The global ballast water treatment systems (BWTS) market size was valued at USD 14.23 billion in 2016. IMO standards which require ballast water treatment systems based on various chemical and physical methods to be fitted on the vessels. Besides, there is an increased focus on Marine Environmental Protection program to regulate ballast water discharge globally.
Global ballast water treatment systems market revenue, by technology, 2014 - 2025 (USD Billion)
While ballast water systems are important for effective shipping operations, it also has health and ecological issues arising out of unauthorized ocean dumping, oil & chemical spills, and the introduction of aquatic invasive species. Among the stated issues, the introduction of aquatic invasive species into new atmospheres is a key intimidating issue.
Asia Pacific remains a key growth market for BWTS with an increase in ocean freight volumes from various countries such as China, India, and South Korea to other parts of the world. The region is expected to continue to dominate the market over the forecast period as well. It is expected that growth in the ocean freight over the coming years, will result in the higher adoption of Marine Environmental Protection program by key growth economies in the region, which in turn will spur growth in the market.
Segmentation by Technology
• Mechanical Method
• Physical Disinfection
• Chemical Method
In 2016, physical disinfection held the highest market share among the various technologies used for ballast water treatment. As the stated method is relatively more effective in BWTS and is being utilized by many ocean freight operators, the technology is expected to continue to be the leading technology segment in the BWTS market. Multiple factors such as space availability, implementation cost, and level of environmental friendliness play a vital role when deciding for ballast water treatment systems.
The segment is followed by the chemical method, which commanded over 30% of the market share in 2016 and is expected to grow over the forecast period. Various chemical methods such as Chlorination, electrolysis, ozonation, electrochlorination, peracetic acid, Chlorine dioxide, and SeaKleen are used for treatment.
Segmentation by Type
• Container Ships
• Dry Bulk Carriers
• General Cargos
The market size for container ships was valued at USD 8.85 billion in 2016. In a loaded container ship, ballast water systems are used to decrease the instability and unusual movement during the voyage. The center of gravity of wing ballast tanks is much better than that of double bottom tanks. Double bottom tanks help in reducing bending moment but are not very useful in ensuring stability.
Tankers are expected to be the fastest growing segment with a CAGR of 25.9% during the forecast period. The segment allows easy installation and provides relatively more space. Dry bulk carriers and general cargos together accounted for around 20% of the market share in 2016. The segment is expected to witness steady growth over the forecast period.
Segmentation by Region
• North America
• Asia Pacific
• Rest of the World
North America dominated the ballast water treatment systems market accounting for 43.7% of the share in 2016. Prevailing trade volumes and high prevalence of IMO regulations have added to the growth of the region. However, Asia Pacific is expected to witness the fastest growth with a CAGR of 25.8% over the forecast period. The number of containers ships & tankers along with substantial trade volume in the region, especially from countries such as Japan, India, China, and South Korea, are adding to the growth of the market.
The global ballast water treatment systems industry is competitive marked by the presence of various well-established players, such as Wärtsilä Corporation, Xylem Inc, Evoqua Water Technologies LLC, Calgon Carbon Corporation, Mitsubishi Heavy Industries, and Veolia Environnement S.A. Companies. Over the coming years, the prevailing competition among the players is expected to strengthen further as the market is projected to witness increasing adoption of IMO regulations. To that end, strong growth from Asia Pacific region is expected as the industry is likely to exhibit a strong growth in container traffic at key ports over the next few years.
Research Support Specialist, USA