Report identifies US$45.6 billion BWM market

The Ballast Water Treatment Market report anticipates a surge in investment beginning in 2015, “due to the imminent ratification of global environmental legislation”, referring to IMO’s BWM Convention. It anticipates a market for around 65,000 individual systems. It anticipates that peak capital expenditure will reach US$13.2 billion in 2019.

“The IMO convention has not yet been fully ratified, whilst the US Coast Guard is yet to make its first full type approval, causing delays in the uptake and confusion as to when to install such systems, and which to select,” the report’s publisher noted. “Nonetheless, it is expected that at least one of these events will take place within the next year, after which the demand for and uptake of BWTS will increase significantly.”

“Growth will largely come from the substantial volume of retrofits that will need to take place in order to comply legally with the regulations,” Global Water Intelligence noted.

Cargo ships, including bulk carriers, oil tankers and container ships, are anticipated to drive most of the short-term demand for ballast water treatment. Growth in this area is expected to be rapid, peaking at US$11.2 billion in 2018.

The report finds that, as the choice of BWTS is highly dependent on the requirements of an individual vessel – and the capability of a certain technology to cope with these needs – there will no single BWTS that can cater to all in the industry. But it argues that owners will be more inclined to seek BWMs that conform to the more stringent regulations of the USCG, due to the region being highly important in terms of global shipping activity.

Results show that UV disinfection in combination with filtration is currently the most common technology utilised by installed BWTS, with bulk carriers and container ships being the predominant users of this technology. Whilst in the short term, there is likely to be substantial growth in demand for electrochlorination and electrolysis systems.

The study also noted that the present BWM market is dominated by Asian suppliers. But it suggests that, as the newbuild market loses its dominance in line with the rapid expansion of the retrofit market, other manufacturers outside of Asia will gain a greater prominence in the market.

Nevertheless, the number of suppliers active in the market is expected to decline due to the challenging nature of gaining and maintaining a prominent market position. “The financial background and capability of the vendor to deal with the surge in demand will be key deciding factors affecting a supplier’s ability to stay in the market,” the report finds.

The publication also touches on the backlog of installations that will need to be cleared as ship owners rush to comply with the IMO convention once ratified. “The mammoth task of retrofitting the world’s merchant fleet will not be completed quickly. Limited shipyard availability and supplier manufacturing capacity will be one of the main restraints in this market.”