The global ballast water treatment market is evaluated at US$22.453 billion for the year 2019 and is projected to grow at a CAGR of 25.31% to reach a market size of US$ 108.951 billion by the year 2026.
Rising healthcare concerns in the marine industry coupled with the high volume of seaborne trades are the major factors driving the demand for ballast water treatment solutions. Increasing awareness regarding its advantages and more vendors entering the market will further add to the growing demand for these water treatment systems over the forecast period.
The shipping industry faces a key problem of Invasive Aquatic Species in ship’s ballast water. This poses a great threat to the marine ecosystem as well. These aquatic species have led to an increase in bio-invasion at an alarming rate. Under IMO’s “International Convention for the Control and Management of Ship’s Ballast Water and Sediments”, implementation of ballast water management plan and ballast water treatment system onboard ships has thus become important. The IMO Ballast Water Management Convention was adopted in 2004 to address this issue at an international scale and is finally approaching the target shipping capacity it requires for ratification. Once this Convention has entered into force 12 months after ratification, it will be mandatory for all vessels above 400 gt to install ballast water treatment systems (BWTS). To ensure their ships comply with the rules and regulations set by IMO regarding Ballast Water Management, several shipping operators have started implementing ballast water treatment systems on their ships. However, an arguably more influential regulation is the Final Rule of the United States Coast Guard (USCG) which was introduced in 2012 to address invasive species in US and Canadian waters. As these waters are highly important in terms of global shipping activity, BWTS that conform to their more stringent regulations is the most sought after by shipowners. As of yet, no BWTS has achieved USCG-type approval. A variety of technologies are available in the market for treating ballast water on ships. However, constraints such as availability of space, cost of implementation, and level of environmental friendliness play an important role in the usage of a particular type of ballast water treatment system.
Several key factors are considered before selecting a ballast water treatment solution for a ship. Some of the main factors to be considered include Effectiveness on ballast water organisms, Cost-effectiveness, Environment-friendliness, Safety of the crew, Ease of installation and operation, Space availability onboard.
The principal factor driving the ballast water treatment system is the growing focus on preserving and protecting the marine ecosystem from pollutants and other toxic species. As per the United Nations Environment Programme (UNEP), in 2018, the world invested around 200 million US dollars in ocean energy technologies, up from 100 million US dollars in 2006.
The advent of COVID-19 harmed the global Ballast water treatment market. The immense downturn in the global shipping and the marine industry has been a significant reason for the decline in the demand for Ballast water treatment at a global level. Moreover, the pandemic restricted the transportation of goods through marine containers and also the owners of boats to take their marine vessels into the waters. After the initial lockdown period, boating came back but with restrictions and certain protocols that were required to be followed like the ship will be operated with a lesser capacity which will require less labor to come in contact, and social distancing was required to be maintained at the fuel dock as well. Moreover, the sales of commercial and personal boats dipped during the initial months of the year owing to the lockdown which led to the shutting down of the sellers for a certain period initially. With the industries recovering after the pandemic gradually, the marine business is expected to operate in full capacity starting from the third and fourth quarters of 2021.
The ballast water treatment market has been segmented based on technology, service, ship type, and geography. By technology, the market has been segmented based on physical disinfection, mechanical method, and chemical method. By service, the market has been segmented as recommissioning, performance measurement and, installation and calibration. By ship type, the market has been segmented as container ships, tankers, dry bulk carriers, general cargo, and others. Furthermore, on the basis of geography, the global market has been distributed as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
The Asia Pacific is expected to hold a significant share in the market during the forecast period
The Asia Pacific region is expected to hold a significant share in the market during the forecast period owing to the presence of a considerable number of ports and harbors for the trade of oil and chemicals, automotive components, electronic components, and devices, among others, This region remains a key growth market for Ballast Water Treatment with an addition in ocean freight volumes from multiple countries such as China, India, and South Korea to other parts of the world. It is expected that growth in ocean freight over the subsequent years, will result in the greater adoption of the Marine Environmental Protection program, which will encourage market growth. The region further offers different types of vessels, such as containers, tankers, and other cargo ships. Since the IMO has made it compulsory to install BWT systems in the vessel, it is presumed to drive BWT systems' demand. Moreover, current trade volumes and stringent IMO regulations have encouraged the growth of this industry in APAC. Furthermore, even though the market for the region witnessed a slight decline during the year 2020 owing to the COVID-19 pandemic, it is expected to recover in the coming years.
The players in the global Ballast water treatment market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the market.
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