The global shore power market, valued at approximately US$1.4 billion in 2022, is projected to advance at a robust CAGR of 10.2% from 2023 to 2031, reaching an estimated US$3.3 billion by the end of 2031.
Shore power—also known as cold ironing or onshore power supply—allows ships to connect to onshore electrical grids while berthed, significantly reducing reliance on shipboard generators and cutting down on harmful emissions. With the rapid expansion of global port networks and increased focus on sustainable, low-carbon maritime operations, investments in shore power technologies are surging. Stringent government regulations and supportive policies are also accelerating the adoption of these systems, making them a key component in modernizing ports worldwide.
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Analysts’ Viewpoint: Boosting Environmental Responsibility and Operational Efficiency
The growing need to reduce greenhouse gas emissions and improve environmental sustainability is driving the adoption of shore power systems across the maritime sector. Governments are enforcing strict regulations that mandate the use of shore power at major ports—for example, the EU’s FuelEU Maritime rule requires all passenger and container ships of 5,000 GT or more to connect to shore power by 2030. These initiatives, along with investments in port modernization, are creating significant opportunities for market players. In addition, increasing international trade and the expansion of port infrastructures are further bolstering demand.
Market Introduction
Shore power enables vessels to draw electricity directly from onshore grids while docked, thereby allowing them to shut down onboard engines and reduce emissions. This process, often referred to as cold ironing, not only decreases fuel consumption and maintenance costs but also enhances air quality in port communities. With an estimated global installed capacity of over 163,541 KVA by 2023, shore power systems are rapidly transforming port operations. These systems integrate transformers, power distribution systems, control panels, frequency converters, cable reels, connectors, and switchboards to deliver reliable and efficient electrical supply to vessels.
Key Market Drivers
- Rise in Number of Ports and Port Modernization:
Maritime trade forms the backbone of global commerce, and with over 80% of international trade volume carried by sea, the need for modern, efficient port infrastructure is critical. Investments in port modernization—including the installation of shore power systems—are essential for reducing fuel consumption and operational costs, while ensuring environmental compliance. Government initiatives and corporate CSR strategies are further driving this trend. - Stringent Government Regulations and Support:
Global efforts to reduce carbon emissions have led to the implementation of strict environmental regulations. For instance, the EU mandates shore power connections for large vessels in TEN-T ports, and several national governments are providing subsidies and tax incentives to facilitate these projects. These regulatory frameworks are compelling shipping companies and port operators to adopt shore power solutions, thereby boosting market growth.
Regional Outlook
Europe has emerged as the most lucrative region in the shore power market, thanks to robust port modernization initiatives and strong regulatory frameworks. Countries like Germany, France, and Italy are leading the adoption of shore power through established cold ironing systems and new port construction projects. North America is also expected to see substantial growth due to increased port activities and a strong focus on reducing emissions. Additionally, countries in Asia Pacific, such as China, India, and South Korea, are investing heavily in port infrastructure upgrades, further enhancing market prospects in the region.
Analysis of Key Players
The global shore power market is highly consolidated, with major players investing in R&D and strategic collaborations to drive innovation and expand their market presence. Leading companies include:
- ABB
- Wärtsilä
- Cavotec SA
- Siemens
- Yara Marine Technologies
- PowerCon A/S
- Preen (AC Power Corp.)
- Danfoss
- Hareid Group
- Schneider Electric
- Wabtec Corporation
- General Electric
- Blueday Technology AS
These companies are enhancing their production capacities and technological capabilities, investing in comprehensive research and development to produce more efficient, environmentally friendly shore power solutions. For example, Wärtsilä’s integrated hybrid propulsion system for RoRo vessels and Cavotec’s landmark orders in Asia underscore the dynamic growth in this market.
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Key Developments
- September 2023: Wärtsilä supplied an integrated hybrid propulsion system for two new methanol-fueled hybrid RoRo vessels, aligning with the global shift toward sustainable fuels and electrification in maritime transport.
- April 2022: Cavotec secured major shore power connection orders from two prominent customers in Asia, highlighting its expanding influence in the region and its pivotal role in decarbonizing the maritime sector.
- March 2022: Finnlines and Yara Marine Technologies signed a contract to install shore power solutions on three vessels, aiming to reduce emissions and improve energy efficiency during port stays.
Market Segmentation
By Power Output:
- Up to 3 MVA
- 3 MVA to 10 MVA
- 10 MVA
By Installation:
- New
- Retrofit
By Connection Type:
- Port Terminal
- Shore Power to Ship
- E-Vessel Charging
By Vessel Type:
- Ro-Ro Vessels
- Cruise Ships
- Container Ships
- LNG Carriers
- Tankers
- Bulk Carriers
- Offshore Vessels
- Others
By Component:
- Transformer
- Power Distribution System
- Control Panel
- Frequency Converter
- Cable Reel and Connectors
- Switchboard
- Others
By Region:
- North America
- Latin America
- Europe
- Asia Pacific
- Middle East & Africa
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