Shore power adoption is surging globally, driven by IMO 2023 regulations, with major ports like Los Angeles and Shanghai investing heavily to reduce emissions by thousands of tons annually.
New Delhi, Feb. 11, 2025 (GLOBE NEWSWIRE) — The global Shore power market was valued at US$ 1.90 billion in 2024 and is expected to reach US$ 5.02 billion by 2033, growing at a CAGR of 11.4% during the forecast period 2025–2033.
The global shore power market is experiencing unprecedented growth, driven by increasing environmental regulations and the maritime industry’s push toward sustainability. This growth is fueled by the urgent need to reduce greenhouse gas emissions from ships while they are berthed at ports. Shore power, also known as cold ironing, allows vessels to shut down their auxiliary engines and connect to the local power grid, significantly cutting emissions. The environmental benefits of shore power are undeniable. Studies show that it can reduce CO2 emissions by 48-70%, SO2 emissions by 3-60%, and NOx emissions by 40-60% compared to traditional marine fuels. These reductions are critical for ports in urban areas, where air quality is a major concern. For example, the Port of Seattle’s Pier 66 Shore Power Project is expected to avoid 3,000 metric tons of CO2 emissions annually. With over 30 ports worldwide already equipped with shore power facilities, the technology is becoming a cornerstone of sustainable port operations. As governments and port authorities continue to invest in this infrastructure, the market is poised for exponential growth in the coming decade.
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Key Findings in Shore Power Market
| Market Forecast (2033) | US$ 5.02 billion |
| CAGR | 11.4% |
| Largest Region (2024) | Asia Pacific (35%) |
| By Power Rating | Up to 30 MVA (64%) |
| By Connection Type | Retrofit Installation (74%) |
| By Installation Type | Shoreside (89%) |
| By Components | Frequency Converters (34%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Government Initiatives and Funding Driving Shore Power Adoption
Government initiatives and funding programs are playing a pivotal role in accelerating the adoption of shore power market. In the UK, the Port of Aberdeen received £55 million from the government for a large-scale shore power project aimed at cutting vessel emissions at berths by more than 80%. Over the next 20 years, this project is expected to save over 60,000 tons of CO2 equivalent. Similarly, the UK’s Zero Emission Vessels and Infrastructure (ZEVI) Scheme has allocated £80.4 million to 10 projects, further boosting the country’s shore power infrastructure.
In the United States, the California Air Resources Board (CARB) has been a significant driver of shore power expansion through its 2020 At-Berth Regulation, which mandates the use of shore power market at six major ports in the state. The U.S. Department of Energy, Environmental Protection Agency, and Department of Transportation are also providing billions of dollars in funding for shore power infrastructure. Europe is not far behind, with the European Union mandating that ports provide shore power by 2025. The European Commission awarded a grant of USD 20.3 million to the Hamburg port authority for onshore power supply for cruise vessels. These initiatives underscore the critical role of government support in overcoming the high costs of shore power infrastructure and driving widespread adoption.
Environmental and Economic Benefits of Shore Power
Shore power offers significant environmental and economic benefits in the Shore power market, making it an attractive solution for ports and shipping companies. By reducing emissions of CO2 and other pollutants by 60% to 80%, shore power helps ports comply with stringent environmental regulations and improve air quality for surrounding communities. For example, the Port of Hamburg, Rotterdam, and Antwerp have signed declarations to implement shore-side electricity by 2028, aiming to cut emissions and meet EU sustainability targets. Additionally, shore power can lead to participation in carbon trading schemes, providing economic benefits for ports and shipping companies.
The economic advantages extend beyond emissions reductions in the Shore power market. Ports that adopt shore power may attract more business from environmentally conscious shipping companies, enhancing their competitiveness. Furthermore, shore power projects can stimulate economic growth by creating jobs related to the installation and maintenance of infrastructure. For instance, the Aberdeen shore power project is expected to save over 60,000 tons of CO2 equivalent over 20 years while generating local employment opportunities. As fuel costs continue to rise, the relative cost of using shore power becomes more attractive, especially when electricity costs are lower. This dual benefit of environmental and economic gains is driving the rapid deployment of shore power across the globe.
Challenges and Barriers to Shore Power Implementation
Despite its numerous benefits, the widespread adoption of shore power market faces several challenges. The high costs of infrastructure and vessel modifications remain significant barriers. For example, early planning and collaboration between ports, regulatory agencies, and utilities are crucial for successful shore power implementation, but these efforts often require substantial financial investments. The “chicken and egg” dilemma, where ports wait for ships to be equipped and vice versa, further complicates deployment.
Another challenge is the low utilization rate of shore power in some regions. In China, for instance, 81% of berths were equipped with shore power in 2022, but the utilization rate was only 43%. This underutilization highlights the need for better coordination between ports and shipping companies to maximize the benefits of shore power. Additionally, international standards for high-voltage shore power systems are essential to ensure compatibility between ports and vessels. While progress has been made in establishing these standards, further efforts are needed to streamline equipment selection and installation. Overcoming these challenges will require continued investment, strategic planning, and collaboration among stakeholders.
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Major Players and Their Contributions to the Shore Power Market
The shore power market is characterized by the involvement of several major players who are driving innovation and expanding market presence. ABB Ltd., a leading player in the market, is known for its innovative solutions in power conversion and energy-efficient systems. Siemens AG offers comprehensive shore power solutions through its Smart Infrastructure business segment, while Cavotec SA specializes in providing shore power solutions and has been gaining ground in the market.
Other key players include Wärtsilä, which provides comprehensive marine solutions, and Eaton Corporation plc, which offers power management solutions crucial for the efficient operation of shore power systems. Schneider Electric SE is also recognized for its expertise in power management and automation solutions in the shore power market. These companies are actively engaging in strategic alliances, mergers, and acquisitions to expand their market presence and offer cutting-edge solutions. For example, ShoreLink has delivered its Shore Power Cable Management System at the Port of La Spezia, showcasing the industry’s commitment to innovation. The contributions of these major players are instrumental in advancing shore power technology and driving its adoption worldwide.
Future Outlook and Vision for the Shore Power Market
The future of the market looks promising, with significant capacity expansions and ambitious goals set by ports and shipping companies. Northern European ports are set to enable shore power for boxships by 2030, while the U.S. Environmental Protection Agency’s Diesel Emissions Reduction Act continues to support shore power infrastructure development. The Port of San Diego is doubling its shore power capacity as part of its environmental initiatives, and Port Everglades has completed a study to add shore power to its eight cruise terminals.
The vision for the shore power market is clear: to create a sustainable maritime industry that minimizes environmental impact while enhancing operational efficiency. The success of shore power implementation depends on overcoming financial and logistical barriers through strategic planning and collaboration among stakeholders. As more ports and vessels adopt shore power, the technology will play a crucial role in achieving the United Nations Sustainable Development Goals by contributing to cleaner energy sources and reduced carbon emissions. With continued investment and innovation, the shore power market is set to revolutionize the maritime industry and pave the way for a greener future.
Global Shore Power Market Major Players:
- ABB
- AC Power Corp.
- Blueday Technology
- Cochran Marine ILC
- Conntek Integrated Solutions Inc.
- Eaton
- ESL Power Systems Inc
- General Electric
- Piller Power Systems
- Power Systems International
- Schneider Electric
- Siemens Energy
- Sydney Marine Electrical
- Other Prominent Players
Key Segmentation:
By Connection
- New Installation
- Retrofit
By Installation Type
- Shoreside
- Shipside
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 Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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