Dredging is a routine necessity owing to the gradual filling of channels and harbors by the sediments drawn down by the water streams. Moreover, in the current landscape increasing water transportation and rising pollution, additionally contribute to the growing demand, considerably expanding the dredging market. The dredging market is anticipated to grow at a CAGR of around 2.8%, by 2031. Market growth is driven by the increasing number of dredging applications in various sectors such as oil and gas and mining. Additionally, the growing population in the coastal areas, rise in sea levels, and increasing natural disasters, are contributing significantly to the rise in the dredging market.
The dredging market in Americas is estimated to grow at a CAGR of nearly 2.0% by 2031. This is attributed to the emerging investment in maritime infrastructure and increasing offshore oil and gas operations. The significant rise in global trade activities is promoting improvements in maritime infrastructure.
Research by the Western Dredging Association, about the dredging in South America Mining Industries, shows a growth in material removal, increasing the rate of dredging by 5% per year. At present, less than 1% of the material removal is done by dredging, mostly in the Brazilian and Peruvian Amazonian jungles. In South America, more than 20 million tons of tailing is deposited in more than 100 tailing deposits with over 1 million tons each.
The major market players in the region include Great Lakes Dredge & Dock Co., LLC, Callan Marine, Ltd., Coastal Dredging Co., Inc., Norfolk Dredging Co., and more. The market players are contributing significantly to the regional market growth.
- In November 2024, the US Army Corps of Engineers (USACE), Baltimore District, awarded a $33.5 million contract to Curtin Maritime Corp. California, for Baltimore Harbor and channels maintenance dredging for FY2025. The project consists of a dredging area of around 2.3 million cubic yards of material from federal navigation channels in Maryland associated with the Baltimore Harbor.
- In June 2024, South America utilized the HID Amphibious Dredger to restore a vast multi-purpose artificial lake, removing silt, aquatic plants, and other impurities from the lake. HID operates in dry ground to shallow waters up to a depth of 6.5 meters.
The dredging market in Europe is anticipated to grow at a CAGR of 1.8% by 2031, owing to the rising awareness for the management of sediments, coupled with cohesive government policies in the region. Additionally, countries such as Germany and the Netherlands have large sea harbors, increasing the demand for dredging in the region. Some prominent players in the regional market include Royal Boskalis Westminster N.V., Jan De Nul NV, Van Oord N.V., and DEME N.V.
- In July 2024, Rotterdam-based Dredge Yard delivered a new cutter suction dredger to an undisclosed operator in Slovakia. It is a compact and dismountable dredger, which features a spud system, a cutter head with replaceable teeth, and a hydraulically driven dredge pump and crane for easy maintenance.
- In July 2024, Kenmare Resources, Ireland acquired two new dredgers from Netherlands-based Royal IHC. The new dredgers namely, Calen and Sandra will be operated as mining dredgers with their initial deployment in Mozambique in 2025. The dredgers are fitted with a 6,800kVA generator and a 1,350kW cutter. The vessels' generators will run on renewable hydroelectric power.
- In July 2024, Italian manufacturer Italdraghe launched a new series of self-propelled dredgers for various applications, including cutting, harvesting, and excavation. The company will offer three main variants of the dredger series. One dredger variant will be fitted with a dredge pump with a maximum capacity of 10,000 cubic meters per hour.
- In July 2024, the Federal Agency for Maritime and River Transportation (Rosmorrechflot), Russia, acquired a new Project 4395 dredger built locally by Ship Repair and Shipbuilding Corp. Tobol was designed by naval architecture firm Stapel and is a non-self-propelled dredger. The vessel features a length of 54 meters, a beam of 10.5 meters, a draught of 1.3 meters, and a crew of 28. The dredger will be deployed in the Ob River in Western Siberia.
- In July 2024, Dutch Dredging ordered a new Trailing Suction Hopper Dredger (TSHD), built by Royal IHC. The vessel will feature a hopper capacity of 2,300.
The Asia-Pacific dredging market is estimated to grow at a CAGR of 2.5% by 2031. The market growth is attributed to the increasing government investments in dredging and extreme seaborne trade operations. China and India are among the major contributors to the dredging market, owing to the increasing number of ports in China, and rising government initiatives in India. According to the Dredging Corp. of India Ltd. (DCI), FY23 and 9 months of FY24 witnessed strong operating performance marking a 45% yoy in FY23 to $141.1 million (FY22- $102.0 million). The increase in revenue is accounted to higher realization per cubic meter of dredging.
