Scrubbers Market to Surpass $8 Bln by 2024 -Report
The market for marine exhaust gas cleaning systems, also known as scrubbers, is expected to continue generating momentum in the years ahead amid increasing concern toward maritime pollution and new environmental regulations. The global market share for marine scrubbers is predicted to surpass $8 billion by 2024, according to a report by Global Market Insights.
As per the latest International Maritime Organization (IMO) legislation, effective from January 1, 2020, the maximum limit of sulphur in fuel oil used on board ships will be 0.5 percent m/m, down from the current 3.5 percent m/m global limit. A maximum sulphur limit of 0.1 percent m/m in SOx Emission Control Areas (ECA) has been in effect since January 1, 2015. With this stringency in the overall shipping industry regulatory terrain, the marine scrubber systems industry is poised to witness a slew of opportunities in the coming years.
In 2017, the worldwide marine scrubber systems market generated a revenue of more than $800 million, Global Market Insights found. In the coming years, the business is expected to generate huge returns from the commercial as well as the recreational sectors.
As per World Travel & Tourism Council, the marine tourism industry, in 2016 generated a revenue of $7.6 trillion, and accounted for approximately 10.2 percent of the global GDP. Backed by the increasing investments in tourism sector and the upliftment in economic portfolio, the marine scrubber systems market from recreational applications will witness strong prospects in the short to medium run.
The commercial sector, owing to the rapid industrialization activities, particularly in emerging economies, will contribute massively to the overall marine scrubber systems market. As per the Global Market Insights report, this segment is anticipated to procure 20 percent of the overall share by 2024. APAC reportedly holds 60 percent of the global shipbuilding industry, with China, South Korea, and Japan at the forefront. This has made the region a prominent avenue for marine trade activities, in turn providing substantial push to the marine scrubber systems market.
the region also stands as a prominent participant of the Sulphur and marine pollution abatement notion. In 2015, the Chinese Ministry of Transport launched an implementation plan to curb the air pollution levels from ships, establishing new ECAs in China, including Bohai Bay, Yangtze River Delta and Pearl River Delta.
In other regional trends, the U.S. is deemed to be another pivotal growth avenue for marine scrubber systems market, courtesy of efforts taken by the regional governments to limit the sulphur emissions from ships coupled with the extensive R&D initiatives to bring on board sustainable solutions. In this year’s MEPC conference, the nation outlined its future strategies to curtail marine pollution and declared its aim to reduce ocean emission by 50 percent by 2050. Moreover, seawaters along the U.S. and the Canadian shorelines have been touted as North American ECAs (emission control areas), in a bid to significantly cut down on the sulphur emissions. In terms of commercialization potential, U.S. marine scrubber systems industry is forecast to surpass 300 units by 2024.
Product innovations in compliance with the government regulations and research collaborations would continue to be the major growth strategies underlining the marine scrubber systems market in the coming years. Some of the renowned marine scrubber systems industry share contenders include Wärtsilä, Yara Marine, CR Ocean Engineering, VDL AEC Maritime B.V., DuPont, Mitsubishi, etc, with a rather dynamic competitive portfolio and a stringent regulatory landscape, the global marine scrubber systems market share is slated to surpass $8 billion by 2024.