Marine Scrubber Market - Forecast(2023 - 2028)

Report Code: EPR 0059 Report Format: PDF + Excel

Marine Scrubber Market Overview

The marine scrubber market is expected to reach $4.3 billion by 2026 from $2.5 billion in 2020 with a CAGR of 8.53% during 2021 to 2026. Marine scrubbers are exhaust gas cleaning systems (EGCS), which is used to remove harmful components like nitrogen oxides (NOx) and sulfur oxide (SOx) from the emissions are emitted due to combustion processes in marine engines. This is primary done to safe guard the environment and reduce air pollution. These systems are deployed for treating exhaust from engines, auxiliary engines, and boilers to ensure that no damage is done to human life as well as the environment due to any toxic chemicals. However, this growth has been impacted negatively in 2020, due to the spread of COVID-19 virus, with lockdown been declared in most countries across the globe. 

Marine Scrubber Market Report Coverage

The report: “Marine Scrubber Industry Outlook – Forecast (2021-2026)”, by Industry ARC covers an in-depth analysis of the following segments of the Packaging Printing industry. 
By Type: Wet Technology (Open Loop, Closed Loop, Hybrid), Dry Technology
By Fuel Type: MDO, MGO, Hybrid
By Vessel Type: Commercial Vessels, Military and Government Vessels, Passenger Vessels, Offshore Vessels
By Geography: North America, South America, Europe, APAC and RoW

Key Takeaways

  • Growing advent of emission less scrubbers due to the regulations imposed by the government is analyzed to significantly drive the marine scrubbers market during the forecast period 2021-2026.
  • North America region is anticipated to witness the significant market growth during the forecast period 2021-2026 with a CAGR of 8.20% due to the escalated tensions between the countries which has led to countries increasing their military spending levels and their naval fleets, which will boost the growth of the market studied.
  • However, this growth has been impacted negatively in 2020, due to the spread of COVID-19 virus, with lockdown been declared in most countries across the globe.
Global Marine Scrubber Market, By Region, 2020 (%)

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Marine Scrubber Market Segment Analysis- By Type

By Type, the market is segmented into Dry Technology, Wet Technology (Open Loop, Closed Loop, Hybrid). Wet technology had dominated the marine scrubber market with $2261.0 billion in 2020 and is analyzed to grow at a CAGR of 8.18% during the forecast period 2021-2026. The open loop systems are primarily used for vessels operating in open sea and the process water is discharged overboard in compliance with IMO 2020 regulations. Seawater is inserted at the top of the scrubber through spraying nozzles and exhaust gases enter through the bottom side of the scrubber tower. Closed loop system uses seawater to wash the sulphur content of the exhaust gasses and are primarily used for vessels that operate in ports and sailing areas where overboard discharge is prohibited. Oil and solids are removed from the polluted water forming a sludge which is again pumped to the sludge storage tank on the ship. With the growing tensions and rivalry of India with Pakistan and China is significantly impacting on the high investment in the military sector. Hence the growing military sector is analyzed to boost the market growth rate as there is a need for modernization or replacement of the older vessels equipped with the open loop technology due to these increasing geopolitical tensions. Indian government announced its plan to spend $130 billion on military modernization in the next 5 years, majorly aimed at achieving self- reliance in defense production. Indian government has also opened-up the defense industry for private sector participation thereby boosting indigenous manufacturing and upgradation of vessels. In December 2020, the Taiwanese Navy inducted the first domestically built Tuo Chiang-class guided-missile corvette which are equipped with Sea Sword II anti-aircraft missiles, eight supersonic Hsiung Feng III (HF-3) medium-range missiles, eight subsonic Hsiung Feng II (HF-2) anti-ship missiles, two Mark 32 Surface Vessel Torpedo Tubes and one Phalanx CIWS, two 12.7 mm Browning M2HB machine guns. In addition, standards specified by the IMO have led to the installation of the exhaust cleaning system such as Sox scrubber through which the operator or the owner of the ship is able to work on the inexpensive or heavy fuel to meet such standards.

Marine Scrubber Market Segment Analysis- By Fuel Type

By fuel type, the marine scrubber market is segmented under MDO, MGO, Hybrid. MDO with a market share of $1738.2 billion dominated the market in the marine scrubber market during 2020. The term marine diesel oil (MDO) refers to marine fuels that are made up of different distillates (also known as marine gasoil) and heavy fuel oil blends. Unlike diesel fuels used in cars and trucks on land, marine diesel oil is not a pure distillate. The various blending ratios of marine diesel oil can be directly regulated by refining processes or by blending ready-made marine fuels. The density of marine diesel is higher than that of diesel fuel. In contrast to heavy fuel oil (HFO), marine diesel oil does not require heating during storage. Marine diesel is a heavy gas oil usually used for marine purposes only which is typically used by medium speed and medium/high speed marine diesel engines. Since marine diesel oil has been criticised for its strong sulphur content, several countries and organisations have enacted legislation and laws governing MDO use. MDO is preferred by the shipping industry in particular due to its lower cost as compared to more refined fuel. Some of the major factors driving the adoption of Marine Diesel Oil (MDO) scrubbers are the low initial cost, ease of installation, and low maintenance. Furthermore, the ability to enable the operation of internal combustion engines without the need for heating would have a beneficial effect on product deployment.

