Shore Power Market to Grow with a CAGR of 10.13% through 2028
Reducing
greenhouse gas emissions and advanced features of shore power are likely to
drive the market in the forecast period.
According to
TechSci Research report, “Shore Power Market – Global Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2028”, the Global Shore
Power Market is experiencing a surge in demand in the forecast period.
Shore
power helps in reducing greenhouse gases emission produced by auxiliary diesel
engines while docked. Therefore, governments are focusing on investing in this
technology in the global market. For instance, In June 2021, trade body
Maritime U.K. urged the government to invest USD 235 million marine power to
build a viable charging network and reduce port emissions. For instance, the
European Commission has mandated to the implementation of shore connection
systems to all European ports. Hence, such supportive government regulations
for reducing greenhouse gas emissions is likely to fuel the market growth
during the forecasted period.
Using
marine power enables ships at a dock or in a dry dock to use shoreside
electricity to power the onboard electrical systems, such as lighting,
ventilation, cargo pumps, communication, and other critical equipment while
turning off their auxiliary engines. It helps to reduce low-frequency noise and
vibration and allows the crew to save the ship’s diesel engines while berthed.
It is a critical way to reduce emissions and save costs for shipping companies.
Additionally, it is a quicker and cheaper short-term solution for allowing
shipping companies to achieve emissions targets. Hence, the aforementioned
advantageous features of this power are expected to drive the market.
The
international community's increasing emphasis on sustainable development has
prompted the maritime sector to seek environmentally friendly practices. For
instance, According to UNCTAD (United Nations Conference on Trade and
Development), Maritime trade is expected to grow 2.4% in 2023 and more than 2%
between 2024 and 2028. Shore power aligns with this agenda, offering a tangible
means to reduce the carbon footprint of shipping activities. Thus, the Global
Shore Power market is anticipated to grow.
Governments worldwide are recognizing
the importance of shore power in achieving environmental goals and are
implementing supportive policies and incentives. Financial incentives, tax
breaks, and grants are being offered to encourage ports and shipping companies
to invest in shore power infrastructure. For instance, the European Investment
Bank and stakeholders have committed to exerting optimal efforts to implement
onshore electricity supply by 2028, with a specific focus on cruise and
container vessels. The signatories further agreed to reward the most
environmentally friendly ship stopovers and promote actions which improve the
environment around ports, including through reducing stopover fees for greener
vessels. These initiatives not only foster a sustainable maritime industry but
also stimulate economic growth in the renewable energy and technology sectors.
Browse over XX Market
data Figures spread through XX Pages and an in-depth TOC on "Global Shore Power Market.”
The Global Shore
Power Market is segmented into type, application and region.
Based on installation,
Shoreside Installation dominated the global Shore Power market with a market
share of 68.03% in 2022. Shoreside
connections ensure ships have a consistent and efficient power supply. They may
turn off their onboard generators and rely on cleaner, more sustainable shore
electricity while parked. The shoreside market segment is leading the market as
it helps to eliminate ship engine emissions in port waters, reduces pollutants
by about 90%, and greenhouse gas emissions by 50%. Additionally, it reduces
noise, vibration, and engine wear and tear. The shipside segment is also
witnessing an increase in its market share due to a rise in demand for
passenger vessels and growing demand for merchant's vessels.
For instance, in
July 2023, ABB completed the sale of its Power Conversion division to AcBel
Polytech Inc. for USD 505 million in total. Additionally, July 2023- the new
Schneider Electric Easy UPS 3-Phase Modular is at the cutting edge of
dependability, scalability, and simplicity.
In June 2022,
Enova, a Norwegian government enterprise, supported five new shore projects in
the country with about USD 3.4 million. In addition, in February 2022, port
authorities and government ministers from across the globe signed a shore power
declaration at the One Ocean summit.
Hence, it is recommended that the key market
players in the global Shore Power market concentrate on the Shoreside
Installation segment to capitalize on favorable market prospect.
Based on Connection,
Retrofit Connection dominated the global Shore Power market with a market share
of 57.78% in 2022.
Retrofitting
existing vessels is often more cost-effective than building new vessels with
shore power capabilities. Additionally, many ports are already equipped with
shore power infrastructure, so retrofitting existing vessels allows them to
take advantage of this infrastructure. These are the factors driving the market
growth.
The growing
investments in retrofitting the ports will propel its demand in the market. For
instance, in October 2019, Global Ports Holding had started operations at the
Nassau cruise port, with an investment of USD 250 million for capacity
expansion and retrofitting the existing port.
In June 2021,
Antwerp, Bremerhaven, Hamburg, Haropa Port, and Rotterdam made a joint
declaration of zero-emission shipping in line with their green ports strategy.
The ports stressed a strong business case for retrofitting or equipping large
container ships for shore power and pointing to the readiness level among these
vessels to use cold ironing. Hence, an increasing number of terminals and
installation of retrofit systems on the port will bolster growth.
Thus, the global
Shore Power market players are advised to focus on this Retrofit Connection
segment to capitalize on lucrative market opportunities.
Major companies
operating in the Global Shore Power Market are:
- GE Power Conversion
- Siemens AG
- ABB Ltd
- Eaton Corporation plc
- Wartsila Corporation
- Westinghouse Air Brake Technologies Corporation
- SmartPlug Systems LLC
- AC Power Corporation
- Schneider Electric SE
- Danfoss A/S
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“The Global Shore
Power Market is expected to rise in the upcoming years and register a
significant CAGR during the forecast period. The primary driver propelling the global shore power market
is the increasing regulatory pressure on the maritime industry to curb
emissions. Stringent environmental standards set by international bodies and
governments worldwide mandate ports and shipping companies to adopt sustainable
practices. Shore power, offering an eco-friendly alternative by enabling
vessels to connect to the grid and power down onboard generators while docked,
aligns with these regulations. As the push for emission reduction intensifies,
the demand for shore power infrastructure rises, making it a pivotal driver in
reshaping the business landscape of the maritime sector. Therefore,
the Market of Shore Power is expected to boost in the upcoming years.,” said
Mr. Karan Chechi, Research Director with TechSci Research, a research-based
management consulting firm.
“Shore
Power Market - Global Industry Size, Share, Trends, Opportunity, and Forecast,
2018-2028 Segmented By Installation (Shoreside, Shipside), By Connection (New
installation, Retrofit), By Component (Transformer, Switchgear, Cables &
Accessories, Frequency Converter, Others), By Power Output (Upto 30 MVA, Above
30 MVA), By Region (Asia-Pacific, Europe, North America, Middle East &
Africa, South America), By Region, By Competition”, has evaluated
the future growth potential of Global Shore Power Market and provides statistics
& information on Market size, structure and future Market growth. The
report intends to provide cutting-edge Market intelligence and help decision-makers
make sound investment decisions., The report also identifies and analyzes the
emerging trends along with essential drivers, challenges, and opportunities in the
Global Shore Power Market.
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