Shore Power Market To Generate $3,932 Million Revenue by 2030

The shore power market size is expected to advance at a CAGR of 12.2% during 2022–2030, to reach USD 3,932 million by 2030. This can be ascribed to the rapid installation of shore power systems with zero-onsite emission; the advancements in digital technology for these systems helping in efficient production, effective operational maintenance, expanding portfolio, and sales monitoring; the rising demand for decentralized networks and smart storage systems; and the increasing disposable incomes and intelligent automation in fast-developing nations.

Moreover, other factors propelling the market growth include the increasing cruise passenger traffics, the rising noise and air pollution from port operations, the surging government-led initiatives to reduce greenhouse gas emissions, and the increasing investments in shore power projects and renewable electricity projects. 

Rising Air and Noise Pollution from Port Operations Boosts the Demand

In ships, various operations need an uninterrupted electricity supply generated by diesel generators and engines. This will lead to air and noise pollution, which is harmful to nearby people. Polluted air can cause lung problems in humans. The increasing use of shore power systems in ports helps minimize pollution, which, in turn, boosts their demand.

The energy generated by the burning of fossil fuels leads to carbon dioxide emissions, which cause acidification in the environment. The release of other pollutants, such as sulfur dioxides and nitrous oxides, also affects the environment negatively. Thus, the implementation of such systems aids in controlling air and noise pollution, which, in turn, minimizes their negative impacts.

European Market Is Considerably Growing

The European shore power market is growing at a significant rate, owing to the stringent government regulations to control greenhouse gas emissions. In the region, Germany is the leading market, due to its developed manufacturing, mechanical engineering, power, and electrical industries, and the presence of major industry players. For instance, in November 2021, AIDA Cruises, a German cruise line expanded the usage of green shore power with ships to two more German ports. In addition, the expanding electricity generation industry in the country is expected to further fuel the growth of the industry.

Various environmental concerns in relation to the maritime industry, and potential regulations and directives have pushed European ports to take initiatives for minimizing carbon-dioxide emissions, which means the installation of shore-to-ship systems is required. For example, the European parliament and the council on the deployment of alternative fuels infrastructure, proposed a new proposal for regulations such as the requirement of 10 T core ports to ensure at least one installation offers shoreside electricity supply to inland waterway vessels by January 2025.

Moreover, governments in the region took various initiatives to expand the use of these facilities and increase the rate of decarbonization. For instance, in October 2021, the Net Zero Strategy published by the U.K. government’s Build Back Greener, which is focusing on proposals and policies for decarbonizing all industries of the U.K. economy, including maritime. This is done so as to meet the country’s Net Zero target by 2050. It also includes a commitment to extending the Clean Maritime Demonstration to a multi-year program. This is usually a part of the commitment to the U.K. Shipping Office for Reducing Emissions.

The most-significant shore power market players are Siemens AG, ABB Ltd., Eaton Corporation Plc, Schneider Electric SE, SmartPlug, Danfoss A/S, Watts Marine, Blueday Technology, Cavotec Group