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The U.S. shore power market size was valued at USD 233.09 million in 2022 and is projected to grow at a CAGR of 11.37% during the forecast period.
Ports in the U.S. are depicting continued investments in shore power infrastructure. Major ports, such as Los Angeles, Long Beach, and Seattle, have implemented shore power facilities to reduce emissions from docked vessels. This trend is likely to continue and expand to other ports. Regulatory pressure to reduce greenhouse gas emissions and improve air quality has pushed ports and ship operators to adopt shore power technology. Retrofitting existing ships with shore power capabilities and its incorporation into the design of new vessels has become more common. Cruise ships, container vessels, and other large ships have the necessary systems to connect to shore power at berth. Many shipping companies are adopting sustainability initiatives as part of their corporate social responsibility (CSR) efforts. Shore power aligns with these initiatives, allowing companies to showcase their commitment to environmental stewardship. This factor is driving the share of the U.S. market.
One of the immediate impacts of the COVID-19 pandemic was a decrease in port activity. Many ports experienced lower cargo volumes as international trade slowed down. Reduced port ship traffic resulted in fewer vessels' opportunities to use shore power. The pandemic raised awareness about the environmental impact on public health, which could lead to increased interest and support for shore power projects to reduce harmful emissions in port areas.
Increasing Adoption of Smart Shore Power Solutions in the U.S. to Drive Market Growth
Smart shore power solutions optimize electrical power distribution, reducing energy waste and increasing overall efficiency. This efficiency can lead to cost savings for both port operators and vessel owners. These systems provide real-time energy consumption monitoring, allowing port authorities and operators to make data-informed decisions. This feature helps track usage patterns, identify areas for improvement, and reduce energy costs. Smart solutions can balance power loads among multiple vessels and equipment. This load management ensures a stable and efficient power supply, reducing the risk of power disruptions and improving system reliability.
Furthermore, remote control and automation features enhance the safety and convenience of shore power operations.
Port operators can connect and disconnect vessels remotely, reducing manual interventions and streamlining the process. Smart systems collect and analyze data from various sensors, allowing for predictive maintenance and reducing downtime. This contributes to the longevity and reliability of shore power infrastructure. Smart shore power systems can seamlessly integrate with renewable energy sources such as solar and wind power. This integration supports sustainability goals and reduces energy costs during high renewable energy generation periods. The U.S. and international regulations often require ports and shipping companies to reduce emissions and environmental impact. Smart shore power solutions can help in achieving and documenting compliance with these regulations by providing accurate data on emissions reductions and energy efficiency.
Rise in Offshore Mining to Drive Market Growth
The rise in offshore mining can potentially drive the U.S. shore power market growth. While shore power systems are primarily associated with the maritime industry, they can be adapted to support offshore mining operations in several ways. Offshore mining operations often rely on a range of equipment and machinery located on vessels and offshore platforms.
Shore power infrastructure can provide a reliable and clean source of electrical power to operate and charge these machines, reducing the need for onboard generators powered by fossil fuels. The power helps reduce emissions by enabling mining vessels and platforms to use electricity from the grid while at berth instead of running their engines or generators. This lowers the carbon footprint of mining operations and aligns with environmental regulations. Shore power solutions can optimize energy use, making offshore mining operations more energy-efficient. They can balance power loads, track energy consumption, and enable energy-saving practices, contributing to cost savings.
High Implementation Cost of Infrastructure May Restrain Market Growth
Building or upgrading shore power infrastructure, including electrical connections, distribution systems, and supporting facilities, requires a substantial upfront capital investment. Ports and terminal operators may hesitate to make these investments, especially if they face budget constraints. Vessels must also have the necessary technology to connect to shore power. Retrofitting ships can be costly and may involve modifications to electrical systems, which can be a significant expense for shipowners.
Implementing shore power infrastructure involves engineering, electrical work, and coordination among various stakeholders. This complexity can add to the overall cost of the project. Some ports and terminals, especially older or more congested ones, may have limited space available to install shore power infrastructure. Acquiring land or space to accommodate the infrastructure can be expensive and may sometimes not be feasible.
Based on connection, the market is segmented into shoreside and shipside.
The shoreside segment held the largest U.S. shore power market share in 2022. One of the primary drivers for the adoption of shoreside power is environmental regulations. Many ports and coastal areas in the U.S. have implemented stringent environmental regulations to reduce air pollution and greenhouse gas emissions. Shoreside power allows vessels to turn off their engines while at port, reducing the emission of harmful pollutants.
Based on installation, the market is segmented into new installation and retrofit.
The new installation segment dominated the market in 2022. The U.S. has implemented and continues to strengthen environmental regulations that encourage the use of shore power. Ports and coastal areas are often subject to emissions reduction requirements to improve air quality and reduce greenhouse gas emissions. The new installation segment development is driven by the need to comply with these regulations. An increase in new shore power installations may be linked to the growth and development of port infrastructure in the U.S. As ports expand or undergo renovations, there's an opportunity to incorporate modern shore power systems into the new designs, meeting both current environmental standards and future regulations.
Based on component, the market is segmented into transformer, switchgear, cables and accessories, static frequency converter, and others.
The static frequency converter (SFC) segment accounted for the largest share in 2022. Many ships that visit U.S. ports are designed to operate on electrical systems with frequencies different from the standard 60 Hz used in the country. To accommodate these vessels, ports and shore power providers install SFCs to convert the grid power to the frequency required by the ships, ensuring compatibility.
Considering the competitive landscape, the market depicts the presence of established and emerging global shore power companies in the U.S. ABB dominated the U.S. market.
In April 2022, ABB Ltd and Port of Toulon collaborated to start a project with ABB Shore Connection technology as a key driver for its sustainability initiative toward reducing carbon emissions. ABB shore connection technology reduces noise and emissions while in port, which has become an important factor for the collaboration of both entities. The partnership strategy helps to partner with other organizations that specialize in regulatory compliance to ensure that solutions meet industry standards.
Some of the other companies with a considerable presence in the U.S. market include ABB, Schneider Electric, Siemens, Wartsila, VINCI Energies, and Nidec Industrial Solutions.
The market report provides a detailed analysis of the market. It focuses on key aspects such as an overview of technological advancements, information about new product launches, key industry developments such as mergers, partnerships, acquisitions, and the impact of COVID-19 on the market. Besides this, the report also offers insights into the market trends and highlights key industry dynamics. In addition to the factors above, it encompasses several factors that are set to drive the market demand during the forecast period.
An Infographic Representation of U.S. Shore Power Market
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CAGR of 11.37% from 2023 to 2030
Value (USD Million)
Fortune Business Insights says that the market was worth USD 233.09 million in 2022.
The market is expected to exhibit a CAGR of 11.37% during the forecast period (2023-2030).
By connection, the shoreside segment is the dominating segment in the market.
ABB, Wartsila, Siemens, VINCI Energies SA, and Igus Inc. are the top players in the market.
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