Shore Power Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 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 2018-2028F

Market Overview

Global Shore Power Market was valued at USD 1202.91 million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 10.13% through 2028.

The shore power market refers to the emerging industry focused on providing electrical power to ships while they are docked or berthed at ports. Also known as "cold ironing" or alternative maritime power (AMP), shore power enables vessels to connect to the local electrical grid, allowing them to turn off their onboard generators during port stays. This technology aims to mitigate the environmental impact of maritime activities by reducing emissions of air pollutants and greenhouse gases associated with traditional diesel-powered generators.

The shore power market has gained prominence in response to increasingly stringent environmental regulations imposed by international maritime organizations and governments worldwide. As a sustainable and clean energy solution, shore power aligns with global efforts to enhance the environmental sustainability of the shipping industry. The market encompasses the development, implementation, and maintenance of shore power infrastructure at ports, as well as the onboard technology necessary for vessels to connect to and utilize electrical power from the shore during their time in port.

Key Market Drivers

Environmental Regulations and Sustainability Initiatives

The global shore power market is experiencing significant growth driven by the increasing stringency of environmental regulations and a growing emphasis on sustainability. Governments around the world are implementing stringent measures to reduce greenhouse gas emissions and combat climate change. As a result, the maritime industry is under increasing pressure to adopt cleaner technologies. Shore power, also known as cold ironing or alternative maritime power (AMP), emerges as a sustainable solution to mitigate the environmental impact of ships while in port.

In response to the International Maritime Organization's (IMO) regulations, which aim to reduce sulfur and nitrogen oxide emissions from ships, many ports are mandating the use of shore power. By connecting vessels to the electrical grid while berthed, ships can switch off their diesel generators, significantly reducing air pollution and noise. Ports in Europe, North America, and Asia are at the forefront of enforcing such regulations, creating a conducive environment for the growth of the global shore power market.

Additionally, the maritime industry is witnessing a shift in corporate responsibility, with many shipping companies voluntarily adopting sustainability initiatives. Shore power aligns with these initiatives, providing a tangible way for companies to showcase their commitment to environmentally friendly practices. As more companies seek to enhance their green credentials, the demand for shore power infrastructure is expected to rise, propelling the global shore power market forward.

Economic Benefits and Operational Efficiency

Beyond environmental considerations, the global shore power market is being propelled by the economic benefits and enhanced operational efficiency it offers to both shipping companies and port operators. Shore power allows vessels to rely on the grid for electricity, reducing the need for onboard diesel generators. This not only lowers fuel consumption but also decreases maintenance costs associated with running and maintaining these generators.

Shipping companies can take advantage of shore power to optimize their operational expenses. With fluctuating fuel prices and the volatility of the global energy market, shore power provides a more stable and potentially cost-effective source of energy for ships while in port. Moreover, reduced fuel consumption translates into lower greenhouse gas emissions, aligning economic advantages with environmental responsibility.

Ports also stand to benefit economically from the implementation of shore power infrastructure. As vessels switch to grid-based power, the demand for traditional bunker fuels decreases, impacting the port's emissions profile positively. Additionally, offering shore power can attract environmentally conscious shipping companies, enhancing the port's reputation and competitiveness. Ports positioned as sustainable and efficient hubs are more likely to attract shipping business and investments, contributing to the growth of the global shore power market.

Technological Advancements and Infrastructure Development

The global shore power market is riding on the wave of technological advancements and continuous infrastructure development. As technology evolves, new and more efficient shore power systems are being developed, enhancing the overall reliability and performance of these systems. Advanced power electronics, control systems, and communication technologies contribute to the development of smarter and more adaptable shore power solutions.

Infrastructure development plays a crucial role in the expansion of the shore power market. Ports worldwide are investing in the necessary infrastructure to accommodate shore power requirements. This includes the installation of electrical substations, connection points, and retrofitting existing terminals to support shore power capabilities. Governments and port authorities are recognizing the importance of such infrastructure to facilitate the adoption of shore power and are allocating funds for these developments.

