by Scrubber systems are essential components installed onboard ships for removal of sulfur oxides from engine exhaust gases. Scrubber systems utilize water or chemical agents to wash the exhaust gases from the ship engines to remove sulfur along with particulate matter before releasing the exhaust outside. Scrubber systems help ships comply with emission regulations set by International Maritime Organization (IMO) regarding sulfur content in marine fuel. The IMO has capped sulfur content in marine fuel at 0.5% globally since 2020 to curb shipping emissions. Scrubber systems provide a cost effective solution to ship owners compared to switching to more expensive low sulfur fuel completely.
The global scrubber system market is estimated to be valued at US$ 1.93 Mn in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Open loop scrubber systems continue to be more popular than closed loop and hybrid systems due to their lower capital and operating costs. However, concerns remain regarding washwater discharges from open loop systems polluting waterways. Some regions and countries have imposed restrictions on washwater discharge from open loop scrubbers within territorial waters. This is boosting demand for advanced closed loop and hybrid scrubber systems that completely retains washwater onboard for treatment before disposal. Strict enforcement of sulfur emissions regulations by regional authorities is also driving additional retrofits of scrubber systems in existing ships. Ship owners are proactively installing scrubbers to avoid costs of switching to compliant low sulfur fuel.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as scrubbers system market requires high initial investments and technology expertise. However, the growing demand for reducing emissions and rising environmental regulations have opened up opportunities.
Bargaining power of buyers: The bargaining power of buyers is high as the scrubber systems market includes large maritime shipping companies that can negotiate better prices. Buyers can also opt for substitutes like utilizing cleaner marine fuels.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key suppliers like manufacturers of scrubber components have established themselves. However, buyers can choose from multiple suppliers.
Threat of new substitutes: The threat of substitutes is high as alternatives like cleaner marine fuels provide compliance without need for scrubber systems. Strict Implementation of regulations can increase substitutes threat.
Competitive rivalry: The competitive rivalry is high due to presence of global and regional players competing on product development, pricing and quality.
Key Takeaways
The Global Scrubber System Market Demand is expected to witness high growth on account of stringent emission norms. The global scrubber system market is estimated to be valued at US$ 1.93 Mn in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023 to 2031.
Regional analysis comprises: Asia Pacific region dominates the scrubber system market led by countries like China and South Korea. Stringent environmental regulations regarding sulphur emissions from ships have propelled the demand. The regional market is projected to grow at over 5% during the forecast period.
Key players related content comprises: Key players operating in the scrubber system market include Wartsila, Alfa Laval, Yara, CR Ocean Engineering, Puyier, and Valmet. These players are focusing on capacity expansion and new product launches to capitalize on growth opportunities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
