Shore Power Market will grow at highest pace owing to increasing focus on reducing carbon emissions

Shore Power Market will grow at highest pace owing to increasing focus on reducing carbon emissions

Shore power, also known as cold ironing, allows ships berthed in ports to shut down their generators and instead plug into local electric grids. This helps reduce emissions of fine particulate matter and greenhouse gases from auxiliary engines on ships while docked at ports. Shore power systems provide electricity to berthed vessels so that they can meet their power needs without operating auxiliaries on board and burning marine bunker fuel. The global shore power market includes power supply equipment, installation & integration, and retrofitting which are installed to reduce carbon emission and noise produced by the ships. Stringent environmental regulations regarding emission from ships and growing concerns about air and noise pollution have compelled ports and terminals to develop shore power facilities.

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 Takeawaws:
Key players operating in the shore power market are Cavotec SA, Siemens, Schneider Electric, ABB, Danfoss, Wärtsilä, and ESC Power. Cavotec SA is one of the leading providers of shore power connection systems globally.

Shore Power Market Growth in international seaborne trade and increasing container vessel sizes have amplified the need for shore power systems. Major ports across the globe are undertaking various projects for shore power installations to lower environmental impact of berthed vessels.

Technological advancements are also aiding market growth. Developments such as medium frequency transformers which boost energy efficiency along with advanced monitoring systems are enabling greater use of cold ironing solutions. Harmonic filters and unified power quality solutions further make shore connection reliable and efficient.

Market Trends:
Rising deployment of medium voltage shore power systems - Medium voltage shore power systems ranging from 1-33 kV are gaining increased acceptability due to benefits such as reduced installation costs and transformer sizes. Several new installations are integrating 6-15 kV shore connection systems.

Adoption of hybrid shore power models - Hybrid shore power models utilizing both grid-connected and local power generation sources like solar are being increasingly adopted. This provides ‘green’ shore time and ensures continuous power supply even during grid outages. USEPA has also launched initiatives to promote hybrid shore power.

Market Opportunities:
growing focus on green ports and terminals presents significant opportunity for cold ironing vendors. Developing regional standards for shore power hardware and systems connectivity can help bolster commercialization.

Progress on common communication and harmonization protocols between land interface systems and marine vessels opens new deployment avenues. Advanced technologies such as AI-based predictive maintenance also promise to increase uptake.

COVID-19 Impact on Shore Power Market Growth
The COVID-19 pandemic significantly impacted the growth of shore power market globally. During the initial months of outbreak, the shipping activities reduced drastically due to lockdown restrictions worldwide that led to decreased demand for shore power from vessels. This decline was attributed to reduced cargo transportation via ship as factories and industrial operations were shut down. However, with resuming economic activities in 2021, the demand is regaining steadily as ports and ships are focusing on sustainability goals. The shipping companies are more inclined towards installing shore power systems to reduce emissions during berthing as environmental concerns heightened during the pandemic.

The Asia Pacific region contributes majorly to the shore power market value. The region accounts for over 35% of the global market share due to large number of ships visiting ports in China, Japan, and South Korea for trading activities. These countries have stringent environmental norms regarding air pollution from ships. Moreover, availability of low-cost components and presence of leading manufacturers in the region boost the market. Additionally, increasing investments by governments in ports infrastructure that supports shore power connections will further drive the APAC shore power market post pandemic.

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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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