Scrubber System Market is Estimated to Witness High Growth Owing to Opportunity to Reduce Pollution Levels

gaurik

posted on 7 months ago — updated on 1 second ago

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Scrubber System Market is Estimated to Witness High Growth Owing to Opportunity to Reduce Pollution Levels

The global scrubber system market is estimated to be valued at US$ 1.93 Mn in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.

Scrubber systems are installed in ships and large marine vessels to remove sulfur, particulate matter and other harmful pollutants from exhaust gases before they are released into the air. These systems play a key role in reducing air pollution and complying with stringent emission norms. Scrubber systems treat the collected exhaust gases through processes like seawater scrubbing and dry scrubbing to neutralize acid gases, particulates and remove other harmful compounds.

Market Opportunity:
The opportunity to reduce pollution levels from marine vessels presents a major market opportunity for scrubber system providers. Strict emission regulations by bodies like IMO have created significant demand for these systems as they help ship owners comply and lower air pollution. With emission norms expected to become more stringent in the coming years, the need for efficient exhaust scrubbing and cleaning technologies will continue to grow. Suppliers of advanced scrubber systems focusing on maximized pollutant removal, compact sizes, energy efficiency and lower operating costs stand to benefit from this market opportunity substantially over the forecast period.

Porter’s Analysis

Threat of new entrants: New entrants face high production, marketing, and R&D costs to compete in this market. Established players enjoy economies of scale and brand recognition.

Bargaining power of buyers: Large fleet owners have some bargaining power due to bulk purchasing. However, the need to comply with stringent emission norms limits this power.

Bargaining power of suppliers: A few major companies dominate components supply. However, the modular nature of products allows fleet owners to choose different suppliers for various components.

Threat of new substitutes: No cost-effective substitute currently exists that can remove SOx and particulate matter from engine exhaust as efficiently as scrubber systems.

Competitive rivalry: Major players compete intensely on technology, cost, and service. Retrofitting large ships requires strong technical expertise and financing ability.

SWOT Analysis

Strengths: Scrubber systems help ships comply with emission regulations at a fraction of the cost for switching to low-sulfur fuel. They improve operating efficiency for ship owners.

Weaknesses: High upfront costs. Dependence on wastewater disposal infrastructure. Onboard space requirement reduces cargo capacity.

Opportunities: IMO regulations will boost retrofitting demand till 2025. Systems using eco-friendly neutralizing agents can address disposal concerns.

Threats: Regulations beyond 2025 may further restrict sulfur content in fuel. Alternative fuels like LNG pose a disruptive threat. Strict enforcement of wastewater standards can impact ROI.

Key Takeaways

Global Scrubber System Market Size is expected to witness high growth driven by the need for fleet owners and operators to comply with stringent emission norms set by regulators like IMO and EPA. The scrubber system market size in 2023 is estimated to reach US$ 1.93 Mn and further grow at a CAGR of 4.2% during the forecast period of 2023 -2031 to reach US$ 2.63 Mn.

Regional analysis for scrubber systems market is dominated by Asia Pacific region mainly due to large fleet size in China and India. China is the largest ship builder as well as owner accounting for over 30% of global fleet. Stringent emission norms and growth of maritime trade will drive demand for retrofitting in Asia Pacific region.

Key players operating in the scrubber system market are Nike Inc., Adidas AG, Bata Limited, Puma SE, Columbia Sportswear Company, The Dow Chemical Company, Huntsman Corporation, and BASF SE. Major players are focusing on development of energy-efficient and cost-effective systems to gain competitive edge. Partnerships with system integrators is a key strategy to boost aftermarket services.