SMART PORTS MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics- Restraints

1. Lack of skilled personnel is expected to hamper the global smart ports market growth over the forecast period

Incorporating and operating advanced technologies such as AI and IoT require skilled personnel with adequate training and experience. These technologies are needed to be operated by skilled workers that are not available easily, especially in emerging regions such as the Middle East and Africa. As a result of this, adoption of smart ports is hindered. Thus, these factors are expected to hamper the global smart ports market growth over the forecast period.

2. Concerns regarding privacy and security are expected to restrain growth of the global smart ports market during the forecast period

Despite their numerous advantages, many port operators are hesitant towards the adoption of the advanced technologies mentioned above. This is due to the fact that concerns regarding privacy and security. Since cyber-attacks rising rapidly, confidential data regarding ports is can be compromised, jeopardizing the entire operation. Hence, such factors are expected to restrain growth of the global smart ports market during the forecast period.

Market Opportunities

1. Proactive government initiatives towards smart infrastructure can present lucrative growth opportunities in the global smart ports market

Governments of many countries have started taking proactive initiatives toward the adoption of novel technologies such as AI and IoT in ports. Smart ports have become essential for growth of a country’s economic development and achieving efficiency in maritime transportation will only accelerate the growth. For instance, in October 2019, the Government of Andhra Pradesh, India, launched an online platform SMARTPORT as part of the ease of doing business reforms related to trade and export promotion in all ports in the state.

2. Port upgrades via retrofitting can provide major business opportunities in the global smart ports market

Many countries have started upgrading their ports, in order to accelerate maritime trade. For instance, in 2019, the Government of India invested around US$ 1.85 billion on major ports’ infrastructure. Furthermore, in June 2020, the Government of Puducherry received CRZ clearance from the Expert Appraisal Committee (EAC) of the Ministry of Environment, Forest, and Climate Change, India for minor port upgradation.