Smart Port Market (By Technology: Process Automation, Blockchain, Internet of Things (IoT), Artificial Intelligence (AI); By Throughput Capacity: Extensively Busy, Moderately Busy, Scarcely Busy; By Port Type: Seaport, Inland Port) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global smart port market size was exhibited at USD 2.85 billion in 2022 and is projected to hit around USD 26.73 billion by 2032, growing at a CAGR of 25.09% during the forecast period 2023 to 2032.

Key Pointers:

• Asia Pacific region generated more than 40.2% of the revenue share in 2022.
• By Technology, the process automation segment contributed more than 36.4% of revenue share in 2022.
• By Throughput Capacity, the extensively busy segment recorded more than 48.7% of the revenue share in 2022. 
• By Port Type, the seaport segment generated more than 70.9% of the revenue share in 2022.

The growth of the smart port market can be attributed to the growing need to enhance the efficiency of port operations and reducing carbon footprint. Also, governments initiatives in development of smart port infrastructure and upgrade of existing ports and development of new ports to drive the demand for smart ports in the near future.

Smart Port Market Report Scope

COVID-19 Impact

The outbreak of the COVID-19 pandemic has had an adverse effect on the global economy as the governments were forced to implement lockdown measures to prevent the spread of the virus. The effects of the COVID-19 pandemic, including actions taken by businesses and governments to contain the spread of the virus, resulted in a significant delay in supply chain activity, impacting the smart port market directly.

The pandemic was a big disruptor that has created challenges but also opportunities for the sector. The impact of COVID-19 has also highlighted the need for better risk management and greater preparedness, and resilience. Technology solution provider such as Siemens had and continue to face number of supply chain constraints, especially in the areas of base metals (copper, aluminum, steel), plastics, semiconductors, and transportation services. Similarly, for ABB, the pandemic impacted workforce and operations because of quarantines, government orders and guidance, facility closures, illness, travel restrictions, implementation of precautionary measures and other restrictions. For the entire year 2020, ABB’s orders declined by 7 % to USD 26.5 billion, and revenues were down by 7%. The resurgence of new variants of COVID-19 and the uncertainties associated with it may lead to suppliers failing to meet their manufacturing needs in the future and may delay the companies’ production and product shipments, negatively affecting overall operations. Progress in the COVID-19 vaccination programs and the lifting of travel restrictions, however, have resulted in the gradual recovery of the global supply chain and logistic industry and accelerated the demand for smart ports.

Smart Port Market Dynamics

Driver: Increasing international maritime trade activities

Maritime transport is crucial for international trade. The main transport mode for global trade is ocean shipping, and as per UNCTAD, around 80% of the volume of international trade in goods is carried by sea, and the percentage is even higher for most developing countries. This channel of transport is cheaper and more feasible for international trade than the road, rail, and air transport. According to UNCTAD, global maritime trade grew by 4.1% in the fiscal year 2021 and is expected to further swell at a moderate annual rate of more than 2.4% from 2022 to 2026. The growth of the global shipping fleet showed similar trends, and it grew by 3.0% in 2021. Maritime trade bounced back in 2021 owing to the unlocking of pent-up demand, as well as restocking and building inventory. There was also a shift in consumption patterns away from services toward goods, typically health products and pharmaceuticals, as well as home office equipment, along with changes in shopping patterns and the expansion of the e-commerce sector. The sudden boost in demand in 2021 after the grim situation in 2020 due to the pandemic resulted in shortages of shipping capacity and containers and equipment. Several shipowners are resorting to procuring newbuild or using retrofitted vessels to bridge this demand-supply gap. Asia Pacific has emerged as a global manufacturing hub in recent times, owing to its wealth of raw materials and manpower. Thus, the demand for container ships is significantly high in this region, owing to an increase in the export of manufactured and raw goods. Also, according to the UNCTAD Review of Maritime Transport 2021, Asia accounted for a staggering 54% share of the global maritime trade, which is expected to increase, driving the demand for port activities. Therefore, increasing maritime trade activities to drive demand for smart port market.

Restraints: Risks associated with data breach and data protection of seaport clients

 It is quite challenging to prevent data from being misaligned or even missing in ports because of the constantly shifting environment. Any potential dead zones will make it difficult for ports to efficiently gather and exchange data. This is a challenge for automated ports because, unlike conventional ones, they are unable to contain issues at specific tasks or steps in the process, necessitating constant close coordination across operations. The network will also need to be extremely secure and highly mobile due to the extraordinarily complex nature of ports, including the essential operational and security functions required in the successful transportation of cargo.

