Covid-19 Impact & Market Status
The COVID-19 epidemic has triggered an unprecedented economic downturn, which is projected to have a significant impact on the dredging industry. Massive production constraints in the oil and gas and tourist industries are having a negative influence on the dredging business. The grounding of flights and autos as the virus spread caused a major drop in the transportation sector.
The Dredging market is expected to grow at a CAGR of 3.3% to reach USD 21.4 Billion in 2032.
This caused an abrupt demand shock in the oil and gas business, forcing oil giants to halt production and resulting in a product inventory glut. Fortunately, oil prices have been steadily rising in recent months. Even so, OPEC+ members have cut output, with 7.7 million barrels per day cutbacks in place until December 2020.
Dredging projects all across the world are being impacted by such downturns. The current drop in oil prices is reminiscent of the financial crisis of 2008. Prices are expected to recover in 2021 or 2022, returning to pre-crisis levels of US$ 50-60 a barrel of oil.
The global Dredging Market's prospects are expected to improve as a result of this expected favourable outlook, as companies are expected to resume exploration initiatives. Covid-19 has had a detrimental influence on the global dredging industry. At the same time, automation, state of art of technology being developed, small and medium sized contractors upgrading their fleets, improving funding for maintenance dredging, increased maritime infrastructure investment, additional attention on science, are anticipated to be growth opportunity for the global dredging market.
The Oil and Gas Segment Held the Largest Share
Government, Oil and Gas Companies, Mining Companies, Renewables, and Others make up the market. The Oil and Gas Companies market segment is predicted to grow at the quickest CAGR during the forecast period.
North America is The Most Mature Market
The North American region held the largest share of global dredging market owing to factors such as automation, state of art of technology being developed, small and medium sized contractors upgrading their fleets, improving funding for maintenance dredging, increased maritime infrastructure investment, additional attention on science, and others.
The need for new technology to meet new trends and changing project conditions are improving the reliance on dredging furthering the global dredging market development.
Owing to benefits such as waterway project preparation, environmental remediation, preservation of aquatic life, pollution free water streams, dredging is experiencing rapid adoption across the world, thus fostering remarkable progress in global dredging market.
The factors such as industries showing high interest in new technology, technology products introduced, reducing technology costs, increased efficiency showed by technology products is boosting the global dredging market.
The Global Dredging Market was worth USD 10.30 billion in 2018 and is predicted to grow at a CAGR of 2.62 percent between 2019 and 2026, reaching USD 12.60 billion.
The waterborne trade is a primary driver of the dredging sector. Seaborne trade accounts for the majority of global trade and is heavily influenced by global economic conditions. As a result, there is an ongoing requirement to expand existing ports and maintain existing waterways, as well as to construct new ports and waterways. This work is done by dredging businesses all around the world, which drives the global dredging market.
Dredging is an excavation operation that is usually done at least partially underwater in shallow water locations to collect bottom sediments and dispose of them at a new location. It is a method of transporting natural materials from one region of the water environment to another by means of a specialised dredging vessel.
Dredging's major aim is to maintain waterways and ports navigable, as well as to build new ports, safeguard coastlines, and land reclamation, which involves the removal of sediments such as sand and gravel that are used in the building industry. Dredging is the process of removing sludge and other materials from the bottom of bodies of water including lakes, rivers, and harbours.
These are utilised to maintain rivers and ports navigable as well as provide a non-sludge passage for boats. Dredging is often done on beaches to keep them in good working order. Furthermore, technical breakthroughs are being made in order to reduce manufacturing costs and boost productivity.
Dredging is described as the act of extracting undesired items from a water environment, and it has a sizable market that includes export, import, supply, and equipment production. The industry is based on a plethora of government and port management authority-issued port maintenance dredging contracts.
The factors such as technology failures, hindrance in operation due to excessive heat, coldness, rain, snow or saltwater corrosion, full time requirement of new technology in case of failure and repair adding cost to manufacturers, mining companies finding it difficult to permit land for exploration due to stringent government regulations are hampering the global dredging market.
Furthermore, automation, state of art of technology being developed, small and medium sized contractors upgrading their fleets, improving funding for maintenance dredging, increased maritime infrastructure investment, additional attention on science, are providing an optimistic outlook for the growth of global dredging market.
Some major players in the global dredging market are Weeks Marine, Coastal Dredging Company, Van Oord N.V., Great Lakes Dredge and Dock, Dredging Environmental and Marine Engineering N.V., Jan De Nul N.V., and Royal Boskalis Westminster N.V among others.
Latest Innovations in the Global Dredging Market: a Snapshot
- February 2022: The Dredging Corporation of India, a government-owned dredging company, announced plans to repay vendor debts by June 2022 in order to improve its financial position. The company is currently working to boost cash flow in the next two to three quarters by paying off vendor debt.
- February 2022: Hegemann Dredging, a major provider of a wide range of dredging services based in Germany, said that Hegemann V, the company's new trailing suction hopper dredger, is nearing completion. The dredger was created in close collaboration with Kooiman Engineering and is specifically built to undertake a variety of dredging tasks.
Dredging Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 12.60 billion|
|Growth Rate||CAGR of 2.62 % during 2021-2028|
|Segment Covered||Type, Mode of Payment, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Weeks Marine, Coastal Dredging Company, Van Oord N.V., Great Lakes Dredge and Dock, Dredging Environmental and Marine Engineering N.V., Jan De Nul N.V., and Royal Boskalis Westminster N.V among others.|
Key Segments of the Global Dredging Market
Customer Type Overview, 2018-2028 (USD Billion)
- O&G Companies
- Mining Companies
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa