Dredging removes deposits seeped underwater to clear the water channel for ships to pass, makes appropriate space for major bridges, dykes, and dams, and weeds out silt, intoxicants, and pollutants from the water's bottom. When the hoppers are filled, the operation is temporarily paused, and the ship sails to a water disposal location, where the undesirable sediments are expelled through the ship's bottom. Dredging, in general, entails excavating sediments from the seafloor and disposing of them elsewhere.
The global dredging market is divided into two types: mechanical dredgers and hydraulic dredgers. Mechanical dredgers are further classified as bucket dredgers, grab dredgers, and backhoe dredgers, whilst hydraulic dredgers are classified as suction dredgers, cutter suction dredgers, trailing suction hopper dredgers, and barge unloading dredgers. Hydraulic dredgers retained the biggest market share of 57.3% during the projected period and are expected to expand at the quickest rate during the forecast period. Further, the market is divided into end-user segments such as government, oil and gas companies, mining companies, and others.
The other segment includes projects related to renewable energy. The government sector will be the greatest contributor to the dredging market throughout the projected period. The government has issued a huge number of projects linked to dredging activities, including the cleaning of water reservoirs such as rivers, lakes, and ponds. For instance, the US government's domestic dredging bid in 2018 was roughly $1.8 billion, accounting for more than half of the overall US market. Governments in emerging economies are also making significant investments in the dredging business.
Key Growth Factors of the Market
The global population is expanding, and urbanization is accelerating. Increased use of existing land and water resources has resulted in badly contaminated land and water supplies, necessitating dredging operations in polluted areas. One of the elements fueling the expansion of the dredging industry is the population movement to coastal locations. As a result, coastal dredging is required. Besides, the global dredging industry is being pushed by increased seaborne trade, port expansion, and increased water reservoir operations. Seaborne trade is the backbone of international trade and the global economy, and it is a primary driver of global dredging industry growth. In 2019, around 80% of global trade by volume and more than 70% by value is carried by sea and managed by ports worldwide. The global ocean-based economy is projected to be worth $3 trillion each year, or about 5% of global GDP, according to the United Nations Conference on Trade and Development (UNCTAD).
Additionally, dredging players are increasing as the need for dredging increases and government investments increase. Several government initiatives are likely to enhance growth even more throughout the forecast period. For instance, the Dredging Corporation of India (DCI) intends to lease its cutter suction dredgers and trailer suction hopper dredgers to respectable and established dredging enterprises on a long-term basis in order to enhance the dredging sector. Customers such as oil and gas corporations, renewable energy companies, mining companies, and others are expected to remain significant over the projected period. Due to all such factors, the global dredging market is estimated to grow at a steady CAGR of 3.2% during the forecast period (2023-2029), according to OMR Research. The market value was $16.4 billion in 2021 and is anticipated to reach $20.4 billion in 2028.
Recent Developments
Companies such as China Communications Construction Co., Ltd., Dredging Corporation of India Ltd., Jan De Nul, DEME, Boskalis, Royal Boskalis Westminster N.V., and Van Oord, among others, are assisting in the market’s growth via various mergers and acquisitions and market expansions. Some of the recent developments in the market include:
• In December 2022, to increase navigability on the two waterways northwest of Bethany Beach in Sussex County, the Delaware Department of Natural Resources and Environmental Control announced plans to start dredging in 2023 on the main channel of White Creek and a brief section of the Assawoman Canal. At DNREC's Assawoman Wildlife Region, dredged sediment from the project will be utilized to rebuild a deteriorated salt marsh area. The budget allocations for DNREC in fiscal years 2022 and 2023 account for the majority of the $4.685 million project's funding. The project, which will be carried out by DNREC's Shoreline and Waterway Management Section and the contractor ResilientSeas, LLC, will remove shoaled material in the amount of 55,000 to 70,000 cubic yards. The main White Creek navigation channel and the Assawoman Canal's confluence will both be brought back to their original depths for safer boating and recreational use.
• In October 2022, the US Army Corps of Engineers began a dredging project in the Channel Islands Harbor. It is expected that 2.5 million cubic yards of sand will be pumped from the port to the beach at Port Hueneme, which erodes over time due to natural sand migration along the coast. The dredging project is scheduled to be completed in February 2023.