The shore power market is experiencing substantial growth as global efforts to reduce emissions and environmental impact intensify. Shore power, also known as cold ironing or onshore power supply (OPS), allows ships to plug into the local electrical grid while docked, cutting the need for vessels to burn fuel and emit harmful pollutants during their stay in ports. This innovative solution is becoming increasingly critical as ports and shipping companies embrace cleaner, more sustainable technologies. Let’s explore the key drivers behind this market’s growth and what the future holds.

According to Stratview Research, the shore power market was estimated at USD 1.68 billion in 2022 and is likely to grow at a CAGR of 11.51% during 2023-2028 to reach USD 3.23 billion in 2028.

Key Drivers of Growth

1. Environmental Regulations: One of the most significant forces driving the shore power market is the stringent environmental regulations being implemented globally. The shipping industry is a major contributor to air pollution, particularly in and around port cities. Regulatory bodies such as the International Maritime Organization (IMO) have introduced rules that require significant reductions in sulfur oxide (SOx) and nitrogen oxide (NOx) emissions, especially in Emission Control Areas (ECAs). These regulations are compelling ports and shipping companies to adopt shore power to reduce emissions while vessels are docked, accelerating market growth.
2. Increasing Focus on Sustainability: As the global movement toward sustainability strengthens, more ports and shipping operators are seeking to minimize their carbon footprints. Shore power directly addresses this by reducing greenhouse gas emissions and improving air quality in port cities. Additionally, many shipping companies are incorporating shore power into their corporate sustainability strategies, driven by consumer demand for greener practices and the desire to improve their environmental, social, and governance (ESG) performance.
3. Technological Advancements: The development of more efficient and cost-effective shore power systems is another key growth driver. Technological advancements have made it easier to integrate renewable energy sources, such as wind and solar, into shore power infrastructure. These innovations not only improve the environmental benefits of shore power but also make the systems more reliable and scalable, making them an attractive investment for port authorities and governments.
4. Economic Benefits: While the initial costs of installing shore power infrastructure are high, the long-term economic benefits are compelling. Reduced fuel consumption, lower maintenance costs, and the elimination of emissions-related fines contribute to significant cost savings for shipping companies. Moreover, ports that adopt shore power can attract more environmentally conscious operators, boosting their competitiveness in the global market.

Future Outlook

The future of the shore power market is promising, with significant growth expected over the next decade. As more countries adopt stricter environmental policies, the demand for shore power will continue to rise. Additionally, increasing investments in green port infrastructure, along with the integration of renewable energy into shore power systems, will further fuel market expansion.

In regions, Asia-Pacific is estimated to account for the largest share of the market during the forecast period and is expected to remain dominant during the same period. The region’s growth is driven by countries such as China, whose container capacity clocked around 250 million standards in 2020. Additionally, China is seen with promising growth to be the seventh out of the ten largest ports during the forecast period.

Other regions such as North America and Europe are also expected to mark their presence in the shore power market during the forecast period driven by the increase in the installation of retrofit and low-frequency noise reduction & emission at the port.

Conclusion

The shore power market is poised for strong growth, driven by environmental regulations, sustainability initiatives, technological advancements, and economic benefits. As global pressure to reduce emissions intensifies, shore power will play a crucial role in transforming port operations and reducing the maritime industry’s environmental impact. With continued innovation and investment, the market is expected to expand significantly, making shore power a vital component of the future of sustainable shipping.