Growing environmental concerns have prompted the shipping industry to adopt stringent measures to address greenhouse gas emissions, with fuel-powered ships being the primary source of such emissions. Additionally, alternative forms of ship propulsion, such as internal combustion engine hybridization, low-carbon fuels, and zero-carbon fuels, face significant challenges either in terms of cost or emission-reduction capability at present. In order to decarbonize navigation, countries are focusing the maritime industry’s transition towards low-carbon alternatives on transforming energy consumption, with widespread attention on the electrification of ships. Therefore, this paper provides a comprehensive review of the feasibility of fully electrifying ships, covering aspects such as technological prospects, economic viability, and emission-reduction capabilities. Firstly, the current state of research on ship electrification technology is summarized; the applicability of different battery types to electric ship technology is compared. Subsequently, the economic viability and emission-reduction capabilities of five different electric ship lifecycles are discussed separately. The results indicate that ship electrification is a key pathway to achieving zero-emission shipping, with lithium-ion batteries being the most suitable battery technology for maritime use currently. Short-to-medium-range electric ship types have demonstrated economic advantages over traditional diesel ships. As battery costs continue to decline and energy density keeps improving, the economic feasibility of ship electrification is expected to expand.