Market Overview
Shore power is how electrical power to a ship is provided from the shore while it is docked. Shore power allows auxiliary engines to be turned off, thereby significantly reducing fuel costs. The process is also known as cold-ironing or alternative marine power.
The global shore power is expected to grow at a CAGR of 6.42% during the forecasting period (2020-2027). The market is likely to reach USD 1,642.99 million in 2027, from its recorded value of USD 1,037.24 million in 2019.
The shore power market is anticipated to grow in the forecast period due to driving factors such as the increasing number of cruise liners in the shipping industry and retrofit shore power systems. The high cost of installation and maintenance may hamper the shore power market's growth during the forecast period. The Asia Pacific region is expected to experience a surge in demand for shore power with increasing efforts to minimize emission and noise pollution in heavy traffic ports. Countries like China and Hong Kong, which are a hub for top ports, offer major growth prospects in this region. Asia-Pacific held the highest market revenue share of 35% in the year 2019.
Market Dynamics
Drivers
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The increasing number of cruise liners in the shipping industry
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Favorable government initiatives aimed at reducing greenhouse gas emissions from ports
Restraints
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High costs for installation and maintenance
Market Segmentation
Wires and cables are an integral part of any electrical system. Likewise, in the shore power unit, cables and associated accessories play an important role in establishing a proper connection between 2 points, ensuring the effective transmission of current. The ashore power cord is a type of marine cable used to connect a vessel to shore power. It is a durable, high-quality cable designed specifically for marine usage. Sometimes, it is referred to as a ship-to-shore cord. The shore power cord is for use where the highest degree of oil resistance and extended service life are essential. It is easily identifiable due to its bright yellow insulation and large diameter. This type of cord is ideal for replacing shore power cords in harsh environments. Accessories could be clamps, metal terminals, and others that support a perfect installation of cables onto the desired places, such as battery terminals and transformer poles.
Shore power market for cables and accessories is likely to reach USD 437.29 million in 2027, from its recorded value of USD 289.44 million in 2019, growing at a CAGR of 5.79% during the forecast period.
Some of the key players offering cables and accessories for shore power include ESL Power Systems, Smart Plug, and ABB. Other market players such as Pacer Group, Igus, and Hubell offer shore power cords. Pacer Group’s shore power cord carries a range of resistances, including moisture, acid, alkali, ozone, and oil. They carry shore power cord in 2 gauge with four conductors, 6 gauge with three conductors, 6 gauge with four conductors, and 10 gauge with three conductors.
Geographical Analysis
Asia Pacific region evolved as the largest market for shore power, holding 35% in total sales revenue in 2019. China, South Korea, and Southeast Asian countries drive the demand for shore power in the region. The Asia Pacific is expected to grab major market share over the forecast period due to large seaports, particularly in India and China. Due to the heavy traffic in seaports, the installation and retrofit of shore power systems are expected to increase in the forecast period.
Asia Pacific shore power market valued at USD 361.79 million in 2019 and is expected to grow at a CAGR of 7.10% during the forecast period to reach USD 599.81 million by 2027.
India emerged as the fastest-growing market due to the rapid transition of ports towards shore power and rising trade, sea traffic, and government interest. India has 12 major state-owned ports at Kandla, Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambarnar, Visakhapatnam, Paradeep, and Kolkata, which handle approximately 61 % of the country's total cargo traffic. By early 2020, it evolved to be fully reliable on solar and wind energy for operations, including shore power supply.
China is also leading in the integration of shore power systems in ports to expand the cruise market and container vessels in the country. In 2017, the Ministry of Transport partnered with the National Energy Administration and State Grid Corporation of China to install shore power facilities in ports across the Grand Canal. As of 2018, the State Grid Corporation of China has been operating over 600 shore power facilities, including those at three ports in Zhejiang province. Also, China commissioned new regulations for ECAs in January 2019 related to emission control areas. According to the updated guidelines, the Chinese public service vessels, including container ships, cruises, and passenger ships built after January 1, 2019, are mandated to equip with a ship-shore power system.
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