“Shore Power Market size will grow to USD 2.8 billion by 2027 (forecast year) from USD 1.6 billion in 2022 (estimated year), at a CAGR of 11.2% during the forecast period. Shore power, shore-to-ship power, or cold ironing is a technique of supplying electricity from the shore to ships to fulfill their power requirements for onboard electrical systems. This technique is also called an alternative maritime power, wherein the provided electricity can either be derived from a combination of port-owned renewable energy sources and local grids or solely from the local grids. The incoming power is fed to a substation at the port, converted into the required form, and transmitted to special power connectors, enabling the connection between the shore and ship.
According to the International Chamber of Shipping, 90% of the world trade is carried out by marine vessels, which use fossil fuels for power generation. The burning of fossil fuels leads to CO2 emissions, contributing to global climate change and acidification. Besides CO2, port operations also emit other pollutants such as SOx and NOx, adversely impacting the environment. The implementation of shore power systems helps in effectively limiting air and sound pollution and ultimately reduces their negative impacts.
Some of the prominent key players are GE (US), Siemens (Germany),Schneider Electric (France),ABB (Switzerland),Eaton (Ireland)
The shoreside segment is expected to grow at the highest CAGR from 2022 to 2027
Based on the installation type of shore power systems, the shoreside segment is estimated to be the fastest-growing market from 2020 to 2027. The strict environmental regulations implemented by governments worldwide have led port authorities to highly focus on reducing noise and emission levels through port operations, which has increased the shoreside installation of shore power systems and fueled the market growth.
Retrofit segment by connection is projected to emerge as the largest segment for the shore power market
The Retrofit segment, by connection, is projected to hold the highest market share during the forecast period. With the idea of retrofitting, the shipowners get the flexibility to modify the existing vessels and develop them into sustainable ones in response to new safety and environmental regulations implemented worldwide. There is also a significant difference between retrofits and new installations, with retrofits sometimes costing twice as much as new installations. The operational cost is primarily related to electricity costs and taxes, which vary from region to region.
Asia Pacific is expected to lead the shore power market
The Asia Pacific accounted for a 33.4% share of the Shore Power market in 2022. The countries covered in the region are China, Japan, South Korea, India, Australia, Singapore, and the Rest of Asia Pacific. The Asia Pacific is projected to hold the largest size of the shore power market during the forecast period as multiple countries in the region have been emphasizing reducing their carbon footprint by utilizing several techniques such as shore power, which would help them achieve their goals.
The Asia Pacific is the world’s most populated region and is expected to become the largest energy-consuming region globally in the near future. The growing population and rising per capita income are the key factors for the increasing demand for energy in the Asia Pacific. It comprises several developing nations that eventually require more energy for different purposes. According to the Asian Development Bank (ADB), the region’s share of global energy consumption is expected to increase to 56% by 2035 from 34% in 2010.