The global dredging market For the 2020-2030 forecast period, is expected to expand moderately at a CAGR of nearly 4%. Growth is supported by increased global trade and urbanisation projects, given that the sea transports more than 70% of trade by volume and 80% of trade by value. According to the United Nations Conference on Trade and Development (UNCTAD), total seaborne trade volumes will exceed 10 billion tonnes in 2020, with shipment trade falling by 4% as a result of Covid-19.
The global seaborne outlook remains overly optimistic, with upcoming projects such as the One Belt One Road Initiative (OBOR) likely to provide growth opportunities for dredging manufacturers. The dredging industry’s prospects are inextricably linked to broader developments in the global tourism sector, as the construction of new airports and beach replenishments accounts for a sizable portion of total revenues generated by dredging companies.
Future Market Insights (FMI), an ESOMAR-certified market research and consulting firm, has updated its widely cited global dredging market report.
The study revises its earlier forecast for dredging market growth, adjusting key indicators for the impact of COVID-19.
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Volatility in the oil and gas sector, a key end-use industry for dredging projects, is largely to blame for downturns. However, government efforts to address flooding problems in coastal areas and low-lying plains are likely to sustain long-term demand for dredging projects.
Furthermore, efforts to maintain global trade volumes in order to re-energize the economy are providing the market with much-needed stimulus.
Key Takeaways
- High urbanization rate across emerging economies to fuel dredging projects in the long run
- Government agencies to comprise over 40% of the dredging equipment customer base
- Adoption of innovative equipment monitoring technologies such as smart virtual software growing
- East Asia to emerge as the largest market, expanding at over 4% CAGR
- Trade maintenance to be a key application area, accounting for 3 out of 10 projects through 2030
“Rising concerns over possible environmental damage is prompting dredging corporations to collaborate with governmental and private players to develop eco-friendly approaches to expand their projects,” concludes an FMI analyst.
COVID-19 Impact Insights
The COVID-19 pandemic has caused an unprecedented recession, which is expected to have a significant impact on the dredging market size. Massive production cuts in the oil and gas and tourism sectors are having a negative impact on the dredging market.
The grounding of planes and automobiles as the pandemic spread caused a massive downturn in the transportation sector. This caused an abrupt demand shock throughout the oil and gas industry, forcing oil-producing behemoths to halt production, resulting in a glut of product inventories.
Fortunately, oil prices have been steadily rising in recent months. Despite this, OPEC+ countries have reduced supply by 7.7 million barrels per day until December 2020. Such downturns have an impact on dredging projects all over the world.
The current drop in oil prices is reminiscent of the 2008 financial crisis. A possible recovery is expected in 2021 or 2022, with prices returning to pre-crisis levels of US$ 50-60 per barrel. This anticipated positive outlook is expected to restore prospects for the global dredging market, as companies are expected to resume exploration projects.
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Competitive Landscape
The global dredging market is highly competitive due to the presence of numerous regional and global vendors. To enter lucrative markets, players rely on strategic alliances, joint ventures, and the development of technologically advanced solutions.
Jan De Nul Group began maintenance dredging work in Nieuwpoort, Belgium, in 2019. This project was part of the company’s commitment to reduce CO2 emissions by 15%. It accomplished this by incorporating renewable biofuel derived from sustainable waste flows.
Royal Boskalis Westminster N.V secured multiple dredging contracts worth € 45 million from a variety of regional maritime transport vendors in October 2020. These contracts are intended to provide flood protection, the construction of a shipping fairway, and port maintenance in a variety of locations.
About Future Market Insights (FMI)
Future Market Insights (ESOMAR certified market research organization and a member of the Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favour the market growth in various segments based on Source, Application, Sales Channel and End-Use over the next 10-years.
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