Alternate Marine Power Market
Alternate Marine Power Market (Vessel: Container Vessels, Cruises, Roll-on/Roll-off Ships, and Others; and Power Requirement: Up to 2 MW, 2 MW – 5 MW, and Above 5 MW) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2019 - 2027
- Energy & Natural Resources
- 175 Pages
Alternative Cable Technology Enables Suitable Power Transmission Environment
Alternative cable technology is emerging as one of the key drivers triggering growth for the alternate marine power market. This technology is anticipated to benefit the future shore charging solutions landscape. Increasing environmental awareness has compelled stakeholders in the alternate marine power landscape to adopt electric vessels.
Stakeholders in the alternate marine power market are adopting electric vessels integrated with hybrid power and combined power source technology to reduce fossil fuel consumption. However, elimination of emissions can only be achieved if the vessels completely operate on electric power. Hence, companies are manufacturing alternate marine power systems that run on efficient batteries. This trend is encouraging the adoption of electric vessels.
Efficient batteries are coupled with alternative cable technology in electric drive systems. Ports are creating suitable connection environments at their shores to provide convenience in power transmissions. Companies in the alternate marine power market are increasing R&D to develop transmission cables that do not overheat the insulation surrounding the conductor.
Hybrid Power Modules Gain Popularity as a Cost-efficient Solution in the Tug Market
Companies in the alternate marine power market are innovating in hybrid power solutions for stakeholders in the landscape. For instance, in July 2019, Wärtsilä - a power solutions company for marine and energy markets, revealed that, the company has developed a hybrid power module solution for the Swedish port Luleå, catering to the specific needs of the tug market.
Hybrid power module solutions are being increasingly adopted to achieve reduced emissions and reduced noise during higher bollard pull. Companies are validating the efficiency of these new modules with the help of energy management systems to acquire actual data on operational applications. They are increasing tests and trials to identify the areas that need improvement during harsh weather conditions. Hybrid power modules are gaining popularity as a cost-effective solution with reduced fuel consumption.
Provision of Incentives and Standardization Lead to Increased Adoption of AMP
Stakeholders in the shipping industry are becoming increasingly aware about stringent laws and regulations governing the alternate marine power market. In order to gain credibility in the global market, stakeholders are investing in state-of-the-art technology to reduce CO2 emissions. However, the implementation of such technology has its own challenges.
For instance, alternate marine power infrastructure requires extra electrical supply, which, in most cases, does not align with the supply offered by the power plant in that port city or town. This raises the issue of increased installation costs for stakeholders in the alternate marine power landscape. Hence, there is a need for the provision of incentives to invest in the technology, using emission reduction credits as a solution to the problem.
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The lack of standardization poses a challenge for stakeholders in the market landscape. Lack of standardization leads to technical issues in cold ironing equipment. Hence, manufacturers should innovate in new engines and better fueling systems to pave a fruitful future for AMP.
Ports Encourage Funding for Implementation of Sustainable Solutions in the Marine Industry
Despite challenges in the implementation of technology, stakeholders in the alternate marine power market are increasing the availability of cold ironing ports to contribute to the global environmental revolution. For instance, in December 2018, the port of Killini in the eastern Mediterranean, held an inauguration ceremony of the first-of-its-kind pilot shore installation for the electrification of ships. Ports in the alternate marine power space are encouraging funding to fortify new AMP infrastructures at ports.
The shift of electricity as an alternative to fuel is transforming the alternate marine power market. Stakeholders are increasingly complying with the relevant regulatory context to use electricity as an alternative to diesel. They are adopting new strategies such as introducing new sea routes to avail the best advantage of natural gas and electricity. Governments are also providing incentives for stakeholders in the alternate marine power space that adopt greener fuels and AMP technology.
Stakeholders in the alternate marine power market are making endeavors to adopt sustainable and renewable solutions in the marine industry landscape. Maritime companies are volunteering to invest in specialized electrical equipment to enable shore-based installations at ports.
