Global Ballast Water Treatment Systems Market
- November 2013
- Frost & Sullivan
This research service on the global ballast water treatment systems market highlights the market trends, drivers and restraints, competitive dynamics, addressable market size, and forecasts for this market until 2023. Having a base year of 2013, the study throws light on the IMO Convention scenario and prospective opportunities for equipment suppliers post-ratification. Different ballast water treatment technologies, which are currently defining the market structure, have been discussed in detail followed by an elaborate analysis of the dominating technologies from 2005 to 2013, based on a robust reference list collated from key participants in the ballast water treatment systems market.
Market Size and Growth
- The 2013 global ballast water treatment systems (BWTS) market, which equalled a revenue total of $X million, is forecast to reach a market size of $Xbillion by 2023 experiencing a compound annual growth rate (CAGR) ofX%.
- Europe will dominate market revenues from 2017 to 2019 while Asia-Pacific (APAC) will display consistent performance throughout the study period.
- Significant developments on the legislation front will boost market growth in this entirely regulation-driven market, after the expected International Maritime Organisation (IMO) certification ratification in 2014.
- The recent ratification by Germany to raise the dead weight tonnage (DWT) metrics to X%, along with additional support from US Coast Guard (USCG) and other state legislations, will play a significant role in sustaining the momentum for BWTS installations.
- The retrofit market will occupy a substantial per cent of the global market share during its peak installation period in 2018.
- Filtration + UV systems seem to have penetrated the BWTS market quite effectively. However, challenges due to energy intensity remain key concerns which are successfully being addressed by the newer models.
- Chemical treatment technologies using electro chlorination, electrolysis (EL), and electro chemical (EC) treatment, have carved a niche position for themselves in the market as well, especially in the case of bulk carriers and large tanker installations.
- Other processes using cavitation, heat, ultrasound, and Electro-Cleen systems are also being considered by ship owners for custom installations.
- Market competition has certainly intensified from X BWTS in the 2010 market scenario compared to the X competitors and approximatelyXBWTS in the current market situation.
- With more certainty about the legislation timeline and more clarity about the BWTS specifications and requirements, equipment suppliers are constantly striving to update their products according to market needs and customer preferences.
- Two major competitors launched upgraded product lines in 2013 with considerable improvements in power consumption and space savings criteria.
1. The USCG regulations will supersede IMO ratification, thus providing an impetus to the BWTS market, even if the IMO Convention is not confirmed.
2. Filtration + UV will witness escalated market acceptance with key challenges linked with energy consumption being effectively addressed by the upgraded versions.
3. Market competition will significantly intensify among existing competitors, with the top X participants accounting for at least X% of the market.
4. Customers in Asia-Pacific will prefer cost- effective BWTS, while European ship owners will base their choice on aftersales services and associated environmental benefits.
5. Constant upgrades to product lines and strategic global partnerships will play a critical role for companies to achieve their growth objectives.
- A ballast is a material that is used to provide stability to any structure.
- Ballast water is the water that is taken on-board a vessel in order to maintain balance, stability, and structural integrity of the vessel, especially when the ship is empty, after discharging the cargo.
- Ballast water discharge refers to the stored water that is discharged when the ship is loading the cargo, particularly to balance the ship’s stability.
- Ballast water capacity refers to the total volumetric capacity of the tank in a vessel used for storing, carrying, loading, and discharging the ballast water.
- Ballast water treatment systems refer to the equipment which is used to process ballast water. The physical, chemical, biological, or mechanical methods used for treatment, can be used alone or in combination, to avoid or minimise the harmful effects of ballast water discharge containing harmful aquatic organisms and pathogens.
- Shipping transports close to X% of the global economic trade and ships require ballast water to maintain balance and stability of empty vessels, to ensure the safe and efficient operation of modern shipping.
- However, the ballast water taken at the port of embarking consists of a variety of organisms such as bacteria, viruses, plants, and animals that get transported to the new marine ecosystem at the port where the ship is loaded with cargo and the ballast water is discharged.
- Though most of these organisms, such as viruses and bacteria, perish in their new environment due to the challenges of an unfriendly aquatic atmosphere, many other invasive species such as worms, invertebrates, and other microbes survive these harsh conditions and pose a harmful threat for the native species prevailing in their natural waters.
- This situation became highly intense with the hostile species causing a major ecological shift and ultimately leading to ecosystem imbalances and economic damage.
- In order to halt the inadvertent mix of organisms through ballast water discharge, the International Maritime Organization (IMO) adopted the International Convention for the Control and Management of Ships’ Ballast Water and Sediments in 2004, known as Ballast Water Management or the BWM Convention.
- The convention dictates two standards: D1.) ballast water exchange standard; and D2.) ballast water performance standard, for the safe discharge of ballast water and specifies definite timelines for adopting them. However, the D1 and D2 legislations will be adopted and the convention will only come into effectX months after X flag states—representing % of the world’s shipping tonnage—ratify the Ballast Water Management Convention.
- As of 20 June 2013, the total number of contracting states to the BWM Convention reached X, representing X% of the world tonnage after the recent ratification by Germany.
Geographic coverage: Global
Study period: 2011–2023
Base year: 2013
Forecast period: 2014–2023
Monetary unit: US Dollars
- The global ballast water treatment (BWT) systems’ market size is defined as the total revenue generated by BWT equipment sales across the globe, based on the market prices of the systems. Considering 2013 as the base year, the sales and forecast figures include revenues generated only from treatment systems.
- However, market share analysis has been discussed for the year 2012 because equipment suppliers are yet to witness total BWT system sales for the base year.
- Installation and commissioning costs, though significant, are excluded from market revenue calculations, owing to the fact that they differ largely by technology, vessel types, and installation position. Additional components necessary for installation procedures, scheduled and ad hoc operations, and maintenance costs are excluded from the market estimate calculations as well.
- Prices refer to the BWT equipment system as a whole package, and not for a single/separate component within the system.
- The global study is primarily segregated into four regions, covering Asia-Pacific (Southeast and Far East Asia, and New Zealand); Europe (Western, Central, and Eastern Europe, including Russia and CIS countries); the Americas (North, South, and Latin America); and Middle East and Africa.
Key Questions This Study Will Answer
When will the IMO Convention be ratified and how will the market grow post-ratification?
What will the effect of alternate management systems (AMS) and the USCG regulations be on the current market scenario?
Will the current technologies conquer the market or will there be new technological entrants?
How will the competitive structure of the market change in the forthcoming years and what is the current addressable market size?
Are the ballast water treatment systems offered today meeting customers’ needs or is additional development required?
Will ship owners consider retrofitting options prior to ratification and what are the key industry challenges that equipment suppliers are facing?
Table of Contents
1. Executive Summary
2. Market Overview
3. Total Ballast Water Treatment Systems Market
- Challenges, Drivers, and Restraints
- Forecasts and Trends
- Market Share and Competitive Analysis
- Analysis of Ballast Water Treatment Technologies
- Mega Trends and Industry Convergence Implications
4. CEO's 360 Degree Perspective
5. Newly Built Vessels Segment Breakdown
6. Existing Vessels Segment Breakdown
7. Asia-Pacific Breakdown
8. Americas Breakdown
9. Europe Breakdown
10. Middle East and Africa Breakdown
11. The Last Word (Conclusions and Implications)