Dredging Market

The global dredging market size was valued at around USD 15.83 Bn in 2022 and is expected to reach USD 20.66 Bn by 2031, expanding at a CAGR of 3.2% during the forecast period, 2023–2031. The growth of the market is attributed to the rising demand for various infrastructure projects, coastal protection, and trade maintenance activities.

Dredging is the removal of debris and sediment from the bottom of rivers, shallow seas, harbors, lakes, and other water bodies. This debris and sediments are gathered and disposed of at different locations. Sedimentation is the natural process of sand and silt moving downstream.

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Sedimentation progressively fills channels and ports making dredging a common requirement in waterways globally. The dredging process is used to keep ports and waterways navigable and creation of a smooth pathway for boats, coastal protection, land reclamation, and others.

Additionally, it is utilized to replenish some public beaches where coastal erosion has caused sand loss. The gathered sand and gravel are used by the construction industry. Dredging frequently concentrated on preserving or increasing the depth of the berthing areas to guarantee the safe passage of ships and boats.

Dredging is essential to the country’s economy since large ships transport the majority of imported products. A particular volume of water is necessary for vessels to float and avoid touching the ground. The depth of the ocean keeps becoming deeper as ever-larger ships are deployed.

Dredging operations are carried out without affecting the normal operations of the reservoir. It is carried out when the fluctuation in the water level is gradual and modest. For this purpose, sometimes the reservoir is specifically emptied. The cost of dry excavation is dependent on the amount and kind of material to be handled, the elevation changes between the excavation, and the distance to the dump site.

Mechanical and hydraulic dredges are employed for wet dredging. Furthermore, hydraulic dredging involves excavating the silt, combining it with water to create a slurry, and then transporting it to the disposal location. Small buckets set on chains are used by the mechanical dredges to dig, lift, and carry the excavated material. Dredged sediment is dumped in a dry valley or into the dam.

However, the sediment dumped in the river may harm water supply networks. Dredging is done to lessen the exposure of animals, fish, and people to contaminants. This environmental dredging is commonly required as cities and industrial regions are regularly polluted with a variety of contaminants. These contaminants can enter streams from nonpoint sources including surface runoff and atmospheric deposition or from point sources including sewage overflows, municipal and industrial discharges, and spills.

Government at the federal, municipal, and state levels as well as commercial organizations such as authorities are responsible for carrying and managing the disposal of dredged debris. NOAA’s Office of Response and Restoration is crucial to preserving and recovering maritime natural resources when environmental harm occurs. The U.S. Environmental Protection Agency oversees and approves the disposal of dredged materials, while the U.S. Army Corps of Engineers gives permits for the disposal of dredged material.

COVID-19 Impact on Dredging Market

The COVID-19 pandemic has slowdown economic activities in many countries of the world and it’s also adversely impacted the dredging market. Tourist industries, the construction industry, and massive production constraints in the oil and gas are having a negative influence on the dredging business. This caused an unexpected demand shock in the oil and gas business and forced oil industries to halt production, tourist activities were slowed down, and infrastructure work was at a halt which resulted in drastically slowing down the growth of the dredging market globally.

Dredging Market Dynamics

The report presents a complete market overview, and market dynamics by focusing on the current market trends, existing drivers, growth opportunities, and emerging challenges that shape the outcome or overall performance of the market during the forecast period, 2022 to 2030.

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Major Drivers

The research report finds that the increasing trade activities, coastal protection activities, and urban development activities are anticipated to drive market growth. Dredging initiatives have increased as a result of increased attention being paid to enhancing the tourism industry. Several new projects are being planned by state and local governments to restore natural barriers.

For instance, in Louisiana, a master plan that calls for a USD 50 billion investment in coastal infrastructure, with dredging playing a large part, has been approved. The CRPA outlines 18 dredging coastal restoration projects that are expected to employ more than 79 million cubic yards of dredged material to create or nourish more than 14,000 acres of coastal wetlands, in its fiscal year 2023 plan.

Dredging initiatives have increased as a result of increased attention being paid to enhancing the tourism industry. For instance, the Maldives is boosting its tourism economy with its ambitious iHavan project. This is probably going to broaden the scope of reclamation projects and boost the dredging market.

Current Restraints

The high maintenance cost of dredging equipment is estimated to impede the market growth of the dredging market. Moreover, the lack of knowledge of degrading operations is expected to hinder market growth. However, new technology developments are being developed to reduce production costs and boost dredging productivity.

Furthermore, UNCTAD estimates that global seaborne trade volumes will top 10 Billion tons in 2020, with shipping commerce expected to decline by 4.1% in 2020 as a result of COVID-19.

Opportunities

Manufacturers in the dredging industry are adjusting and inventing, due to severe emission rules. The majority of regulatory authorities monitor NOx, total hydrocarbons (THC), particulate matter (PM), and sulfur oxides even if they have varying emission regulations. The dredging industry depends on technological advancements to address the growing pollution problems.

Always, the focus has shifted to places where reducing energy use is necessary. Natural gas and hydrogen are marketed by dredging firms as suitable substitutes. Dredging services are also using equipment updates and dredger monitoring systems to increase efficiency and productivity.

Scope of Dredging Market Report

The report on the global dredging market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Dredging Market Segment Insights

Energy infrastructure segment to expand at a robust growth rate

On the basis of application, the dredging market is divided into trade activity, trade maintenance, energy infrastructure, urban development, coastal protection, leisure, and others. The energy infrastructure segment is expected to expand at a robust growth rate in the coming years, owing to rising requirements from various infrastructure projects including solar, hydro, and other renewable energy sectors.

