step in enhancing India's presence in the global cruise market. The increase in international tourism has led to significant investments in cruise ship development.

Regulation/Safety and Environmental Standards for Passenger Ships

The MARPOL Annex

MARPOL is an international convention for the prevention of pollution from ships; the regulations look after the prevention of marine pollution directly or indirectly from ships operating in the ocean. The regulations states that all passenger ships must comply with relevant energy efficiency and air pollution emission requirements. For instance, since January 1, 2020, ships outside emission control areas have been required to use fuel with a sulphur content of 0.50% instead of 3.5%. This change helps protect the health of people in ports, coastal areas, and on ships.

• MARPOL Annex I: Prevention of Pollution by Oil
• MARPOL Annex II: Control of Pollution by Noxious Liquid Substances in Bulk
• MARPOL Annex III: Prevention of Pollution by Harmful Substances Carried by Sea in Packaged Form
• MARPOL Annex IV: Prevention of Pollution by Sewage from Ships
• MARPOL Annex V: Prevention of Pollution by Garbage from Ships
• MARPOL Annex VI: Prevention of Air Pollution from Ships
• MARPOL Annex VII: Prevention of Pollution from Antifouling Systems
• MARPOL Annex VIII: Prevention of Pollution by Hazardous and Noxious Substances (HNS)

The International Convention for the Safety of Life at Sea (SOLAS)

The International Convention for the Safety of Life at Sea (SOLAS) provides guidelines regarding the construction and operation of operational ships in the ocean. The convention covers rules for machinery and electrical installations on ships, as well as fire detection, protection, and extinguishing systems. The amendments also look after the maritime security of the ships, including radio communication and navigation of the ships.

Case Study: General Dynamics Electric Boat (Artel’s FiberLink Ensures Reliable Audio/Data Transport for Major U.S. Shipyard)

Background: General Dynamics Electric Boat has been designing submarines since 1899. They started with USS Holland, the first undersea warship commissioned by the U.S. Navy. Throughout its history, the company has prioritized technical excellence, innovation, and meeting customer needs. This focus allows Electric Boat to consistently create and integrate advanced systems, delivering a series of pioneering ships to the Navy.

Problem Statement: General Dynamics Electric Boat currently employs fiber optic technology to facilitate audio and data transmission within a critical 24/7 emergency system at its Groton, Connecticut shipyard. This system, known as the Casualty Control (CASCON) System, is essential for U.S. Navy submarine construction operations. However, the company has expressed dissatisfaction with the performance of its current fiber transport equipment. Consequently, they are seeking an alternative solution that can handle the specific signal types involved, audio and RS data over multimode fiber, while enhancing signal integrity and overall system reliability.

Solution: The leading builder of submarines upgraded its CASCON System design with Artel’s FiberLink 5200/5201 systems, leveraging multi-mode fiber's benefits like high capacity, light weight, low loss, and immunity to electrical interference. These systems support bidirectional audio, RStype data, Ethernet, and contact closure over a single fiber pair. This upgrade ensures stable, long-term performance and meets shipyard safety system requirements effectively.

General Dynamics Electric Boat has 16 pairs of FL5200/5201 units that handle audio and RS-485 traffic from a central controlling station to 16 independent worksites throughout the shipyard. Each worksite has up to 20 emergency alert boxes, for a shipyard potential of 320. These boxes allow anyone, in an emergency, to pull a fire alarm and communicate with a specially trained Central CASCON operator. “The importance of this upgrade can’t be stressed enough. When our original fiber transport system was failing regularly, all construction in the shipyard came to a halt. Not only did construction stop, but it put personnel and equipment safety in jeopardy,” says Patrick Casey, Senior Systems Test Engineer at General Dynamics Electric Boat. He continues, “We have fully converted our system to all Artel components, and they are functioning great. We’ve seen a drastic improvement, and other engineers in our group have taken notice of the success we’ve had with Artel and are doing their own research into converting their fiber components.”

Result: By incorporating the Artel FiberLink 5200/5201 systems into the onboard fiber transport network, the company has resolved the signal integrity challenges in moving audio and data across its shipyard facility. As a result, the company can be confident in its ongoing ability to meet the stringent requirements of modern submarine construction. “The successful deployment of our FiberLink 5200 series by General Dynamics Electric Boat is another telling example of how Artel helps customers to address key requirements for projects in the government space,” says Paul Seiden, Artel Sales Director. He also states, “We’re committed to providing reliable, high-performance fiber solutions, and it’s great to see FiberLink deliver on that promise for General Dynamics Electric Boat.”

Industry Innovations

Key industry leaders are prioritizing technological innovation and the adoption of advanced technologies to stay ahead.

For example, on January 19, 2024, Yamaha Motor Co., Ltd. announced its acquisition of Torqeedo, a Germany-based electric boat drive manufacturer primarily operating in Europe. This strategic acquisition will enable Yamaha Motor Co., Ltd. to enhance its footprint in the electric motors, propellers, and electric systems market. Additionally, it will strengthen the company's R&D capabilities, mass-production capacity, and development resources for next-generation electric boats.

On May 29, 2024, Ruban Bleu Electric Boat introduced a new version of its iconic 5-seater ACE series electric boat. While maintaining similarities with its predecessor, the new model features a redesigned layout and minor modifications to the hull, resulting in improved overall manoeuvrability. Earlier, on March 3, 2022, RAND Boats launched a new series of luxury electric-powered boats. The Spirit 25 series, which also includes a gas-powered option, showcases stylish aesthetics and superior construction. This 25-foot lifestyle racer boat can accommodate around 9 passengers and features a versatile centre three-seat sofa with a flip-over backrest that converts into a dining area for about 6 people. Powered by 105 to 180 kW electric motors, the Spirit 25 series can reach a maximum speed of approximately 40 knots.

Summing up

Electric boats represent a significant step toward a more sustainable and environmentally friendly maritime industry. With their numerous advantages, including reduced emissions, lower operational costs, and enhanced energy efficiency, electric boats are expected to revolutionize recreational and commercial boating. The ongoing technological advancements and supportive policies are paving the way for a future where electric boats become the norm rather than the exception.

Allied Market Research explores electric boat technologies and related products, offering vendors detailed insights into this evolving field. Our curated reports cover technological advancements, market trends, and government initiatives, helping businesses integrate electric boats into their operations. To get more insights into the automotive & transportation domain, contact our specialists today!