Market Growth of the Ship-to-Shore Cranes Market Due to Increasing Seaborne Trade and Growing Port Capacities
The Ship-to-Shore Cranes Market is estimated to be valued at USD 6.13 Billion in 2024 and is expected to exhibit a CAGR of 4.3% over the forecast period 2024-2031. Furthermore, increasing marine cargo trade activities and rapid expansion of ports infrastructure globally are propelling the market growth.
Market Dynamics:
Increasing seaborne trade activities are significantly driving the demand for ship-to-shore cranes across major ports. Rapid globalization and rising international trade have augmented marine cargo transport through sea routes over the past few decades. Ship-to-shore cranes play a vital role in efficient loading and unloading of containers from large container ships. Growing marine freight to emerging economies is thereby increasing investments in container port infrastructure and related equipment.
Growing capacity expansions at existing ports and construction of new ports provide impetus to ship-to-shore cranes market. Several countries are investing heavily in developing smart port logistics and integrating advanced cargo handling equipment to enhance trade competitiveness. Upgradations of old ship-to-shore cranes and procurement of larger capacity cranes support the increasing vessel sizes. This is positively impacting the demand for technologically advanced cranes
Market Drivers:
Increased Global Trade and Rise in Seaborne Trade is Driving the Demand for Ship-to-Shore Cranes
The volume of global trade has increased significantly over the past few decades. With rising globalization and economic growth worldwide, trade between countries has risen steadily. Around 80-90% of global trade by volume is carried out through sea routes. This rising seaborne trade has led to increased activities at ports worldwide as more ships are calling at ports for loading and unloading cargo. The demand for cargo handling equipment at ports has also risen to efficiently manage these growing volumes of cargo. Ship-to-shore cranes, which are used for loading and unloading cargo containers from ships to shore, are a critical component of modern port infrastructure. The rising volumes of seaborne trade and cargo is directly increasing the demand for more advanced and efficient ship-to-shore cranes from ports globally.
Increased Size and Carrying Capacity of Container Ships is Driving Larger Ship-to-Shore Cranes
Shipping lines are continuously increasing the size and cargo carrying capacity of container ships to achieve economies of scale and reduce freight costs per container. Modern container ships can carry cargo volumes of over 20,000 TEU. However, these large container ships require ports to have ship-to-shore cranes that can service the entire width and height of such massive ships. As ship sizes increase, ports need to invest in even larger ship-to-shore cranes with higher lifting capacities and outreach to efficiently handle cargo operations of the new generation ultra large container vessels. This scaling up of container ship sizes is driving strong demand for bigger and more powerful ship-to-shore cranes.
Market Restraints:
High Capital and Operational Costs Restrain Wider Adoption of Advanced Models
While new technologies and larger models of ship-to-shore cranes promise higher productivity and efficiency, their costs can be significantly higher than conventional models. The capital expenditure required to purchase new state-of-the-art ship-to-shore cranes running into tens of millions of dollars can be quite substantial for port operators. Their high operational and maintenance costs over the lifetime also strain port budgets. The high upfront investment coupled with operational expenses restrain many ports, especially in price-sensitive developing markets, from quickly upgrading to the latest crane models. Cost remains a major constraining factor for widespread adoption of advanced ship-to-shore cranes.
Shortage of Skilled Operators is a Looming Challenge
Ship-to-shore cranes handle cargo operations that require precision and control for safety. Operating such sophisticated equipment needs experienced, skilled and trained crane operators. However, a shortage of qualified crane operators is emerging as a concern. With rapid growth of global trade, ports face difficulties attracting and retaining talent. An aging workforce also raises challenges of losing experienced operators to retirement. The specialized skills required and risks involved further shrink the potential labor pool. Unless addressed, the lack of skilled operators can hamper optimal utilization of even advanced cranes purchased by ports. It emerges as a restraint on the long-term outlook of the ship-to-shore cranes market.
Market Opportunity:
Automation and Digitization Provide Significant Opportunities
Growing automation and digitization in the ports and shipping sector provides huge opportunities for the ship-to-shore cranes market. Newer generations of automated, remote-controlled and self-driving cranes are being developed to overcome issues like labor shortages and improve safety and productivity. Sensors, AI and data analytics allow for predictive maintenance, remote monitoring and advanced cargo handling capabilities. As ports around the world step up investments in automation and technology upgrades, the market promises robust opportunities. Adoption of automated cranes will also mitigate the risks involved in manual operation and enlarge the potential operator pool by changing skill requirements.
Adoption of Greener Models Opens New Avenues
With global focus rising on transitioning to greener operations, ports also seek environment-friendly cargo handling solutions. This presents an important market opportunity for developers of ship-to-shore cranes powered by renewable energy or hybrid systems. Growing demand for cranes compliant with stringent emission norms also provides impetus. Select developed port markets in regions like Europe and North America offer early adoption potential. Green port initiatives and regulatory push for decarbonization open new prospects. If competitively priced, eco-friendly ship-to-shore cranes can leverage monetary incentives while supporting sustainability goals of ports increasingly emphasizing their eco-credentials.
Link - https://www.coherentmarketinsights.com/market-insight/ship-to-shore-cranes-market-4369
Key Developments:
- On February 21, 2024, the Biden Administration revealed its intention to allocate US$ 20 billion, including grants, to enhance U.S. port infrastructure over the next five years as part of President Biden’s Investing in America Agenda. This announcement was among several initiatives aimed at strengthening the cybersecurity of U.S. ports. In response to this investment, PACECO Corp., a U.S.-based subsidiary of Japanese firm Mitsui E&S Co. Ltd., is considering expanding its manufacturing operations in the United States to produce ship-to-shore cargo cranes domestically.
- On June 6, 2024, APM Terminals (APMT) increased its equipment inventory in terminals across Latin America, Africa, and Europe by acquiring 240 new units. These include ship-to-shore cranes, RTG cranes, and electric terminal tractors. ZPMC will deliver these cranes to various APMT terminals, enhancing operational capacity and efficiency.
- In November 2023, A second Chinese vessel transporting a ship-to-shore crane for the international deep-sea facility at Vizhinjam docked at the port, as reported by port sources. The vessel, named Zhen Hua 29, arrived at the Kerala coast on November 9 and awaited clearance from the Ministry of Home Affairs (MHA) before docking, the sources added.
Key Market Players:
Key companies covered as a part of this study include Demag Cranes & Components GmbH, Doosan Infracore Co., Ltd., Guangzhou Dock Machinery Co., Ltd., Hyundai Heavy Industries Co., Ltd., Jiangsu Yangzhou Port Machinery Co., Ltd., Kalmar AB, Konecranes Plc, Kunming Machinery Plant Co., Ltd., Liebherr Group, MacGregor Industrial Oy, Manitowoc Crane Group, Mitsui Engineering & Shipbuilding Co., Ltd., Nacco Crane Group, Sany Heavy Industry Co., Ltd., Shanghai Zhenhua Heavy Industries Co., Ltd., Shanghai Zhenjiang Machinery Co., Ltd., Terex Corporation, TTS Group, Wuhu Port Machinery Co., Ltd., and Xiamen Xiangtong Heavy Industry Co., Ltd. are the major players.
