Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
A smart port refers to an automated port that utilizes innovative technologies namely the Internet of Things (IoT), artificial intelligence (AI), and Blockchain to augment its performance. Since the volume of trade is rising significantly, adopting such novel technologies have become critical, in order to improve internal efficiency and operations. Smart ports can also improve environmental sustainability as it incorporates the aforementioned technologies. Besides, smart ports can remain economically competitive, streamline workflow, and reduce costs.
The global Smart Ports Market was accounted for US$ 1,793.8 Mn in terms of value in 2019 and is expected to grow at CAGR of 27.7% for the period 2020-2027.
Market Dynamics- Drivers
- Rising emphasis on minimizing operational expenses is expected to drive growth of the global smart ports market during the forecast period
The global trade is increasing at a rapid pace with increased vessel size, traffic at ports, and cargo volumes. This, in turn, has increased workloads on shipyards and ports. According to the United Nations Comtrade (UN Comtrade), in 2018, the U.S. recorded the total trade of over US$ 949 billion, which is the most across the globe. Such rising trade requires operational efficiency with a streamlined workflow. Smart ports incorporate novel and cutting edge technologies such as AI and IoT, in order to enhance the operational efficiency of routine port activities. It reduces logistics costs and improves efficiency. Therefore, these factors are expected to drive growth of the global smart ports market during the forecast period.
- Growing concerns regarding environmental concerns are expected to propel the global smart ports market growth over the forecast period
Shipping industry contributes a massive carbon footprint worldwide. According to the International Transport Forum (ITF), around 85% of carbon dioxide emissions were produced by ports. This has necessitated a reduction of carbon footprint. Advanced technologies such as cloud computing and artificial intelligence can help ports to achieve their targets and save energy consumed by infrastructure on premise. Thus, these factors are expected to propel the global smart ports market growth over the forecast period.
Asia Pacific held dominant position in the global Smart Ports market in 2019, accounting for 34.7% share in terms of value, followed by Europe and North America respectively
Figure 1: Global Smart Ports Market Share (%) in terms of Value, By Region, 2019
Smart Ports Market - Impact of Coronavirus (Covid-19) Pandemic
Several governments across the globe such as India, Spain and Italy have imposed nationwide lockdown to restrict the spread of COVID-19 disease. For instance, Government of India have imposed lockdown from 25 March to 1 June until the further notice .Due to the Lockdown, there is a shortage of the workers at the ports. Due to the less manpower, the ports are struggling to move the products. In addition to this, due to the shortage of transportation facilities such as Trains and Heavy-duty Vehicles, manufactures are unable to ship their cargoes. Owing to the above mentioned factors, the COVID-19 pandemic is expected to restrain the smart ports market growth in upcoming years.
Smart Ports Market Report Coverage
||Market Size in 2019:
||USD 1,793.8 Mn
|Historical Data for:
||2017 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||USD 5,235.7 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Middle East and Africa: South Africa, North Africa, Central Africa
- By Technology: Internet of things (IoT), Blockchain, Process automation and Artificial intelligence
- By throughput capacity of Ports: Extensively busy (above 19 million teu), Moderately busy (4-19 million teu) and Scarcely busy (below 4 million teu)
- By Solution: Gate Automation Solutions, Traffic-monitoring System, Port Community System (PCS), Smart Cargo-handling System and Others
- By Port Type: Seaport and Inland Port
ROYAL HASKONINGDHV, Awake.AI, ABB Ltd., Navis, Trelleborg AB, IBM Corporation, PORT OF ROTTERDAM, Accenture, Abu Dhabi Ports, China Merchants Port Holdings Company and Ramboll Group A/S.
- Rising emphasis on minimizing operational expenses
- Growing concerns regarding environmental concerns
|Restraints & Challenges:
- Lack of skilled personnel
Market Dynamics- Restraints
- Lack of skilled personnel is expected to hamper the global smart ports market growth over the forecast period
Incorporating and operating advanced technologies such as AI and IoT require skilled personnel with adequate training and experience. These technologies are needed to be operated by skilled workers that are not available easily, especially in emerging regions such as the Middle East and Africa. As a result of this, adoption of smart ports is hindered. Thus, these factors are expected to hamper the global smart ports market growth over the forecast period.
- Concerns regarding privacy and security are expected to restrain growth of the global smart ports market during the forecast period
Despite their numerous advantages, many port operators are hesitant towards the adoption of the advanced technologies mentioned above. This is due to the fact that concerns regarding privacy and security. Since cyber-attacks rising rapidly, confidential data regarding ports is can be compromised, jeopardizing the entire operation. Hence, such factors are expected to restrain growth of the global smart ports market during the forecast period.
- Proactive government initiatives towards smart infrastructure can present lucrative growth opportunities in the global smart ports market
Governments of many countries have started taking proactive initiatives toward the adoption of novel technologies such as AI and IoT in ports. Smart ports have become essential for growth of a country’s economic development and achieving efficiency in maritime transportation will only accelerate the growth. For instance, in October 2019, the Government of Andhra Pradesh, India, launched an online platform SMARTPORT as part of the ease of doing business reforms related to trade and export promotion in all ports in the state.
- Port upgrades via retrofitting can provide major business opportunities in the global smart ports market
Many countries have started upgrading their ports, in order to accelerate maritime trade. For instance, in 2019, the Government of India invested around US$ 1.85 billion on major ports’ infrastructure. Furthermore, in June 2020, the Government of Puducherry received CRZ clearance from the Expert Appraisal Committee (EAC) of the Ministry of Environment, Forest, and Climate Change, India for minor port upgradation.
Figure 2: Global Smart Ports Market Value (US$ Mn), 2017 - 2027
The global Smart Ports market was valued at US$ 1,793.8 Mn in 2019 and is forecast to reach a value of US$ 5,235.7 Mn by 2027 at a CAGR of 27.7% between 2020 and 2027.
Rising investments to revamp infrastructure in the U.S.
The U.S. government is focused on revamping the existing infrastructure of ports and planning to build data-driven solutions. Therefore, the government is expected to invest a significant amount of funds in ports in the near future. For instance, in June 2019, the U.S. Department of Transportation (DOT) announced to invest US$ 292.7 billion in new Port Infrastructure Development Program.
Key players operating in the global smart ports market are ROYAL HASKONINGDHV, Awake.AI, ABB, Navis, Trelleborg AB, IBM Corporation, PORT OF ROTTERDAM, Accenture, Abu Dhabi Ports, and Ramboll Group A/S.
- Major companies are focused on product launches, in order to enhance the market presence. For instance, in April 2020, Awake.AI introduced a smart port as a service web application.
- Key players are focused on product development, in order to gain a competitive edge in the market. For instance, in March 2019, Navis introduced Navis Smart to process a vast amount of data for container terminals and carriers.