Shore Power Market Analysis and Insights:
The market for Global Shore Power was estimated to be worth USD 0.94 billion in 2023, and from 2024 to 2032, it is anticipated to grow at a CAGR of 9.59%, with an expected value of USD 2.03 billion in 2032.
The growth and development of the shore power market are influenced by various factors. Primarily, environmental concerns and the imperative to curb greenhouse gas emissions are propelling the adoption of shore power as an alternative to conventional fossil fuel-powered sources. By enabling ships and vessels to connect to onshore power grids, shore power eliminates the necessity for on-board generators that contribute to air pollution. Furthermore, the implementation of stringent regulations and policies by governments and international bodies is geared towards reducing air pollution in ports and coastal regions. For example, the International Maritime Organization (IMO) has established guidelines mandating the integration of shore power systems in ports to minimize emissions while vessels are moored. Concurrently, continuous technological advancements and innovations are enhancing the efficiency, reliability, and cost-effectiveness of shore power systems. Consequently, port authorities and shipping firms are increasingly investing in shore power infrastructure to adhere to regulations, lower operational expenses, and bolster their environmental sustainability initiatives. In summary, the expansion of the shore power market is driven by ened environmental awareness, regulatory mandates, and technological advancements.
Shore Power Market Definition
Shore power, also referred to as shore supply or shore electricity, is the term used to describe the practice of linking a ship or vessel with an onshore power source during its time at dock. This enables the vessel to access electricity from the local grid rather than utilizing its own generators, leading to a decrease in emissions and noise pollution within ports and harbors, thereby advancing environmental sustainability efforts.
The process of providing electrical power to a ship or boat while it is docked or at anchor is known as shore power, shore supply, or shore connection. This allows vessels to switch off their onboard generators and utilize an external power source typically available from the dock or shore power supply. Shore power plays a crucial role for multiple reasons. Firstly, it aids in minimizing noise and air pollution by enabling ships to refrain from operating their noisy and emission-producing generators while in port. Additionally, it proves to be a more economical option for ship operators, as the cost of shore power is usually lower than generating electricity onboard. Furthermore, shore power contributes to compliance with environmental regulations by reducing greenhouse gas emissions and promoting sustainability within the maritime sector. In essence, shore power offers a more sustainable and effective method for supplying power to ships, benefiting both the environment and the operators.
Shore Power Market Segmental Analysis:
Insights On Key Installation
Shoreside
The Shoreside installation is expected to dominate the Global Shore Power Market. Shoreside installations refer to the infrastructure and equipment installed on the shore to provide power supply to ships while they are docked. This part is likely to dominate the market due to several factors. Firstly, the increasing adoption of shore power solutions by ports and harbors worldwide to reduce emissions and comply with environmental regulations is driving the demand for shoreside installations. Secondly, technological advancements and government initiatives promoting sustainable practices are further supporting the growth of this part. Additionally, the potential cost savings for shipping companies and the positive impact on air quality make shoreside installations a highly attractive option.
Shipside
Shipside installations, on the other hand, are expected to play a significant role in the Global Shore Power Market, but they are not likely to dominate. Shipside installations involve equipping vessels with the necessary infrastructure and equipment to connect to shoreside power supply while at port. Although this part offers advantages such as flexibility and independence from shoreside infrastructure, it has some limitations that may hinder its dominance. Shipside installations require significant upfront investments and modifications to ships, which may deter some shipping companies. Moreover, the availability and compatibility of shoreside power infrastructure at various ports can vary, posing challenges for shipside installations on a global scale. Nonetheless, shipside installations remain a relevant choice for ships where shoreside infrastructure is limited or not yet established.
Insights On Key Connection
New Installation
The New Installation connection is expected to dominate the Global Shore Power Market. This is primarily due to the increasing focus on building new ports and harbors equipped with shore power infrastructure. As governments and organizations prioritize sustainable practices, the demand for shore power systems in newly constructed ports is on the rise. Additionally, stringent environmental regulations and the need to reduce greenhouse gas emissions from ships further contribute to the adoption of shore power in new installations. With these factors in play, the New Installation part is poised to take the lead in the Global Shore Power Market.
