Marine Selective Catalytic Reduction System Market size is expected to reach USD 10 Billion by the end of 2036, growing at a CAGR of 6% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of marine selective catalytic reduction systems was USD 5 Billion. The increasing focus on environmental regulations and the need to achieve higher energy efficiency in marine transportation is driving the demand for selective catalytic reduction systems. The growing concerns regarding air pollution and greenhouse gas emissions are encouraging shipping companies to adopt selective catalytic reduction systems to reduce their carbon footprint. As observed by Research Nester analysts in studies conducted, the catalytic converter is capable of reducing more than 90 % of harmful exhaust gases, and its price is approximately twice as low as that of a catalytic converter made of noble metal, thus expanding the market share around the globe.
Moreover, the implementation of stricter emission standards by organizations such as the International Maritime Organization (IMO) and regional regulatory bodies is expected to further boost the adoption of marine selective catalytic reduction systems. These systems help vessels meet these stringent emission limits and avoid penalties or fines for non-compliance. In particular, the IMO's GHG Strategy for 2024 envisages a reduction in the carbon intensity of international shipping by an average of 40 % across international shipping by 2030, to reduce CO 2 emissions per transport work.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 6% |
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Base Year Market Size (2023) |
~ USD 5 Billion |
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Forecast Year Market Size (2036) |
~ USD 10 Billion |
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Regional Scope |
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Application (Commercial, Offshore, Recreational, Navy)
The commercial segment is anticipated to hold the majority market share, garnering 38% of the market share. This dominance is attributed to the high demand for emission control technologies in the commercial shipping sector, driven by stringent global regulations and the need for fuel efficiency. As commercial vessels constitute a significant portion of the maritime industry, shipowners in this segment prioritize the adoption of selective catalytic reduction systems to comply with emissions standards and achieve sustainable operations, thereby contributing to the system’s pre-existing standards.
End-User (Newbuilds, Retrofits)
The retrofits segment is set to attain the largest market share in the global marine selective catalytic reduction system market. This is due to the increasing emphasis on upgrading existing vessels to comply with stringent emission regulations. As observed by Research Nester analyses, around 477 ships might be modified to run on fuels with little or no carbon emissions, such as ammonia and methanol. Retrofitting offers a cost-effective solution for shipowners to enhance environmental performance without the substantial investment associated with new buildings. As regulatory pressure intensifies and older vessels require compliance upgrades, the retrofit market gains prominence, making it the anticipated leader in market share for marine selective catalytic reduction systems.
Our in-depth analysis of the global marine selective catalytic reduction system market includes the following segments:
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Application |
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End-User |
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North American Market Forecast
North America region is expected to hold 42% of the global marine selective catalytic reduction system market share. The region experienced notable growth and transformation in response to stringent environmental regulations. The implementation of emission standards, such as the United States Environmental Protection Agency’s (EPA) Tier 4 and International Maritime Organization’s (IMO) Tier III regulations, drove a surge in demand for SCR systems. As a result of these regulations, ships emit 80% less nitrous oxide and 89% less sulfur oxide than those built in the 1990s. Shipowners across North America sought compliance with these technologies, spurring investments in advanced emission control technologies. When compared to Tier 3 standards, EPA Tier 4 requirements resulted in a 64% decrease in hydrocarbon and nitrous oxide emissions for many engines with power outputs above 600 kW. For instance, Cummins QSK38 engines meet Tier 4 requirements for use in maritime environments. Less than 1.8 g/kW-hr of nitrous oxides and 0.19 g/kW-hr of hydrocarbons are released by these engines. The region witnesses a shift towards cleaner maritime practices, with SCR systems playing a pivotal role in reducing nitrogen oxide (NOx) emissions. Government incentives, along with a growing emphasis on sustainable shipping practices, further propelled the adoption of SCR systems. The North American marine SCR market evolved as a key player in the global movement towards greener and more environmentally conscious shipping.
European Market Statistics
The European marine selective catalytic reduction system market is estimated to garner significant revenue share. The region has undergone significant evolution, driven by stringent emission regulations and a growing commitment to environmental sustainability. The region, adhering to International Maritime Organization (IMO) Tier III standards, has witnessed a substantial demand for SCR systems. European shipowners, particularly in the commercial sector, prioritize compliance with these regulations, fostering the adoption of advanced emission control technologies. Government incentives and stringent enforcement of environmental norms further accelerate the integration of SCR systems into marine vessels. The market’s growth is also propelled by continuous technological advancements, reflecting the region’s dedication to cutting-edge solutions for reducing nitrogen oxide(NOx) emissions. The European marine SCR system market stands as a key player in the global shift towards cleaner maritime practices, emphasizing both regulatory adherence and environmental stewardship.
Author Credits: Payel Roy, Dhruv Bhatia
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