In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
· October 22, 2020: Wärtsilä was selected to power new ‘super ferries’ series by British ferry operator P&O ferries to maintain high level of fuel efficiency in their ships’ engines.
· October 21, 2020: ABB Marine & Ports delivered its sustainable shore connection technology for Viking’s high speed ferry named XPRS that ensures emissions are quiet and don’t impact local air quality.
The shore power market is estimated to garner a sizeable revenue by growing at a notable CAGR over the forecast period, i.e., 2021 – 2030. The growth of the market can be attributed to the increasing number of luxury ships in shipping business, growing need to reduce carbon emissions from ports and rising establishment of retrofit shore power systems. Since the last decade, the total revenue generated by cruise ships reached an all-time high in 2020. The calculated value amounted to be more than USD 35 billion. In addition, escalating government emphasis for the reduction of air and noise pollution caused by port activities is also evaluated to drive market growth in the near future. Along with these, surge in sea trade activities and cruise based tourism is also expected to offer lucrative opportunities to the market in the coming years. Approximately 30 million passengers globally traveled on a cruise in 2019. The average passenger capacity reached its highest value of more than 545k the same year.
The market is segmented by component into transformer, frequency converter, switchgear, cable & accessories, and others, out of which, the frequency converter segment is anticipated to hold the largest share in the shore power market on account of the ability of this component to increase machine lifetime, reduce maintenance cost and improve motor efficiency. Furthermore, on the basis of installation, the shoreside segment is projected to grab an enormous market share. As shoreside installation requires additional electrical components that provide enhanced flexibility for meeting power requirements of different vessels, it is widely being deployed since the recent years.
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years. CLICK TO DOWNLOAD SAMPLE REPORT
On the basis of geographical analysis, the shore power market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. The market in the Asia Pacific is estimated to witness noteworthy growth over the forecast period on the back of growing adoption of shore power systems and presence of some of the world’s busiest and largest ports in the region. According to the World Bank, China alone accounted for 30.40% of the total container port traffic in the world in 2019. The value was calculated to be 242.030 million TEU. Additionally, countries such as Japan, South Korea, Australia and Singapore are immensely involved in establishing guidelines to reduce the pollution caused from port activities, which is also expected to drive market growth in APAC in the coming years. Moreover, North America is expected to occupy the largest market share over the forecast period owing to favorable policies and high consciousness of government regarding the implementation of shore power plants to curb the detrimental effects of port based events on the environment.
The shore power market is further classified on the basis of region as follows:
Our in-depth analysis of the shore power market includes the following segments:
Ans: The major growth drivers for the market are increasing government awareness to reduce carbon emissions from ports and growing number of luxury ships for shipping business.
Ans: The market is anticipated to attain a notable CAGR over the forecast period, i.e., 2021 – 2030.
Ans: High maintenance and installation cost of shore power is estimated to hamper the market growth.
Ans: Asia Pacific will provide more business opportunities to the market on the back of rising adoption of shore power systems and presence of several large ports in the region.
Ans: The major players in the market are Schneider Electric, Siemens AG, ABB Ltd, Switzerland, Cavotec SA, Wärtsilä Corporation, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by installation, component, power output, and by region.
Ans: The frequency converter segment is anticipated to hold largest the market size and is estimated to grow at a significant CAGR over the forecast period and display significant growth opportunities.