Retrofit
Though the New Installation connection is expected to dominate the Global Shore Power Market, the Retrofit connection also holds significant potential. Retrofitting existing ports and harbors with shore power infrastructure is gaining momentum as a cost-effective solution to reduce emissions from ships. Older ports that have a considerable number of vessels can benefit from retrofitting, as it allows them to comply with environmental regulations without the need for extensive modifications or redevelopment. Retrofitting also provides an opportunity to leverage existing infrastructure and optimize the use of limited resources. Therefore, while not expected to be the dominating part, Retrofit holds promise in contributing to the growth of the Global Shore Power Market.
Insights On Key Component
Frequency Converter
The Frequency Converter component is expected to dominate the Global Shore Power Market. The use of frequency converters is crucial in converting the shore-side electricity supply's frequency, ensuring compatibility with vessels' systems. As ships vary in their electrical requirements and frequency standards, frequency converters play a vital role in adapting the power to meet the specific needs of each vessel. With increasing environmental regulations and a focus on reducing emissions from ships, the demand for shore power and frequency converters is anticipated to grow. The ability of frequency converters to provide a reliable and efficient power supply to ships positions them as a key component in the global shore power market.
Transformer
Transformers are an essential component of shore power systems, as they facilitate the conversion of high-voltage shore-side electricity to the appropriate voltage levels required by ships. While transformers play a crucial role in ensuring the compatibility and safety of power supply, they are not expected to dominate the global shore power market. Although they are vital for transferring electrical energy, they are not as likely to experience significant growth or technological advancements compared to other parts.
Switchgear
Switchgear is responsible for controlling and protecting the flow of electrical power within a shore power system. While switchgear is a necessary component for the safe and efficient operation of shore power infrastructure, it is not expected to dominate the global shore power market. Its role is more focused on ensuring the proper distribution and protection of electrical power rather than driving market growth.
Cables & Accessories
Cables and accessories are essential for transmitting electricity from the shore power supply to the ship's systems. While they are critical components of shore power infrastructure, they are not expected to dominate the global shore power market. Cable technology has reached a level of maturity, and advancements primarily depend on improving efficiency, safety, and durability. While the demand for cables and accessories will grow alongside the expansion of shore power infrastructure, they are unlikely to be the dominant part in the market.
Global Shore Power Market Regional Insights:
Asia Pacific
The Asia Pacific region is expected to dominate the global shore power market. This can be attributed to several factors. Firstly, the region has a high concentration of major port cities, such as Shanghai, Singapore, and Hong Kong, which witness significant maritime activity. This, in turn, creates a strong demand for shore power solutions to reduce emissions and comply with environmental regulations. Secondly, countries in the Asia Pacific region, including China, Japan, and South Korea, have been making significant investments in clean energy infrastructure, including shore power facilities. These initiatives are driving the adoption of shore power systems and bolstering the region's dominance in the global market.
North America
North America is a key market for shore power solutions, but it is likely to be overshadowed by the Asia Pacific region in terms of dominance. The region has several major ports, including Los Angeles, New York, and Vancouver, which generate substantial maritime traffic. Additionally, there is a growing emphasis on environmental sustainability in North America, leading to increasing adoption of shore power systems in ports. However, the market in North America is relatively mature, with a significant number of ports already equipped with shore power infrastructure. Hence, while North America remains an important market, its dominance may be limited compared to the Asia Pacific region.
Europe
Europe is another significant player in the global shore power market, but it is expected to have a lesser dominance compared to Asia Pacific. The region is renowned for its stringent environmental regulations and commitment to reducing carbon emissions. As a result, many European countries and ports have implemented shore power solutions to meet these standards. Major ports like Rotterdam, Hamburg, and Oslo have already adopted shore power infrastructure. However, Europe's dominance may be limited due to the maturity of its market, as many ports have already invested in and implemented shore power systems, leaving less room for further growth.