The increasing funding for numerous energy infrastructure projects is fueling the expansion of the dredging market even more. According to a study by the European Commission (EC) titled “The Investment Plan for Europe and Energy: Making the Energy Union is considerably bolstering Europe’s energy infrastructure. The energy infrastructure is anticipated to be worth USD 2 billion by the end of 2032.

According to the study, the European Fund for Strategic Investments (EFSI) has dedicated 29% of financing approved by the European Investments Bank to the energy sector, which includes major projects in renewable energy and energy infrastructure. Such data highlights the market’s great potential as well as the development potential of major companies in the years to come.

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Oil & Gas segment to register a considerable CAGR

Based on end-user, the dredging market is segmented into government, oil & gas, mining companies, renewables, and others. The oil & gas segment is anticipated to register a considerable CAGR during the forecast period, due to rising production and consumption of oil and gas. The growth of the oil and gas sector has led to an exponential increase in the need for dredging.

The International Energy Agency (IEA) predicted in its study ‘Oil 2020-Analysis” that by 2025, the world’s oil production capacity is projected to exceed 5.9 mb/d. According to the United States, Energy Information Administration (EIA) distillate fuel use is anticipated to average 4.0 mb/d by 2022, or 97% of consumption in 2019. The firms in the dredging market are expected to have more chances to take advantage of the rise in oil and gas production and consumption.

Asia-pacific to dominate the market

In terms of region, the dredging market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of Asia Pacific is expected to dominate the market during the projected period, due to increasing trade maintenance activities and maintaining a well-developed oil & gas industry.

Expansion of industries such as mining, energy, and oil and gas, is boosting the demand for dredging services in the region. According to the World Integrated Trade Solution (WITS), China had total exports of more than USD 2.5 trillion and total imports of more than USD 2.06 trillion in 2020. These operations will have generated a market valuation of USD 1.5 billion in East Asia-based trade activity by the end of 2032.

The government of China has agreed to reduce import taxes on a wider range of commodities that are in strong demand. It is anticipated that it would pick up in 2022, which will provide more advantages to dredge players in the region while trade activity slowed in 2020.

The United Kingdom is expected to be the dominant country in Europe with a 21% revenue share in 2020. According to projections, the country’s growth is anticipated to be fueled by the increasing demand from the energy, mining, and oil industries. The UK government reported that the energy sector contributed 2.1% of the Gross Value Added (GVA) to the UK economy in 2020, which was a 0.3% decrease from 2019.

The U.K. is anticipated to have a market share of 19% and a worth of USD 522 million. However, the market of North America is anticipated to expand at a substantial pace during the forecast period, owing to the increase in oil & gas activities in offshore regions and the rapid rise in marine activities.

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Segments

The dredging market has been segmented on the basis of

Application

• Trade Activity
• Trade Maintenance
• Energy Infrastructure
• Urban Development
• Coastal Protection
• Leisure
• Others

End-user

• Government
• Oil &Gas Companies
• Mining Companies
• Renewables
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• HYUNDAI E&C
• Royal IHC
• Dredging, Environmental and Marine Engineering NV (DEME)
• Great Lakes Dredge & Dock Company, LLC
• TOA Corporation
• Penta-Ocean Construction Co., Ltd.
• National Marine Dredging Company
• Amrut Dredging and Shipping Ltd.
• CALLAN MARINE, LTD.
• CASHMAN DREDGING, INC.
• China Communications Construction Company Limited
• COTTRELL CONTRACTING CORPORATION
• Dredge America
• Dredging Africa (Pty) Ltd
• Dutra Group
• J.F. Brennan Company, Inc.
• Jan De Nul Group
• JT Cleary, Inc.
• KSE Marine Works Pte Ltd.
• Manson Construction Co.
• McNally International, Inc.
• Mott MacDonald
• Royal Boskalis Westminster N.V.
• TAMS Group Pty Ltd
• US Aqua Services
• VAN OORD
• Weeks Marine, Inc

Competitive Landscape

Key players competing in the global Dredging Market are Hyundai E&C; Royal IHC; Dredging, Environmental and Marine Engineering NV (DEME); Great Lakes Dredge & Dock Company, LLC; TOA Corporation; Penta-Ocean Construction Co., Ltd.; National Marine Dredging Company; Amrut Dredging and Shipping Ltd.; CALLAN MARINE, LTD.; CASHMAN DREDGING, INC.; China Communications Construction Company Limited; COTTRELL CONTRACTING CORPORATION; Dredge America; Dredging Africa (Pty) Ltd; Dutra Group; J.F. Brennan Company, Inc.; Jan De Nul Group; JT Cleary, Inc.; KSE Marine Works Pte Ltd.; Manson Construction Co.; McNally International, Inc.; Mott MacDonald; Royal Boskalis Westminster N.V.; TAMS Group Pty Ltd; US Aqua Services; VAN OORD; Weeks Marine, Inc; and Others.

Some of these players have adopted a series of business development strategies including merger and acquisition, entering into partnerships and collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share.

• Dredging Environmental and Marine Engineering NV (DEME) Group is a major company in the field of land reclamation, dredging, marine offshore, energy, and environmental remediation. The company has 145 years of experience which enables them to bring tailor-made solutions, new technologies, and innovation to its customer’s projects. Moreover, it signed a major dredging and land reclamation contract for Abu Qir port in Egypt in 2020.

• Jan De Nul Group is a leading company in marine, civil, offshore, environment, and project development. Jan De Nul Group had a partnership with Dogger Bank Wind Farm to transport and install offshore wind in 2020.

• Penta-Ocean Construction Co. Ltd announced acquiring the Singapore-based company named as M&E Pte in 2020.

• A contract for land development at the Japanese Economic Zone has been inked by TOA Corporation and the Bangladesh Economic Zones Authority (BEZA) for 2020.