ID: MRFR/E&P/6881-CR | 111 Pages | Published By Anshula Mandaokar on August 2022
Shore Power Market size is projected to reach USD 1,623.10 million by 2030, with 11.90% CAGR between 2022-2030
The shore power market size is projected to be worth USD 1,623.10 million by 2030, registering a CAGR of 11.90% during the forecast period (2022–2030).
Ocean-going vessels (ships) require power while docked in port ("at-berth") to maintain lights, heating and cooling, and other important vessel services. This power is often provided by the vessel's diesel-fueled auxiliary engines. The procedure of transferring electrical power from the shore to a vessel at berth, also known as cold ironing, allows the auxiliary engines to be shut off. Shore power virtually eliminates diesel emissions and other air pollutants that would otherwise be produced by the vessel's on-board auxiliary engines by plugging in and shutting them off.
With the continuous spread of the novel coronavirus across the world, manufacturers are taking extreme measures in the form of plant closures to halt the spread of the COVID-19 outbreak. The situation remains uncertain as more European companies suspend work, and the US and Asia-Pacific manufacturers extend shutdown periods. The worldwide economy is changing every day due to the pandemic.
In the US and Canada, the response of the governments has been a combination of state or provincial, federal, and local measures. Governments apply seemingly ever-more stringent conditions on social interaction, travel, and workplace attendance in other regions. These regions are experiencing similar situations, which have a marked effect on the economy and society and caused massive economic disruption. The energy sector is at the center of this turmoil. Many manufacturing sites and commercial places are entirely closed in the countries across the globe, which will negatively impact the power strip market owing to the shutting down of manufactories industries due to restrictions, shortage of labor and raw materials, and other factors. However, the countries are planning to reopen part of their economies in October 2020, which is likely to impact the overall power industry positively.
Using marine power plants enables ships docked or dry-docked to use shore power to power on-board electrical systems such as lighting, ventilation, cargo pumps, communications, and other critical equipment while shutting down auxiliary engines. It helps reduce low-frequency noise and vibration and allows the crew to save the vessel's diesel engine when berthing. Shipping companies need to reduce emissions and save costs. Additionally, it is a faster and cheaper short-term solution that allows shipping companies to meet emissions targets. Hence, the aforementioned advantageous features of this power supply are expected to drive the market. Speed optimization and reduction affect greenhouse gas emissions and two other environmental impacts of shipping: the risk of ships striking whales and underwater noise. To establish a consistent metric for underwater noise emitted by merchant ships, significant efforts have been made to develop underwater noise measurement standards. At present, whether it meets the requirements of classification societies for underwater noise is verified through special sea tests. Analytical methods and tools for predicting underwater radiated noise aid in evaluating noise reduction solutions during the design phase. Hence shore power systems help marine companies to achieve emissions targets and reduce noises under the water.
The cost of frequency conversion onboard and the cost of supplying high voltage power to the terminal are the main factors contributing to the high installation cost of this technology. Additionally, these devices are heavy, making transportation cumbersome and limiting overall flexibility, increasing maintenance costs. Hence, higher installation and maintenance costs restrain the market growth. The global pandemic and the coronavirus outbreak have emerged as significant challenges with uncertainties in the maritime shipping market, adversely affecting the transportation sector during the forecast period. There is also a significant difference between retrofit and new-build projects, with retrofits sometimes costing up to twice as much as incremental new-build investments. The operational cost is primarily related to electricity costs and taxes, both of which vary by region. Some countries, such as Sweden, reduce taxes for electricity used by shore power systems; however, some electricity suppliers also charge connection fees.
The modern version of the cruise industry began in the 1970s. As the industry in North America developed, it went through a process of increasing popularity, becoming an important part of tourism, and reaching economic levels of great significance worldwide. The modern cruise industry is also one of the most prominent examples of globalization, with a growing number of ports of call and destinations around the globe, multinational clients and people on board from every continent, and a detachment of communities and countries that have historically had important economic, legal, environmental and social implications. A crisis-resistant industry offers diverse air freight options and a modern port structure, opening cruising as a holiday option to a growing, wealthier customer base, offering millions of passengers an exciting, eventful, relaxing, and enjoyable experience from all over the world every year. The increasing number of cruise companies in the shipping industry, such as Carnival Cruise Lines, Celebrity Cruises, Costa Cruises, Norwegian Cruise Line, Royal Caribbean International, Legend Cruises, etc., are adding momentum to the market.
Various components are required in a shore power system's manufacturing and assembly process. Some of the major components are transformers, switchgear devices, frequency converters, cables and accessories, control panels, safety grounding equipment and plugs, etc.
The global market is highly fragmented and is dominated by marginal unorganized players. The key participants in the global shore power market are Siemens, ABB Ltd, Schneider Electric, Cavotec, ESL Power Systems, Vinci Energies, and Danfoss. These companies hold a considerable share in the global market sales on account of the global reach, brand name, and large production capacities.