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The alternate marine power market is anticipated to grow at a promising CAGR of 10.5% during the forecast period. The landscape is fairly fragmented in nature, with three major players accounting for ~30% of the total market. To capitalize on this opportunity, manufacturers should innovate in novel power systems that cater to cruises, since cruises are taking a leap in the market share, from ~29% in 2018 to ~38% by 2027.
However, the absence of concrete regulations is responsible for only few European ports complying with the norms. There is a need for stricter regulations, like those in the U.S., to encourage the adoption of AMP in Europe. Companies should target the ports of Asia Pacific for expanding their business, as the region is projected for exponential growth throughout the forecast period.
Global Alternate Marine Power Market: Overview
- Alternate marine power is a practice of offering shore-side electric power to an ocean-venturing vessel at berth, while its auxiliary and main engines are turned off during the loading and unloading of cargo.
- The use of alternate marine power minimizes greenhouse gas (GHG) emissions by providing clean electricity to emergency equipment, as well as lighting, heating, cooling, refrigeration, and other equipment while the ship is docked.
- The global alternate marine power market is projected to expand at a CAGR of 10.5 % over the period of forecast.
- As such, the alternate marine power market is expected to reach a value of ~US$ 1.8 Bn by 2027.
Rise in Globalization and Industrialization to Drive Global Alternate Marine Power Market
- Significant increase in industrialization and globalization has created high demand for seaborne trade, owing to low cost of transportation.
- Europe is the second-largest market for containers landing on port. In terms of volume, Europe accounted for 16% of the world's total container landing in 2018.
- More than 90% of goods traded between Europe and the rest of the world are carried by sea. This trend is expected to continue in the near future also.
- Europe cruise lines account for more than 95% share of the global cruise capacity. This capacity is expected to increase in the near future.
- Thus, rise in globalization and industrialization is driving the global alternate marine power market.
High Initial Investments to Hamper Global Alternate Marine Power Market
- Initial capital costs required to build shore-side alternate marine power systems, operational costs of these systems, and costs required to modify ships according to alternate marine power systems are high. This is likely to restrain the global alternate marine power market during the forecast period.
- Conversion cost of a ship lies between US$ 2 Mn and US$ 6 Mn.
- Cost of transporting electricity from a local grid to a port terminal ranges between US$ 300,000 and US$ 4 Mn per berth, depending on vessel type, voltage, frequency, power demand, and port location.
- The initial cost comprises installation of high-voltage power transformers, switchboard and control panels, electric distribution systems, cable reel systems, and frequency converters.
- Initially, returns on investment (RoI) for an alternate marine power system are low, and the payback period is over seven years.
- Thus, high initial costs of these systems restrain the global alternate marine power market.
Global Alternate Marine Power Market: Modernization of Ports to Offer Opportunities
- In recent years, there has been significant increase in investments to modernize ports. This includes improvements in energy-related infrastructure, ICT/digital infrastructure, intermodal/multimodal terminals, transport connectivity, infrastructure for reducing the environmental footprint, and other basic infrastructures.
- Europe is likely to have more than 3,000 ports, including sea ports and inland ports, by the end of 2025. Governments of countries in Europe are planning to install alternate marine power systems in all ports in the region. Furthermore, the Government of China is planning to have 90% of ships visiting the nation’s major ports by using shore-side power by 2020.
- Thus, modernization of ports offers a lucrative opportunity to the global alternate marine power market.
Global Alternate Marine Power Market: Recent Developments, Expansions, Acquisitions, and New Contracts
- In August 2019, Nidec ASI developed and installed a power management system on the Yacht Wider 165, which improves power management on the vessel, and distributes power for staterooms, propulsive systems, and recharging of batteries. This system provides fast changer and zero emission of greenhouse gases (GHGs).
- In 2018, Cavotec and the Port of Los Angeles jointly installed an alternate marine power system at the Los Angeles port, California (the U.S.). This was the first port in the world to introduce alternate marine power for use in-service container vessels.
- In 2018, the Vancouver Fraser Port Authority signed a contract with Schneider Electric Canada Inc. to provide solutions to minimize carbon emissions and noise from docked ships at the Centerm Container terminal.
