Powership Market Expected to Reach $22.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Powership Market," The powership market was valued at $3.4 billion in 2021, and is estimated to reach $22.8 billion by 2031, growing at a CAGR of 21.4% from 2022 to 2031.

Powerships are gaining interest in recent times. Risen demand for electricity and lacking the infrastructure to fulfill the demand has led countries to bring in powership to the rescue. Recently, the Russo-Ukrainian war has led to sanctions on Russia that have discouraged the flow of energy resources from Russia and Ukraine, especially to the European Union, which has led to a shortage of energy supply, especially with the winter season coming which is the stocking season for the region. To control the situation and be prepared for the upcoming need, many countries such as Germany are thinking about powership as an option to keep the energy supply intact.

Installing power plants requires huge investment, time, and several fixed and variable costs; however, powerships can be deployed in a span of around 120 days. They are ready to connect to the grid easily when they have full input capacity that is when they are fueled fully. They offer output immediately, as they can be directly connected to the transmission network from the high-voltage substation maintained onboard. Thus, such powership market opportunities drives positive growth in projection years.

Recent powership market trends shows that the market has huge growth potential and thus, attracts many profit seekers. However, a hike in oil prices leads to increased electricity production costs. Moreover, the Russia-Ukrainian war has hugely impacted oil prices and puts a dent in demand-supply in Europe and North America. In addition, the market was still reeling from the repercussions of COVID-19 owing to the unavailability of labor and stalled projects. Thus, global powership market growth is significantly hampered.

Powership is a reliable fast track, plug & play, and effective solution that delivers electricity in 30 to 100 days. It is also highly efficient using the most economical fuel available in the market and with a higher efficiency compared to similar solutions that lead to an economical generation cost. The rise in demand for primary energy has led many nations and private sector to opt for powership and thus creating future opportunity for market growth

The powership market size is studied on the basis of type, system, application, and region. Depending on the type, the market is divided into fully electric, hybrid, and plug-in hybrid. The hybrid powership segment dominated the global powership market share for 2021. It is projected to grow at a CAGR of 21.4%. However, the fully electric segment is projected to grow at a faster pace during the forecast period. This is owing to power generation reliability, good insulation, and durability of fully electric powership.

On the basis of the system, the division of the market is done into electricity storage, power conversion, power generation, and others. The power conversion market dominated the revenue share for 2021. Power conversion powership is basically a powership that consists of power plants that harness gas or steam sources and generate electricity, thus they are expected to grow at a higher CAGR during the powership market forecast period.

By application, the powership market bifurcation is done into defense and commercial. The defense segment dominated the market share for 2021. The defense segment is projected to grow at a higher CAGR owing to rising demand for powership during outages driven by supply scarcity of electricity. Region-wise, global powership market analysis is done across North America, Europe, Asia-Pacific, and LAMEA (Latin America, Middle East, and Africa). LAMEA region dominated the powership market share for 2021. The same is expected to grow at a higher CAGR owing to the rise in population and rapid urbanization that led to an increase in building & construction activities in the region.

Moreover, Economies in the region such as the U.S., Canada, and Mexico are initiating policies to minimize carbon emissions from their distribution sectors by switching to electricity and natural gas and by improving energy efficiency in defense that produce large amounts of carbon emissions. This is expected to drive growth of the powership market in North America. The key players in the global powership industry are Konsberg, GE, ABB, Wartsila, MAN Energy, Siemens, Corvus energy, General Dynamics electric boat, Norwegian Electric Systems AS, and Leclanch SA.

Key findings:

• In 2021, the fully electric powership segment accounted for about 32.1% of the share in the global powership market, and is expected to maintain its dominance till the end of the forecast period.
• In 2021, the power conversion system segment accounted for 27.2% powership market share in the year 2021.
• Defense application is the fastest-growing segment in the global powership market, expected to grow at a CAGR of 58.7% during 2021–2031.
• LAMEA is expected to grow at the fastest rate, registering a CAGR of 21.6%, throughout the forecast period