The shipping containers market is estimated to be valued at USD 11.25 Billion in 2024, growing at a CAGR of 5.3% over the forecast period (2024-2031). Furthermore, rapid globalization has increased trade activities globally, thereby propelling the demand for shipping containers for the transportation of goods.
Market Dynamics:
The shipping containers market is driven by factors such as increased globalization and technological advancements. Rapid globalization has led to a rise in international trade activities across countries. This has significantly increased the demand for shipping containers for the transportation of goods via sea, road, and rail routes. Advancements in container technology have enabled the development of specialized containers like insulated containers for transportation of perishable goods and hazardous materials containers. This has further expanded applications of shipping containers. The growing e-commerce industry is another major driver as it relies heavily on shipping containers for logistics and door-to-door delivery of products. Growing investments by major market players in the development of advanced container fleet is expected to support market growth over the forecast period. However, rising trade protectionism policies by some countries poses a challenge to market players.
Market Drivers:
- Increased global trade is driving the demand for more shipping containers: The growth in global trade over the past decade has greatly expanded the volume of goods being shipped around the world. Major exporting countries like China rely heavily on shipping containers to transport manufactured goods to overseas markets in Europe, North America, and elsewhere. As global trade volumes continue to increase with rising incomes in developing economies, the demand for shipping containers will grow as well. More containers will be needed to handle higher shipping capacity on routes between major trade partners. Shipping lines have invested billions upgrading their container fleets to accommodate rising trade levels sustained by global economic expansion.
- Rising manufacturing output is fuelling the need for additional shipping containers: Higher manufacturing output translates directly into increased exports transported by sea. Regions that have attracted reshoring like Southeast Asia now rely on efficient container shipping to reach consumer markets for their goods. Expanding production capacities in countries along China's Belt and Road Initiative will similarly ramp up container shipments along new sea lanes. As developing economies industrialize to produce more tradable goods, they require more shipping containers on standby to maintain fluid supply chains. This long-term manufacturing growth outlook bodes well for container shipping companies seeking to fulfil rising container needs.
Market Restraints:
- Volatility in Shipping Rates Pose Risk to Container Procurement Plans: Shipping rates for transporting containers by sea are subject to fluctuations depending on industry conditions. Periods of peak demand can drive sudden spikes in container freight rates that impact the bottom lines of exporters. The uncertainty over future shipping costs makes it difficult for container owners to secure predictable returns on container investments. When rates plunge during slower periods, container owners take losses trying to maintain scheduled services. This volatility creates risks that may curb procurement of new containers until stable freight conditions return. Shipping companies are hesitant to expand container fleets without visibility into sustained profitability across shipping cycles.
- Trade Conflicts and Tariffs Undermine the Container Demand: Escalating trade tensions between major economies pose a threat to the volume of global container traffic. Tariffs imposed on exports drastically reduce demand from affected trading partners. The U.S.-China trade war dampened Chinese exports to the U.S. which downsized container requirements. Potential breakdowns in trade deals like between the U.S. and European Union carry similar risks. New barriers undermine years of built-up trade flows, casting doubt on projections of sustained sea trade growth. While diplomatic resolutions could restore prior trade levels, uncertainty over escalating protectionism remains a drag on container procurement plans until resolved.
- Emerging Markets Provide Untapped Opportunities for Container Usage: Many developing economies represent virgin territories for container-based logistics and global supply chain integration. Nations undergoing rapid urbanization and rising living standards like India and Indonesia present sizable emerging container markets. Domestic manufacturing and export growth in these countries necessitates modernizing outdated transportation networks to support larger container volumes. Major infrastructure projects underway to improve ports, rail links and roads open the inland areas of developing regions to container shipping reach. International shipping lines stand to benefit by introducing container services and boosting utilization rates in emerging market economies still in early development phases.
- Shifting to Green Fuels Presents New Demand for Alternative Fuel Shipping Containers: Growing environmental pressures are driving the maritime industry to explore zero emissions technologies like hydrogen fuel cells and battery power. This transition opens up opportunities for specialized shipping containers suitable for transporting alternative fuels. Hydrogen fuel cell containers will be needed for on-vessel hydrogen storage and distribution. Battery container units can provide mobile energy storage capacity and onshore power supplies. Research on marine biofuels may create demand for purpose-built containers designed for biofuel storage, distribution, and compatibility. Capitalizing on the shift to clean marine fuels requires investments in developing advanced container systems compatible and optimized for this evolving infrastructure.
Link: https://www.coherentmarketinsights.com/market-insight/shipping-containers-market-3877
Key Developments:
- In April 2023, Craftspace Commercial Inc., a local company specializing in repurposing shipping containers for various uses, introduced a line of portable cold storage containers. These 40-foot refrigerated containers are available for short- or long-term rent, offering versatility for purposes like perishable inventory storage, portable catering refrigeration, and emergency response supply storage. Craftspace Commercial Inc. begins with a supply of 10 units to meet diverse needs.
- In March 2023 Traxens, a leading smart-container service provider in the global supply chain industry, revealed Traxens-Box 3. This is the third version of its permanent container tracker, serving shipping lines, freight forwarders, and Beneficial cargo owners (BCOs. Traxens-Box 3 enhances container tracking capabilities, contributing to efficiency in the logistics chain.
Key Market Players:
American Intermodal Container Manufacturing Company, CARU Containers BV, China Eastern Containers, China International Marine Containers Co. Ltd, CXIC (Changzhou Xinhuachang Int'l Containers) Co. Ltd, Dong Fang International Container (Hong Kong) Co. Ltd, Maersk Container Industry AS, Ritveyraaj Cargo Shipping Containers, Sea Box Inc, Singamas Container Holdings Limited, Storstac Inc., TLS Offshore Containers International Pvt. Ltd, Valisons & Co., W&K Container Inc., and YMC Container Solutions are the major players.
