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Alternate Marine Power Market Recent Trends, Future Growth, Insights, Share and Forecasts

Alternative Cable Technology Enables Suitable Power Transmission Environment

Alternative cable technology is emerging as one of the key drivers triggering growth for the alternate marine power market. This technology is anticipated to benefit the future shore charging solutions landscape. Increasing environmental awareness has compelled stakeholders in the alternate marine power landscape to adopt electric vessels.

Stakeholders in the alternate marine power market are adopting electric vessels integrated with hybrid power and combined power source technology to reduce fossil fuel consumption. However, elimination of emissions can only be achieved if the vessels completely operate on electric power. Hence, companies are manufacturing alternate marine power systems that run on efficient batteries. This trend is encouraging the adoption of electric vessels.

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Efficient batteries are coupled with alternative cable technology in electric drive systems. Ports are creating suitable connection environments at their shores to provide convenience in power transmissions. Companies in the alternate marine power market are increasing R&D to develop transmission cables that do not overheat the insulation surrounding the conductor.

Hybrid Power Modules Gain Popularity as a Cost-efficient Solution in the Tug Market
Companies in the alternate marine power market are innovating in hybrid power solutions for stakeholders in the landscape. For instance, in July 2019, Wärtsilä - a power solutions company for marine and energy markets, revealed that, the company has developed a hybrid power module solution for the Swedish port Luleå, catering to the specific needs of the tug market.

Hybrid power module solutions are being increasingly adopted to achieve reduced emissions and reduced noise during higher bollard pull. Companies are validating the efficiency of these new modules with the help of energy management systems to acquire actual data on operational applications. They are increasing tests and trials to identify the areas that need improvement during harsh weather conditions. Hybrid power modules are gaining popularity as a cost-effective solution with reduced fuel consumption.

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Provision of Incentives and Standardization Lead to Increased Adoption of AMP
Stakeholders in the shipping industry are becoming increasingly aware about stringent laws and regulations governing the alternate marine power market. In order to gain credibility in the global market, stakeholders are investing in state-of-the-art technology to reduce CO2 emissions. However, the implementation of such technology has its own challenges.

For instance, alternate marine power infrastructure requires extra electrical supply, which, in most cases, does not align with the supply offered by the power plant in that port city or town. This raises the issue of increased installation costs for stakeholders in the alternate marine power landscape. Hence, there is a need for the provision of incentives to invest in the technology, using emission reduction credits as a solution to the problem.

The lack of standardization poses a challenge for stakeholders in the market landscape. Lack of standardization leads to technical issues in cold ironing equipment. Hence, manufacturers should innovate in new engines and better fueling systems to pave a fruitful future for AMP.

Ports Encourage Funding for Implementation of Sustainable Solutions in the Marine Industry
Despite challenges in the implementation of technology, stakeholders in the alternate marine power market are increasing the availability of cold ironing ports to contribute to the global environmental revolution. For instance, in December 2018, the port of Killini in the eastern Mediterranean, held an inauguration ceremony of the first-of-its-kind pilot shore installation for the electrification of ships. Ports in the alternate marine power space are encouraging funding to fortify new AMP infrastructures at ports.

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The shift of electricity as an alternative to fuel is transforming the alternate marine power market. Stakeholders are increasingly complying with the relevant regulatory context to use electricity as an alternative to diesel. They are adopting new strategies such as introducing new sea routes to avail the best advantage of natural gas and electricity. Governments are also providing incentives for stakeholders in the alternate marine power space that adopt greener fuels and AMP technology.

Stakeholders in the alternate marine power market are making endeavors to adopt sustainable and renewable solutions in the marine industry landscape. Maritime companies are volunteering to invest in specialized electrical equipment to enable shore-based installations at ports.

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High Initial Investments to Hamper Global Alternate Marine Power Market

Initial capital costs required to build shore-side alternate marine power systems, operational costs of these systems, and costs required to modify ships according to alternate marine power systems are high. This is likely to restrain the global alternate marine power market during the forecast period.
Conversion cost of a ship lies between US$ 2 Mn and US$ 6 Mn.
Cost of transporting electricity from a local grid to a port terminal ranges between US$ 300,000 and US$ 4 Mn per berth, depending on vessel type, voltage, frequency, power demand, and port location.
The initial cost comprises installation of high-voltage power transformers, switchboard and control panels, electric distribution systems, cable reel systems, and frequency converters.
Initially, returns on investment (RoI) for an alternate marine power system are low, and the payback period is over seven years.
Thus, high initial costs of these systems restrain the global alternate marine power market.
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