The ongoing integration of renewable energy sources into the power grid further strengthens the appeal of shore power. Ports exploring combinations of shore power and renewable energy contribute to the reduction of carbon footprints associated with electricity generation. The synergy between technological advancements and infrastructure development sets the stage for the global shore power market to flourish, providing reliable and sustainable power solutions for the maritime industry.

Rising Public Awareness and Stakeholder Pressure

Public awareness and stakeholder pressure are becoming pivotal drivers of the global shore power market. As environmental issues gain prominence in public discourse, communities living near ports are increasingly concerned about the air quality and noise pollution generated by ships in port. Shore power addresses these concerns by significantly reducing emissions and noise when compared to traditional ship power sources.

Communities, environmental groups, and non-governmental organizations (NGOs) are putting pressure on both port authorities and shipping companies to adopt cleaner technologies, including shore power. This collective pressure is compelling the maritime industry to prioritize environmentally friendly practices to maintain a positive public image and social license to operate.

Shipping companies are recognizing the importance of aligning their operations with societal expectations and are proactively investing in technologies like shore power to demonstrate their commitment to sustainable practices. Ports that respond to these stakeholder pressures by implementing shore power infrastructure not only enhance their relationships with local communities but also position themselves as responsible and environmentally conscious entities.

The increasing role of social responsibility and stakeholder engagement in shaping business practices is likely to drive the global shore power market, as companies seek to meet the expectations of an environmentally aware public.

Energy Security and Grid Resilience

The global shore power market is gaining momentum due to the focus on energy security and the resilience of power grids. Shore power provides an alternative source of electricity for ships, reducing dependence on onboard generators and fossil fuels. This diversification of power sources enhances energy security for the maritime industry, particularly in regions prone to energy supply disruptions or facing challenges in securing a stable fuel supply.

As shore power becomes more integrated into port operations, it contributes to the overall resilience of power grids. By leveraging existing electrical infrastructure and connecting ships to the grid, ports can ensure a more stable and reliable power supply. This is particularly crucial for critical port activities, such as container handling, refrigeration, and security systems, which require a continuous and reliable power source.

The global shore power market is, therefore, driven by the recognition that shore power not only reduces the environmental impact of shipping but also enhances energy security and contributes to the resilience of the broader energy infrastructure. As ports and shipping companies prioritize these aspects, the adoption of shore power is expected to grow, further fueling the expansion of the market.

International Collaboration and Industry Standards

The growth of the global shore power market is facilitated by increased international collaboration and the establishment of industry standards. Recognizing the global nature of maritime trade, there is a growing effort to create standardized shore power solutions that can be universally adopted across different ports and vessels. This standardization streamlines the integration of shore power infrastructure, making it easier for shipping companies to comply with regulations and for ports to implement the necessary systems.

International organizations, such as the International Electrotechnical Commission (IEC) and the International Organization for Standardization (ISO), are actively involved in developing standards for shore power systems. These standards cover technical specifications, safety requirements, and interoperability, ensuring a consistent and reliable experience for both ports and vessels worldwide.

The collaboration between governments, port authorities, and industry stakeholders on a global scale is fostering a conducive environment for the growth of the shore power market. By aligning practices and ensuring interoperability, international collaboration reduces barriers to entry for shipping companies and encourages the widespread adoption of shore power as a standardized and reliable solution for emissions reduction in ports around the world.

In conclusion, the global shore power market is being propelled by a combination of environmental regulations, economic advantages, technological advancements, public awareness, energy security considerations, and international collaboration. As these drivers continue to influence the maritime industry, the adoption of shore power is expected to accelerate, contributing to a more sustainable and environmentally friendly future for port operations and shipping.

Government Policies are Likely to Propel the Market

Emission Reduction Mandates for Ports and Shipping Companies

Governments worldwide are increasingly recognizing the environmental impact of maritime activities and are implementing stringent policies to address air quality and reduce greenhouse gas emissions from ships. One significant government policy driving the global shore power market is the imposition of emission reduction mandates for both ports and shipping companies.

