Allied Market Research has published a report revealing the global marine scrubber industry was valued at $4.9 billion in 2021 and is estimated to generate revenue of $20.3 billion by 2031, witnessing a CAGR of 16.2% from 2022 to 2031.
The report demonstrates that the global marine scrubber systems market is driven by the implementation of the 2020 sulfur rule, air pollution prevention policies & laws imposed by governments to protect the environment, the growth in international marine freight transport, and an increase in demand for cargo transportation through ships.
Drivers, Restraints, and Opportunities
Implementation of sulfur 2020 rule, air pollution prevention policies & laws imposed by governments to protect the environment, the rise in international marine freight transport, and an increase in the demand for cargo transportation through ships drive the marine scrubber market. However, strict regulatory policies for disposal of contaminated effluents from scrubber system and high installation & maintenance cost of marine scrubber are likely to hinder the market growth during the forecast period. On the other hand, the rise in e-commerce & online trading and the growing demand for retrofit applications as ship owners race against time to obey rules and regulations will present new growth opportunities for the global market in the coming years.
Covid-19 Scenario
The outbreak of the Covid-19 pandemic slowed down the progress of exhaust gas cleaning system (EGCS) installation, 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.
According to ICCT (International Council on Clean Transportation), 4,047 ships were equipped with marine scrubber till 2020. Owing to the COVID-19 pandemic outbreak in Asia-Pacific, the work in the shipyards where a majority of the installation work is done was halted.
Moreover, the maritime sector was impacted by the pandemic’s economic effects. The shipping corporations responded by taking actions, such as delaying, or cancelling EGCS installations.
The wet technology segment to dominate the market during the forecast period
Based on technology, the wet technology segment contributed to the largest share of nearly 90% of the global marine scrubber market in 2021 and is expected to maintain its dominance during the forecast period. This is due to the increased demand for clean air, stringent environmental regulations, and the need to reduce harmful emissions. However, the dry technology segment is projected to witness the fastest CAGR of 22.6% from 2022 to 2031. This is because dry technology has observed huge demand in North America, Asia-Pacific, and Europe. Asia-Pacific is projected to register significant growth in the near future due to the availability of labor and various government initiatives.
The bulk carriers segment to grab the lion’s share during the forecast period
Based on application, the bulk carriers segment grabbed the highest share of one-third of the marine scrubber market in 2021 and is expected to dominate the market in 2031. This is because the bulk carrier is involved in transportation of raw materials and other bulk commodities. These vessels are primarily used to transport dry bulk cargoes such as coal, iron ore, grain, and other raw materials that are essential to various industries around the world. However, the cruises segment would witness the fastest CAGR of 21.0% from 2022 to 2031. This is because cruise ships are made to give passengers a vacation that includes lodging and entertainment while putting an emphasis on the comfort and facilities available onboard.
Asia-Pacific to achieve the largest revenue by 2031
Based on region, the market in Asia-Pacific was the largest in 2021, accounting for more than two-fifths of the global marine scrubber market and is likely to maintain its dominance during the forecast timeframe. This market is the most promising market due to countries such as China and India, whose economies are increasing as their trade with other regions is growing and the countries are becoming self-sufficient. However, the market in North America is likely to show the fastest CAGR of 20.2% during the forecast period. This is because various organizations are driving the exhaust gas cleaning or marine scrubber market by following the framework or the strict norms made by the International Maritime Organization.
