Market Insight-Global Ship Lithium Battery System Market Overview 2025
Global Ship Lithium Battery System Market Was Valued at USD 1.09 Billion in 2024 and is Expected to Reach USD 5.32 Billion by the End of 2033, Growing at a CAGR of 18.38% Between 2025 and 2033.– Bossonresearch.com
The ship lithium battery system refers to an integrated energy storage solution designed for maritime applications, providing power for propulsion, auxiliary systems, and onboard electrical needs in vessels ranging from small ferries to large commercial ships. These systems utilize rechargeable lithium-ion batteries known for their high energy density, long cycle life, and fast charging capabilities, which make them particularly suitable for marine operations. The system typically includes battery modules, battery management systems (BMS), thermal management, and safety mechanisms to ensure stable and efficient performance under varying sea conditions. As the maritime industry shifts towards decarbonization and compliance with stricter environmental regulations, lithium battery systems have become a pivotal technology enabling electric and hybrid-electric ship designs.
In 2024, the global ship lithium battery system market is estimated at USD 1,093.33 million, based on aggregated data reflecting marine electrification trends, battery demand, and ongoing shipbuilding electrification projects. From 2024 to 2033, the market is forecast to grow at a compound annual growth rate (CAGR) of 18.38%, propelled by the intensified global drive for maritime decarbonization. A major catalyst is the tightening of environmental regulations by the International Maritime Organization (IMO), compelling fleet operators to shift toward cleaner propulsion alternatives. The declining cost of lithium-ion battery technology, coupled with increasing preference for hybrid and fully electric propulsion in short-range vessels such as ferries, tugboats, and harbor crafts, is further boosting market growth. Additionally, port authorities and governments in Europe, North America, and Asia provide financial incentives and mandates promoting zero-emission vessels, which significantly accelerates market momentum.
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Figure 1. Figure Global Ship Lithium Battery System Market Size (M USD)
Source: Bossonresearch.com, 2025
Ship Lithium Battery System Industry Chain Analysis
Figure 2. Industry Chain Map of Ship Lithium Battery System
Source: Secondary Sources, 2025
Driving Factors
Significant Emission Reduction Potential in Shipping
According to the IMO’s Fourth Greenhouse Gas Study, the global shipping industry's CO₂-equivalent emissions rose from 794 million tonnes in 2008 to 1.076 billion tonnes in 2018, with an average annual growth rate of 3.1%—highlighting the substantial emissions footprint of the sector.
In recent years, growing global attention to environmental protection and sustainable development has led major international organizations to propose emission reduction strategies. In 2015, the United Nations Environment Programme released the Emissions Gap Report, projecting a 25% reduction from baseline global emissions by 2030. In 2018, the International Maritime Organization (IMO) reached an “initial strategy” on reducing carbon emissions from the shipping sector, targeting a 50% reduction in total CO₂ emissions by 2050. In 2023, the IMO adopted the 2023 IMO Strategy on Reduction of GHG Emissions from Ships, which reaffirmed international climate commitments and set new goals: by 2030, total GHG emissions from international shipping should be reduced by at least 20% (with an ambition of 30%) compared to 2008 levels, and by at least 70% (with an ambition of 80%) by 2040.
As global consensus on maritime decarbonization solidifies, electric ships are seeing rapid development. European and American countries have also responded by tightening controls on shipping emissions. In 2023, the EU announced legislative reforms to include the shipping industry in the EU Emissions Trading System (EU ETS).
According to IEA statistics, international shipping CO₂ emissions rebounded by 5% in 2022 following a sharp drop in 2020, returning to 2017–2018 levels. Regulatory pressure on decarbonizing ships is expected to intensify further, accelerating the shift toward electric and hybrid vessels. This trend is driving the rapid development of technologies such as ship lithium battery systems.
CO2 emissions from international shipping in the Net Zero Scenario, 2000-2030 (Source: IEA):
Electric Ships Offer Multiple Advantages
New energy vessels have clear advantages over conventional diesel ships in terms of operating costs and energy efficiency. The energy conversion efficiency of battery-powered propulsion systems is around 90%, significantly higher than that of diesel engines (35–40%). This helps lower fuel costs, reduce emission penalties, and minimize wear on mechanical components—thereby improving total cost of ownership (TCO). Although electric ships currently cost about 40% more than traditional ships, fuel expenses are expected to fall by approximately 40%. Additionally, reductions in crew size and maintenance costs can further reduce long-term expenses.
