The Global Smart Ports Market, 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) and By Port Type (Seaport and Inland Port) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 5,235.7 Million by 2027, exhibiting a CAGR of 27.7% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
A smart port is an automated port that makes use of cutting-edge technologies such as big data, blockchain, artificial intelligence, and internet of things (IoT) to further existing operations and enhance operational efficiency. Smart ports employ smart technology solutions to increase efficiency, effectiveness, and security of the port, simultaneously making it environmentally sustainable, economically efficient, and capable of handling increased port traffic.
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.
Rising need for real-time information is expected to drive growth of the global ports market during the forecast period
Real-time insights have become crucial for port operations, in order to streamline workflow and enhance overall efficiency. Advanced technologies such as artificial intelligence and big data can provide real-time information, enabling data-driven decisions at port facilities. As a result of this, port operational expenses reduce and reduce human-related disruptions. For instance, in March 2019, Port of Rotterdam launched OnTrack application that offers real-time insights on the handling of freight at terminals. Furthermore, real-time insights can enable intelligent decision-making and provide more predictable performance. Thus, these factors are expected to drive growth of the global ports market during the forecast period.
Smart Ports Market - Impact of Coronavirus (Covid-19) Pandemic
Many companies are laying off people due to the reduced sales volume owing to the COVID-19 pandemic. For instance, In U.S. according to the Coherent Market Analysis, the unemployment rate increased from 5.5% to 14.5% in the period December 2019 to April 2020. This has resulted in the reduced spending power of people. This is expected to reduce the demand of products across ports. In addition to this, the Port authorities are taking preventive measures to reduce the expenses, which includes limitation on outsourcing of new smart port solutions. This COVID-19 pandemic is expected to restrain the smart port market growth during the period 2020-2021.
Adoption of big data can provide major business opportunities in the global ports market
Big data is the field of analyzing and systematically extracting vital insights from a vast amount of unstructured data. Such data is too large to be processed with conventional data-processing application software. Big data sharing can help ports collect, analyze, and combine many sources of relevant insights before cargo arrives. Investing in big data can streamline port operations and improve its efficiency significantly. Key companies in the market can capitalize on these opportunities by providing novel solutions and gain a competitive edge in the market.
High initial investment is expected to hinder the global smart ports market growth over the forecast period
Incorporating cutting-edge technologies such as big data, artificial intelligence, and IoT requires significant investment. Apart from advanced equipment, skilled personnel is required to operate, inspect, and maintain these technologies so they can provide consistent performance. Although many countries are investing significantly to implement these technologies, emerging regions such as the Middle East and Africa are hesitant towards its adoption due to high initial investment. Thus, these factors are expected to hamper the global smart ports market growth over the forecast period.
Mergers and acquisitions among market players
Key companies are focused on merger and acquisition activities, in order to enhance the market presence. For instance, in January 2020, Adani Ports acquired a 75% stake in Krishnapatnam Port Company. Furthermore, in November 2018, Diamond S merged with Capital Product Partners, with a deal worth of US$ 1.65 billion creating the largest mixed tanker fleet.
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.
To know the latest trends and insights prevalent in the Global Smart Ports Market, click the link below:
Joining thousands of companies around the world committed to making the Excellent Business Solutions.