The global shore power market is witnessing strong momentum, primarily driven by the rapid rise in the number of ports worldwide and the intensifying focus on port modernization. Shore power—also known as cold ironing or on-shore power supply—enables vessels to switch off their primary and auxiliary engines while docked and connect directly to the port’s electrical grid. This transition significantly reduces greenhouse gas (GHG) emissions, noise pollution, and fuel consumption.

Stringent government regulations aimed at reducing CO₂ emissions from the maritime industry are accelerating the adoption of shore power solutions. Additionally, government-backed subsidies, incentives, and supportive policy frameworks are creating a favorable environment for infrastructure development. As maritime operators and port authorities increasingly align with sustainability goals, the market is projected to expand at a robust pace.

Valued at US$ 1.4 Bn in 2022, the global shore power market is expected to grow at a CAGR of 10.2% from 2023 to 2031, reaching approximately US$ 3.3 Bn by the end of 2031.

Global Shore Power Market Overview

Shore power is revolutionizing maritime operations by allowing ships to draw electricity directly from onshore grids while berthed. Traditionally, vessels rely on heavy fuel oil, marine gas oil, or marine diesel oil to power onboard generators even when stationary at port. Shore power eliminates this need, drastically lowering emissions and improving energy efficiency.

This technology supports global decarbonization initiatives and contributes to cleaner air quality in port cities. The installed global capacity of shore power systems is estimated to have surpassed 163,541 KVA by 2023, highlighting the growing penetration of this innovative technology.

By integrating advanced transformers, power distribution systems, frequency converters, control panels, and cable reel connectors, shore power systems offer scalable solutions for a variety of vessels, including cruise ships, container ships, LNG carriers, tankers, bulk carriers, Ro-Ro vessels, and offshore vessels.

Stringent Government Regulations and Policy Support Driving Adoption

Government intervention remains one of the most powerful catalysts for the expansion of the shore power market. Globally, more than 100 ports have already installed shore power infrastructure, reflecting a broader commitment to carbon neutrality and environmental stewardship.

Under the FuelEU Maritime initiative, beginning January 1, 2030, all passenger and container ships with a gross tonnage of 5,000 or above will be required to connect to shore power at major European ports that are part of the trans-European transport network (TEN-T). The Alternative Fuels Infrastructure Regulation (AFIR) further supports shore power supply and infrastructure expansion.

Similarly, initiatives such as the Northwest Ports Clean Air Strategy aim to phase out emissions from seaport-related activities by 2050, with shore power installation targeted at all major cruise and container berths by 2030.

Such regulatory mandates are compelling shipping companies and port operators to accelerate investments in electrification infrastructure. Subsidies, tax reductions, and financial incentives are further reducing the burden of capital expenditure, stimulating market growth.

Rising Number of Ports and Expansion of Maritime Trade

Maritime transport underpins over 80% of global trade by volume, making ports critical hubs of economic activity. With international trade volumes steadily increasing, countries are expanding and modernizing port infrastructure.

The development of new ports and upgrading of existing facilities create strong demand for long-term cost-saving technologies such as shore power. By switching from onboard generators to grid-based electricity, vessels significantly reduce fuel consumption and maintenance costs, improving overall operational efficiency.

Additionally, corporate social responsibility (CSR) initiatives by shipping companies are reinforcing the shift toward environmentally sustainable practices. As global shipping giants commit to carbon reduction targets, shore power systems are becoming integral to their sustainability roadmaps.

High Initial Investment and Infrastructure Challenges

Despite promising growth prospects, the shore power market faces certain challenges. High upfront capital costs remain a significant barrier, especially for ports with legacy infrastructure or limited grid capacity.

Installation expenses vary significantly depending on port configuration, existing electrical systems, and grid availability. Historic ports often require complex cabling and structural upgrades, increasing project costs. In many cases, shore power projects are treated as standalone initiatives rather than modular systems, limiting economies of scale.

Grid capacity constraints present another hurdle. In regions where electrical grids are already operating near maximum capacity, upgrades are necessary to handle additional loads from docked vessels. Furthermore, ships require retrofitting with compatible onboard infrastructure, adding to the overall cost.

Weak policy frameworks in certain regions, low prioritization of electrification projects, and funding limitations may also slow adoption in emerging markets.

Port Modernization and Infrastructure Investments

Modernization of ports has gained significant momentum in recent years, encompassing energy infrastructure, digital technologies, multimodal transport integration, and sustainability enhancements.

Shore power is increasingly considered a critical component of smart port development strategies. Electrification not only enhances environmental performance but also improves competitiveness by attracting eco-conscious shipping lines.

Governments worldwide are planning to deploy alternative marine power systems at ports in the near future. The European Union’s “Fit for 55” program mandates the installation of shore power infrastructure at major ports by 2030 to support net-zero emission targets.

As ports compete globally to become green logistics hubs, shore power investments are expected to generate lucrative opportunities for solution providers.

Regional Outlook

Europe

Europe is anticipated to dominate the global shore power market by 2031. Countries such as Germany, France, Italy, and the U.K. are leading adopters due to existing cold ironing facilities and ongoing infrastructure projects. Strong regulatory frameworks and decarbonization targets further reinforce regional leadership.

North America

North America is projected to witness robust growth during the forecast period. Increasing offshore activities and port modernization initiatives in the U.S. and Canada are driving demand for shore power systems. Environmental regulations at federal and state levels are supporting rapid deployment.

Asia Pacific

Asia Pacific accounted for approximately 16.3% of the global market share in 2022. Countries including China, India, Japan, South Korea, and Taiwan are heavily investing in port infrastructure upgrades. Growing trade activities and urban air quality concerns are fueling adoption in the region.

Latin America and Middle East & Africa

Emerging economies in Latin America and the Middle East & Africa are gradually adopting shore power systems, supported by port expansion initiatives and increasing awareness of environmental sustainability.

Competitive Landscape and Key Players

The global shore power market is highly consolidated, with a limited number of established vendors controlling a significant market share. Leading companies are heavily investing in R&D to develop energy-efficient and environmentally friendly solutions.

Prominent players include:

  • ABB
  • Wärtsilä
  • Cavotec SA
  • Siemens
  • Yara Marine Technologies
  • Schneider Electric
  • General Electric

Strategic collaborations, product innovation, and geographic expansion remain key growth strategies. Commercialization of shore power systems in developing markets is opening new revenue streams.

Recent developments, such as Wärtsilä’s integrated hybrid propulsion systems and Cavotec’s major orders in Asia, underscore the market’s dynamic and innovation-driven nature.

Market Segmentation Snapshot

By Power Output:

  • Up to 3 MVA
  • 3 MVA to 10 MVA
  • Above 10 MVA

By Installation:

  • New Installations
  • Retrofit

By Component:

  • Transformer
  • Power Distribution System
  • Frequency Converter
  • Control Panel
  • Cable Reel & Connectors
  • Switchboard

By Application:

  • Port Terminal
  • Shore Power to Ship
  • E-Vessel Charging

Conclusion

The global shore power market is poised for substantial expansion through 2031, driven by environmental regulations, port modernization initiatives, and rising global trade volumes. While high capital investment and infrastructure limitations pose challenges, supportive government policies and technological advancements are mitigating barriers.

With sustainability becoming central to maritime operations, shore power is set to play a pivotal role in decarbonizing the shipping industry. As investments accelerate and regulatory frameworks strengthen, the market is expected to more than double in value, reaching US$ 3.3 Bn by 2031, marking a transformative shift toward cleaner and more efficient maritime transportation.