Report: Port Equipment Market to Grow to Nearly $9 Billion
The container handling equipment market is to grow 39.3% to reach a size of US$ 8.75 billion by 2025, from an estimated $6.28 billion in 2017.
Over the eight-year forecast period, the report by the global market research and consulting company MarketsandMarkets ‘Container Handling Equipment Market: Global Forecast until 2025’ has predicted a compound annual growth rate (CAGR) of 4.24%.
The increase in cargo transportation and need for automation to handle increased cargo volumes is expected to drive the market for automated container handling equipment, while increased stringency in emission regulations shall drive the demand for electric and hybrid equipment.
An increased focus on fleet-level emission reduction, supported by rising stringency in emission norms and growing emphasis on port automation, are the key drivers for this market.
Alternatively, the high capital costs of container handling equipment and lack of synchronization among different equipment may hinder the growth of the market.
It is estimated that equipment in the 41–70 tons segment will grow at the highest rate and record the fastest growth in the market during the forecast period.
According to the Port Equipment Manufacturers' Association, of the total number of ship-to-shore (STS) cranes and rubber-tired gantry cranes sold in 2015, around 79.3% and 64.2%, respectively, were in the 41–70 ton range.
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Other equipment types such as straddle carriers, reach stackers, and mobile harbour cranes are included in the tonnage capacity range.
The report has found that growing containerized traffic in this capacity range at key port terminals will drive the 41–70 tons container handling equipment market.
Another important segment that is estimated to hold the largest share of the container handling equipment market is the >10 litre engine capacity group of machines.
The demand for higher capacity engines is greater in Asia Pacific, Europe, and the Middle East due to the increased container throughput in these regions.
Another finding from the report is that the Asia Pacific will continue to be the largest and fastest-growing container handling equipment market from until 2025.
As per the World Shipping Council, of the top 10 container port terminals in terms of maximum volume in 2015, seven are located in China with a capacity of around 130.2 million TEUs annually, followed by Singapore, South Korea, and the UAE.
Additionally, the small and medium ports in countries such as India, Thailand, and Malaysia offer the potential for growth in the container handling equipment market.