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I AgreeAnalysis of Smart Ports Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Global demand for smart ports is predicted to advance at a noteworthy CAGR of 20.4% from 2023 to 2033. Currently, the global smart ports market is valued at US$ 2.5 billion and is estimated to jump to a market size of US$ 16 billion by the end of 2033.
Ports across the world have evolved structurally and functionally during the last few decades. Nowadays, a wave of technological innovation and integration is enabling industries and enterprises to digitally transform and become more data and insight-driven. The first generation of ports was called loading and unloading ports, followed by second-generation ports called industrial ports.
Third-generation ports were defined as logistic and supply chain ports that operated between 1980 and 2010. After 2010, smart ports became operational.
A smart port is an automated maritime facility that improves performance and economic competitiveness by utilizing the internet of things (IoT), blockchain, artificial intelligence (AI), big data, and other smart technology-based methods. It is made up of digitized infrastructure that provides numerous advantages, such as predictable performance, better decision-making, fewer human-related disturbances, and inexpensive operating expenses.
Due to the flow provided by the automation process, smart ports operate more efficiently than traditional versions.
The COVID-19 outbreak had a detrimental impact on the global market, as countries throughout the world were compelled to enforce lockdowns in the first half of 2020. Governments worldwide established strict guidelines and laws prohibiting all non-essential operations. Furthermore, production and supply chain delays were observed during the second quarter of 2020, damaging the global market growth. Nevertheless, the global market began to rebound in 2021 and is predicted to develop even more throughout the projection period.
Several governments have begun to take proactive steps toward the use of emerging technologies like IoT and AI in ports. Smart ports have become critical for a country's economic growth, and improving maritime transit efficiency will only accelerate that progress.
Moreover, the global market is benefiting greatly from the mounting environmental concerns. The shipping industry has a significant carbon impact all over the world.
This has prompted a reduction in carbon footprint. Modern technologies such as artificial intelligence and cloud computing can help ports achieve their targets while reducing the amount of energy used by on-premise equipment. These factors are projected to propel the worldwide market growth over the forecast period.
Report Attributes |
Details |
Smart Ports Market Size in 2023 |
US$ 2.5 Billion |
Projected Market Value (2033) |
US$ 16 Billion |
Global Market Growth Rate (2023 to 2033) |
20.4% CAGR |
Asia Pacific Market Share (2022) |
37% |
Process Automation Segment Share (2022) |
34% |
Key Companies Profiled |
|
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“Expanding International Maritime Trade Activities”
International trade is largely dependent on maritime transport. Ocean shipping is the primary route of global trade.
This kind of transportation is less costly and more practical for global trade than air, road, and rail transport.
Maritime trade rebounded in 2021 as a result of pent-up demand, as well as restocking and inventory accumulation. There was also a movement in consumption patterns away from services and toward products, such as pharmaceuticals, health items, and home office equipment, as well as changes in shopping habits and the growth of the e-commerce sector. Such aspects increased marine trade activities, thereby boosting the demand for smart ports.
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“High Investment Required for Port Development”
Port investments are projected to be substantial in the future years. The problem for port authorities is to accomplish projects that are usually financially unappealing to the port authority and much less enticing to external investors but are necessary for broader economic and societal reasons.
Numerous ports are economically solid and can finance their growth or renovations; however, several ports have to rely on external entities, such as private funding, partnerships, or governments, to invest in their infrastructure. Such aspects can negatively impact the growth of the global market.
“Concerns Regarding Data Privacy and Security”
Despite their several benefits, many port operators are unwilling to implement modern technologies. This is due to concerns about data privacy and security. Since cyber-attacks are becoming more common, confidential data about ports can be leaked, compromising the entire operation. As a result, these aspects can impede global market growth.
“Strong Focus on Development of Technologically Advanced Ports”
Asia Pacific is dominating the worldwide market. As per Fact.MR, a market research and competitive intelligence provider, Asia Pacific captured 37% of the global market for smart ports in 2022.
Asia Pacific is also regarded as a lucrative region for sea trade. The region has seen a substantial economic expansion in the energy and manufacturing sectors in recent years, resulting in increased maritime commerce activities.
Japan and South Korea are among the major countries regarded as prime trading locations with extensive trade activities. Japan and South Korea are focusing on developing technologically advanced ports and upgrading existing ones by incorporating modern technologies.
“Heavy Investments to Improve Port Infrastructure”
The North American market is growing at a rapid pace. The constantly expanding port economy has resulted in greater use of smart ports to boost operating effectiveness, propelling regional market growth. Moreover, strong government initiatives, the advent of cloud-based software, and technological developments are all helping to push the regional market forward.
The United States is the market leader in North America. The United States government is concentrating on improving port infrastructure and creating data-driven solutions. As a consequence, the government is investing heavily in ports.
“Increasing Implementation of Sophisticated Technologies”
The European market is witnessing considerable growth. Ports in European countries such as Germany are relatively small, but they manage a huge amount of cargo. Moreover, European ports cannot compete only on port size, as ports of considerably smaller capacity/ size manage as much volume as large-sized ports. As a result, even modestly and sparsely populated ports are progressively turning to smart operations.
“Increasing Use of Software-assisted Robots”
Process automation held 34% of the global market in 2022. The usage of cloud-based software to assist in the automation process is growing across ports. Port authorities are increasingly utilizing software-assisted robots for routine duties such as ship invoicing and port gate operations to reduce human interference and thus focus on key operational tasks.
The level of automation changes based on the task/operation at hand, which may occasionally necessitate the incorporation of various technologies with process automation software. Nevertheless, process automation as an independent technology provides significant growth opportunities for dock operators.
“Operating Effectiveness and Generating Significant Revenue”
Ports with more than 18 million TEU capacity are classified as extensively busy ports. The fundamental cause for the extensively busy port’s dominance in the global market is their capacity and the variety of operations handled, which has compelled authorities to employ some degree of automation to achieve operating effectiveness. Additionally, these ports generate considerable revenues, enabling port authorities to invest in automation easily.
Key players in the smart ports market are actively implementing marketing tactics such as collaborations, investments, and acquisitions to gain market share. Furthermore, numerous start-ups are raising funds to focus on new developments.
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Global demand for smart ports is anticipated to surge at a CAGR of 20.4% from 2023 to 2033.
The market for smart ports is predicted to reach US$ 16 billion by 2033.
Asia Pacific held 37% of the global smart ports market in 2022.
The global smart ports market reached a valuation of US$ 2.5 billion in 2022.
Abu Dhabi Ports, ABB, Accenture, General Electric, Port Solutions, IBM, Royal Haskoning, Ramboll Group, and Wipro are key providers of smart port solutions.