Shore Power Market: High Growth Due To Increased Need For Shore Power Infrastructure To Reduce Emissions From Ships Witnessing High Growth

The shore power market is experiencing high growth owing to the increasing need for shore power infrastructure to reduce emissions from ships. Shore power, also known as cold ironing, allows berthed ships to shut down their auxiliary engines and connect to dockside electricity, reducing emissions. The technology provides environmental and economic benefits by preventing ships from using onboard diesel-powered generators while in ports. Shore power systems help reduce air pollution from port activities by as much as 90%. The global shore power market demand is driven by stringent emission regulations focusing on reducing greenhouse gas and particulate matter emissions from vessels. IMO regulations mandate the installation of shore power connectivity in new build ships from 2026, boosting the market size.

The shore power market is estimated to be valued at USD 2.25 Bn in 2024 and is expected to reach USD 4.51 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 10.44% from 2024 to 2031.

Key Takeaways

Key players operating in the shore power market are ABB, Siemens, Schneider Electric, Cavotec, Danfoss, Eaton, and ESL Power.

Shore Power Market Growth include increasing demand for cold ironing from cargo and container vessels globally. Development of standardization for shore power connection systems will further propel the market growth.

Technological advancements in the shore power systems focus on developing more compact and efficient power conversion equipment suitable for various vessel types. Advanced grid synchronization technology ensures seamless transfer of power to vessels and safe operation. Rising R&D in high power wireless or inductive power transfer systems can replace cable-based connectivity in the coming years.

Market Drivers

Stringent emission norms - Growing environmental awareness and stringent emission regulations in the shipping industry are a major market growth driver. IMO regulations mandate the installation of shore power systems in new vessels by 2026.

Energy cost savings - Use of shore power enables vessels to slash their fuel bills and reduce maintenance costs associated with running onboard generators. This offers attractive returns on investment to ship owners.

Environmental benefits - Cold ironing helps minimize air and noise pollution from auxiliary engine exhaust and drastically reduces particulate matter and NOx emissions when vessels are docked. It improves local air quality.

Current challenges in Shore Power Market:
The shore power market faces various challenges due to its high initial installation and operating costs. The infrastructure development costs associated with shore power systems are significantly high. Port authorities and governments need to make large investments in electrical infrastructure upgrades to enable shore power connectivity. This high capital requirement poses a major challenge, especially for developing countries and smaller ports.

Another key challenge is the lack of standardization in plug types and voltages used across different ports. Ship-shore compatibility issues arise due to the use of multiple incompatible plug standards. Ensuring consistency and interconnectivity across global ports requires widespread coordination among stakeholders. Technological changes also bring compatibility challenges.

SWOT Analysis
Strength: Shore power facilities help reduce dependence on auxiliary engines during berthing. This significantly cuts emissions and noise pollution at ports. It allows ships to turn off diesel engines when connected to onshore electricity supply.
Weakness: High initial costs associated with shore power infrastructure development act as a barrier. Retrofitting existing ports requires huge capital investments.
Opportunity: Stringent emission norms and regulations are driving the demand for cleaner technologies. This provides opportunities for shore power vendors to offer cost-effective and standardized solutions.
Threats: Lack of common standards threatens interconnectivity between ships and ports. Technological changes may also lead to compatibility issues posing revenue risks.

Geographical regions:
Currently, North America accounts for the largest share in the global shore power market in terms of value, followed by Europe. Stringent environmental regulations and the presence of leading ports enabling shore power in countries like the U.S. and Germany have boosted adoption.

Asia Pacific is poised to be the fastest growing regional market during the forecast period. This can be attributed to supportive government initiatives and investments toward developing shore power infrastructure across major ports in countries such as China, Japan, and South Korea. Initiatives like China’s Belt and Road project are also expanding shore power connectivity between ports.

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Author Bio:

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