Shore Power Market are Enabling Greener Shipping

Shore power enables vessels to turn off their diesel generators and plug into local electric grids while docked, reducing emissions. The global shore power market is expected to experience rapid growth as the maritime industry adopts greener solutions to cut carbon footprint.

Shore power, also known as cold ironing, allows ships to shut off their auxiliary engines and instead receive electric supply from land-based grids through shoreside power supply systems. This decreases harmful emissions from vessels that would otherwise burn fuel unnecessarily in ports. Shore power technology offers numerous environmental benefits by substantially lowering air pollution and carbon emissions from docked ships. The system eliminates NOx, SOx and fine particulate matter emitted from onboard generators, improving local air quality.

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: Key players operating in the shore power market are Siemens, Schneider Electric, Cavotec, ABB, Danfoss, Cavotec and Cochran Marine. These companies provide shore power technologies, services and infrastructure to ports worldwide to help them transition to greener operations.

Growing demand: Stringent emissions regulations in maritime hubs across Europe and North America are driving increased Shore Power Market Demand. Growing environmental consciousness and cost benefits are also propelling the adoption of shore power systems among ship owners and terminal operators.

Global expansion: Major players are expanding their shore power footprint globally, especially in emerging markets of Asia Pacific to capitalize on the rising maritime trade. Ports in China, South Korea and India are increasingly investing in shore power as a sustainable solution.

Market Key Trends
LNG fuelled vessels are relying on shore power to reduce emissions profile while docked. As LNG tanks boil off gases while berthed, ship owners find shore connection a viable option to maintain engine-room refrigeration without running auxiliary diesel engines. The trend is prominent among newer cruise and car carriers powered by LNG. Overall, the increased sustainability focus of shipping industry will likely continue boosting demand for greener shore power technologies going forward.
Porter's Analysis

Threat of new entrants: Low barrier for new entrants due to availability of low cost alternative technologies and components.

Bargaining power of buyers: High bargaining power of buyers as they have large procurement budgets and various supply options available.

Bargaining power of suppliers: Moderate bargaining power of suppliers as industry has numerous component manufacturers with varying quality and pricing.

Threat of new substitutes: Low threat as shore power system integrated at port level requires huge investments and adoption of regulatory standards.

Competitive rivalry: Fierce competition between existing players focusing on product innovation, price and delivery.

Geographical Regions

North America region accounted for largest share in shore power market in 2018, due to stringent environmental regulations and initiatives towards reduction of port emission. Major ports such as Port of Los Angeles and Port of Long Beach have made shore power mandatory contributing significantly to regional market value.

Asia Pacific region is expected to witness highest growth during forecast period. Presence of busiest ports such as Singapore and strong regulatory support from countries including China and Japan for minimizing port emission is promoting adoption of shore power systems. Growing maritime trade and government investments in developing green port infrastructure will drive the regional market.

Geographical Regions

Europe also holds significant share majorly contributed by Northern European countries. initiatives like ECOMOBILITY project by Port of Gothenburg has accelerated regional demand.

Growing fleet sizes coupled with strengthening emission norms by International Maritime Organization (IMO) for shipping industry will further augment the demand across all regions during forecast period. However high upfront cost remains a major challenge for widespread adoption.

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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.

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