Marine Port Services Market Size, Share & COVID-19 Impact Analysis, By Service (Container Handling Services, Ship Repair, and Maintenance Services, Navigation Services, Supply Chain and Logistics Solutions Services, and Mechanical & Electrical Engineering Services), and Regional Forecast, 2021-2028

The global marine port services market size was USD 71.62 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with marine port services witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market had shown a decline of 3.3% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 73.91 billion in 2021 to USD 101.98 billion in 2028 at a CAGR of 4.7% in the 2021-2028 period.

Ports are seafaring commercial facilities generally situated on a shore or a coast used to transfer cargo & people and ship docking. Ports are the key component of the global transportation sector and play a vital role in expanding the world economy. Major factors responsible for the growth of the marine port services industry are the surging seaborne trade and the increasing development of port infrastructures. Moreover, the rising container handling services in recent years are anticipated to boost market growth.

Maritime Trade and Transport Witnessed Negative Demand Due to COVID-19 Outbreak

The demand for marine port services is directly influenced by international trade and economic cycles. The decreased production and consumption during the pandemic has led to a reduction in maritime trades, which, in turn, has reduced port traffic and shipping demand. A decrease in the demand for container transport has reduced activities in container handling ports. Thus, COVID-19 has had a negative impact on the port services market owing to the decreased demand for marine port services.

• The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) stated that in the first quarter of 2020, the container shipping volume worldwide reduced by 5.1% as compared to the same period in 2019.


• According to the International Chamber of Shipping (ICS), the revenue losses caused to the shipping industry due to the pandemic were USD 350 million per week.

Although COVID-19 has slowed the shipping and port traffic, the shipping industry has continued to play a vital role in the global goods transportation and supply chain. Many countries have implemented several measures to contain the spread of the virus and continue the sea trade. A slow recovery has been witnessed after the second quarter of 2020 owing to the increased freight rates.

LATEST TRENDS

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Growing Adoption of Innovative Technologies is a Prominent Trend

Ports are progressively employing innovations in the entire value chain with a wide range of technologies. For instance, technologies such as the Internet of Things (IoT), robotics, and platform solutions are used for loading & unloading containers. Big data analytics and smart metering are used for storage facilities at ports, and smart energy management, predictive maintenance & smart grid technology are used for industrial processing. The COVID-19 pandemic has accelerated the pace of adopting digital technology in the maritime sector.

• For instance, in 2020, Awake.AI was selected by the Port of Rotterdam for the development of the smart port project. Awake. AI fashioned a smart ship port call management system to test all transformational processes without threatening the port’s massive operations.


• The Yangshan Port in China is the largest automated port in the world.

Implementing advanced technologies helps to transform the port ecosystem from simple logistics and transport nodes to an efficient and open community that can participate in the integrated world trade.

DRIVING FACTORS

Surging Demand for Maritime Trade across the Globe is Expected to Fuel Growth

The maritime sector plays an important role in expanding the global economy. An increase in the seaborne trade across the globe is anticipated to boost the marine port services market share. As stated by the United Nations Conference on Trade and Development (UNCTAD), around 80% of the global trade by volume is carried out by sea and is controlled by ports across the globe. The growth in maritime trade and transport is expected to fuel the demand for marine port services, such as terminal handling, logistics, and others. Moreover, the surging growth of container cargo is anticipated to increase the requirement of container handling services, which, in turn, would drive market growth.

• In a report published by UNCTAD, it is stated that in 2019, 811.2 million TEUs (20-foot equivalent units) were handled by container ports worldwide, as compared to 795.3 million TEUs in 2018.

The rising shipping demand is expected to propel the growth of the port services market.

High Demand for Development of Port Infrastructure Anticipated to Propel Growth

The rising sea trade has created the need for alternate trade routes that are shorter to save time and cost. The use of alternate trade routes is expected to increase the construction of new ports alongside the new route.

• For instance, ITF transport suggests that due to a rise in the temperature, the Northern Sea Route and the Transpolar Passage can be used as alternative routes. By using the Northern Sea Route for maritime freight between Northern Europe and Japan, it might lessen the voyage distance by 37%, as compared to routing through Suez Canal.

New ports are expected to be developed alongside the new trade routes, which will spur opportunities for the marine port services market growth. Moreover, the rising investment for the development of renewable infrastructure is expected to boost market growth.

RESTRAINING FACTORS

Regulatory Norms Rested by Several Regulatory Authorities May Hamper Market Growth

The ongoing global transition to a clean and green maritime sector is expected to affect the shipping industry. At the same time, the surging number of strict norms put forward by the international maritime environmental agencies regarding ship recycling, Sulphur emission, and greenhouse gas emission is set to restrain growth.

Following are some recent regulatory developments:

• The International Maritime Organization (IMO) 2020 regulation expects to reduce the Sulphur cap in fuel oils to 0.50% from 3.50%.


