Shore Power Market Size, Share and Trends 2024 to 2034

Shore Power Market Size and Forecast 2024 to 2034

The global shore power market size is worth around USD 2.25 billion in 2024 and is anticipated to reach around USD 6.08 billion by 2034, growing at a CAGR of 10.44% from 2024 to 2034. The shore power market is growing rapidly due to strict emission standards, the initiative to reduce harmful emissions from vessels, as well as the introduction of new ports. Ports shift to shore power systems as demand for clean and efficient energy solutions grows and contributes to environmental protection improvements.

Shore Power Market Key Takeaways

• Asia Pacific dominated the global market with the largest market share of 35% in 2023.
• North America is anticipated to witness the fastest CAGR during the forecasted period.
• By installation type, the shoreside segment noted the largest market share of 89% in 2023.
• By installation type, the shipside segment is projected to witness the fastest growth during the forecast period. 
• By connection, the retrofit segment has contributed the largest share of 74% the market in 2023.
• By component, the frequency converters segment captured the biggest market share of 34% in 2023.
• By component, the transformers segment shows notable growth during the forecast period. 
• By power rating, the up to 30 MVA segment generated the major market share of 64% in 2023.
• By power rating, the low MVA (up to 30 MVA) segment is anticipated to register significant growth during the forecast period.  

AI Integration in the Shore Power Market

Artificial intelligence (AI) is one of the main drivers of this revolution, and it supports proactive changes in several aspects of the shore power market operations. Artificial intelligence is increasingly being used to enhance output productivity, cut operating expenses, enhance safety, and facilitate the shift from fossil energy sources to green energy solutions. Certainly, AI can assist with predictive maintenance. It also helps to decrease the amount of human interference needed in maintenance, which improves the effectiveness of shore power systems in general and contributes to supporting environmentally friendly port operations.

Asia Pacific Shore Power Market Size and Growth 2024 to 2034

The Asia Pacific shore power market size is exhibited at USD 790 million in 2024 and is projected to be worth around USD 2,130 million by 2034, growing at a CAGR of 10.50% from 2024 to 2034.

Asia Pacific accounted for the largest share of the shore power market in 2023. The increased economic development and urbanization, hence, a high demand for energy in the region. This effort has a positive impact on lowering air pollution at the ports and greenhouse gases as well. The countries of Japan, South Korea, Singapore, and Australia have supported shore power programs to achieve targets regarding sustainability. This indicates that air quality and environmental factors in most Asian cities are equally demanding solutions like shore-power installations to address pollution and enhance environmental situations. Shore power solutions are easy and affordable to implement in the region due to the technological developments witnessed in various sectors, such as energy and maritime.

North America is anticipated to witness the fastest growth in the shore power market during the forecasted years. Increasing transportation costs and increasing investments in marine trade and transportation are expected to drive the market during the forecast period. In developments, ports may install shore-power systems to improve environmental status. Ports in North America are experiencing reconstruction and development to provide accommodations for larger vessels and a rise in capacity. The Environmental Protection Agency (EPA) and the Coast Guard in the United States have been actively pushing shore power programs through various regulatory measures.

Market Overview

Shore power, cold ironing, or alternative maritime power (AMP) means the connection of ships to an onshore power supply while they are docked at port, thus enabling the Shutdown of their onboard generators. This system eliminates the dependency of the ships on fuel combustion to produce power for some of their operations, hence minimizing emissions of pollutants and greenhouse gases. Shore power is a very useful environmental tool, especially for those cities faced with great congestion in ports due to increased global shipping, since it reduces air pollution and makes the maritime industry more sustainable.

Funding and Investment in the Shore Power Market

Shore Power Market Growth Factors

• Stringent environmental regulations: Port authorities and government organizations apply measures to control emissions and stimulate the usage of the shore power market systems.
• Rising maritime industry sustainability goals: The awareness for the reduction of CO2 emissions in the shipping sector results in the use of shoreside power systems.
• Growing cruise and passenger ship operations: The cruise industry and passenger ports have spurred the development of enhanced cargo facilities coupled with showing compliance with environmental conservation standards.
• Global trade expansion: The cargo shipping activities result in a demand for the deployment of appropriate shore power systems for sustainable port operation.

