Green Ship Recycling: Introduction
- Green ship recycling can be considered a sustainable and environment-friendly shipbreaking method of ship disposal
- Green ship recycling can be considered an alternative to other conventional methods of shipbreaking that eventually result in negative effects on the environment across the globe
- Green ship recycling reduces the amount of waste generated and also keeps the waste materials from shipbreaking out of the beaches. This helps lower the adverse impact on the environment.
- Green ship recycling was initially carried out by just by developed countries around the world with advanced technologies. However, nowadays, developing countries have been incorporating processes that promote green shipbreaking.
Key Drivers of Global Green Ship Recycling Market
- Developing countries across the world are investing significantly in the manufacturing sector. This has led to a steady growth in seaborne trade. Stable conditions of most of the economies are likely to boost the green ship recycling market in the near future.
- Increase in demand for new vessels for various applications in the oil & gas sector and shipping business, dearth of supply chains in ship repair and maintenance services, and rise in production of vessels are projected to augment the demand for green ship recycling in the near future
- Ambitious national targets, rapid technological advancements, and international agreements have prompted companies across the world to upgrade their shipping vessels. This, in turn, is expected to augment the global green ship recycling market between 2020 and 2030.
- Green ship recycling is increasingly becoming important to the marine industry. The process of green shipbreaking is estimated to become even more common and feasible across the globe owing to the benefit of more upcoming technological developments.
- In January 2020, the “Recycling of Ships Bill” came into force in India. It is expected to provide greater powers for the regulation of ship recycling in the country. The new bill would also help in establishment of internationally recognized standards and statutory mechanism for the enforcement of such standards. The Government of India has decided to be a part of the Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships, 2009. Under the terms of the new Act, ship recycling facilities are required to be authorized, and ships can, in future, only be recycled at such authorized ship recycling facilities.
Europe to Hold Major Share of Global Green Ship Recycling Market
- Based on region, the global green ship recycling market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- Europe is expected to be a key region of the global green ship recycling market from 2020 to 2030. High investments in shipping infrastructure and government subsidies are likely to drive the market in the region between 2020 and 2030
- The green ship recycling market in Middle East & Africa is estimated to expand at a significant pace during the forecast period, owing to extensive oil and gas export and presence of large numbers of vessel companies in the region
- Growth in cruise tourism and export business in North America, especially the U.S., is anticipated to boost the demand for vessel maintenance services for passenger ships and ferries in the region. This is estimated to drive the green ship recycling market in North America in the near future.
COVID-19 Impact Analysis
- The global economy has been hampered by measures put in place to contain the COVID-19 pandemic. The shipping recycling business is also estimated to face immediate challenges due to the COVID-19 pandemic such as difficulty in adhering to social distancing norms, shortage of manpower, lack of parts & equipment, and discerning expenditure by end-users.
Key Players Operating in Global Market
Wirana is the major player operating in the global green ship recycling market.
Global Green Ship Recycling Market, by Vessel Type
- Cargo Vessels
- Service Vessels
- Fishing Vessels
- Off-shore Vessels
- Passenger Ships & Ferries