Dredging is described as an excavation operation that is typically performed at least partially underwater, in shallow water environments, to collect bottom sediments and dispose of them somewhere. It is a method of marine resource transfer from one area of the sea environment to another that employs specialized dredging vessels. The primary goal of dredging is to keep waterways and ports passable, to build new ports, to preserve coastlines, to reclaim land, and to win materials such as sand and gravel for use in the building industry.
There are two types of dredgers- mechanical and hydraulic. The mechanical dredger is further segmented into bucket dredgers, grab dredgers, and backhoe dredgers. The hydraulic dredger is segmented into suction, cutter suction dredger, trailing suction hopper dredger, and barge unloading dredger.
Market Stats and Drivers
According to OMR Research, the UK dredging market is projected to grow at a CAGR of 1.1% during the forecast period. Increased seaborne trade, port expansion, and increased reservoir operations are driving the UK dredging market. Seaborne trade is the backbone of international trade and the global economy, and it is a key contributor to the expansion of the UK dredging sector. According to the UK government, approximately 95% of all UK imports and exports by volume are transported by sea, using submarine cables. Besides, the maritime sector supported over $42.8 billion in business turnover, $15.5 billion in gross value added (GAV), and 185,700 jobs across the UK in 2015, according to the Maritime UK’s report in 2017. These numbers further increased in 2020. As per the new statistics by the UK Department for Transport and the UK Centre for Economics and Business Research, the maritime sector supported over $47 billion in business turnover, $17 billion in GAV, and 220,100 jobs across the UK.
Other factors influencing market expansion include population growth and urbanization. Increased usage of existing land and water resources has resulted in severely polluted land and water supplies, requiring dredging operations in polluted regions. The majority is also moving to coastal areas. Dredging along the coast is therefore essential. Furthermore, the mining industry is predicted to expand rapidly. The government has issued a huge number of projects linked to dredging operations, including water reservoir cleansing such as rivers and lakes, as well as extraction activities, which fuel the expansion of the mining segment in the UK dredging market. According to The Crown Estate UK, 18.05 million tonnes of marine aggregate were extracted in 2020, with 12.08 million tonnes used for construction aggregate in England and Wales, 4.34 million tonnes exported to the mainland for use as construction aggregate, and 1.62 million tonnes used for beach replenishment, reclamation, and infill to assist construction and civil engineering at locations across the UK.
Recent Developments
The key companies in the market include CEMEX S.A.B. de C.V., Conbar UK Ltd., Dredging Environmental and Marine Engineering (DEME) N.V., GPS Marine Contractors Ltd., Lobnitz Marine Holdings Ltd., Tarmac Holdings Ltd., Valeport Ltd., Watson & Hillhouse Ltd., and others. These companies are contributing to the market’s growth through several mergers, new product launches, investments, and other activities. For instance, in June 2022, Rederiet Høj A/S, a Nordic maritime contractor, increased its fleet with two grab dredgers to utilize in building activities in Northern Europe, including the UK, Germany, Sweden, and Norway. With this fleet extension, Rederiet Høj A/S can handle increased activity in the areas of port infrastructure excavation and dredging, pier, breakwater, and revetment building, preliminary work for cable laying, boulder clearing, the development of new artificial reefs, and others.