To combat air pollution and climate change, regulatory bodies such as the International Maritime Organization (IMO) are setting ambitious targets for the reduction of sulfur and nitrogen oxide emissions. Many governments are aligning their national regulations with these international standards, and as a result, ports are mandated to enforce the use of shore power as a viable solution to curb emissions when vessels are berthed.

Governments are incentivizing shipping companies to invest in shore power technology by offering subsidies, tax breaks, or other financial incentives. This proactive approach aims to accelerate the adoption of shore power and ensure compliance with emission reduction targets. As a result, the global shore power market is witnessing significant growth as shipping companies strategically align their operations with government policies to meet environmental standards.

Funding and Grants for Shore Power Infrastructure Development

Governments play a pivotal role in promoting the growth of the global shore power market by providing financial support for the development of shore power infrastructure. Recognizing the economic and environmental benefits of shore power, governments are allocating funds and offering grants to ports and terminal operators to invest in the necessary infrastructure.

Financial support from governments takes various forms, including grants for research and development, subsidies for the installation of shore power systems, and low-interest loans for infrastructure projects. These incentives are designed to alleviate the initial capital costs associated with the implementation of shore power, making it a more attractive option for ports and shipping companies.

By offering financial support, governments aim to accelerate the deployment of shore power infrastructure, contributing to the overall reduction of emissions from the maritime sector. This policy-driven investment not only benefits the environment but also stimulates economic growth by creating jobs and fostering innovation in the clean energy sector.

Regulatory Frameworks for Standardization and Interoperability

Standardization and interoperability are critical factors for the successful implementation of shore power on a global scale. Recognizing this, governments are actively developing regulatory frameworks to establish industry standards and ensure the compatibility of shore power systems across different ports and vessels.

Government policies in support of standardization involve collaboration with international organizations such as the International Electrotechnical Commission (IEC) and the International Organization for Standardization (ISO). These collaborations aim to create guidelines and regulations that cover technical specifications, safety standards, and communication protocols for shore power systems.

By fostering standardization and interoperability, governments are facilitating a smoother adoption of shore power technology. This approach benefits both shipping companies, which can expect consistent shore power infrastructure at various ports, and port operators, who can implement standardized systems more efficiently. The establishment of a regulatory framework for standardization is a crucial government policy driving the growth of the global shore power market.

Incentives for Green Shipping Technologies

Governments are increasingly recognizing the role of shipping companies in achieving national and international environmental goals. To encourage the adoption of green shipping technologies such as shore power, many governments are implementing policies that provide incentives for companies investing in environmentally friendly practices.

These incentives may come in the form of tax credits, grants, or preferential treatment in government procurement processes. By offering financial rewards, governments aim to motivate shipping companies to prioritize the implementation of shore power solutions and other sustainable technologies. This approach not only aligns with broader environmental policies but also stimulates innovation and investment in the green shipping sector.

Incentives for green shipping technologies create a positive economic environment for the global shore power market. Shipping companies that embrace sustainable practices can benefit from reduced operational costs and improved market competitiveness, while governments achieve their environmental targets.

Research and Development Initiatives

Government policies supporting research and development (R&D) initiatives are instrumental in advancing shore power technologies and enhancing their efficiency. Governments recognize the importance of continuous innovation to overcome challenges and optimize shore power systems for widespread adoption.

Through grants, subsidies, and collaborative programs, governments encourage public and private entities to invest in R&D projects focused on improving shore power infrastructure, reducing costs, and increasing energy efficiency. These initiatives aim to address technical challenges, such as compatibility with different ship types, voltage requirements, and grid integration.

Government-backed R&D policies not only drive technological advancements in the global shore power market but also contribute to the creation of a knowledge-sharing ecosystem. The collaboration between research institutions, industry players, and government agencies fosters innovation, accelerates the development of new technologies, and ensures the long-term sustainability of shore power solutions.

