Smart Port Market - Global Industry Size, Share, Trends Opportunity, and Forecast, 2028F

Global Smart Port Market has valued at USD 1.25 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 12.36 % through 2028. A smart port is a seaport or harbor that utilizes digital technologies and innovative solutions to improve various aspects of its operations, including but not limited to vessel traffic management, cargo handling, security, environmental sustainability, and logistics. This encompasses a wide range of technologies and solutions, such as Internet of Things (IoT) sensors, artificial intelligence (AI), data analytics, automation, blockchain, and communication networks, which are applied to port operations to streamline processes and enhance decision-making. Smart ports aim to optimize the use of resources, reduce congestion, minimize delays, and improve the overall flow of goods and services through the port, leading to cost savings and improved productivity. Enhanced security measures are crucial for protecting ports from various threats, including terrorism, smuggling, and cyberattacks. Smart ports use advanced surveillance systems, biometrics, and access control to bolster security. Smart ports also focus on reducing their environmental footprint by implementing green technologies and practices, such as electrification of equipment, emissions monitoring, and the use of renewable energy sources. Ports in the smart port market are interconnected through digital platforms and systems that enable real-time data sharing and collaboration among port stakeholders, including shipping companies, logistics providers, customs authorities, and more.

Key Market Drivers

Adoption of Artificial Intelligence (AI), Internet of Things (IoT) Technologies

Several technologies including Artificial Intelligence (AI), Internet of Things (IoT), blockchain, and process automation are used for transforming a traditional port into a smart port. These technologies are either deployed separately or in combination to transform the conventional infrastructure into a digitalized one. The smart port offers several benefits over traditional port including reduced human-related disruptions, limited operational expenses, intelligent decision making, and more predictable performance. All these benefits offered results in increased productivity thereby paving the way for a sighted vision of Port 4.0.

Besides these benefits, growing technological innovation and resulting ease in technology integration are increasing the uptake of smart technologies across all types of ports. National and international trade through maritime transport has significantly increased over the years. Benefits such as lower transportation costs have resulted in the growing preference for marine transport. The rise in global trade activities worldwide has increased the burden on shipyards and decks. An increase in the number of operations has forced the harbor authorities to embrace smart technologies and solutions for automating several harbor operations. The outbreak of the COVID-19 pandemic and resulting lockdowns imposed to contain the spread of the virus has put a heavy burden on the industries that are highly dependent on the workforce for conducting operations, and the marine industry is no exception. The unavailability of the workforce at full potential has necessitated harbor authorities to embrace automation. The pandemic, therefore, is envisaged as a catalyst in the development of smart ports.

Growing advancements in Maritime transport

Maritime transport is crucial for international trade. The main transport mode for global trade is ocean shipping, and as per UNCTAD, around 80% of the volume of international trade in goods is carried by sea, and the percentage is even higher for most developing countries. This channel of transport is cheaper and more feasible for international trade than the road, rail, and air transport. According to UNCTAD, global maritime trade grew by 4.1% in the fiscal year 2021 and is expected to further swell at a moderate annual rate of more than 2.4% from 2022 to 2026. The growth of the global shipping fleet showed similar trends, and it grew by 3.0% in 2021. Maritime trade bounced back in 2021 owing to the unlocking of pent-up demand, as well as restocking and building inventory. There was also a shift in consumption patterns away from services toward goods, typically health products and pharmaceuticals, as well as home office equipment, along with changes in shopping patterns and the expansion of the e-commerce sector. The sudden boost in demand in 2021 after the grim situation in 2020 due to the pandemic resulted in shortages of shipping capacity and containers and equipment. Several shipowners are resorting to procuring newbuild or using retrofitted vessels to bridge this demand-supply gap. Asia Pacific has emerged as a global manufacturing hub in recent times, owing to its wealth of raw materials and manpower. Thus, the demand for container ships is significantly high in this region, owing to an increase in the export of manufactured and raw goods. Also, according to the UNCTAD Review of Maritime Transport 2021, Asia accounted for a staggering 54% share of the global maritime trade, which is expected to increase, driving the demand for port activities. Therefore, increasing maritime trade activities to drive demand for smart port market.

Key Market Challenges

High cost of implementation and maintenance

The high cost of implementing and maintaining advanced technologies is a significant challenge for the smart port market. Smart ports rely heavily on digital technologies like IoT sensors, big data analytics, and automation to provide real-time information and optimize operations. However, these technologies can be costly to implement and maintain, particularly for smaller ports or those in developing countries.

The cost of advanced technologies is a major barrier to entry for many port operators. For instance, implementing IoT sensors requires significant investments in hardware, and software, and developing sophisticated data analytics capabilities. Likewise, introducing automation technologies such as autonomous vehicles and robotics requires substantial investments in equipment and infrastructure.