Marine Scrubber Market Segment Analysis- By Geography 

North America had accounted for the largest share of $612.4 Million in 2020, analysed to grow with a CAGR of 8.20% for the marine scrubber market during the forecast period 2021-2026, followed by Europe and APAC. The increasing government support for navy defence, combined with the robust growth of progressive shipping lines, is expected to boost North American marine scrubber systems market trends. The United States government is aggressively investing in upgrading its current naval shipyards and fleet repair and maintenance, thus widening the market landscape. To resolve the increasing environmental issues, governments have made significant investments in upgrading technology and developing advanced marine scrubbers. With maritime tourism and long voyages becoming more common, the marine scrubber systems industry share is expected to grow in the coming years. Many major players in this region, including CR Ocean Engineering and DuPont, are actively pursuing contracts and agreements with various marine companies. In February 2019, CR Ocean Engineering signed a contract with a US-based shipping company to retrofit marine scrubbers in 35 vessels. This contract has supported the company in improving its position in the North American market, as well as in adhering to the sulphur equivalency standard in European and North American Emission Control Areas (ECAs). Such market innovations are expected to fuel the growth of the marine scrubber market in this area over the forecast period. EGCS discharge is not allowed in Californian Ports and waters; and Connecticut Ports and waters. The discharge is allowed under conditions in Hawaii Ports and waters.

Marine Scrubber Market Drivers 

Growing Needs for Marine Vessels:

Increasing cargo shipments drive the need for vessels and more sailors, increasing the operation costs, which is expected to fuel the adoption of automated systems in the commercial vessels. These systems reduce the operating cost and provide more space for the cargo, which is expected to spur the growth in the forthcoming years. Large-scale companies increasing investments in marine vessel development would generate many growth opportunities in the coming years. The growing focus on the production of advanced marine vessels would create enormous opportunities for market players. In recent years, increased trade activity has also been beneficial to the market. The demand for cargo transportation via waterways is increasing. Because of the safe and stable aspect of marine transportation, a large number of cargos are easily transported to other ports. Furthermore, cargo ships are less costly for transporting goods than road and air transits because ships can transport more cargo in a shorter period of time. According to UNCTAD data, approximately 1.68 billion tonnes of cargo are transported per year in approximately 177.6 million containers covering 998 billion tons-miles. Recent advances in commercial vessels, as well as giant players' innovation in cargo ships outfitted with cutting-edge technology such as advanced sensors, navigation systems, and other components, create a growth potential for commercial vessels. An increase in the number of product releases has favoured market growth. Because of the increasing demand for marine vessels around the world, many large companies are looking to introduce products of the highest quality and productivity. FSG announced in October 2019 that it had completed the delivery of its eighth marine ship. Siem Europe received a 32,336 GT roll-on/roll-off (RoRo) ferry from the company. The company's new product will not only help the company, but will also improve trade and transportation activities in many European countries. The United States Coast Guard defines a "commercial vessel" as any vessel (boat or ship) engaged in commercial trade or that carries passengers for hire.

Growth of Military and Defence segment globally:

Countries are attempting to improve their naval capabilities as international tensions and maritime conflicts between different nations grow. Several countries are upgrading their current naval fleets or replacing aged fleets with newer-generation vessels with advanced features. The industry has seen large-scale procurement and development activities as many nations' military spending has risen over the last decade. The COVID-19 outbreak and resulting shutdowns have impacted the defence manufacturing sector in many countries. The pandemic's negative effects can be seen in global defence supply chains, as many projects rely on a unique global network of part suppliers. Despite the fact that governments and defence companies have emphasized the importance of preventing disturbances, the pandemic has resulted in many delays in development efforts. Given the longer timelines involved in the construction of naval vessels, the shipbuilders are expected to incur increased costs as a result of the delays. For instance, Canada, Irving and Seaspan ULC's construction of new naval ships in Vancouver has been delayed due to supply chain disruptions caused by lockdowns and COVID-19 measures at their shipyards. As a result, the decline in production rates caused by pandemic-induced disruptions is expected to hinder market growth over the first few years of the forecast period.