• The IMO aims to reduce CO2 emissions from shipping by 40% by 2030.


• The IMO energy efficiency design index (EEDI) sets difficult standards for new ships.

SEGMENTATION

By Service Analysis

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Container Handling Services Segment to Dominate Owing to Increasing Traffic of Container Cargo

Based on service, the market is segmented into container handling services, ship repair & maintenance services, navigation services, supply chain & logistics solution services, and mechanical and electrical engineering services. The container handling services segment held the largest market share in 2020 and is expected to continue the domination throughout the forecast period. The growth of the segment is attributed to the rising container cargo traffic across the globe. However, most of the demand is expected to be from Asia. 

• According to UNCTAD, in 2019, almost 65% of the global container port throughput was concentrated in Asia. China alone exceeded 50% of the global container port throughput.

The supply chain and logistics solutions services segment is expected to grow at a higher CAGR during the forecast period owing to the shifting trend of the maritime sector towards digitalization.

The ship repair and maintenance services segment is anticipated to grow significantly through the projection period due to the growing maritime trade. Moreover, ship recycling is also expected to fuel segmental growth.

• In the Indian Union budget of 2020-21, the Finance Minister proposed to double the ship recycling capacity to approximately 4.5 million light displacement tonnes (LDT) by 2024.

The navigation services and mechanical & electrical engineering services segments are also predicted to grow substantially during the forecast period due to the increasing travel cycles per ship and the usage of new sea routes.

REGIONAL INSIGHTS

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The global market is segmented based on region into North America, Europe, Asia-Pacific, and the rest of the world.

Asia-Pacific held the largest market share in 2020 and is anticipated to continue its dominance during the forecast period. It has the world’s busiest ports in China, Singapore, Hong Kong, and South Korea, which would drive the market growth in the region. The growth of the middle-class population in Asian countries is predicted to result in the high demand for European products, which will increase trade and spur Asian port activities. Due to the adoption of more technology-driven manufacturing processes, such as 3D printing, the local production of goods is set to increase, which will create different local trade routes and result in market growth.

The market in North America is expected to reach at and witness significant growth throughout the forecast period. The growth of the market is accredited to the increased funding from the U.S. Government for marine port development.

Europe is anticipated to grow during the forecast period owing to the presence of key players, such as Hamburger Hafen Und Logistik AG and Port of Rotterdam.

The market for marine port services in Latin America is expected to grow owing to the increasing goods imports in the region from Asia. The Middle East & Africa is also predicted to increase their import-export activities. The development of the port infrastructure is expected to fuel the growth of the region.

KEY INDUSTRY PLAYERS

Key Players Are Investing in Port Infrastructure and Technological Advancements

A.P. Moller-Maersk A/S PSA International, Shanghai International Port Co. Ltd., Ningbo Zhoushan port Co. Ltd and others are some of the key players in the market. These major players are investing in new technologies, such as automation, Internet of things (IoT), and others, creating smart ports. The main focus is to create automatic, digitalized, and connected supply chains where a less physical labor force is needed. Key players are also collaborating to create supply chain synergies within their ecosystems and clusters.

LIST OF KEY COMPANIES PROFILED:

• A.P. Moller-Maersk A/S PSA International (Denmark)


• DP World Limited (The UAE)


• Hamburger Hafen Und Logistik AG (Germany)


• Hutchison Whampoa Limited (Hong Kong)


• Ningbo Zhoushan Port Company Limited (China)


• Shanghai International Port Co. Ltd. (China)


• Tianjin Port Development Holdings Ltd. (China)


• International Container Terminal Services Inc. (Philippines)

KEY INDUSTRY DEVELOPMENTS:

• May 2021 – An international association of 45 organizations headed by the Port of Rotterdam was awarded USD 30.6 million funding by the European Union to run ten projects concentrating on smart and sustainable logistics in port operations.


• May 2021 – Hutchison Ports Netherlands B.V., a subsidiary of Hutchison Ports, signed an agreement to acquire the Rotterdam container terminal named APM Terminals Rotterdam (APMTR) from APM Terminals.


• May 2021 – Régie du Terminal à Conteneurs (RTC), a terminal operator in Cameroon, placed an order for two Gottwald Model 6 Mobile Harbor Cranes manufactured by Konecranes to improve its overall capacity in container handling.

REPORT COVERAGE

An Infographic Representation of Marine Port Services Market

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The market research report provides a detailed analysis of the industry and focuses on key aspects, such as key players and marine port services. Moreover, the research report offers insights on marine port services industry trends, competitive landscape, market competition, product pricing, market status and highlights key industry developments. In addition to the factors mentioned above, it encompasses several direct and indirect factors that have contributed to the sizing of the global market over recent years.

Report Scope & Segmentation