Alternate Marine Power Market Forecasts to 2028 – Global Analysis By Vessel (Roll-on/Roll-off Ships, Cruises, Container Vessels and Other Vessels), Power Requirement (Above 5 MW, 2 MW- 5 MW, Up to 2 MW and Other Power Requirements) and By Geography

Alternate Marine Power Market Forecasts to 2028 – Global Analysis By Vessel (Roll-on/Roll-off Ships, Cruises, Container Vessels and Other Vessels), Power Requirement (Above 5 MW, 2 MW- 5 MW, Up to 2 MW and Other Power Requirements) and By Geography

According to Stratistics MRC, the Global Alternate Marine Power Market is accounted for $1069.4 million in 2022 and is expected to reach $2250.2 million by 2028 growing at a CAGR of 13.2% during the forecast period. Alternate marine power is an anti-pollution measure to provide power to ships when they halt on the port or shore. This utilizes shore electric power as a substitute, which decreases the pollution generated by the diesel generator. Currently, several countries are switching to clean electrical power supply produced from renewable energy sources, which is estimated to further help achieve sustainable use of electricity. The practice of using alternate marine power for ships is gaining traction, as it lowers operation cost by reducing fuel consumption. It also reduces maintenance costs, provides green profiles to ship owners and customers, and reduces noise pollution and exhaust emissions.

According to International Maritime Organization (IMO), carbon emissions account for about 3% of the total CO2 emissions. Concentrated around the coastlines and detrimental to marine life, the European Parliament estimates that the percentage could be as high as 17% by 2050. According to the United Nations Conference on Trade and Development, about 80% of the goods traded across the globe depend on maritime transport.

Market Dynamics:

Driver:

Rising environmental awareness

Greenhouse gas emissions in and around port areas are becoming a major concern around the world. Alternative marine systems provide electricity instead of diesel, reducing greenhouse gas emissions. Renewable energy sources-based natural gases have gathered traction for ships to help reduce carbon footprint of ports. Furthermore, the rising rules and regulations for pollution reduction caused by ships and vessels contribute to the growth of the market.

Restraint:

High initial investment

The initial cost includes the installation of high voltage power transformers, distribution and control panels, electrical distribution systems etc. The initial investment costs required to build alternative land side marine power systems, the operating costs of these systems and the costs required to modify vessels for the alternative marine power systems are high. Hence, these are the factors restraining the expansion of the market.

Opportunity:

Rise in Globalization and Industrialization

Rise in industrialization has created a huge demand for sea trade, owing to the low cost of transportation. Significant opportunities are being introduced for product manufacturing companies, due to globalization in developing countries. This has encouraged transportation of the raw material to places/countries where the manufacturing cost is low. Water transportation has increased around the globe, and this has increased the demand for industrial marine power all over the world.

Threat:

Pollution

The reduction in pollution occurs only when the ship is stationary. When the ship is actually in the water, then because of the usage of conventional engines, pollution will still spread in the marine atmosphere. Moreover, the consumption of electricity can be enormous owing to the size of the ships and tankers. Even certain ships are not compatible and suitable for the process of alternate marine power. Therefore, these are the factors hindering market growth.

Covid-19 Impact

The outbreak of the covid-19 pandemic is anticipated to affect the activities of the transportation and marine industries. Most of the companies postponed contracts and increasing the lead time for material procurement. As more than half of the activities in transportation are on halt during the pandemic situation. Additionally, restrictions imposed by the government on export and import activities hamper the market growth.

The cruise segment is expected to be the largest during the forecast period

The cruise segment is estimated to have a lucrative growth, due to its advantages like it reduces maintenance costs, provides green profiles to ship owners and customers, and reduces noise pollution and exhaust emissions. Strong economic recovery has led to an increase in consumer spending and a gradual increase in luxury lifestyles and leisure travel expenses. Substantial increase in repositioning cruises refers to moving a ship from one sailing destination to another. Therefore, these are the factors boosting the growth of the segment.

The above 5 MW segment is expected to have the highest CAGR during the forecast period

The above 5 MW segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the high reliability of the power supply. Alternate marine power installation has led to higher fuel efficiency specifically for diesel propulsion systems for all stages of operation. Thus, these aspects are estimated to enhance the growth of the market.

Region with highest share:

North America is projected to hold the largest market share during the forecast period owing to the rising air pollution at ports. The increasing movement of goods and passengers through ports lead to a surge in the number of ships. A strong regulatory framework and higher awareness about the harmful impact of berthing is expected to bode well for these regional markets.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the application of stringent regulations by the government in order to reduce pollution. Implementation of anti-pollution measures and emission norms in cold ironing has invigorated adoption of alternate marine power-based electricity in ships. Furthermore, growth and development of different ports and increase in applications of alternate marine power-based electricity are key factors driving the market in Europe.

Key players in the market

Some of the key players profiled in the Alternate Marine Power Market include Siemens, Cavotec SA, ABB Ltd., Schneider Electric, Wabtec Corporation, Danfoss, PowerCon, MacGregor, Ratio Electric B.V., Nidec ASI, ESL Power Systems, Inc., Piller Group GmbH, Wartsila and VINCI Energies.

Key Developments:

In October 2020, ABB has delivered marine & port shore connection technology to Vikings ferry line. The shore connection technology design is valued at city-ports which will lead to sustainable in-harbour operations.

In June 2019, Schneider Electric and MV Hamnavoe announced a project to supply green electric power to the MV Hamnavoe NorthLink ferry docked in Stromness. The project is the first large commercial ship shore connection in the U.K.

Vessels Covered:
• Roll-on/Roll-off Ships
• Cruises
• Container Vessels
• Other Vessels

Power Requirements Covered:
• Above 5 MW
• 2 MW- 5 MW
• Up to 2 MW
• Other Power Requirements

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements