Driven by maritime trade, expanding penetration of the e-commerce industry, digitisation in shipping container space, and increasing demand for specialised shipping containers by the department of defence, the globalshipping container market size is expected to reach $ 15.83 billion by 2028.
According to a new report by Grand View Research, the shipping container market is expanding at a CAGR of 12% from 2020 to 2028.
The key players of the shipping container market includeBertschi, BNH Gas Tanks, Bulkhaul, Danteco Industries, NewPort Tank, A P Moller - Maersk, China International Marine Containers, COSCO SHIPPING Development, CXIC Group, Singamas Container Holdings, TLS Offshore Containers, W&K Containers, Thurston Group, OEG, Sea Box, IWES and Norcomp Nordic.
In terms of product, the ISO containers generated a revenue of $ 6.28 billion in 2020. Extensive adoption of ISO containers for international trade mainly accounted for a higher share of these container product segments.
Reefer Container To Grow Faster
According to the research and consulting firm, the reefer container segment is expected to register the fastest CAGR of 12.5% in revenue from 2020 to 2028 due to the increasing demand for temperature-controlled transportation for shipping pharmaceuticals and food, and agricultural products.
Industrial transport led the application segment with 56.6% revenue in the global shipping containers market in 2020. Extensive use of shipping containers for transportation of industrial raw materials and manufactured goods such as metals, minerals, oil and gases, chemicals, ores, slags, machinery, tools, etc. attributed to the high share of the industrial transport segment in 2020
The Asia Pacific Dominates The Market
As per Grand View Research's report, the Asia Pacific region dominated the market with more than 68.1% of the global revenue in 2020. Presence of countries such as China and India having a large manufacturing base coupled with robust agricultural exports mainly contributed to the high share of Asia Pacific in the global market.
The market is highly fragmented with the presence of large- and medium-sized international companies and small-sized domestic players.
The 20 feet and 40 feet are the most popular sizes of shipping containers as of 2021. Although based on application, shipping containers are often manufactured in a variety of sizes such as 8 feet, 10 feet, 48 feet, 53 feet, and others. Their increasing demand for transportation of various goods such as food, pharmaceutical, automotive components, and agricultural products is expected to support industry growth.
Trade agreements promote trade among the nations and favourably impact the demand for shipping containers. In November 2020, members of the Association of Southeast Asian Nations (ASEAN) and five regional partners signed the Regional Comprehensive Economic Partnership (RCEP), one of the world's largest free trade agreements. Moreover, recently concluded multiple trade agreements, including NAFTA, EVFTA, EU–UK Trade and Cooperation Agreement (TCA), and others, are likely to fuel the market's growth.
The significant developments in commercial vessels and innovation of efficient and better cargo ships equipped with advanced technology such as navigation systems, advanced sensors, and other components are accelerating the demand for cargo transportation through ships, further fueling the market's growth.
The global e-commerce industry witnessed an exponential surge in the last few years; besides, the rising penetration of smartphones and the internet, especially in developing regions, is anticipated to further fuel the growth of the e-commerce industry. In addition, the growth of the transportation industry on account of growing online retails is expected to benefit the shipping containers market, the research firm said.
Courtesy: Grand View Research. NB: Photo is representational; courtesy: Bertschi.