Shore Power Market: Key Drivers and Future Trends

By | October 4, 2024
Global Shore Power Market

The Shore Power Market is expected to grow in the forecast period, fueled by the need to reduce greenhouse gas emissions and the enhanced features of shore power systems.

According to TechSci Research report, “Shore Power Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Shore Power Market is experiencing a surge in demand in the forecast period.

Shore power helps in reducing greenhouse gases emission produced by auxiliary diesel engines while docked. Therefore, governments are focusing on investing in this technology in the global market. For instance, In June 2021, trade body Maritime U.K. urged the government to invest USD 235 million marine power to build a viable charging network and reduce port emissions. For instance, the European Commission has mandated to the implementation of shore connection systems to all European ports. Hence, such supportive government regulations for reducing greenhouse gas emissions is likely to fuel the market growth during the forecasted period.

Using marine power enables ships at a dock or in a dry dock to use shoreside electricity to power the onboard electrical systems, such as lighting, ventilation, cargo pumps, communication, and other critical equipment while turning off their auxiliary engines. It helps to reduce low-frequency noise and vibration and allows the crew to save the ship’s diesel engines while berthed. It is a critical way to reduce emissions and save costs for shipping companies. Additionally, it is a quicker and cheaper short-term solution for allowing shipping companies to achieve emissions targets. Hence, the aforementioned advantageous features of this power are expected to drive the market.

The international community’s increasing emphasis on sustainable development has prompted the maritime sector to seek environmentally friendly practices. For instance, According to UNCTAD (United Nations Conference on Trade and Development), Maritime trade is expected to grow 2.4% in 2023 and more than 2% between 2024 and 2028. Shore power aligns with this agenda, offering a tangible means to reduce the carbon footprint of shipping activities. Thus, the Global Shore Power market is anticipated to grow.         

Governments worldwide are recognizing the importance of shore power in achieving environmental goals and are implementing supportive policies and incentives. Financial incentives, tax breaks, and grants are being offered to encourage ports and shipping companies to invest in shore power infrastructure. For instance, the European Investment Bank and stakeholders have committed to exerting optimal efforts to implement onshore electricity supply by 2028, with a specific focus on cruise and container vessels.

The signatories further agreed to reward the most environmentally friendly ship stopovers and promote actions which improve the environment around ports, including through reducing stopover fees for greener vessels. These initiatives not only foster a sustainable maritime industry but also stimulate economic growth in the renewable energy and technology sectors.

Browse over XX Market data Figures spread through XX Pages and an in-depth TOC on “Global Shore Power Market.” 
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The Global Shore Power Market is segmented into type, application and region.

Based on installation, Shoreside Installation dominated the global Shore Power market with a market share of 68.03% in 2022.  Shoreside connections ensure ships have a consistent and efficient power supply. They may turn off their onboard generators and rely on cleaner, more sustainable shore electricity while parked. The shoreside market segment is leading the market as it helps to eliminate ship engine emissions in port waters, reduces pollutants by about 90%, and greenhouse gas emissions by 50%. Additionally, it reduces noise, vibration, and engine wear and tear. The shipside segment is also witnessing an increase in its market share due to a rise in demand for passenger vessels and growing demand for merchant’s vessels.  

For instance, in July 2023, ABB completed the sale of its Power Conversion division to AcBel Polytech Inc. for USD 505 million in total. Additionally, July 2023- the new Schneider Electric Easy UPS 3-Phase Modular is at the cutting edge of dependability, scalability, and simplicity.

In June 2022, Enova, a Norwegian government enterprise, supported five new shore projects in the country with about USD 3.4 million. In addition, in February 2022, port authorities and government ministers from across the globe signed a shore power declaration at the One Ocean summit.

Hence, it is recommended that the key market players in the global Shore Power market concentrate on the Shoreside Installation segment to capitalize on favorable market prospect.

Based on Connection, Retrofit Connection dominated the global Shore Power market with a market share of 57.78% in 2022.

Retrofitting existing vessels is often more cost-effective than building new vessels with shore power capabilities. Additionally, many ports are already equipped with shore power infrastructure, so retrofitting existing vessels allows them to take advantage of this infrastructure. These are the factors driving the market growth.

The growing investments in retrofitting the ports will propel its demand in the market. For instance, in October 2019, Global Ports Holding had started operations at the Nassau cruise port, with an investment of USD 250 million for capacity expansion and retrofitting the existing port.

In June 2021, Antwerp, Bremerhaven, Hamburg, Haropa Port, and Rotterdam made a joint declaration of zero-emission shipping in line with their green ports strategy. The ports stressed a strong business case for retrofitting or equipping large container ships for shore power and pointing to the readiness level among these vessels to use cold ironing. Hence, an increasing number of terminals and installation of retrofit systems on the port will bolster growth.

Thus, the global Shore Power market players are advised to focus on this Retrofit Connection segment to capitalize on lucrative market opportunities.

Major companies operating in the Global Shore Power Market are:

  • GE Power Conversion
  • Siemens AG
  • ABB Ltd
  • Eaton Corporation plc
  • Wartsila Corporation
  • Westinghouse Air Brake Technologies Corporation
  • SmartPlug Systems LLC
  • AC Power Corporation
  • Schneider Electric SE
  • Danfoss A/S

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“The Global Shore Power Market is expected to rise in the upcoming years and register a significant CAGR during the forecast period. The primary driver propelling the global shore power market is the increasing regulatory pressure on the maritime industry to curb emissions. Stringent environmental standards set by international bodies and governments worldwide mandate ports and shipping companies to adopt sustainable practices. Shore power, offering an eco-friendly alternative by enabling vessels to connect to the grid and power down onboard generators while docked, aligns with these regulations.

As the push for emission reduction intensifies, the demand for shore power infrastructure rises, making it a pivotal driver in reshaping the business landscape of the maritime sector. Therefore, the Market of Shore Power is expected to boost in the upcoming years.,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

Shore Power Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Installation (Shoreside, Shipside), By Connection (New installation, Retrofit), By Component (Transformer, Switchgear, Cables & Accessories, Frequency Converter, Others), By Power Output (Upto 30 MVA, Above 30 MVA), By Region (Asia-Pacific, Europe, North America, Middle East & Africa, South America), By Region, By Competition”, has evaluated the future growth potential of Global Shore Power Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Global Shore Power Market.

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