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Global Alternate Marine Power Market is estimated to surpass ~US$ 1.8 Bn by 2027

 

Global Alternate Marine Power Market: Key Highlights

·         The global alternate marine power market was valued at ~US$ 720 Mn in 2018 and is anticipated to expand at a CAGR of 10.5% during the forecast period.

·         Among the vessels, the others segment held a dominant share of the global alternate marine power market in 2018. The segment includes ferries, Ro-Pax, and tugs. Growth of the others segment can be attributed to the rising demand for merchant vessels employed to carry passengers, cargo, and vehicles.

·         In terms of capacity, the 2 MW – 5 MW segment accounted for a major share of the global alternate marine power market in 2018. Surge in the demand for shore-side electric power to containers and cruises at berth is anticipated to fuel the segment during the forecast period.

·         The alternate marine power market in Asia Pacific is likely to expand at a significant pace during the forecast period, owing to rapid urbanization and industrialization in the region.

Key Drivers of Global Alternate Marine Power Market

·         Emission of greenhouse gases (GHGs) in and around port areas is becoming a major concern across the globe. Every year, a large amount of air pollutants, such as carbon monoxide, nitrogen oxides, sulfur oxides, and particulate matter, are released at ports and nearby areas.

·         Ships run on bunker fuel, which is one of the most polluting fuels. A large number of ships and trucks visit ports every day. This causes significant increase in the prevalence of respiratory diseases and cancer, and it also results in the degradation of water quality.

·         As per 2014 Clean Power Transport Directive, all trans-European core ports of the European Union are required to provide alternate marine power as a substitute for oil from 2025.

·         Furthermore, shipping companies have to pay energy taxes on electricity, while ships at berth are plugging into alternate marine power systems. According to the New Energy Taxation Directive 2018, all taxes are exempted on electricity utilization from alternate marine power systems.

·         Alternate marine power systems provide electricity as a substitute for diesel, which reduces greenhouse gas (GHG) emissions

·         Thus, stringent government regulations are driving the global alternate marine power market.

·         Moreover, significant increase in globalization and industrialization has created high demand for sea trade, owing to the low cost of transportation. This is projected to drive the global alternate marine power market during the forecast period.

 

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Europe to Lead Global Alternate Marine Power Market

·         Europe led the global alternate marine power market in 2018, due to increase in investments toward the expansion and up-gradation of existing ports, especially in countries such as Sweden, Finland, and Germany.

·         Rise in efforts to improve air quality by reducing greenhouse gas (GHG) emissions at ports, and increase in the demand to reduce logistic costs are likely to boost the alternate marine power market in the region during the forecast period.

 

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Major Developments in Global Alternate Marine Power Market

·         In August 2019, MacGregor completed the acquisition of the marine and offshore businesses of TTS Group. The deal was finalized in February 2018, and was valued at approximately US$ 96 Mn.

·         In March 2019, Cavotec SA bagged a contract for the installation of an alternate marine power system. The order was valued at approximately US$ 12 Mn. The system is expected to be operational by 2020.

·         In November 2018, Siemens signed a contract with MV WERFTEN Wismar GmbH to install a turnkey Siharbor onshore power supply (OPS) system. The system would be used to build ‘Global-class’ cruise ships. The order covers all components required for powering ships and grid connections. It also includes the completion of substations and transformers, and installation of medium-voltage switch gears.

·         In September 2018, ABB Ltd. was awarded a contract to deliver the new shore-to-ship technology to Her Majesty’s Naval Base (HMNB) in Portsmouth, the U.K. HMNB Portsmouth accommodates almost 66% of the U.K. Navy’s surface fleet, including Queen Elizabeth-class aircraft carriers, Fishery Protection Squadron, vessels, and frigates.

·         In 2017, Vancouver Fraser Port Authority awarded a contract to ABB to provide a technology solution that would enable the supply of shore power to the GCT Delta port of GCT Global Container Terminals Inc., which is located in Canada.

 

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Global Alternate Marine Power Market: Competition Landscape

·         The global alternate marine power market is led by multinational players operating across the globe.

·         Prominent players operating in the global alternate marine power market are ABB Ltd., Cavotec SA, Schneider Electric, Nidec ASI, MacGregor, PowerCon, Siemens, ESL Power Systems, Inc., VINCI Energies, Danfoss, Ratio Electric B.V., Piller Group GmbH, Wartsila, and Wabtec Corporation.

 

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