Despite witnessing a downfall in 2020 due to the onset of the COVID-19 pandemic, the dredging market is gradually recovering, and is projected to exhibit steady growth over the coming years. For example, the United States passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which unlocked the Harbor Maintenance Trust Fund (HMTF); this will be invested in the dredging of ports in the near future.
Likewise, growing demand from governments around the world for dredging equipment and services is set to give impetus to market growth through 2031. According to a recent market intelligence report, the global dredging market is forecast to be valued at US$ 21 Bn in 2031. Rise in demand from the oil & gas industry too is expected to propel demand for dredging as time goes by.
The latest study offers a holistic overview of the global dredging market, along with its growth, scope, restraints, and potential over the coming years.
Key Takeaways from Dredging Market Report
- The application of dredging in trade maintenance is expected to fuel sales, with its share projected to be around 30% in 2031.
- The government sector will maintain its lead as a dominating customer for dredging, holding a share of over 40% by the end of the forecast period.
- China is expected to emerge as a lucrative destination for dredging, and will be the epicenter of the East Asia region. On the whole, Asia Pacific is expected to hold close to 50% of the global market share in 2031.
- The United States, Canada, Germany, the United Kingdom, Italy, and Japan will also be lucrative regional markets with high demand for dredging.
- After initial setbacks due to the COVID-19 pandemic, demand for dredging is picking pace across the world, and the market is set to progress at a steady CAGR of over 3% through 2031.
“With gradual rise in trade, trade maintenance, and other activities from the latter half of 2020, and increase in requirements from the oil & gas industry, the value of the global dredging market is set to increase steadily over the coming years. According to the International Energy Agency (IEA), global oil demand is predicted to rise by a total of 5.7 mb/d, with China and India accounting for around half of this growth,” says an analyst.
Increase in Trade Maintenance Activities Fuelling Growth
With the world getting over the impact of COVID-19, there has been substantial rise in trade and trade maintenance activities across the globe, which is working in favor of dredging equipment manufacturers. According to the World Trade Organization (WTO), trade and trade maintenance activities are set to grow by 7.2% in 2021. This rate is higher than the 9.2% decline in 2020, and definitely a sign of further growth opportunities for market players.
According to the United Nations Conference on Trade and Development, led by an expected rebound in large emerging economies, global trade activities will grow further, paving new paths for dredging equipment suppliers and service providers over the coming years.
Who is Winning?
The global dredging market is highly competitive in nature. Key market players are emphasizing on collaborating with various organizations and launching of more quality products of wider varieties.
- Dredging, Environmental, and Marine Engineering NV (DEME) and OQ Alternative Energy announced their partnership in a major green hydrogen project in Oman, in December 2020, in order to expand further to increase their sales footprint.
- TOA Corporation started investing in various research & development activities, such as the Premixing (PREM) method for recycling of dredged materials, the Pre Mixing Clay method (PMC) for recycling dredged materials, and others.
(These insights are based on a report on Dredging Market by Fact.MR)
Sea News Feature, January 26