A distribution & sales channel is a route through which goods and services from producers arrive at the intended consumer. Distribution & sales channels can be short or long, depending on the number of intermediaries necessary to deliver a product or service. The distribution channel comprises various authorized dealers and online retailers. Shore powers systems are extensively used in cruises and boats. Shore power is mainly used in the shipping industry. For instance, commercial ships use these shore power systems for cargo handling and ventilation, thereby reducing air pollution emissions.
Shore Power Market Outlook Based on power output:
Up to 30 MVA and above 30 MVA are the segments based on power output of the Global Shore Power Market. The market is significantly dominated by the up to 30 MVA segment and is forecasted to continue to lead the market in the near future. The power requirements for the given output are used in small ferries and container ships where the power requirement is less than others. As per international standards (ISO/IEC/IEEC 80005-1), ferry, Roll-on/Roll-off, and Ro/Pax vessels need to be connected to an electrical onshore power supply, at 6.6kV, up to 6.5MVA.
Shore Power Market Insights Based on components:
Transformers, switchgear devices, frequency converters, cables and accessories and other are the segments based on components of the Global Shore Power Market. Frequency converters are required to ensure that the shoreside shore power system can provide electrical frequency that matches the vessel's operational frequency. Frequency converters are expected to hold the largest share of the shore power market as shore power frequency converters save money by reducing diesel fuel usage. The market is led by the frequency converters segment during the forecast period. While the segment with the most significant growth rate is the transformer market segment.
Shore Power Market Scope Based on connection:
New installation and retrofit are the segments based on the connection of the Global Shore Power Market. The new installation segment is expected to be the largest segment of the shore power market during the forecast period. This growth can be attributed to increasingly stringent environmental norms by governments. All incoming ports and ships have installed shore power systems during construction, which reduces implementation costs.
Shore Power Market Share Based on installation type:
Shoreside and shipside are the segments based on the installation type of the Global Shore Power Market. During the forecast period, shoreside installation is expected to be the most important segment in the shore power market. This advantage can be attributed to the high installation cost as additional electrical components are required on the shore. Additional components make the shore-to-shore power system more flexible to meet the power needs of different types of ships.
The regions are classified as North America, Europe, Asia-Pacific, Middle East & Africa and South America. North America has favorable rules in many states across the country. It is projected that the shore power systems would be widely adopted and implemented in North America. The US and Canada are two of the region's most significant countries. Because of the sea-bound transportation of goods, the North American region sees a lot of vessel traffic. Furthermore, the US and Canada are among the world’s leading oil producers, exporting their products to their countries. North America is anticipated to hold the largest market share for the global shore power market during the forecast period.
With the increased focus of many countries on reducing pollution produced by port activities, Asia-Pacific is projected to see the highest adoption and deployment of shore power systems. Furthermore, these countries are home to several big ports that are among the busiest in the world. China, Japan, Australia, South Korea, India, Singapore, and the rest of Asia-Pacific are major countries. Philippines, Malaysia, Taiwan, and Thailand make up the rest of Asia-Pacific. The Asia-Pacific region sees a lot of vessel movement throughout the year due to countries like China, Japan, and South Korea, all of which have significant manufacturing industries. The Asia Pacific is the fastest-growing shore power market.
The global shore power market is characterized by the presence of many global, regional, and local vendors. The regional market is highly competitive. The vendors compete based on cost, product quality, reliability, and aftermarket services. Therefore, vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.
List of Key Companies covered in the report:
The Global Shore Power Market is segmented based on power output, components, installation type and connection in this report. The report is focused on various analytical aspects such as market dynamics, Supply chain analysis, Porter’s five forces, competitive landscape, recent developments and company profiles. The insights in this report, comprise, discuss views and predict the emerging and fast-growing segments, regions, and countries with potential of development in the Global Shore Power Market.
By power output:
By installation type:
Objectives of the Study
|Market Size||USD 1,623.10 million|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Power Output, Connection, Components and Installation Type|
|Geographies Covered||North America, Europe, Asia-Pacific, Middle East & Africa, and South America|
|Key Vendors||ABB Ltd. (Switzerland), Siemens (Germany), Schneider Electric (France), Cavotec SA (Switzerland), WÄRTSILÄ (Finland), Vinci Energies S.A (France), Danfoss (Denmark), ESL Power Systems, Inc. (CA), Blueday Technology (Norway), Cochran Inc. (US), AC Power Corp. (Taiwan), Piller Power System (Germany), Igus Inc. (US), Power Systems International (UK), Smartplug (US)|
|Key Market Opportunities||Increasing cruise liners in the shipping industry|
|Key Market Drivers||Favorable government rules and regulations for lowering greenhouse gas emissions Reduction in low-frequency noises and emissions at the port|
The Global Shore Power Market would register a growth of 11.90% during the forecast period.
High installation and maintenance cost is a key restraining factor for the Global Shore Power Market
Top key players in the industry are ABB Ltd. (Switzerland), Siemens (Germany), Schneider Electric (France), Cavotec SA (Switzerland), WÄRTSILÄ (Finland), Vinci Energies S.A (France), Danfoss (Denmark), ESL Power Systems, Inc. (CA), Blueday Technology (Norway), and others.
Shoreside and shipside are the segments based on installation.
High costs of maintenance as well as installation can have a negative impact on the shore power market.