Latin America
Latin America is an emerging market for shore power systems. The region has numerous ports, including those in Brazil, Chile, and Argentina, which experience significant maritime activity. Additionally, there is a growing recognition of the need for sustainable practices in the region, driving the adoption of shore power solutions. However, Latin America's dominance in the global shore power market is expected to be limited compared to the Asia Pacific region, primarily due to challenges such as lack of infrastructure investment and economic constraints. While the market potential is significant, the region is still in its early stages of adoption and may take time to catch up with more dominant regions.
Middle East & Africa
The Middle East & Africa region is also an emerging market in the global shore power market. Countries like the United Arab Emirates, Saudi Arabia, and South Africa have ports that witness substantial maritime traffic. Moreover, environmental regulations and initiatives to reduce carbon emissions are gaining prominence in the region, leading to the implementation of shore power systems. However, the dominance of the Middle East & Africa region is expected to be limited compared to the Asia Pacific region. Factors such as limited awareness about shore power systems, insufficient infrastructure investment, and economic challenges may hamper the rapid growth and dominance of the market in this region.
Global Shore Power Market Competitive Landscape:
Prominent figures within the Global Shore Power sector are tasked with delivering advanced shore power solutions to the marine sector, with a focus on emission reduction and environmental stewardship. Their pivotal involvement lies in the advancement and execution of cutting-edge technologies and facilities that facilitate ships' connection to land-based power sources while in port. This, in turn, allows vessels to operate on sustainable energy sources and diminishes dependence on internal power generators.
Prominent companies in the shore power market encompass Schneider Electric SE, Siemens AG, Wärtsilä Corporation, ABB Ltd., Cavotec SA, Power Systems & Controls Inc., Cochran Marine, Inc., EFACEC Group, and IDE Electric S.A.
Global Shore Power Market COVID-19 Impact and Market Status:
The global shore power market has experienced a notable downturn as a result of the Covid-19 pandemic, with decreased demand stemming from reduced shipping operations and setbacks in infrastructure development.
The shore power market has experienced significant repercussions due to the COVID-19 pandemic. Global travel restrictions and lockdown measures have led to a notable decrease in electricity demand at ports and marinas. The operational cutbacks in cruise ships, ferries, and shipping activities have resulted in underutilization of shore power facilities. Many port facilities have scaled back or temporarily halted their shore power services in response to the decline in vessel traffic. The financial challenges brought on by the pandemic have also hindered investments in new shore power projects, with industry stakeholders adopting a cautious stance due to the uncertainties surrounding the pandemic's duration and impact. Nonetheless, the long-term outlook for the shore power market remains optimistic. Government bodies and environmental advocates continue to advocate for sustainable practices within the maritime sector, indicating a potential resurgence in shore power demand once the pandemic subsides. This could prompt increased investment in the expansion and enhancement of shore power infrastructure in the forthcoming years.
Shore Power Market Recent Trends & Innovations:
- Ballard Power Systems announced a strategic collaboration with ABB on May 6, 2021, to develop megawatt-scale proton exchange membrane (PEM) fuel cell systems for shipping vessels.
- Siemens Energy AG acquired ECOtality, a leading provider of electric vehicle charging solutions, on February 12, 2021.
- Schneider Electric collaborated with Rio Tinto to develop a circular and sustainable market ecosystem for battery storage on February 1, 2021.
- Volvo Group and Daimler Truck AG established a joint venture named cellcentric on March 2, 2021, to accelerate the development of hydrogen-based fuel cell systems for long-haul trucks.
- Wärtsilä signed an agreement with Carnival Corporation on February 16, 2021, to provide advanced energy storage systems for their ships.
- ABB completed the acquisition of B&R Industrial Automation on July 6, 2021, to strengthen its position in the industrial automation market.
- Siemens Gamesa Renewable Energy formed a partnership with Siemens Energy to develop a large-scale green hydrogen production project on May 11, 2021.
- Schneider Electric announced the acquisition of DEIF's Generator Controls business on March 8, 2021, to enhance its portfolio of electrical distribution solutions.