Market Scope

Market Dynamics

Driver

Decrease in low-frequency noise and operating expenses

Marine power that is employed in the electric supply of ships that are docked to the shore is useful in minimizing the noise produced by ships. Shore-side electricity charges all the electrical appliances in the vessel without starting the auxiliary engine, which is used to power cargo pumps, ventilators, communication, and light, among others. This helps with low-frequency noise and vibration, which will allow the crew to save fuel requirements for the ship's diesel engines.

The shore power market is cheap as costs are reduced when engines are switched off, and in many cases, ships adapting to shore power are given priority. Moreover, the relative fuel price has been equally high at many of the ports, which raises operational expenses. This operational cost can be minimized by the use of shore power installations.

• In May 2023, the Netherlands Ministry of Infrastructure revealed a program to invest USD 150 million to establish shore power facilities for ports across the Netherlands, with the initial phase at the Port of Rotterdam. Shore power plants serve an environmental purpose by improving air quality, decreasing noise pollution, and creating nitrogen space in the port for climate projects.

Increase in offshore mining

Expansion in the shore power market by an increase in offshore mining. Shore power systems can be clean, reliable systems that can be used to supply electricity for offshore mining. Issues arising from mining companies off shores also involve different types of plants and equipment on vessels and offshore platforms. Shore power solutions can be effective methods to conserve power, making offshore mining operations more energy-efficient. This reduces the impacts associated with mining activities and respects the environmental policies in force.

Restraint

Expenses on installation and maintenance of shore power system

Shore power solutions require a significant initial investment on the part of ports and vessels that require modification to be equipped with the necessary technology to connect to shore power. For ports, this incorporates the cost of electrical structures that include transformers, cables, and power managing infrastructure to gear up to cater to the power needs of several ships at the port. All these factors are expected to hamper the shore power market growth. The largest costs associated with beach facilities are frequency conversion equipment and high-voltage power supply.

Opportunity

Increasing Port Infrastructure

Emerging new port facilities to the escalating trade traffic of cargo between the nations marked enhanced construction of new ports across the globe. The various governments of fast-growing economies and developed countries have been investing in the expansion of the existing ports and new ports. For ports, this involves aspects such as the cost of strengthening the electrical networks, transformers, cables, and power control systems and guaranteeing that the infrastructure can cope with the power needs of several ships.

Funding for modernization and expansion projects increases with the installation of shore power facilities for ships. This trend is further supported by environmental legislation for controlling emissions of maritime activities and shore power awareness regarding its efficiency and economic as well as environmental aspects.

• In December 2022, Sudan signed with a group led by the UAE’s AD Ports Group and Invictus Investment to develop and operate a port of Abu Amama on the Red Sea with a USD 6 billion investment.

Installation Type Insights

The shoreside segment noted the largest share of the shore power market in 2023. Shoreside power, or ‘‘cold ironing,’’ is a technology that enables ships to plug into shoreside power supply while in port. This will enable the ships to switch off their engines, relying on the shore supply electrical power for aspects that include lighting, pumping, and refrigeration. There is growing concern about emissions of air pollution and greenhouse gases at the ports during the docking of the ships. This has resulted in an increase in demand for shore power solutions as compared to shipboard power generation.

The shipside segment is projected to witness the fastest growth in the shore power market during the forecast period. Shore power is an important opportunity to replace fossil fuels with cleaner grid electricity. Industry and public awareness of the environmental impact of ports are steadily increasing, and therefore, there is a demand for cleaner solutions like shore power.

Connection Insights

The retrofit segment has contributed the largest share of the shore power market in 2023. There are reports of governments and organizations creating incentives to compel ports and ships to install shore power technologies. These incentives can assist the taxpayer to cut the total costs of retrofitting. Shipping companies are fitting marine power to their newly built ships and retrofitting them to the old ones as more ports have it and the rules are changing. More money will be spent on upgrading the ports, which will increase the market pull of its service. Beyond reducing emissions, shore power retrofits offer an additional benefit.

• In February 2024, Swiss-based cleantech company Cavotec Power revealed that it had secured a retrofit shore power deal worth USD 5.7 million from a European shipping line.

