Shore Power Market to Reach $2.7Bln by 2024
The global shore power market is estimated to be valued at USD 1.4 billion in 2019 and is projected to reach USD 2.7 billion by 2024, at a CAGR of 13.3% during the forecast period.
Reduction of low-frequency noise and emissions at ports, a growing number of cruise liners in the shipping industry, and installation of retrofit shore power systems have increased the demand for a shore power system, said a report by ResearchAndMarkets.
However, huge installation & maintenance costs and high initial investment for shore power component manufacturers are hindering the growth of the shore power market.
The frequency converter segment is expected to hold the largest market share and is the fastest-growing segment during the forecast period. Shore power frequency converter allows a ship to be powered by the port's electrical grid, even though the vessel may have a different operating voltage.
Shore power frequency converters save money by reducing the consumption of diesel fuel. It also reduces air pollution caused by running the engine unnecessarily while at the port. Another benefit of using shore power frequency converters is noise reduction, whereas idling and diesel generators are much noisier.
The shore power market is segmented into three - by connection, into the new installation, and retrofit. The new installation segment is expected to hold the largest market share by 2024. For shore power to be implemented, ships need to be equipped to receive power from an outside source or local grid.
Existing ships usually need to be retrofitted with specific electrical equipment such as wiring, connectors, transformers, and switchgear, while many new ships are being built with this equipment as part of their ship's electrical system design.
Retrofitting of shore power in existing vessels are way expensive when compared to a new installation, sometimes costing up to twice as much as incremental new-build investments. Therefore, the new installation segment is driving the market during the forecast period.
Asia Pacific is estimated to dominate the global shore power market during the forecast period. Asia Pacific ports are focusing more on sustainability due to the increase in the maritime industry, stringent emission regulations, and mounting concerns over local air pollution.
The leading players in the shore power market are Siemens (Germany), Wartsila (Finland), ABB (Switzerland), Schneider Electric (France), and Cavotec (Switzerland).