Shore Power Market Size, Share & Trends Analysis Report By Installation Type (Shoreside, Shipside), By Connection (New Installation, Retrofit), By Component, By Power Rating, By Region, And Segment Forecasts, 2024 - 2030

Shore Power Market Size & Trends

The global shore power market size was estimated at USD 2.0 billion in 2023 and is expected to grow at a CAGR of 10.4% from 2024 to 2030. This growth is fueled by a pressing need for cleaner solutions in the maritime industry. Shore power, or cold ironing, supplies electrical power to docked ships, allowing them to shut down their engines and significantly reduce air and noise pollution. Stricter environmental regulations around the globe are pushing ports to adopt shore power infrastructure.

Stringent regulations from organizations like the International Maritime Organization (IMO) are pushing the adoption of shore power. The IMO has set stricter emission limits for sulfur oxides (SOx) and nitrogen oxides (NOx), prompting ports to invest in shore power infrastructure. Additionally, growing public concern about air pollution is adding pressure on port authorities to implement cleaner solutions.

Beyond environmental benefits, shore power offers economic advantages. It reduces fuel consumption for docked ships, leading to cost savings. Moreover, shore power can improve energy efficiency and grid stability in port areas. As a result, both private companies and governments are increasingly investing in shore power technologies.

However, the market faces some challenges. High upfront costs associated with installing shore power infrastructure at ports can be a barrier to adoption. Additionally, retrofitting existing ships to connect to shore power systems can be expensive. Despite these challenges, the future of the shore power market looks promising. As environmental regulations continue to tighten and technology advancements bring down costs, shore power is poised to play a key role in creating a cleaner and more sustainable maritime industry.

Market Concentration & Characteristics

The shore power market is a dynamic and competitive space with established players and innovative newcomers vying for dominance. In addition, the industry is facing fierce competition from established players in various sectors. Leading companies such as Siemens, Schneider Electric, ABB, and Wartsila contribute significantly with their expertise in power conversion, transformers, and switchgear that are crucial components for shore power systems. Alongside established players, niche players focusing solely on shore power solutions are gaining ground. Companies such as Cavotec (Switzerland) and ESL Power Systems (U.S.) offer specialized equipment and services tailored specifically for shore power applications.

Companies and consortium are increasingly focusing on launching innovative sustainable ideas to reduce carbon emissions from vessels. For instance, in January 2024, the UK Government Department for Transport awarded a contract of USD 0.6 million to develop green hydrogen shore power at the port of Leith to power vessels and reduce carbon emissions.

Installation Type Insights

Shoreside emerged as the largest segment with a market share of about 88.27% in 2023 and is expected to witness robust growth over forecast period. Stricter regulations from bodies such as the IMO, with designated emission control areas (ECAs), are pushing ports to offer shore power as a cleaner alternative to onboard generators docked ships typically rely on. These generators release harmful pollutants such as sulfur and nitrogen oxides, contributing significantly to air quality issues, especially in port cities. Shoreside power offers a clear solution, allowing ships to plug into land-based electricity grids and significantly reduce emissions while docked.

The shipside segment is anticipated to grow at the fastest rate over forecast period. Technological advancements are making shipside equipment more affordable and efficient. Frequency converters, a crucial component that allows ships with different electrical systems to connect to shore power, are becoming more compact and cost-effective. This is making shore power a more viable option for a wider range of vessels.

Connection Insights

The retrofit segment emerged as the largest segment with a market share of about 73.17% in 2023 and is expected to register the highest growth over forecast period. Several factors contribute to the growth of the retrofit segment. Firstly, advancements in technology have made retrofitting processes more efficient and cost-effective. Secondly, stricter environmental regulations are incentivizing ship owners to explore retrofitting as a means to comply with emission standards. Moreover, government subsidies and financial incentives specifically for shore power retrofits are making these upgrades more attractive to ship-owners.

Financial incentives offered by governments and organizations further enhance the attractiveness of retrofits. These incentives help offset the upfront costs associated with modifying vessels, making shore power a more accessible solution for a wider range of ship operators. As the focus on environmental sustainability intensifies, the retrofit segment is poised to play a vital role in transitioning the maritime industry towards a cleaner future.

Component Insights

The frequency converters segment emerged as the largest segment with a market share of about 33.56% in 2023 and is expected to register robust growth over forecast period. Ships operate on electrical systems with varying frequencies and voltages compared to land-based grids. Frequency converters act as the bridge, converting the incoming grid power to the specific requirements of the ship, enabling a safe and efficient connection. Advancements in power electronics are leading to the development of more efficient and compact frequency converters. This translates to lower overall system costs and increased adoption within the shore power market.

Transformers play a critical role in shore power systems. They are responsible for adjusting the voltage level of incoming electricity from the land-based grid to match the specific voltage requirements of the docked vessel. This ensures safe and efficient power transfer between the shore and the ship.

Power Rating Insights

The up to 30 MVA segment dominated global market, accounting for a market share of more than 63.0% in 2023. This trend aligns with the increasing dominance of mega-ships in global maritime transportation. These colossal vessels require significantly more electricity compared to smaller ships, necessitating more powerful shore power installations.

Low MVA (up to 30 MVA) systems cater to smaller vessels such as ferries, passenger ships, and tugs. These systems are more prevalent in inland waterways and harbors with a higher concentration of smaller craft.

Medium MVA (30-60 MVA) systems are suitable for mid-sized vessels such as container ships and cruise liners. These systems represent a significant portion of the market due to the increasing number of mid-sized vessels operating globally.