- In 2017, MacGregor acquired a majority stake in Flintstone Technology Ltd, a U.K.-based company, in order to strengthen its advanced technology offerings in offshore solutions.
Asia Pacific to Dominate Global Alternate Marine Power Market
- Europe dominated the global alternate marine power market in 2018. The alternate marine power market in the region is estimated to expand at a significant pace during the forecast period, due to increase in investments toward the installation of shore-to-ship power systems for minimizing carbon emissions at ports in Europe.
- North America also accounted for a considerable share of the global alternate marine power market in 2018. Stringent regulations about providing shore-side electricity to marine vessels at berth in the West Coast in the U.S. is a key, indispensable factor propelling the demand for alternate marine power systems in the country. For instance, on 1st January 2014, California mandated that at least 50% of all marine vessels run on shore-side electricity at berth.
- The alternate marine power market in Asia Pacific is projected to expand at a rapid pace during the forecast period, due to increase in the demand to reduce logistic costs from port management companies in the region. Shore power provides up to 30%-40% of fuel efficiency/savings for ships.
Global Alternate Marine Power Market Highly Competitive
- The global alternate marine power market is moderately consolidated; large multinational players dominate the global market.
- Key players operating in the global alternate marine power market are
- ABB Ltd.
- Cavotec SA
- Schneider Electric
- Nidec ASI
- ESL Power Systems, Inc.
- VINCI Energies
- Ratio Electric B.V.
- Piller Group GmbH
- Wabtec Corporation.
Alternate Marine Power Market – Scope of the Report
A latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global alternate marine power market to accurately gauge its future development. The study presents detailed information about important growth factors, restraints, and key trends that are creating a landscape for the future growth of the global alternate marine power market, to identify growth avenues for market stakeholders. The report also provides insightful information about how the global alternate marine power market would expand during the forecast period of 2019-2027.
The report offers intricate dynamics about different aspects of the global alternate marine power market, which helps companies operating in the market in making strategic business decisions. TMR’s study also elaborates on significant changes that are anticipated to configure the growth of the global alternate marine power market during the forecast period. It also includes an assessment of key indicators that highlights the growth prospects for the global alternate marine power market, and estimates statistics related to the market growth in terms of value (US$ Mn).
This study covers detailed segmentation of the global alternate marine power market, along with key information and a competition outlook. The report provides the company profiles of players that are currently dominating the global alternate marine power market, wherein, various developments, expansions, and winning strategies practiced and executed by these players have been presented in detail.
Key Questions Answered in TMR’s Report on Global Alternate Marine Power Market
The report provides detailed information about the global alternate marine power market on the basis of comprehensive research on various factors that are playing a key role in promoting the growth of the market. Information mentioned in the report answers path-breaking questions for companies that are currently operating in the market and are looking for innovative ways to create a unique benchmark in the global alternate marine power market, so as to help them make successful strategies and take target-driven decisions.
- How are key market players successfully earning revenue in the competitive global alternate marine power market?
- What would be the Y-o-Y growth rate of the global alternate marine power market from 2019 and 2027?
- What are the winning imperatives of leading players operating in the global alternate marine power market?
- Which vessel segment of the global alternate marine power market is expected to have maximum growth potential during the forecast period?
- Which power requirement segment is expected to have maximum growth potential during the forecast period?
Research Methodology – Global Alternate Marine Power Market
The research methodology adopted by analysts for compiling the global alternate marine power market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the global alternate marine power market.
During the primary research phase, analysts have interviewed market stakeholders, investors, brand managers, vice presidents, and sales & marketing managers. Based on the data obtained through interviews with genuine resources, analysts have emphasized the changing scenario of the global alternate marine power market.
For secondary research, analysts have scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global alternate marine power market.
Global Alternate Marine Power Market – Segmentation
TMR’s research study segments the global alternate marine power market in terms of vessel, power requirement, and region. This report presents extensive market dynamics and growth trends associated with different segments, and explains how they are influencing the growth of the global alternate marine power market.
Others (Ro-Pax, Ferries, and Tugs)
Up to 2 MW
2 MW – 5 MW
Above 5 MW
Rest of World