Marine Scrubbers Market Challenges

Technical Challenges:

Apart from high initial investments for marine scrubbers the technical challenges and regulatory challenges acts as the major factor restraining the market growth. Some of the technical challenges include wash water conditioning and monitoring, transient load operation, back pressure management, integration of desulphurising and de-nitrification techniques and others. Some of the regulatory challenges include regional or IMO controls, waste disposal, wash water discharge acceptability and others.  

Marine Scrubber Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Marine Scrubber market. The key players in the Marine Scrubber Market include Damen Shipyards Group N.V, Yara International ASA, Fuji Electric Co., Ltd., DuPont De Nemours, Inc., EcoSpray Technology, Valmet Pty Ltd., Kwangsung Co. Ltd., Mitsubishi Heavy Industries Ltd., CR Ocean Engineering, Alfa Level among others

Acquisitions/Technology Launches/Partnerships

  • In May 2020, Valmet signed a contract with Mitsubishi Shipbuilding Co., Ltd. for delivery of hybrid scrubber systems to Shimonoseki Shipyard. Each vessel is equipped with Valmet marine automation system and two Valmet marine scrubber towers.
  • In June 2020, Alfa Laval launched PureSOx Express, the new iteration of its existing PureSOx scrubber, intended for installation on handymax bulkers or product tankers. PureSOx Express, is an open-loop PureSOx scrubber system designed to meet current regulations, delivered as a fully enclosed module, and adapted for a simple, cost-effective fit on smaller vessels. According to the company, this decreases the investment expense, engineering time, and physical labour of installing a SOx scrubber and allows these vessels to continue using HFO while complying with SOx regulations.

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1. Marine Scrubber Market Overview
    1.1 Definitions and Scope
2. Marine Scrubber Market   - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By Type 
    2.3 Key trends segmented by Geography
3. Marine Scrubber Market – Market Landscape 
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis (Comparison of General Price Offerings)
4. Marine Scrubber Market - Market Forces
    4.1 Market Drivers
    4.2 Market Constraints
    4.3 Porters five force model
        4.3.1 Bargaining power of suppliers
        4.3.2 Bargaining powers of customers
        4.3.3 Threat of new entrants
        4.3.4 Rivalry among existing players
        4.3.5 Threat of substitutes 
5. Marine Scrubber Market – By Strategic Analysis 
    5.1 Value Chain Analysis
    5.2 Opportunities Analysis
    5.3 Product Life Cycle/Market Life Cycle Analysis
    5.4 Supplier and Distributor Analysis
6. Marine Scrubber Market – By Type
    6.1 Wet Technology
        6.1.1 Open Loop
        6.1.2 Closed Loop
        6.1.3 Hybrid
    6.2 Dry Technology
7. Marine Scrubber Market – By Fuel Type
    7.1 MDO
    7.2 MGO
    7.3 Hybrid
8. Marine Scrubber Market – By Vessel Type (Market Size -$Million/Billion)
    8.1 Commercial Vessels
    8.2 Military and Government Vessels
    8.3 Passenger Vessels
    8.4 Offshore Vessels
9. Marine Scrubber Market - By Geography (Market Size -$Million/Billion)
    9.1 North America
        9.1.1 U.S
        9.1.2 Canada
        9.1.3 Mexico
    9.2 South America
        9.2.1 Brazil
        9.2.2 Argentina
        9.2.3 Chile
        9.2.4 Colombia
        9.2.5 Others
    9.3 Europe
        9.3.1 Germany
        9.3.2 France
        9.3.3 UK
        9.3.4 Italy
        9.3.5 Spain
        9.3.6 Russia
        9.3.7 Netherlands
        9.3.8 Others
    9.4 APAC
        9.4.1 China
        9.4.2 Japan
        9.4.3 South Korea
        9.4.4 India
        9.4.5 Australia
        9.4.6 Indonesia
        9.4.7 Malaysia
        9.4.8 Others
    9.5 RoW
        9.5.1 Middle East
        9.5.2 Africa
10. Marine Scrubber Market - Market Entropy
    10.1 New product launches
    10.2 M&A's, collaborations, JVs and partnerships
11. Marine Scrubber Market - Company Analysis
    11.1 Damen Shipyards Group N.V
    11.2 Yara International ASA
    11.3 Fuji Electric Co., Ltd.
    11.4 DuPont De Nemours, Inc.
    11.5 EcoSpray Technology
    11.6 Valmet Pty Ltd.
    11.7 Kwangsung Co. Ltd.
    11.8 Mitsubishi Heavy Industries Ltd.
    11.9 CR Ocean Engineering
    11.10 Alfa Level
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