High MVA (above 60 MVA) systems cater to the largest ships, including mega-ships and ultra-large container vessels. While the number of such vessels is relatively smaller, their high power demands necessitate the development of high-capacity shore power systems.

The growth trajectory of each MVA segment within the shore power market is influenced by factors such as trade patterns, regional regulations, and the specific needs of dominant vessel types in a particular location. Understanding these factors allows for targeted infrastructure development and fosters a shore power ecosystem that caters to the diverse power requirements of the maritime industry.

Regional Insights

The North American shore power market is growing driven by two main trends. Firstly, stricter environmental regulations are pushing ports to adopt cleaner solutions. Shore power allows docked ships to shut down their polluting auxiliary engines and connect to the electrical grid, significantly reducing emissions. Secondly, there's a growing focus on cost reduction. Shore power not only helps ports meet environmental targets but also lowers operational costs for shipping companies by minimizing reliance on diesel fuel. This trend, coupled with technological advancements in shore power systems, is propelling the market forward in North America.

U.S. Shore Power Market Trends

The U.S. shore power market is expected to grow at a CAGR of 10.1% from 2024 to 2030. The U.S. market is experiencing steady growth, driven by a confluence of environmental and economic factors. Stringent regulations from the Environmental Protection Agency (EPA) aimed at reducing air pollution from port operations are a key driver. These regulations designate specific areas around ports as Emission Control Areas (ECAs), where stricter air quality standards apply. Shore power offers a viable solution for vessels docked in ECAs, enabling them to cut emissions significantly compared to relying on onboard generators.

Europe Shore Power Market Trends

The shore power market in Europe is expected to witness moderate growth over the forecast period. The European Union (EU) plays a pivotal role in this push, implementing ambitious emission reduction targets for the maritime industry. Europe is expected to grow at a CAGR of over 11.0% by 2030.

Germany shore power market held over 31.0% revenue share of the Europe market in 2023, due to heavy investments in shore power infrastructure by the Major German ports such as Hamburg and Bremerhaven. This includes installing shoreside connections and upgrading electrical grids to handle the increased power demands.

Shore power market in the UK is anticipated to grow at a CAGR of over 11.2% from 2024 to 2030. This growth can be attributed to financial incentives for port authorities to invest in shore power infrastructure and grants for ship operators to retrofit their vessels for shore power connectivity.

Norway shore power market is expected to grow at a significant CAGR of 12.9% over the forecast period. This growth can be attributed to technological advancements of Norwegian companies in developing innovative shore power solutions. These advancements encompass not only efficient power conversion equipment but also automated connection systems that streamline the process for docked vessels.

Asia Pacific Shore Power Market Trends

Asia Pacific dominated accounted for the largest revenue share of about 34.8% in 2023. The region is expected to continue dominating the industry from 2024 to 2030. Asia Pacific is home to some of the world's busiest and largest ports, handling a substantial portion of global maritime trade. This high volume of ship traffic translates to a greater need for cleaner port operations, making shore power an attractive solution. The Asia Pacific market for shore power is poised for significant growth, exceeding a projected CAGR of over 11.5% between 2024 and 2030. This boom is driven by factors like the rising demand of shore power in countries such as China, Japan, South Korea, and India.

China shore power market held a dominant share of about 49.0% in the Asia Pacific region in 2023. The country's booming maritime industry, coupled with increasing environmental concerns, has fueled rapid growth in this sector.

Shore power market in India is anticipated to register a CAGR of about 12.4% over forecast period. The Indian government is actively promoting shore power adoption through stricter emission regulations and policies encouraging port development with shore power capabilities. This regulatory push is creating a favorable environment for market growth.

South Korea shore power market is anticipated to register a CAGR of about 11.0% in the Asia Pacific region over the forecast period. Major shipping companies based in South Korea are actively incorporating shore power into their operations to demonstrate environmental responsibility and contribute to cleaner port operations.

Key Shore Power Company Insights

The market is moderately fragmented with presence of a sizable number of medium and large-sized companies. The market is a dynamic landscape with established players in the shore power space and innovative startups. Key companies are adopting several organic and inorganic growth strategies, such as new technological development, research & development, mergers & acquisitions, and joint ventures, to maintain and expand their market share.

• In March 2024, DFDS, a shipping and logistics company announced to launch a new shore power facility at its Vlaardingen terminal in the Netherlands. The docked ships will use renewable power by switching off their diesel-powered generators to reduce carbon emissions by about 2,100 to 2,300 tons annually.

• In July 2023, Rotterdam Shortsea Terminals (RST) and Dutch logistics company Samskip launched green shore power initiative, wherein, new clean shore-powered energy solutions shall be provided to vessels in order to reduce CO2 emissions. The initiative has been taken to achieve net-zero emissions by 2040 at the Rotterdam port.

Shore Power Market Report Scope

Global Shore Power Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global shore power market report on the basis of installation type, connection, component, power rating, and region:

• Installation Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Shoreside

  • Shipside

• Connection Outlook (Revenue, USD Billion, 2018 - 2030)

  • New installation

  • Retrofit

• Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Transformers

  • Switchgear Devices

  • Frequency Converters

  • Cables and Accessories

  • Others

• Power Rating Outlook (Revenue, USD Billion, 2018 - 2030)

  • Up to 30 MVA

  • 30 to 60 MVA

  • Above 60 MVA

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Norway

    • Netherlands

  • Asia Pacific

    • China

    • India

    • South Korea

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE