Cargo And Vehicle Screening - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Cargo And Vehicle Screening Market size is estimated at USD 2.77 billion in 2024, and is expected to reach USD 3.79 billion by 2029, growing at a CAGR of 6.5% during the forecast period (2024-2029).

The increasing demand for cargo and vehicle contributions on systems from border crossings, seaports, and critical areas protection applications is expected to contribute toward the market growth of the global cargo and vehicle screening market during the forecast period.

Key Highlights

• Whether smugglers transport large containers or small parcels in air cargo, trains, ships, and trucks, they try to find new ways to evade detection. As a result, the items that need to be detected by cargo screening technology are wide and varied. In recent years, countries across the globe have witnessed a surge in the number of smuggling and illegal cargo shipments. For instance, in August 2023, the United States Customs and Border Protection Office of Field Operations of Colombia-Solidarity Bridge seized methamphetamine with a street value of over USD 19 million.
• The common threats include explosives, narcotics, weapons, undeclared or misrepresented goods, contraband, agricultural items, currency, items presenting environmental risks, cultural artifacts, weapons of mass destruction, and counterfeit goods. Furthermore, the growth of the cargo and vehicle inspection system market can be attributed to the increasing terrorist threats and cross-border crimes, rising demand for passenger vehicles and cargo vehicles across the globe, and the growing number of nuclear and hazardous material accidents.
• The increasing adoption of advancing technologies in cargo and vehicle inspection systems contributes to the market's growth. For instance, Nuctech, a key market vendor, offers MR Series robotic Cargo/Vehicle Inspection Systems. The company highlights that these systems blend advanced X-ray imaging seamlessly with a customizable detection solution. This integration efficiently checks cargo containers, trucks, and other vehicles for contraband.
• However, factors such as high installation and maintenance costs are restraining the development of this market. The procurement and installation of inspection systems incur a heavy initial investment, which is one of the critical points affecting the market. Moreover, the inspection of each container at various ports could increase the time required to unload and load containers in the carriers, thereby decreasing the efficiency of the operations.
• While the outbreak of the pandemic has had a restraining impact on the market studied growth, barring growth observed across a few segments, mainly due to the enforcement of strict lockdown measures across countries, the gradual recovery of the world from the pandemic is having a similar impact on the market studied growth as the global trade has resumed. For instance, according to the World Trade Organization (WTO), international merchandise trade is anticipated to grow by 2.6% in 2024 and 3.3% in 2025. Hence, such trends are expected to support the growth of the market studied in the coming years.

Cargo And Vehicle Screening Market Trends

Adoption of Advanced Technologies For Screening to Support the Market's Growth

• AI detection algorithms are poised to revolutionize threat detection and item identification, offering enhanced automation. With its ability to swiftly process vast datasets, AI aims to extract actionable insights efficiently. Notably, AI is emerging as a pivotal tool for automating cargo and vehicle screening.
• Nuctech officials highlight AI's prowess in image and dangerous goods recognition. AI's benefits are manifold: It mitigates human errors from factors like fatigue or bribery and significantly boosts screening efficiency. This is mainly due to AI's rapid computing capabilities, which outpace human cognition, and its knack for flawlessly executing repetitive tasks without fatigue, thereby cutting labor costs.
• While recent advancements in cargo screening have notably expedited the process, bolstered reliability, and enhanced the capacity to manage high shipment volumes, the pursuit of refining this technology remains relentless. Consequently, the primary objective for future cargo and vehicle security inspection advancements is to elevate safety standards and expedite security clearances.
• Another major factor driving the uptake of advanced technologies in the cargo and vehicle screening market is the growing cargo traffic across countries, allowing authorities to screen cargo and vehicles quickly. For instance, according to DGCA (India), international air cargo traffic in India increased to 1,529 thousand metric tons in 2023, compared to 1,404 thousand metric tons in 2016.
• Considering the growing demand and emerging use cases from the cargo and vehicle screening industry, industry stakeholders also focus on developing innovative solutions. Furthermore, cargo shipping and handling organizations are increasingly looking for advanced solutions to enhance their capabilities. For example, in 2023, the ECAC (European Civil Aviation Conference) approved the implementation of Explosive Vapor Detectors (EVDs) for air cargo screening.

Asia-Pacific Is Expected To Grow At A Faster Pace

• With the rising investments in infrastructure development, port and trade activities, and improving border security measures, the demand for cargo and vehicle screening solutions is expected to increase significantly in the Asia-Pacific region.
• In 2023, Jaipur International Airport announced its plan to mark a new beginning by commencing operations at a new domestic cargo unit with a capacity of 2300 MT per month A domestic cargo. Indigo Airlines has already been onboarded, after which it will operate its entire domestic cargo business from the new cargo unit at Terminal 1.
• The new cargo unit included two 100 X 100 Ray baggage inspection systems (XBIS Machine) and one explosive trace detection equipment to screen the goods received and dispatched. The facility would also manage items like fruits, vegetables, foodstuffs, chilled/frozen fish, spare parts, and textiles. Furthermore, the airport is also focusing on starting an international cargo unit by the end of this year. Such initiatives are also expected to promote further the demand for cargo and vehicle screening systems in the region.
• Increasing demand for cargo and vehicle inspection systems from the transportation and logistics sector to ensure safe and secure transport of goods, coupled with the proliferation of terrorist activities and cross-border smuggling, is driving the demand for cargo and vehicle inspection systems worldwide. This is also expected to promote the demand for Cargo and Vehicle Screening systems in the region. For instance, according to CBIC, in the 2023-24 financial year (till November 2023), about 4,040 cases of gold smuggling were registered in India.
• Furthermore, rising export activities of goods and services, increasing market for transportation and freight transfer industry in countries like China, growing export of agro-commodity, increasing significance of security among consumers, and growing demand for air and sea cargo are driving the market's growth in the Asia-Pacific region. For instance, according to the Chinese Ministry of Transport, China recorded a steady increase in waterway freight volume (January - May 2024). According to the ministry, waterways handled approximately 3.9 billion tonnes of cargo nationwide, exhibiting a 7% yearly increase.

Cargo And Vehicle Screening Industry Overview

The cargo and vehicle screening market is relatively moderate, with significant players like Rapiscan Systems., LINEV Systems, Nuctech Netherlands BV, Westminster Group PLC, and Leidos Inc. Players in the market are adopting various strategies such as partnerships, mergers, collaborations, innovations, and acquisitions to enhance their product offerings and gain a sustainable competitive advantage. Some of the recent developments in the market include.

• July 2024 - OSI Systems, Inc. announced a significant win for its Security division, securing a lucrative order worth around USD 17 million from an overseas client. The order specifically focuses on cargo and vehicle inspection systems. Notable inclusions are the Eagle P60, a high-energy, drive-through cargo and vehicle inspection system, and the T60, a trailer-mounted vehicle inspection system. OSI Systems plans to deliver the systems, handle their installation, provide training, and offer multi-year service and maintenance support.
• July 2024 - Smiths Detection, a leading provider of security screening technologies, teamed up with Flughafen Zurich AG (Zurich Airport) to pilot their cutting-edge HI-SCAN 6040 CTiX X-ray scanners for carry-on baggage and the iLane A20SC ATRS, an advanced automatic tray return system. This trial will take place at two security lanes within the airport.

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