SHIPPING CONTAINERS MARKET ANALYSIS

Shipping Containers Market Size and Trends

The shipping containers market is estimated to be valued at USD 11.25 billion in 2024 and is expected to reach USD 16.12 billion by 2031, growing at a compound annual growth rate (CAGR) of 5.3% from 2024 to 2031.

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The demand for shipping containers is driven by the growth in global trade. Emerging economies in Asia Pacific and Latin America are expected to fuel the demand as their manufacturing and exports continue to increase over the next decade. Adoption of technology and automation solutions for container handling is also expected to drive efficiencies and reduce costs. However, concerns around global trade conflicts and economic uncertainty pose challenges and risks to the future growth projections of the shipping containers market.

Increasing global seaborne trade

The shipping containers market is closely tied to the development of global trade and freight transportation volumes. Over the past few decades, steady growth in international seaborne trade was witnessed driven by a variety of factors such as globalization of economies, outsourcing of manufacturing to low labor cost countries, and improvements in cross border logistics infrastructure. As global trade agreements have expanded trade between nations, manufacturers are increasingly sourcing raw materials and components from around the world. This has led to a skyrocketing demand for containerized cargo shipments by sea. Major trade lanes such as transpacific, Asia-Europe, and transatlantic routes have seen massive growth in container traffic volumes annually. Shipping lines have increased fleet sizes and ordered new vessels with higher container capacities to benefit from economies of scale. This has encouraged strong demand for new and replacement containers among shippers. The trend of rising globalization is expected to continue in the foreseeable future as developing economies urbanize and integrate further into global supply chains. This will support continuous growth of worldwide seaborne trade and underpin demand for shipping containers.

In May 2022, Mazagon Dock Shipbuilders ventured into container manufacturing following an order from the Container Corporation of India Ltd (CONCOR) for 2,500 cargo-carrying steel boxes. Valued between INR 35 million (USD 0.43 million) and INR 40 million (USD 0.49 million) each, this deal addresses the shortage of containers faced by Indian exporters during the COVID-19 pandemic. CONCOR introduces 12 feet containers for the first time in India, aiming to enhance local production to meet demand.

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The widespread adoption of standardized container sizes by the international shipping industry has greatly simplified container handling logistics worldwide. Major container sizes that have become globally accepted include 20 feet (6.1 m), 40 feet (12.2 m), and 45 feet (13.7 m). This has allowed intermodal transfers between ships, trains, and trucks with ease. Empty containers can be repositioned quickly to areas of demand. Multinational ocean carriers, port terminal operators, and inland freight hubs have invested heavily in container handling equipment and infrastructure compatible with standardized dimensions. Shippers also prefer containerization due to reliability of schedules and transport costs. The standardization has maximized container utilization rates by allowing loads to be consolidated efficiently. As global supply chains continue to ramp up volumes traversing vast distances, maintaining standardized container sizes remains crucial to the facilitation of just-in-time logistics. This creates a steady replacement demand as older containers eventually need to be retired and upgraded to modern specifications supported by global intermodal infrastructure.

In March 2023, GenFlat Containers, a company based in California, U.S., introduced a more sustainable collapsible Marine Container. This innovation replaces traditional standard marine containers, collapsing four empty containers into the space of one standard container in just 80 seconds. This solution from GenFlat Containers reduces repositioning costs, storage space, and carbon emissions by an impressive 75%, achieved through a partnership with CIMC in Dalian, China, for manufacturing.