Moreover, new energy ships are environmentally friendly, emitting no air pollutants during operation and reducing the risk of water contamination from fuel. They also offer greater flexibility and adaptability in terms of energy supply and navigation strategies, with integrated, intelligent, and easy-to-operate electric equipment. Higher levels of automation make it easier to adopt a “machine-driving integration” model. These advantages not only boost the competitiveness of the maritime industry but also support its green and sustainable development.
Rapid Decline in Battery Costs
Over the past decade, the price of lithium-ion batteries has fallen significantly, primarily due to economies of scale in the electric vehicle (EV) sector—fundamentally reshaping the economic landscape.
According to the U.S. Department of Energy’s Vehicle Technologies Office, the cost of EV lithium-ion battery packs fell by about 90% from 2008 to 2023 (adjusted for inflation). Goldman Sachs forecasts that the average global battery price will fall to $80/kWh by 2026—almost 50% lower than in 2023.
This decline is driven by multiple factors:
l Raw material and component prices have fallen since lithium peaked in late 2022 and entered a downward phase.
l Technological advances have enabled the production of higher energy-density cells, allowing more power to be stored in compact spaces.
l Innovations in manufacturing, such as centralized vehicle architecture and integrated die casting, have streamlined processes, cutting production time and cost.
l Large-scale production has played a critical role—higher output brings down per-unit costs
Taking into account fuel savings (in hybrids) or fuel cost elimination (in full-electric systems), reduced maintenance from fewer moving parts, and government incentives, the TCO of electric and hybrid ships is now highly competitive with diesel-powered vessels—particularly in short-sea shipping, ferries, and offshore support vessels. Higher economic viability boosts industry confidence, creating a positive feedback loop: early adoption drives production, which reduces costs and accelerates broader market penetration.
Government Policies and Incentives
Government policies and incentives are strong catalysts for the marine lithium battery market, with financial subsidies significantly lowering the capital investment threshold for shipowners.
In China, multiple supportive policies have been introduced:
l Outline for the Development of Inland Waterway Shipping (2020)
l Implementation Plan for the Synergy of Pollution Reduction and Carbon Reduction (2022)
l Memorandum of Cooperation for Accelerating the Green and Intelligent Development of Inland River Ships (2023)
These aim to promote energy-efficient, eco-friendly ships and the construction of port-side power facilities. For instance, Yichang City in the Yangtze River Basin issued the Opinions on Building a Model City for the Protection of the Yangtze River (2022) and the Yangtze River Electrification Five-Year Action Plan (2023) to foster the green, intelligent ship industry and establish a pilot region for inland waterway electrification.
In Norway, the government has funded approximately $108 million for 14 ammonia-, hydrogen-, and battery-powered vessels and related support technologies via its Enova SF program, which promotes green innovation. Since October 2021, Enova’s annual budget has nearly tripled—from $290 million to over $800 million.
China also encourages new energy vessel construction as replacements for scrapped ships, providing subsidies ranging from ¥1,000 to ¥2,200 per gross ton, depending on vessel type.
Gradual Improvement of Refueling Infrastructure
The expansion of charging infrastructure, battery-swapping systems, and smart ports is essential to unlocking the full potential of lithium-powered ships. Until recently, the lack of port infrastructure was a key bottleneck. That is now changing rapidly. Ports across Europe, China, and North America are investing in megawatt-scale ship charging stations to enable fast turnaround for electric ferries, tugboats, and patrol vessels.
Widespread deployment of electric vessels requires parallel development of shore-based charging capacity. EU regulations mandate that major passenger and container terminals be equipped with shore power by 2030—forcing over 2,400 European ports to upgrade their electrical grids and install high-voltage fast-charging systems. Similarly, Chinese policy aims for 100% shore power coverage at cruise terminals by the end of 2024 and 90% coverage at international container ports by the end of 2025.