Component Insights

The frequency converters segment noted the largest share of the shore power market in 2023. Inshore power systems, frequency converters are applied to tie the ships to the public grid to maintain a consistent voltage and frequency for the ship. Frequency converters act as the channel, adapting the incoming grid power to the specific requirements of the ship, allowing a safe and efficient connection. A frequency converter is an apparatus used for transforming electric power from one frequency to another, and the shore power converter is the model of the frequency converter used to connect a ship to a land electricity supply. Ports and shipping firms are constantly seeking shore-power solutions to help them limit emissions or meet set environmental standards.

The transformers segment is projected to witness the fastest growth in the shore power market during the forecast period. Transformers are part of the shore power systems that convert Voltage from the land that is suitable for a docked ship. They aid in the safe and efficient transfer of power to the ship from the shore. They are expected to rectify the voltage level of electricity that serves vessels from the on-shore electrical utility infrastructure to the appropriate voltage level required to serve the docked vessel. Different types of transformers are suitable for different uses in this market. Both new and replacement ones are installed and can be utilized in various vessels with different volumetric and power requirements.

Power Rating Insights

The up to 30 MVA segment has contributed the largest share of the shore power market in 2023. The small to middle size boats, including ferry boats, container boats, cruise boats, and other boats, need electric power. This trend also relates to the rise of mega-ship employment in the international sea transport system. These large ships use far more electricity than relatively smaller ships and hence need far more powerful shore power systems. Shore power systems up to 30MVA are developing because they are more compact and have low capital costs.

The low MVA (up to 30 MVA) segment is projected to witness the fastest growth in the shore power market during the forecast period. Shore power systems supplying low MVA (up to 30MVA) are employed to provide electric power to smaller vessels such as ferries, passenger ships, and tugs. Shore power is the system whereby ships draw power from the landside rather than accelerating their engines. Self-conveying systems are dominant in inland waterways and harbors where the turnover of small boats is comparatively high.

Shore Power Market Companies

• General Electric
• Siemens Energy
• Schneider Electric
• ABB
• Eaton
• Conntek Integrated Solutions Inc.
• Piller Power Systems
• Power Systems International
• Sydney Marine Electrical
• Blueday Technology

Key Player Announcement

• In November 2024, the Massachusetts Port Authority (Massport) declared a USD 60 million investment for shore power, a major step forward for sustainable maritime practices at the Port of Boston, helping both cruise industry partners and the surrounding community. CEO Rich Davey announced that Massport will soon install shore power for two main berths where 80 percent of the ships that currently visit Boston town can plug into the shore power system or use a low-emission technology.

Recent Developments

• In July 2024, the Hutchison Ports installed the first Onshore Power Supply system (OPS) at The Port of Barcelona. This system can let the ships buy 100% renewable electricity while being docked and this way greatly reduces emissions by making ships shut down their engines.
• In June 2024, Jawaharlal Nehru Port Authority (JNPA) is estimated to spend nearly INR 100 crore to develop India’s first pilot project of shore-electric-power-supply to eliminate the use of diesel to power ships at the dock. The Chairperson of JNPA, Unmesh Wagh, proclaimed the plan in Mumbai emphasizing that the proposed scheme is a unique first for India’s maritime industry.
• In July 2023, Rotterdam Shortsea Terminals (RST) and the Dutch logistics firm Samskip launched green shore power, new clean shore-powered energy solutions must be offered to vessels to curb CO2 emissions. The initiative has been taken to reach net-zero emissions by 2040 at the Rotterdam Port.
• In March 2022, the international shipping and logistics firm DFDS Company declared a new shore power plan at Vlaardingen terminal, Netherlands. They use renewable power with their diesel generators turned off when the ships are docked, which annually eliminates between 2,100 and 2,300 tons of carbon.

Segments Covered in the Report

By Installation Type

• Shoreside
• Shipside

By Connection

• New Installation
• Retrofit

By Component

• Transformers
• Switchgear Devices
• Frequency Converters
• Cables and Accessories
• Others

By Power Rating 

• Up to 30 MVA
• 30 to 60 MVA
• Above 60 MVA

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa