Marine Scrubber Market Expected to Reach $20.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Marine Scrubber Market," The marine scrubber market was valued at $4.9 billion in 2021, and is estimated to reach $20.3 billion by 2031, growing at a CAGR of 16.2% from 2022 to 2031.

Asia-Pacific dominates the marine scrubber market, in terms of revenue, followed by Europe, North America, and LAMEA. In addition, North America is expected to grow at a highest growth rate over the forecast period, owing to the rising sea trade activities.

Ships are an essential mode of transportation, moving goods across the world’s seas and oceans. The ship's engine is a critical component of a vessel, and it generates significant amounts of exhaust gases that are released into the atmosphere. However, marine scrubbers are used to reduce the emissions of harmful pollutants from ships. The marine scrubber market refers to the global industry involved in the manufacturing, installation, and maintenance of exhaust gas cleaning systems or marine scrubbers for ships.

The environmental protection mandates and laws are getting more valued across the world to reduce the impact of marine emissions. These standards emphasize on supporting the use of non-toxic materials, implementing conservation techniques, and changing production processes. This supports the recycling or reuse of materials more accurately than driving them into the waste stream, which helps to eradicate pollution. Europe and North America are a few early law adopters of environmental protection across the globe.

The EPA (Environmental Protection Agency) controls pollution management regulations in the U.S. A few of the significant laws and regulations in the country include the clean air act, pollution prevention act, national environmental policy act, and clean water act. The clean air act concentrates on setting air emissions from mobile and stationary sources to protect public health and control the emissions of hazardous air pollutants.

To comply with such norms, ships need scrubber systems. By using scrubbers, the dust and corrosive gases can be nullified. The scrubber can handle explosive and flammable dust that are devised for various surface treatment and pharmaceutical & chemical applications. Strict rules relating to radiation control have increased the need for scrubber systems in marine sector, boosting the sales of marine scrubber market across the globe.

Regulations regarding emissions from ships vary depending on the location and type of ship. The International Maritime Organization (IMO) has set global standards for emissions, including limits on sulfur content in fuel and requirements for marine scrubber. These regulations are enforced by individual countries, and some countries have implemented stricter regulations than those set by the IMO. One example of a country with strict emissions regulations is China. In 2019, the country implemented 0.5% of sulfur cap for ships operating within its territorial waters. This led to a significant increase the sales for marine scrubber market, as many ships were unable to use low-sulfur fuels due to unavailability and cost issues.

The EU has implemented regulations regarding emissions from ships, including a 0.1% sulfur cap in emissions control areas (ECAs) and a 0.5% sulfur cap for all ships operating in EU waters. In addition, the EU has set targets for reducing greenhouse gas emissions from the shipping industry, including a 40% reduction in CO2 emissions by 2030 and a 70% reduction by 2050 compared to 2008 levels. Such targets and rise in sales of ships are expected to increase the demand for marine scrubber market.

COVID-19 Impact Analysis:

The COVID-19 pandemic slowed down Exhaust Gas Cleaning System (EGCS) installation progress, which raised questions about short-term market projections. According to a report by the federal maritime and hydrographic agency, by 2050, heavy fuel oil combined with EGCS is expected to have a 10% market share for fuel, according to a long-term forecast.

The development of new technologies and energy sources may have an impact on EGCS and other regulatory-compliant solutions. However, the fluctuation of fuel prices and unpredictability demand and supply of fuel, and changes in the legal system (including rules for other emissions besides sulfur oxide emissions) had also hampered the sales. According to ICCT (International Council on Clean Transportation), 4,047 ships were equipped with marine scrubber till 2020. Owing to COVID-19, the work in the shipyards, where the majority of the installation work is done, was halted due to the virus outbreak in Asia-Pacific region. Second, the maritime sector has been impacted by the COVID-19 pandemic's economic effects. The shipping corporations have responded by taking a number of actions, including delaying, or cancelling EGCS installations.

KEY FINDINGS OF THE STUDY

• By technology, the dry technology segment is projected to dominate the global marine scrubber market in terms of growth rate.
• By application, the cruises segment is projected to dominate the global marine scrubber market in terms of growth rate.
• By installation, the new build segment is projected to dominate the global marine scrubber market in terms of growth rate.

The key players operating in the Marine scrubber market are Alfa Laval AB, Andritz AG, Fuji Electric Co., Ltd., GEA Group AG, Kwang Sung Co Ltd., Mitsubishi Heavy Industries Ltd., Pacific Green Marine Technologies, Valmet Oyj, Wärtsilä Oyj Abp, and Yara International ASA.