Meanwhile, leading ports are piloting megawatt-scale DC fast-charging stations paired with renewable-powered storage systems. For example, Port of San Diego is installing a hybrid grid charging station for the eWolf fully electric tug. Each container houses up to 1.5 MWh of battery capacity, with a total output of 2,990 kW.
The rollout of international standards (e.g., IEC 80005-3 and ISO 23316) is solving ship-to-shore compatibility issues. The energy replenishment network is evolving from isolated “demo chargers” to interconnected systems—reducing shipowners’ range anxiety and enabling business models such as battery leasing, battery swapping, and “Energy-as-a-Service.” As the ecosystem matures, it reduces deployment risk and accelerates market momentum—especially in high-traffic waterways and regional ferry networks.
Key Development Trends
Growth in Maritime Trade and Activities
As global demand for diversified and resilient supply chains continues to rise, maritime trade activity has significantly increased, driving the growth in both the number of vessels and operating frequencies. Under the dual pressure of carbon emissions regulations and rising operational costs, shipowners and operators are actively seeking clean energy alternatives. Lithium battery systems, with their high energy efficiency, low maintenance, and zero-emission characteristics, have emerged as ideal power solutions for port service vessels, short-distance transport ships, and auxiliary vessels, accelerating the broader electrification of maritime fleets.
Meanwhile, the global marine tourism market is also expanding, with strong demand for cruise ships, sightseeing boats, and small yachts. Tourists and tourism authorities are placing greater emphasis on environmental protection, placing stricter environmental constraints on traditional fuel-powered ships. Lithium battery systems, due to their quiet operation and zero exhaust emissions, are increasingly being adopted for vessels operating in tourist attractions, small ferry routes, and ecologically sensitive areas—becoming key equipment for promoting green tourism and enhancing passenger experience.
Additionally, numerous coastal and island nations are investing in maritime infrastructure and port connectivity, aiming to build green and smart port systems. According to UNCTAD, the ocean economy has grown 2.5 times since 1995, with the total trade of ocean-based goods and services reaching USD 2.2 trillion in 2023—highlighting the importance of the marine economy. Governments are optimizing maritime economic policies while simultaneously encouraging the adoption of green vessels and zero-emission propulsion systems, creating a favorable environment for the widespread deployment of lithium battery systems in the global ship market.
Continuous Growth in Electric Ship Penetration
Globally, there is a growing push for greener shipping. Electrification of ships has become a key path to reducing carbon emissions and air pollution in the maritime sector. Thanks to significant potential for market penetration and the strong demand for high-capacity batteries, electric ships are emerging as a new focal point in the industry. From ferries to cargo ships, more operators are transitioning to electric propulsion systems, driven by improvements in battery efficiency and energy storage capacity. The spread of electric propulsion is not just a technological leap, but a strategic response to increasingly strict environmental regulations and global sustainability goals.
The market demand for electric ships is vast and promising. For example, Europe has over 37,000 km of inland waterways and 70,000 km of coastline, serving 48 million citizens regularly engaged in marine recreational activities, including 36 million boaters, and attracting countless tourists. The region is home to over 6 million vessels and more than 10,000 marinas, offering over 1 million berths in inland and coastal areas—creating massive demand for electric ships and shore power supplies.
Electric ships have also become a new "blue ocean" for battery companies. In its 2024 earnings report, CATL announced that it will leverage its existing strengths to explore and expand into new application fields, including construction machinery, ships, and aircraft. In March 2025, CALB released its latest marine battery product portfolio, covering both energy-type (320Ah) and power-type (230Ah) long-life cells, and introduced a 163Ah 2C fast-charging cell (L173F163), capable of continuous 2C and peak 4C high-rate charging/discharging while ensuring long cycle life. Mass production of the 2C fast-charging system is expected in Q3 2025.
In May 2024, the UK’s DFDS announced a €1 billion investment to build six battery-powered vessels for the Dover–Calais/Dunkirk route, with the first vessel entering service by 2030. These deployments reflect the ongoing electrification of short and high-utilization maritime routes. As fleets operate successfully, demand is rapidly growing, and the penetration rate of electric ships is expected to continue rising.
