PUBLISHER: The Business Research Company | PRODUCT CODE: 1426316
PUBLISHER: The Business Research Company | PRODUCT CODE: 1426316
Shore power, also known as cold ironing or alternative maritime power (AMP), refers to an external source of electrical power supplied to a ship, boat, or marine vessel while it is docked or moored at a port or harbor. The use of shore power provides several advantages, including a reduction in emissions and noise pollution, as the vessel's internal generators can be switched off, contributing to improved air quality in port areas.
The primary components of shore power systems include a transformer, switchgear, cables and accessories, frequency converter, and other associated elements. A transformer serves as an electrical device facilitating the transfer of electrical energy between two or more circuits through electromagnetic induction. Shore power systems are designed to accommodate various power outputs, ranging from up to 30 MVA to above 30 MVA, and can be installed in different configurations such as shoreside and shipside. Additionally, these systems can be implemented as new installations or as retrofit solutions on existing vessels.
The shore power market research report is one of a series of new reports from The Business Research Company that provides shore power market statistics, including shore power industry global market size, regional shares, competitors with a shore power market share, detailed shore power market segments, market trends and opportunities, and any further data you may need to thrive in the shore power industry. This shore power market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The shore power market size has grown rapidly in recent years. It will grow from $1.47 billion in 2023 to $1.65 billion in 2024 at a compound annual growth rate (CAGR) of 12.7%. The growth observed in the historical period can be attributed to several factors. These include the implementation of environmental regulations, initiatives to improve air quality, the pursuit of sustainability goals by ports, the desire to reduce noise and vibrations in port areas, and the potential cost savings for shipping lines. These factors collectively contributed to the increased adoption of shore power solutions during the historic period.
The shore power market size is expected to see rapid growth in the next few years. It will grow to $2.54 billion in 2028 at a compound annual growth rate (CAGR) of 11.3%. The anticipated growth in the forecast period can be attributed to the global expansion of shore power infrastructure, international collaboration on emission reduction efforts, advancements in green port initiatives, the increasing electrification of maritime transport, and the availability of incentives and subsidies promoting shore power adoption. Major trends expected in the forecast period encompass a heightened focus on the electrification of maritime transport, the development of onboard shore power systems for vessels, the integration of shore power systems with grid management systems, the retrofitting of existing ports with shore power capabilities, and an increased emphasis on cost-efficiency and return on investment in shore power implementations.
The anticipated surge in cruise ship passengers is projected to drive growth in the shore power market. Cruise ships, designed for leisure travel, accommodate passengers with various amenities and services. Shore power, facilitating a cleaner environment and reduced noise pollution, enhances passenger comfort during voyages. In March 2021, 31.7 million passengers cruised, a number expected to reach 38.7 million by 2027, stimulating the shore power market's expansion.
Anticipated growth in the shore power market is attributed to increasing noise and air pollution from port operations. These pollutants adversely affect air quality, human health, and the environment. Shore power infrastructure combats emissions and noise by enabling ships to connect to local electricity grids while docked, minimizing engine use. In February 2022, Ports of Los Angeles and Long Beach emitted 100 daily tons of smog, surpassing emissions from six million cars in Southern California, emphasizing the urgency to curb such pollution sources.
The adoption of shore power faces a significant hurdle in high initial investment and maintenance expenses. Establishing this infrastructure at ports requires substantial upfront capital for electrical components, installation, and control technology. Ongoing operational costs involve maintenance of port electrical systems and shipboard shore power systems. Port of Oakland data in July 2023 revealed 93% of vessels effectively using shore power, subject to utility rates and fees such as an hourly usage fee of $267, a maintenance fee of $31 per hour, and an initial commissioning charge of $3,600, highlighting the cost constraints hindering market growth.
Key players in the shore power market are emphasizing the development of innovative offerings such as high-voltage shore power systems to maintain their market standing. High-voltage shore power establishes an electrical linkage between a ship and an electric grid, enabling the vessel to power down its engines, thus curbing fuel usage and carbon emissions. For instance, in August 2022, ERMA FIRST ESK Engineering S.A., a Greek firm specializing in marine equipment solutions, unveiled BLUE CONNECT, a high-voltage shore power solution known as alternate marine power (AMP) or cold ironing. This innovation effectively reduces a ship's reliance on diesel generators, resulting in decreased noise levels and emissions of various harmful compounds such as volatile organic compounds, nitrogen oxides, sulfur oxides, and particulate matter. The BLUE CONNECT system encompasses essential components such as the power transformer, shore connection main control panel, and power changeover mechanisms.
In September 2022, Caverion, a Finnish company providing technical solutions, expanded its capabilities by acquiring CS Electric A/S for an undisclosed sum. This strategic acquisition bolsters Caverion's existing design and engineering proficiency, along with its service and installation capacities. The move reinforces their commitment to delivering sustainable, energy-efficient solutions tailored for the marine sector and other related industries. CS Electric A/S, based in Denmark, specializes in technical engineering, electrification, automation, and shore power services, complementing Caverion's portfolio and expertise in the field.
Major companies operating in the shore power market report are Siemens AG, General Electric Corporation, Schneider Electric SE, ABB, Eaton, Vinci Energies S.A., Carnival Corporation & plc, Danfoss, Royal Caribbean Group, Wartsila Oyj Abp, Norwegian Cruise Line Holdings Ltd, Piller Power Systems, IGUS, Power Systems International, Cochran Inc., Cavotec SA, ESL Power Systems Inc., Victron Energy, Mastervolt, SmartPlug Systems, Atlas Marine Systems, Tec Container S.A., Preen (AC Power Corp.), Asea Power Systems, Blueday Technology AS
Asia-Pacific was the largest region in the shore power market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the shore power market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the shore power market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The shore power market consists of sales of remote monitoring systems, emergency backup systems, and shore power cabinets. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Shore Power Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on shore power market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for shore power? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The shore power market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.