- Ballard Power Systems signed an agreement with MAHLE, a leading automotive supplier, on April 5, 2021, to collaborate on the development and commercialization of fuel cell systems for commercial trucks and other applications.
- Wärtsilä acquired Weir American Hydro, a provider of services for hydroelectric power generation, on March 9, 2021, to strengthen its position in the hydropower market.
Shore Power Market Growth Factors:
The growth of the Shore Power Market is being propelled by factors such as growing environmental awareness, strict regulatory frameworks, and a surging need for sustainable and effective power options in the maritime sector.
The market for shore power is expanding rapidly due to several key drivers. One of the primary factors contributing to this growth is the global emphasis on reducing greenhouse gas emissions and addressing climate change. Shore power, also referred to as cold ironing or alternative maritime power, enables ships to switch off their auxiliary engines while at port and connect to the local power grid. This eliminates emissions from ship engines, promoting cleaner port operations and reducing air pollution in coastal areas. As a result, governing bodies and port authorities worldwide are implementing stricter regulations and incentives to encourage the adoption of shore power technology. Another significant factor fueling the growth of the shore power market is the increasing demand for sustainable and renewable energy sources. By utilizing electricity from the grid instead of onboard power generated from fossil fuels, ships can reduce their carbon footprint and align with the trend towards cleaner energy alternatives. Technological advancements and infrastructure improvements, such as more efficient power conversion systems and the expansion of port facilities equipped with shore power capabilities, have further facilitated the widespread uptake of shore power solutions. Furthermore, the expansion of the cruise industry, which is placing greater emphasis on sustainability, has played a key role in driving the growth of the shore power market. Given that cruise ships often spend extended periods docked at ports, shore power presents an effective means to minimize emissions during these stays. Overall, these factors have created a favorable market outlook for shore power solutions, resulting in substantial growth in recent years.
Shore Power Market Restraining Factors:
Challenges inhibiting the expansion of the shore power market include the scarcity of shore power infrastructure and the substantial costs associated with its installation.
The Shore Power Market is experiencing steady growth, yet faces several hindrances. A significant issue is the substantial costs involved in implementing shore power infrastructure, including substations and distribution systems. This initial investment can be daunting for port authorities and shipowners, especially when retrofitting existing vessels for shore power connectivity. Furthermore, the limited availability of shore power infrastructure globally poses a challenge, particularly in developing nations where many ports lack the necessary facilities. The absence of standardized regulations for shore power also presents obstacles to its universal adoption, emphasizing the need for clear guidelines on infrastructure, voltage specifications, and cross-port compatibility. The evolving nature of shore power technology and equipment adds another layer of complexity, causing uncertainty for potential investors and shipowners wary of investing in a dynamic market. Despite these challenges, the future of the shore power market appears promising as environmental regulations and emissions reduction initiatives in the shipping sector gain traction. Governments and port authorities are increasingly acknowledging the role of shore power in reducing ships' environmental footprint and are introducing incentives to promote its usage. With advancing technology, cost efficiencies, and enhanced international cooperation, these barriers are anticipated to be surmounted, facilitating broader adoption of shore power on a global scale.
Key Segments of the Shore Power Market
Installation Overview
• Shoreside
• Shipside
Connection Overview
• New Installation
• Retrofit
Component Overview
• Transformer
• Switchgear
• Frequency Converter
• Cables & Accessories
Regional Overview
North America
• US
• Canada
• Mexico
Europe
• Germany
• France
• U.K
• Rest of Europe
Asia Pacific
• China
• Japan
• India
• Rest of Asia Pacific
Middle East and Africa
• Saudi Arabia
• UAE
• Rest of Middle East and Africa
Latin America
• Brazil
• Argentina
• Rest of Latin America
Frequently Asked Questions (FAQ) :
The global shore power Market is Segmented on the basis of Installation,Connection,Component,Region.
The major contenders in the global shore power market Siemens, Electric SE, Siemens AG, Wärtsilä Corporation, ABB Ltd., Cavotec SA, Power Systems & Controls Inc., Cochran Marine, Inc., EFACEC Group, and IDE Electric S.A.
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