LFP Batteries Continue to Dominate
Technological development in the marine lithium battery market is advancing rapidly, focusing on enhancing safety, increasing energy density, and extending lifespan to meet the harsh demands of marine environments. Early systems often used nickel manganese cobalt (NMC) batteries for their high energy density, but the market is now undergoing a significant strategic shift toward lithium iron phosphate (LFP) batteries.
On May 19, 2025, Hubei Wanrun New Energy Technology announced a major five-year contract with CATL to supply approximately 1.3231 million tons of LFP cathode materials from May 2025 to 2030. This deal marks the largest single procurement agreement in the LFP field to date, signaling long-term confidence in LFP technology among top battery manufacturers. In China, numerous raw material firms are signing large supply contracts with battery vendors, establishing a robust industrial synergy. Additionally, major automakers like Volkswagen and BMW are incorporating LFP batteries into their product roadmaps, accelerating global adoption.
Since 2021, the market share of LFP batteries has gradually surpassed that of ternary lithium batteries, with continuous improvements in performance. According to the China Automotive Power Battery Industry Innovation Alliance, in 2024, LFP batteries accounted for 409 GWh in cumulative vehicle installations, or 74.6% of the total. From January to April 2025, LFP batteries reached 150 GWh in installations, representing 81.4% of the total and an 88% year-on-year increase. In the energy storage sector, LFP batteries now exceed 90% market share, making them the dominant choice. Data from EVTank shows that in 2024, LFP batteries accounted for 92.5% of global energy storage battery deployments.
In the long term, ternary materials are still expected to dominate high-energy-density solid-state battery chemistries. As solid-state battery technology matures and scales up, ternary material demand may see a moderate rebound. However, the widespread adoption of LFP will likely persist until semi-solid, manganese-based LFP, or sodium-ion batteries achieve significant market presence.
Global Ship Lithium Battery System Market: Competitive Landscape
The market concentration among global ship lithium battery system manufacturers remains relatively fragmented, with the top five companies’ combined market share (CR5) slightly decreasing from 29.02% in 2023 to 27.60% in 2025. This trend reflects intensifying competition and the gradual entrance of new players. The Herfindahl-Hirschman Index (HHI), a measure of market concentration, similarly declines from 1.77% in 2023 to 1.60% in 2025, confirming the trend toward more competitive dynamics. While an HHI below 1.5 typically indicates high competitiveness, the ship lithium battery sector’s current HHI slightly exceeds this threshold but is evidently moving in that direction. This decentralization highlights increased regional participation and diversification in ship types and geographic demand. The market is undergoing a transformation characterized by innovation, application specialization, and localization of value chains, reshaping competitive landscapes.
Key current market participants include CALB, Corvus Energy, BorgWarner, CATL, EVE Battery, BYD, Gotion High-tech Co., Ltd, Nidec Conversion, Tianjin Lishen Battery Joint-Stock Co., Ltd, Trojan Battery Company, Saft, Toshiba Corporation, Eikto Battery, Sunwoda Electronic Co., Ltd, Guangzhou Great Power Energy & Technology Co., Ltd, RACERN Technology, Freudenberg, Forsee Power, Shuangdeng Group, Mastervolt, Lithium Werks, REPT BATTERO Energy Co. Ltd, EST-Floattech, and BigBattery.
Figure 3. The Global 5 Largest Players: Market Share by Ship Lithium Battery System Revenue in 2024
Source: Above companies; Secondary Sources and Bosson Research, 2025
Key players in the Ship Lithium Battery System Market include:
CALB
Corvus Energy
BorgWarner
CATL
EVE Battery
BYD
Gotion High-tech Co., Ltd
Nidec Conversion
Tianjin Lishen Battery Joint-Stock Co., Ltd
Trojan Battery Company
Saft
Toshiba Corporation
Eikto Battery
Sunwoda Electronic Co., Ltd
Guangzhou Great Power Energy
RACERN Technology
Freudenberg
Forsee Power
Shuangdeng Group
Mastervolt
Lithium Werks
REPT BATTERO Energy Co Ltd
EST-Floattech
BigBattery
Others
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