PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1494899
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1494899
According to Stratistics MRC, the Global Smart Ports Market is accounted for $2.9 billion in 2024 and is expected to reach $9.2 billion by 2030 growing at a CAGR of 21.1% during the forecast period. A smart port is an automated maritime facility that uses big data, blockchain, the internet of things (IoT) and other smart technology-based methods to improve performance and economic competitiveness. It consists of digitized infrastructure that offers a wide range of benefits, such as low human-related disruptions, superior decision making, predictable performance, and lower operational expenses. Smart ports function more smoothly than their traditional counterparts due to the flow created by the automation process.
According to the International Association of Ports and Harbors (IAPH), 80% of surveyed ports have seen significant acceleration in digitalization over the past year.
Rising inclination for industry 4.0
Industry 4.0 or smart manufacturing, integrates physical manufacturing and operations with smart digital technology, machine learning, and big data to create a more comprehensive and connected ecosystem. Through the use of technologies as IoT, cloud, artificial intelligence, and blockchain, a cyber-physical network is created inside the ports in which real-time data flows to different stakeholders as well as data is collected for predictive modeling. The real-time exchange of data allows smooth traffic flow, which, as a result, increases the throughput capacity of the port, thus increasing its efficiency. With the help of new technologies such as artificial intelligence and IoT, data is captured that helps to create a digital twin model of the ports.
High initial investment
The rising investments in ports are anticipated to be substantial in the upcoming years. The challenge port authorities' face is to implement projects that are often financially unattractive to the port authority and even less attractive to external investors, but which are essential for wider societal and economic reasons. Many ports are financially strong and can fund their expansion or up-gradation, while many ports have to be supported by external agencies, such as government, private funding, or partnership, to invest in their infrastructure. There are consequently many more requirements for developing new ports and upgrading infrastructure at the existing port than simply increasing the capacity.
Government support
The agencies of smart ports generally deploy cloud-based software to assist in creating the operational flows that help the port function smoothly. Currently, most of the ports across the world have technology integrated to some extent for complete management. However, there has been a gradual increase in the number of smart ports owing to global government initiatives and the exponential growth of maritime trade. The growing concern regarding climate change globally, as well as the call for more sustainable development projects, has compelled governments across the globe to embrace new technologies that help in the reduction of carbon footprint and also increase efficiency. In line with the current digitalization initiatives, governments across the globe are implementing various technologies such as big data, artificial intelligence, and the Internet of Things (IoT) in the ports sector.
Threats associated with data protection
There are various challenges in ensuring end-to-end security in a digital environment. Millions of cyber-attacks and data breaches are taking place every year, which is an alarm for digital security. With the increase in digitalization, the concern for data protection is growing. As the idea of integration of physical objects with the internet is relatively new, security has not always been considered the top priority during a product's design phase. This issue is expected to be a major concern, especially in ports, as the materials being handled are often precious cargo. Additionally, to take the first-mover advantage, many companies are launching products without thorough testing for secure connections, which presents a loophole for a data breach.
The smart port infrastructure segment is expected to be the largest during the forecast period
The smart port infrastructure segment is estimated to have a lucrative growth. Smart port infrastructure segment accounts for the highest market share among all the other segments because it is the most intensive aspect of developing any port into a smart port. Ports are therefore increasing the adoption of smart solutions that will help optimize operations, promote efficiency, and reduce logistics costs without requiring major investment in new infrastructure and equipment. With the rise in global trade, it has been observed that the size of vessel and cargo volumes have increased, which has impacted the seaports in terms of managing the operations.
The internet of things (IoT) segment is expected to have the highest CAGR during the forecast period
The Internet of Things (IoT) segment is poised to achieve the highest growth rate in the smart ports market during the forecast period due to its transformative capabilities. IoT technologies enable seamless connectivity and data exchange among various port components, optimizing operations and enhancing efficiency. IoT solutions facilitate real-time monitoring of cargo, equipment, and infrastructure, leading to improved resource allocation, predictive maintenance, and enhanced security. These advancements drive the adoption of IoT in smart ports, fostering substantial growth in this segment.
Europe is projected to hold the largest market share in the smart ports market during the forecast period due to several factors. These include increasing investments in port infrastructure modernization, stringent environmental regulations driving the adoption of smart technologies for sustainability, and the region's strategic location facilitating international trade. Additionally, initiatives like the European Union's Digital Agenda for Ports and the focus on automation and digitalization in port operations contribute to Europe's dominance in the market.
Asia Pacific is projected to have the highest CAGR over the forecast period owing to numerous factors such as international divisional manufacturing, global supply chains, low production cost and each country's export-led development policies. The Asia Pacific maritime information market is currently witnessing healthy growth. The ports in the region have grown in tandem with the economic development of most countries and cities, reflecting the region's recent rapid economic growth. This has translated into the increasing volume of cargo moving from this region. As major cargo transportation happens through sea routes, owing to which the number of ports in Asia is increasing every year, and the existing ports are witnessing expansion.
Key players in the market
Some of the key players profiled in the Smart Ports Market include ABB Group, Cargotec Corporation, CyberLogitec, GE Transportation, IBM Corporation, Konecranes, Orbcomm Inc., PSA International, Ramboll Group, Schneider Electric, Siemens AG, Trelleborg AB, Wartsila Corporation, Cisco Systems, Inc., Accenture, Huawei Technologies Co., Ltd., SAP SE, Nokia and Westwell.
In February 2024, Liberty Global is working with Nokia to open up its Belgian subsidiary's public 5G network to developers to deliver new enterprise applications for the Port of Antwerp. Telenet, owned by Liberty Global, is offering application programming interfaces (APIs) and software development kits (SDKs) to developers to access network functionality and data in its 5G network. Nokia is supplying the tools for them to do this, via a tier-up with Liberty Global.
In June 2023, Westwell, the global leader in scenario-based electric autonomous driving, has released its "Next-Gen Digital & Intelligent Port Operating Platform" and launched the new LLM product TerminalGPT for port operations. The launch took place against the backdrop of TOC Europe held in Rotterdam from 13 to 15 June 2023. By deeply integrating with the production and operation processes of forefront ports, the model is able to effectively enhance digital capabilities in port operations and empower port companies to improve operating quality and efficiency.
In June 2022, Wartsila Voyage, part of the technology group Wartsila, has announced the acquisition of PortLink Global, a global port Solutions Company headquartered in Vancouver, Canada. The move will speed Wartsila Voyage along its path towards creating an end-to-end connected maritime ecosystem in which intelligent port logistics solutions play a nodal role.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.