Key Market Trends

Increasing adoption of green technologies and sustainable practices

The increasing adoption of green technologies and sustainable practices presents a significant opportunity for the smart port market. The shipping industry is a significant contributor to global greenhouse gas emissions, accounting for around 3% of global carbon dioxide emissions. As a result, the industry is under mounting pressure to reduce its environmental impact and transition towards more sustainable practices.

Smart ports are in a favorable position to benefit from this opportunity by adopting sustainable practices and green technologies that decrease their environmental footprint. This includes the adoption of renewable energy sources such as solar and wind power, implementing energy-efficient lighting and HVAC systems, and embracing electric and hybrid vehicles.

Spreading demand for real-time information and supply chain visibility

The increasing demand for real-time information and supply chain visibility is a significant driver for the smart port market. As global trade volumes continue to rise, supply chains are becoming increasingly complex, and timely and accurate data on the movement of goods and equipment is essential. Smart ports employ advanced technologies like IoT sensors, big data analytics, and automation to provide this real-time information, enabling port operators to optimize their operations and reduce costs. Real-time information is critical for effective supply chain management as it helps businesses quickly identify and resolve issues, improving the overall efficiency of the supply chain. Smart ports offer real-time data on cargo movement, inventory levels, and equipment location, among other factors, allowing port operators to monitor and manage their operations in real-time.

Segmental Insights

Technology Insights

The process automation segment accounted for more than 30% of the global revenue share in 2022. The segment is also forecasted to register a substantial CAGR during the forecast period. The deployment of could-based software to assist the automation process is gaining traction across ports. To limit human intervention and thereby focus on critical operational tasks, port authorities are increasingly deploying software-assisted robots for redundant tasks including ship invoicing and port gate operations. The degree of automation depends on the task/operation under consideration, which may sometimes involve the integration of multiple technologies with process automation software. However, process automation, as a separate standalone technology itself offers immense growth opportunities for dock operators.

The technology segment also includes other technologies such as blockchain, IoT, and AI. The Port generates a humongous amount of quantitative data and paperwork related to docking operations. The implementation of technology will not only simplify dock operations but also save costs in a longer run. For instance, using smart sensors, harbor authorities can assess the performance of each asset in real-time, undertake preventive maintenance measures whenever required, and thereby reduce the operating costs.

Throughput Capacity Insights

The extensively busy segment accounted for the largest share in the smart port market with more than 45% revenue share in 2022. Ports that have a throughput capacity of over 18 million TEU are included in this segment. The primary reason for the soaring share of extensively busy ports is their capacity and the number of operations processed, which has been compelling authorities to implement some level of automation for attaining operational efficiency. Further, these ports generate substantially high revenues, enabling them to easily invest in automation.

The other segments include moderately busy and scarcely busy ports. The ports that involve a throughput capacity of 5 to 18 million Twenty-foot Equivalent Unit (TEU) are classified under moderately busy and those that involve below 5 million TEU capacity; are classified under scarcely busy port segment. The moderately busy segment is anticipated to witness the highest adoption over the forecast period. The considerable investment capacity coupled with a lesser number of operations and therefore less complexity involved in technology integration is expected to propel the segment growth.

Regional Insights

The Asia Pacific region has established itself as the leader in the Global Smart Port Market with a significant revenue share in 2022. Asia Pacific dominated the market and accounted for more than 35% of the global revenue share in 2022. The region is characterized by the presence of major ports with high throughput capacity, thereby contributing to the largest share worldwide. Countries such as China, Japan, South Korea, and Singapore are the major countries recognized as prime trading points involving large amounts of trade activities. The aforementioned factors coupled with the availability of technologies at a relatively lower cost, especially from countries including Taiwan and China has ensured strong growth in the region. .

Report Scope:

In this report, the Global Smart Port Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Global Smart Port Market, By Technology:

• Process Automation
• Blockchain
• Internet of Things (IoT)
• Artificial Intelligence (AI)

Global Smart Port Market, By Throughput Capacity:

• Extensively Busy
• Moderately Busy
• Scarcely Busy

Global Smart Port Market, By Port Technology:

• Seaport
• Inland Port

Global Smart Port Market, By Region:

• North America
• United States
• Canada
• Mexico
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Indonesia
• Europe
• Germany
• United Kingdom
• France
• Russia
• Spain
• South America
• Brazil
• Argentina
• Middle East & Africa
• Saudi Arabia
• South Africa
• Egypt
• UAE
• Israel

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Smart Port Market.

Available Customizations:

Global Smart Port Market report with the given market data, the publisher offers customizations according to a company's specific needs.


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