Onshore Power Supply System Market to Reach USD 3.5 Billion by 2032 on Port Emissions Regulations

Ships at berth traditionally run diesel generators to power onboard systems, and onshore power supply systems let them plug into the grid instead — cutting emissions and noise in port areas. According to WiseGuyReports, the global onshore power supply system market was valued at USD 1.95 billion in 2023 and is projected to reach USD 3.5 billion by 2032, growing at a compound annual growth rate of 6.73%. This article examines the power capacities, types, and regional dynamics behind that growth.

Emissions Regulations and Fuel Costs Drive Growth

The market's expansion is anchored in growing environmental awareness of the impact of fossil fuels and the need to reduce greenhouse gas emissions, with onshore power supply systems offering a cleaner, more sustainable alternative to diesel generators and helping reduce air pollution and improve public health. Insights published by WiseGuyReports indicate that increasingly strict maritime regulations, particularly in Europe and North America, are a major factor driving adoption, as OPSS allows ships to connect to shore electricity and reduce air pollution and emissions while docked, while rising fuel costs are making onshore systems more cost-effective than diesel generators, especially when vessels remain docked for long periods. Technological advances are making systems more efficient and reliable, with new technologies being developed to reduce size and weight for easier installation and transport, alongside innovations to improve efficiency and reduce the energy needed to power a vessel.

Under 50 MW Leads the Power Capacity Segment

In the power capacity segment, under 50 MW is expected to hold the largest market share in 2023 thanks to growing adoption of small-scale onshore power supply systems by ports and harbors. The 50–100 MW segment is expected to see significant growth through rising demand for mid-scale systems from industrial facilities and commercial buildings, the 100–200 MW segment is expected to account for a substantial portion of global revenue by 2028 driven by growing deployment of large-scale systems by power plants and data centers, and the above-200 MW segment is expected to show steady growth through rising demand from major ports and industrial complexes. On the type side, grid-connected systems are the most popular type and are expected to account for over 60% of market revenue in 2023, being the most cost-effective and efficient option, while standalone systems are less common but gaining popularity in remote areas without grid access, and hybrid systems combining both characteristics are becoming increasingly popular as renewable energy costs fall.

Commercial Ports Lead Applications

Within the application segment, commercial ports are a major application segment accounting for a significant portion of global revenue, driven by growing emphasis on reducing emissions in port areas and increasing adoption of shore power by shipping companies to comply with environmental regulations. Industrial facilities represent another important segment, typically having high power demands and requiring reliable power sources, with onshore systems offering a cost-effective and environmentally friendly solution, while shipyards are a growing segment as they modernize operations and focus on sustainability, increasingly adopting onshore systems to power vessels during maintenance and repair work. On the control system side, the fully automated segment had the largest revenue share in 2023 at about 45% thanks to growing demand for advanced, efficient systems, while the semi-automatic segment is expected to see significant growth through cost-effectiveness and ease of operation. On the energy conversion side, AC-to-DC converters hold a significant share facilitating conversion of alternating current to direct current needed to power electronic devices and charge batteries, while DC-to-AC converters enable conversion for operating AC motors and appliances.

North America Leads as Asia Pacific Accelerates

Regionally, North America is expected to hold the largest market share in 2024 thanks to growing adoption of shore power systems at major ports and the presence of a well-established cruise industry, with Europe expected to be the second-largest market driven by growing environmental regulations and increasing adoption at major ports. The Asia Pacific region is expected to see the fastest growth through the rapid growth of the cruise industry and growing government initiatives promoting adoption, while South America and the Middle East & Africa are expected to have relatively smaller shares but see steady growth driven by growing awareness of environmental benefits.

Competition Centers on Efficiency and Grid Integration

The competitive landscape is highly competitive with several key players, and ABB, Siemens, and General Electric are the leading players with a combined market share above 50%, while other major players include Rolls-Royce, Wartsila, and Fincantieri. ABB is a global leader in power and automation technology offering a broad range of onshore power supply systems including air-insulated switchgear, gas-insulated switchgear, and power transformers, used across ports, shipyards, and industrial facilities, with a strong focus on innovation and reliability plus a solid customer service network. Siemens is another global leader in power and automation technology offering medium-voltage switchgear, high-voltage switchgear, and power transformers, used across the same applications, with a long track record in the power industry and deep understanding of customer needs. Industry observations from WiseGuyReports note that in January 2023 ABB won a contract to provide shore power systems for three new cruise ships Meyer Werft is building for Carnival Cruise Line, in February 2023 Siemens Energy commissioned a shore power system at the Port of Hamburg expected to cut the port's carbon emissions by up to 10,000 tons per year, and in March 2023 the Port of Long Beach approved a plan to invest USD 19 million in shore power systems at three terminals.

Conclusion

With a 6.73% CAGR projected through 2032, the onshore power supply system market reflects the greening of maritime operations. Findings from WiseGuyReports suggest that providers combining high-voltage high-power capability, fully automated control, and renewable energy integration will be best positioned to capture growth.