Shore Power Market

Shore Power Market Size

Shore Power Market is anticipated to grow at a CAGR of 12.2% in the forecast period (2024-2034), with the market size valued at USD 1.7 billion in 2023 and projected to reach USD 6.1 billion by 2034.

Shore Power, which is also referred as alternative maritime power, is used to supply electric power to ships while they are berthed in ports, rather than using ships own main engines. Electric power is generally provided by other sources such as grids located near the dock. Shore power systems help in reducing emissions and unnecessary fuel consumption by the ships as they keep on utilizing their engines running even when stationery in the harbour. Shore power system includes necessary power infrastructure situated at the port, with electrical connection points located in the docks, which facilitates in transferring power to ships and boats. Shore power is used in the regions where stringent environmental regulations are to be followed such as Eurozone, it all aligns with the global initiatives to reduce the carbon footprints and sustainable development, for future generations.

Market Highlights

Shore Power Market is expected to exhibit a CAGR of 12.2% during the forecast period, 2024-2034

Shore Power Market is anticipated to reach USD 6.1 billion, growing at a CAGR of 12.2% during the forecast period due to the rising demand for efficient shore power required in ships and vessels, that may help in lowering overall emissions and reducing environmental footprints. Shore power plants are generally installed either near the shoreside or shipside, these helps in providing energy to the vessels. As world moves towards efficient and green energy promotion, with reducing fossil fuel impact the market size of shore power will grow considerably.

Source: Fatpos Global

Shore Power Market Segmentation

Frequency Converters will prevail dominance in the market

By Component, Shore Power Market is segmented into Transformer, Switchgear, Frequency Converter, Cables & Accessories and Others. Frequency converter maintained its dominance in the segment, as they facilitate the ships to use shore power regardless of on-board generator frequency, as well as minimizing power losses by adjusting frequency to match the requirements. Converters help in maintaining the health of ship generators by eliminating the needs for on-board frequency adjustments. Consistent power supply with the help of frequency generators helps in minimizing the degradation of on-board generators, directly facilitating in increasing their lifespan. Technological advancements with converters are helping directly to reduce size and increasing frequency conversion rates. While other components such as cable & accessories, switchgear and transformers play an equally important role in shore power generation, but the increased requirements of frequency converters help them reign the market sphere.

Shoreside power installation significantly influence the market due to widespread adoption

By Installation, Shore Power Market is segmented into Shoreside and Shipside variants. Shoreside segment dominates the market sphere while having more than 50% share, due to lower cost that comes up in the installation of this infrastructure, which includes power conversion equipment, transformers and cable networks. Shoreside infrastructure can serve multiple ships at the same time, making it a cost-effective measure for busy dockyards. Development and upgradation of shoreside infrastructure is a lot easier than modifying ships, facilitating faster adoption. Governments in many countries are offering financial incentives and lowering tax deductions for installation of port connections. Both, Shoreside and Shipside installation play important role in the market. While Shoreside dominates due to scalability and affordability, Shipside segment is seeing prominent growth driven by advancements and regulations.

Market Dynamics

Growth Drivers

Government Initiatives and better environmental regulations will promote sustainability

There has been growing concerns regarding greenhouse emissions and growing carbon footprints recently, which are driving government initiates and better environmental regulations that effect the market. Governments are providing tax subsidies and financial incentives to the port managing authorities to invest in shore power infrastructure, which helps companies to ease the financial burden. Several countries especially in the EU have stricter air quality management norms, which aims a specific target regarding emission for ports and ships, this influences port regulators to use shore powers. Regulations by International Maritime Organization regulations on sulphur and nitrogen emissions push ports and ships to adapt low emissions, many ports are implementing own clean energy initiative, that prioritize shore power use in boundaries. Public health concerns are also top most priority and air pollution are motivating some governments to enforce strict regulations.

Reduction in Noise Pollution with efficient fuel cost savings increases market demand

Fuel Cost Saving and Noise pollution reduction are important factors that are currently influencing the market development, switch from diesel powered generators, to shore power has been significant in reducing fuel consumption up to 70%. Usage of shore power are helping the port operators and shipping companies indirectly, as lower emissions of carbon monoxide, nitrogen etc., are helping the companies to save financially by paying low carbon and environmental relation taxes. Reducing the use of on-board generators help in reducing noise pollution, as shore power helps in improving working conditions for employees. Low level of noise generation is indirectly beneficial for public health and environment as a whole. The combined effect of fuel cost savings and noise pollution reduction makes shore power a compelling solution for both economic and environmental reasons.

Restraints

Limited availability of Ports with shore power may have a negative influence

Shore power has many benefits, but limited shore availability stands as a significant restraint, as installation of shore power infrastructure can be complex and expensive as significant investments are required in components. Investments made in the shore power may take couple of years to generate profits, this may discourage port companies, while there can be different power requirements for vessels and ships of diverse categories, which can create problems to setup wide large of shore power systems. While, some ports being small may not have required space for installation. Limited port availability restricts the potential consumer base for shore power corporations, while shore power may benefit the new ports, it may leave other ports behind in terms of efficiency. 

Recent Developments

• In 2023, ABB launched Ecoflix Power 1700, a compact onshore solution for cruise ships. The Company also collaboarated with Carnival Cruise for shore power integration in Grand Turk, Bahamas.

• In 2023, Siemens attained contracts for shore power installation in Germany, Finland and Norway. The company also developed a cloud based solution for shore power solutions.

• In 2023, Schneider Electric launched a new green line zero, a low-voltage power solution for smaller vessels. The Company also expanded its power offerings by the help of acquisitions in Europe and Asia.

• In 2023, WEG Entered the power market with the help of partnership with operators in Brazil. The company is regularly investing in the research and development of wireless shore power technology.

• In 2023, Eaton has focused on providing better shore power packages, including equipment and services. The company also collaborated with maritime industrial stakeholders on development of shore power.

Shore Power Market

Key Players:

• ABB
• Siemens
• Schneider Electric
• WEG
• EATON
• Wärtsilä
• Cargill
• Voith
• Emerson
• Green Shore Power
• Plitmo
• Končar
• Deltamarin
• Tekna
• Elkon
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Shore Power Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. North American region dominated the market as the region has one of the world’s stringent air quality standards, which has adopted shore power to reduce unnecessary emissions. North American Ports have a developed infrastructure which already are shore power equipped, many Government in the region offers financial incentives to shipping companies. Regions like Asia-Pacific and Europe are growing rapidly, this is due to the growing environmental concerns, and increasing port investments and generation of more cost-effective shore technologies. Countries like China, India, Germany, France are the pioneers in theses regions which are facing significant growth.

Source: Fatpos Global

Impact of Covid-19 on Shore Power Market

The pandemic had a significant impact on the Shore Power Market, as market declined negatively, significant reduce in cruise and cargo activity led to lockdowns restrictions and cargo ship movements. Many ports faced restrictions for manpower work, which hindered the development of power infrastructure along the shores. Companies had to cancel their plans regarding investment in new infrastructure and development. Despite these challenges, the pandemic also brought about some positive outcomes. There was an increased awareness on environmental issues, and importance sustainable shore power generation. Shore power helps in reduction of subsequent air and noise pollution. Governments had introduced support packages to promote faster growth in shore power, over its long term benefits. This provided the much needed industry support. Overall, the Covid-19 pandemic had a mixed effect on the shore power industry, while it caused setbacks in initial stages, it also promoted sustainable and technological development around shore power. 

Shore Power Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada

• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America

• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe

• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC

• Middle East and Africa Market Size,  Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Shore Power Market Scope and Segments:

Frequently Asked Questions (FAQ):