Cross-Border Collaboration and Harmonization

Given the global nature of maritime trade, cross-border collaboration and policy harmonization are essential for the effective implementation of shore power solutions. Governments are recognizing the need to work together to create a consistent regulatory environment that supports the adoption of shore power on an international scale.

Through bilateral and multilateral agreements, governments are promoting cross-border collaboration to align policies, share best practices, and facilitate the implementation of shore power infrastructure at ports worldwide. Harmonization efforts include standardizing technical specifications, safety regulations, and emission reduction targets, creating a cohesive framework for the global shore power market.

This collaborative approach not only benefits the maritime industry but also enhances international efforts to address climate change and air quality issues associated with shipping activities. Governments that actively engage in cross-border collaboration contribute to the growth of the global shore power market by creating a conducive environment for standardized and interoperable shore power solutions.

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Key Market Challenges

Infrastructure Investment and Retrofitting Costs

One significant challenge facing the global shore power market is the substantial upfront investment required for the development and retrofitting of shore power infrastructure at ports worldwide. While the long-term benefits of reduced emissions and operational costs are evident, the initial capital expenditure can be a significant barrier to entry for both port authorities and shipping companies.

Installing shore power infrastructure involves the construction of electrical substations, the installation of connection points on berths, and the adaptation of existing terminals to accommodate the necessary equipment. This retrofitting process can be complex and time-consuming, requiring coordination among multiple stakeholders, including port operators, utility companies, and regulatory bodies.

Port authorities often face challenges in securing the necessary funding for these infrastructure projects. While some governments provide financial incentives and grants to encourage the adoption of shore power, the available funds may not be sufficient to cover the entire cost of infrastructure development. This financial constraint can slow down the implementation of shore power projects, particularly in smaller ports or those located in economically disadvantaged regions.

Moreover, the retrofitting process itself can lead to operational disruptions at ports. Temporary closures or restrictions on berth usage during construction can impact port efficiency and disrupt shipping schedules. Balancing the need for infrastructure upgrades with the ongoing operations of a port is a delicate task that requires careful planning and coordination.

Shipping companies, on the other hand, may be reluctant to invest in onboard shore power technology due to the associated costs. Retrofitting vessels with the necessary equipment to connect to shore power requires a substantial financial commitment. While some progressive companies prioritize sustainability and willingly invest in these upgrades, others may hesitate, especially if the economic benefits and return on investment are not immediately apparent.

Overcoming the challenge of infrastructure investment and retrofitting costs requires collaborative efforts among governments, port authorities, and the maritime industry. Governments can play a crucial role by providing additional financial support, creating favorable regulatory environments, and implementing policies that facilitate the integration of shore power infrastructure at ports. Industry stakeholders must work together to find innovative financing models and streamline the retrofitting process to make shore power a more accessible and economically viable solution.

Global Standardization and Interoperability

The global adoption of shore power is hindered by the lack of standardized technical specifications and interoperability across different ports and vessels. Each port may have its own set of infrastructure requirements, voltage specifications, and communication protocols, creating a fragmented landscape that poses a significant challenge for shipping companies looking to implement shore power solutions on a global scale.

The absence of standardized shore power systems makes it challenging for shipping companies to retrofit their vessels uniformly, as each port may necessitate different equipment and configurations. This lack of consistency increases the complexity and cost of implementing shore power technology, potentially discouraging companies from making the necessary investments.

Interoperability issues also arise when ships from different regions, each adhering to their own set of standards, visit international ports. Vessels may encounter compatibility issues when attempting to connect to shore power infrastructure that does not align with their onboard systems. This lack of harmonization can lead to operational inefficiencies, delays, and increased complexity in coordinating port visits.

Addressing the challenge of global standardization and interoperability requires concerted efforts from regulatory bodies, port authorities, and industry stakeholders. International organizations, such as the International Maritime Organization (IMO), need to lead initiatives that establish uniform standards for shore power systems, covering technical specifications, safety regulations, and communication protocols.

