Shore Power Market

Shore Power Market Size (2023-2028):

The Shore Power Market size is estimated at US$ 1.52 billion in 2022, and it is predicted to reach US$ 2.82 billion by the end of 2028 and is predicted to register a CAGR of 11.20% during 2023-2028.

Market Scenario:

Several governments across the globe are focusing more on minimizing air and noise pollution caused by port activities and increasing maritime trade and cruise-based tourism, which are fueling the rise of the shore power market in the upcoming years. Shore power reduces the amount of fuel used to power ships while they are in Port and the pollution produced by that fuel. In addition, anti-idling rules may exist in a port city, requiring ships to use shore power. The usage of shore power can help maintain the ship's engines and generators while also lowering noise levels. The provision of shore power or shore supply to a ship at berth while its main and auxiliary engines are shut down is known as shore power or shore supply. While the word refers to shore rather than off-shore, it is also used to refer to aircraft or land-based vehicles (such as campers, big trucks with sleeping compartments, and tour buses) that may plug into grid power for idle reduction when parked.

Market Drivers and Restraints:

The growing number of cruise liners in the maritime industry is the primary driver of expanding global shore power. The installation of shore power infrastructure at the marine terminals has cost a lot of money since 2009. The project's cost is expected to be around USD 60 million by the Port of Oakland; the combined cost of the Port and private sector for just the shoreside infrastructure is estimated to be about USD 70 million. In addition, Royal Caribbean invested USD250 million in the newly opened Terminal A at Port Miami, and cruise lines have begun to build out terminals to improve capacity at ports. Moreover, during the 2014-2015 cruise year, 23.63 million passengers and 4.5 million crew members disembarked cruise ships and visited the Caribbean and Latin American destinations, spending USD2.45 billion and USD302.2 million, respectively.

In 2015, cruise line expenditures totaled USD400.8 million, including port fees and taxes, payments to local tour operators, and payments to local businesses for goods and services. Shore power, also known as cold-ironing or marine force, supplies electrical power to a boat. At the same time, it is docked, allowing the ship's assistant motors to be switched off and diesel fuel consumption to be reduced. Shore power is a good way to cut down on dangerous emissions and improve air quality. Shore power reduces the amount of gasoline used to power ships while they are in Port and the pollution caused by that fuel usage. The shore power market is expected to expand during the forecast period, owing to factors such as an increase in the number of luxury ships in the shipping industry and the establishment of retrofit shore power systems. In addition, initiatives by the government to minimize greenhouse gas emissions from ports have created significant potential for the shore power sector.

High installation and maintenance expenses, on the other hand, are a major stumbling block to the shore power market's global expansion.

Market Recent Developments:

• Schneider Electric has introduced a shore power named shore box. It is an all-in-one, pre-designed shore power solution with all essential equipment and software to manage power conversion and system control for ship power connection at berth, housed in a shelter.
• In 2018, ABB announced that it would provide innovative shore power solutions for ships in the Netherlands.

SHORE POWER MARKET REPORT COVERAGE:

Market Segmentation: 

Shore Power Market - By Connection:

• New installation
• Retrofit

The new installation segment is estimated to account for the largest share of the global shore power market in the upcoming years. The segment's rise can be linked to the fact that ships must be appropriately outfitted to receive power from either a local grid or an external source. This makes it easier to implement shore power successfully. In addition, explicit electrical equipment, such as connections, wires, transformers, and switchgear, is usually required to refit existing ships. Still, many new ships are now designed and built with this equipment as an intrinsic part of their electrical system architecture. Therefore, the new installation segment is likely to drive the global shore power market over the projection period, as the process of retrofitting shore power in existing vessels is significantly more expensive than a new installation, costing up to twice as much as new-build investments.

Shore Power Market - By Component:

• Transformers
• Frequency converters
• others

The frequency converter category is expected to account for the greatest share of the global shore power market and to grow at the quickest rate throughout the projected period. A shore power frequency converter allows a ship to be powered by the Port's electrical grid, even though the vessel's operational voltage may be different. With the use of shore power frequency converters, energy is conserved by reducing diesel fuel consumption. Furthermore, they reduce air pollution created by unnecessarily running the engine while at the Port. All of these elements will help the segment's growth during the next six years.

Shore Power Market - By Installation:

• Shoreside
• Shipside

During 2022 - 2027, Shoreside installation is expected to be the most significant global shore power market segment. The high expense of installation due to the need for additional electrical components on the coast can be ascribed to this dominance. The additional components allow Shoreside shore power systems to be more versatile to fulfill the power needs of various types of vessels.

Market Regional Analysis: 

The Global Shore Power Market Report includes the segmentation of Regions:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The Asia Pacific is expected to witness the highest adoption and deployment of shore power systems because of the increased focus of many countries on reducing pollution produced by port activities. 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 in this region. Philippines, Malaysia, Taiwan, and Thailand make up the rest of Asia Pacific. In addition, the Asia Pacific area sees a lot of vessel movement because of the presence of countries like China, Japan, and South Korea, all of which have significant manufacturing industries.

Because of the favourable rules in many states across the country, it is projected that 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 United States and Canada are among the world's leading oil producers, exporting their products to other countries.

The European shore power market is expected to rise at a robust CAGR of around 10% during the forecast period. The increased demand to cut diesel fuel usage and eliminate air pollution drives the European shore power sector. Moreover, throughout the projected period, the market is expected to be propelled by strict government regulations to reduce greenhouse gas emissions.

Impact of COVID-19 on Shore Power Market:

The ongoing COVID-19 pandemic has had a significant influence on the global market for shore power. Most powerful countries experienced a drop in economic development due to the COVID-19 pandemic, altering consumer purchasing patterns. In addition, national and international transportation have been hampered due to the lockdown applied in several nations, which has substantially influenced the supply chain of numerous sectors throughout the world, consequently widening the supply-demand mismatch. As a result, insufficient raw material supply is predicted to slow the production rate of shore power, reducing market growth.

Market Key Players:

The companies covered in the report include:

1. ESL Power Systems
2. Schneider Electric
3. SmartPlug
4. Blueday Technology
5. ABB
6. Cochran Marine
7. Smartplug
8. Vinci Energies
9. Cavotec
10. IGUS