The prominent players in the Asia-Pacific dredging market include Dredging Corp. of India Ltd. (DCIL), Inai Kiara Sdn Bhd, The Cooper Group of Companies (CGC), and Hyundai Engineering and Construction Co., Ltd., among others.
- In March 2024, DCI and BEML (Bharat Earth Movers Ltd.) signed a Memorandum of Understanding (MoU) for the indigenous design, development, and manufacturing of spares for Dredgers and joint development of manufacturing of dredgers.
- In November 2023, DEME announced several capital and maintenance dredging contracts in Asia. The projects include the Kakinada Port in India, where the scope includes deepening the existing berths, turning circle and the inner, and access channel to a depth of 18 m at the deepest point. The project kicked off in Q1 2024 with hopper dredgers and is scheduled to run until the second half of 2024. In Jawaharlal Nehru Port Trust (JNPT) in Mumbai, India, DEME’s hopper dredgers and a water injection dredger will be employed for the maintenance dredging works at the main harbor access channel and Jawaharlal Nehru Port. The project duration is anticipated to stretch 2023-2024. In Goa, DEME is awarded a multi-year maintenance dredging at the Mormugao Port project until 2026. In the Maldives, dredging works will be carried out for two resorts located at the Ranfaru Reef and the Vaavedhdhifaru Lagoon. The project commenced in Q4 2023 and continued in the first half of 2024. In Samalaju Port, Malaysia, the company will execute maintenance dredging works in the access channel.
- In March 2022, DCI signed an agreement with Cochin Shipyard Ltd. to build a trailing suction hopper dredger with a capacity of 12,000 cubic meters. The project will be completed in 34 months, with an anticipated project cost of EUR 89.39 million ($94.1 million). The acquisition would be fully funded by an External Commercial Borrowing (ECB) of EUR 46.2 million ($48.7 million). From Deutsche Bank and remaining INR 3,797 million ($48.3 million) would be funded using the proceeds from the equity infusion by the promoter ports and non-convertible debentures subscription by Cochin Shipyard.
Latin America and the Middle- East and Africa dredging market is estimated to grow at a CAGR of nearly 2.5% by 2031. The market growth is driven by the rapid growth of mining activities in the regions. In addition, the increasing government funding in the region is also contributing to the regional market growth. Furthermore, the growing infrastructure dredging owing to the propelling energy and oil and gas sectors is bolstering the market growth.
- In October 2024, NMDC Group was awarded a reclamation and marine construction project in Abu Dhabi, from UAE-based Modon Company. The project is valued at AED 5.1 billion ($1.36 billion). The scope of the project extends to marine dredging, reclamation, and ground improvement works.
- In October 2024, Brazil dredged major Amazon Rivers, due to the recorded drought in the region that has significantly lowered the water levels and made ship passage difficult. The Brazilian government invested 505 million reais ($90 million) for the project. Additionally, the investment will provide for the expense of dredging the two main tributaries of Amazon, namely, Solimões and Madeira.
- In May 2024, Van Oord finished the dredging of the outer channel to the Port of Suape, Brazil. The dredged channel is about 15 to 20 meters long.
- In December 2023, DEME was awarded a dredging contract for the Port of NEOM in Northwest Saudi Arabia. DEME will work in a consortium with Archirodon on the project. Port of NEOM is located along the coast of the Red Sea adjacent to the nearby Suez Canal and facilitates around 13% of global trade.
- In November 2023, DEME earned three dredging projects in Africa. DEME stabilized the sand barrier between the Tagba Lagoon and the ocean. Additionally, the company performed maintenance dredging of the access channel, turning circle, and inner basin in the Port of Cotonou, Berlin. Furthermore, it will deploy a hopper dredger for the construction of the fishing port in Pointe-Noire, Congo.
Encapsulating, the dredging market is anticipated to grow shortly, owing to the rising government initiatives, a significant contribution by the market players, and the increasing environmental concerns and construction projects. The highest market growth will be registered in the Asia-Pacific, Latin America, and the Middle-Eastern region. Moreover, America and Europe are home to some of the major players in the dredging market such as DEME N.V.