Governments can contribute by aligning their national regulations with international standards and incentivizing ports to adopt standardized shore power solutions. Port authorities play a crucial role in fostering collaboration and adopting common standards, ensuring that vessels from diverse regions can seamlessly connect to their shore power infrastructure.

The maritime industry must actively participate in the development and adherence to global standards. Shipping companies, equipment manufacturers, and technology providers should collaborate to create interoperable solutions that can be universally adopted. Industry associations and forums can serve as platforms for sharing best practices and coordinating efforts to overcome the challenges associated with global standardization.

In conclusion, while the global shore power market holds immense potential for reducing emissions and promoting sustainable practices in the maritime industry, the challenges of infrastructure investment and retrofitting costs, as well as the lack of global standardization and interoperability, must be effectively addressed through collaborative and coordinated efforts among governments, port authorities, and industry stakeholders. Only through such collective action can the full benefits of shore power be realized on a global scale.

Segmental Insights

Installation Insights

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..

Connection Insights

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.

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Regional Insights

The Asia-Pacific region dominated the global Shore Power market with a market share of 41.23% in 2022.

The Asia-Pacific market was USD 495.97 million in 2022 and is forecasted to reach USD 841.59 million by 2028, owing to the increasing number of terminals at the port and investments in improving marine infrastructure. According to the Ministry of Transport, in 2018, the container throughput capacity of China's major ports increased to 5.3% from the previous year, which is about 250 million standard containers. Additionally, China has seven out of the world's ten largest ports in terms of annual cargo and containers. Ports of Shanghai and Qingdao are getting more investments to install the shore power system in China's ports, increasing the market demand for this energy, further reducing air and noise pollution.

Additionally, in September 2021, the Union Ministry for Ports, Shipping, and Waterways, India, announced that the government aims to meet 60% of electricity demand at major ports through wind and solar energy.

Moreover, under the Paris Agreement, India's Nationally Determined Contribution (NDC) for 2021–2030 plans to reduce emissions intensity by 33–35% by 2030. Thus, the rising government plans and focus on the development of shore power in the country have driven the Indian market. Thus, it is recommended that key market players need to focus on Asia- pacific region for better opportunities.

Recent Developments

• In October 2023, the Port of Los Angeles announced a USD58 million investment to expand its shore power infrastructure, aiming to connect 100% of cruise ships at the World Cruise Center with shore power by 2028.
• In September 2023, Carnival Corporation, a leading cruise line operator, partnered with shore power provider ABB to develop and implement shore power solutions for its fleet at various ports worldwide.
• In August 2023, Siemens AG secured a USD21.93 million contract to provide shore power equipment for the Port of Hamburg, Germany. This project will enable the electrification of cruise ships and ferries at the port, reducing emissions and noise pollution.
• In July 2023, Blueday Technology, a Chinese shore power provider, raised USD100 million in Series C funding to expand its operations and develop next-generation shore power solutions.

Key Market Players

• 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

Report Scope:

In this report, the Global Shore Power Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Shore Power Market, By Installation:

o   Shoreside

o   Shipside   

• Shore Power Market, By Connection:

o   New installation

o   Retrofit  

• Shore Power Market, By Component:

o   Transformer

o   Switchgear

o   Cables & Accessories

o   Frequency Converter

o   Others  

• Shore Power Market, By Power Output:

o   Upto 30 MVA

o   Above 30 MVA

• Shore Power Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  Spain

§  Netherlands

§  Germany

§  Italy

§  United Kingdom

§  France

§  Poland

o   Asia-Pacific

§  China

§  Singapore

§  South Korea

§  Malaysia

§  India

§  Japan

§  Vietnam

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  UAE

§  Turkey

§  Saudi Arabia

§  Morocco

§  South Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Shore Power Market.

Available Customizations:

Global Shore Power Market report with the given Market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional Market players (up to five).

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