Millions of cyber-attacks and data breaches are taking place every year, which is an alarm for digital security. For instance in May 2020, the port of Shahid Rajaee, Iran, saw all of its operational processes almost completely interrupted. Massive backlog were caused on the canals and highways leading to the plant when all of the computers controlling the movement of ships, vehicles, and products crashed at once. In March 2020, the port of Marseilles was attacked with ransomware: Mespinoza/Pysa. Although marine infrastructures were not the major target of the attack in this instance, they were nonetheless adversely impacted by their interface with Aix-Marseille-computer Provence's systems. The Chief Information Security Officers (CISOs) of the different affected organizations apparently worked together to drastically mitigate the effects. In August 2021, the port of Houston resisted an attack exploiting a critical flaw in a password management solution. With a CVSS score of 9.8 out of 10, the CVE-2021-40539 software weakness makes it simple for hackers to insert web shells into an organization's information system to assist a variety of tasks, from extracting crucial data to installing malware. Therefore, these are few list of cyberacttack caused to ports in the last couple of years.

Opportunities: Governments initiatives in development of smart port infrastructure

Seaports play a significant and essential part in global supply chains and logistics. Ports must undergo a digital transformation when all the other participants in the market are already well on their way to utilizing the most recent digital technology. The ports nowadays are under constant pressure to improve their efficiencies while lowering their expenses. The government is putting pressure on the ports to boost throughput capacity with the same infrastructure and more control as ship sizes have grown, competition has risen, shipping lines have gone digital, and there is more competition among shipping lines. These are the reasons behind a port's decision to become digital with its operations. There are various infrastructural developments across the world for efficient operations. For instance, the Maritime Administration of the US Department of Transportation has issued a Notice of Funding Opportunity (NOFO) in March 2021, encouraging states and port authorities to apply for USD 230 million in federal grant funding through the Port Infrastructure Development Program for port and intermodal infrastructure-related projects (PIDP). In 2020, the UK government pledged USD 257 million to construct new port facilities to speed up plans for the country’s exit from the European Union’s customs union. Thus, such initiatives from the governments helped by various stakeholders will ensure that the future of ports is smart and efficient.

Likewise, India has 205 notified minor and intermediate ports, along with 12 major ports. The National Perspective Plan for Sagarmala calls for the construction of six additional mega ports across the nation. India's ports and shipping sector are essential to maintaining the expansion of trade and commerce in the nation. With a coastline that measures roughly 7,517 kilometers, India is the sixteenth-largest marine nation in the world. According to India Brand Equity Foundation (IBEF) has plans to invest USD 82 billion in port projects by 2035. In February 2021, the Major Port Authorities Bill, 2020 was passed by the Parliament of India. Indian ports received cumulative Foreign Direct Investment (FDI) inflow worth USD 1.63 billion between April 2000 and June 2021. The bill aims to decentralize decision-making and reinforce excellence in major port governance. Therefore, governments’ initiative in developments of smart port infrastructure across various region to boost demand for smart port market.

Challenges: Requirement for high initial investment for development of ports

The estimated investments in ports are expected to be substantial in the coming 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. Several ports are financially strong and can fund their expansion or upgrades, while many ports must be supported by external agencies, such as governments, private funding, or partnerships, to invest in their infrastructure.

There are various challenges that ports are facing, and they have a major impact on the requirements of infrastructure investments. For instance, the new trends in the maritime industry (such as increasing vessel sizes and rising market power through alliances); decarbonization agenda; building resilience to climate change; overall greening of vessels; digitalization and automation; growing urbanization; and increasing pressure from expanding cities are expected to bring about a digital revolution within the industry. Many more requirements are increasing the necessity of developing new ports and upgrading infrastructure at the existing ports than simply increasing the capacity. In addition, there needs to be a major investment in smart technologies by the port authority. This is over and above the basic investment, and port authorities fail to cope with the additional investments needed. To a large extent, these investment needs are triggered by external drivers, which in the case of smart ports, are necessary for digitalization.

Some of the prominent players in the Smart Port Market include:

• Royal Dutch Shell plc
• IBM Corporation
• Wärtsilä Corporation
• Navis LLC
• Trelleborg AB
• Kongsberg Gruppen AS
• Cisco Systems, Inc.
• Liebherr-International AG
• Abu Dhabi Ports Company
• Port of Rotterdam
• Port of Singapore
• Intel Corporation
• Huawei Technologies Co., Ltd.
• ABB Ltd.
• Yokogawa Electric Corporation

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Smart Port market.

By Technology

• Process Automation
• Blockchain
• Internet of Things (IoT)
• Artificial Intelligence (AI)

By Throughput Capacity

• Extensively Busy
• Moderately Busy
• Scarcely Busy

By Port Type

• Seaport
• Inland Port

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)