A smart port is a port that uses advanced technology and
data analysis to optimize operations, improve efficiency, and enhance security.
Smart ports are becoming increasingly popular around the world as they offer
numerous benefits, including reduced congestion, lower costs, and improved
environmental sustainability.
One of the key features of a smart port is the use of
Internet of Things (IoT) devices and sensors to gather data and monitor various
aspects of port operations. This data can be used to identify areas for
improvement and optimize processes. For example, sensors can be used to monitor
the movement of ships and containers, track cargo, and measure environmental
factors such as air quality and water levels.
Another important aspect of a smart port is the use of
automation and robotics. Automated cranes, trucks, and other equipment can
reduce the need for human labor and increase efficiency. Robotic systems can
also be used for tasks such as inspection and maintenance, reducing the risk of
accidents and improving safety.
Smart ports also rely on advanced analytics and machine
learning algorithms to process large amounts of data and generate insights.
This can help port operators make informed decisions and improve their
operations. For example, analytics can be used to optimize shipping routes,
reduce wait times, and prevent delays.
In addition to improving operations and efficiency, smart
ports also offer benefits in terms of environmental sustainability. By using
data and technology to optimize operations, ports can reduce emissions, lower
energy consumption, and minimize waste. For example, smart ports can use
predictive analytics to optimize the use of energy-intensive equipment and
reduce unnecessary energy consumption.
Overall, smart ports offer numerous benefits for port
operators, shipping companies, and the environment. As technology continues to
evolve, it is likely that smart ports will become even more advanced and
efficient, revolutionizing the way goods are transported around the world.
The COVID-19 pandemic had a significant impact on the global
economy as countries implemented lockdown measures to curb the spread of the
virus. The measures had a direct effect on the smart port market as they led to
supply chain disruptions and delays. However, the pandemic also created both
challenges and opportunities for the sector. It highlighted the need for better
risk management, preparedness, and resilience. Technology solution providers
such as Siemens and ABB faced various supply chain constraints, including base
metals, plastics, semiconductors, and transportation services. ABB's orders and
revenues declined by 7% in 2020 due to pandemic-related impacts on its
workforce and operations. The resurgence of new variants of COVID-19 and
associated uncertainties may lead to delays in manufacturing and shipment of
products, negatively affecting overall operations. However, progress in
COVID-19 vaccination programs and the lifting of travel restrictions have
gradually led to the recovery of the global supply chain and logistic industry,
accelerating the demand for smart ports.
Smart Port Market Dynamics
The Smart Port market is impacted by various dynamics,
including drivers and restraints. One of the primary drivers is the increasing
international maritime trade activities. Ocean shipping is the primary mode of
transportation for global trade, accounting for around 80% of the volume of
international trade in goods, as per UNCTAD. This mode of transportation is
more feasible and cost-effective for international trade than other modes like
road, rail, and air transport. Global maritime trade grew by 4.1% in 2021, and
it is expected to grow at a moderate annual rate of more than 2.4% from 2022 to
2026, according to UNCTAD. The growth of the global shipping fleet showed
similar trends, with a growth of 3.0% in 2021. The sudden boost in demand in
2021 after the pandemic resulted in shortages of shipping capacity and
containers and equipment. The Asia Pacific region has emerged as a global
manufacturing hub, driving the demand for container ships, owing to an increase
in the export of manufactured and raw goods. Furthermore, according to the
UNCTAD Review of Maritime Transport 2021, Asia accounted for a significant 54%
share of the global maritime trade, which is expected to increase, driving the
demand for port activities. These factors indicate that increasing maritime
trade activities will drive the demand for the smart port market.
Restraints in Smart
Port Market
One of the biggest challenges facing the implementation of
smart ports is the risk of data breaches and the protection of clients' data.
With the constantly shifting environment of ports, it can be difficult to
prevent data from being misaligned or even missing. This poses a particular
challenge for automated ports, which require constant coordination across operations
to contain any issues that may arise. Additionally, the network used by smart
ports must be highly secure and mobile to account for the complex nature of
port operations, which includes essential operational and security functions
required for the transportation of cargo.
The risk of cyber-attacks and data breaches is a growing
concern for digital security, with millions of attacks taking place every year.
For example, in May 2020, the port of Shahid Rajaee in Iran experienced a
near-complete interruption of its operational processes when all of the
computers controlling the movement of ships, vehicles, and products crashed at
once. Similarly, the port of Marseilles was attacked with ransomware in March
2020, causing adverse impacts on marine infrastructures due to their interface
with Aix-Marseille-computer Provence's systems. While the Chief Information
Security Officers of the affected organizations worked together to mitigate the
effects, the incident highlights the potential risks associated with data
breaches in port operations.
More recently, in August 2021, the port of Houston was
targeted in an attack that exploited a critical flaw in a password management
solution. With a high CVSS score of 9.8 out of 10, the CVE-2021-40539 software
weakness made it easy for hackers to insert web shells into the organization's
information system, allowing them to extract crucial data and install malware.
These incidents serve as a reminder of the need for robust cybersecurity
measures and the protection of sensitive data in smart port operations.
Opportunities in
Smart Port Market
Governments worldwide are recognizing the crucial role of
seaports in global logistics and supply chain operations. As such, ports are
expected to keep up with the digital transformation taking place in other
industries to remain competitive. Ports are under constant pressure to increase
throughput capacity while keeping expenses low, necessitating the adoption of
digital technologies in port operations. To facilitate this transformation,
governments are investing in infrastructure development initiatives. For
example, the Maritime Administration of the US Department of Transportation has
issued a Notice of Funding Opportunity (NOFO) to encourage states and port
authorities to apply for USD 230 million in federal grant funding for port and
intermodal infrastructure projects. In the UK, the government pledged USD 257
million in 2020 to construct new port facilities to speed up plans for the
country’s exit from the European Union’s customs union. Such initiatives by
governments and other stakeholders will pave the way for smart and efficient
ports in the future.
In India, there are 12 major ports and 205 minor and
intermediate ports, with plans to construct six additional mega ports as per
the National Perspective Plan for Sagarmala. India's coastline is approximately
7,517 kilometers, making it the 16th largest marine nation in the world.
According to the India Brand Equity Foundation (IBEF), the country has set
aside USD 82 billion for port projects to be invested by 2035. The Major Port
Authorities Bill, 2020 was passed by the Parliament of India in February 2021
to decentralize decision-making and improve major port governance. However, one
of the significant challenges faced by port authorities is the high initial
investment required for port development. Many ports rely on external agencies,
such as governments or private funding, to invest in their infrastructure as
the projects are often financially unattractive to the port authority and
external investors.
Challenges in Smart
Port Market
The ports industry is facing various challenges that require
significant investments in infrastructure. New trends in the maritime industry,
such as larger vessel sizes and market power through alliances,
decarbonization, climate change resilience, greening of vessels, digitalization
and automation, urbanization, and increasing pressure from expanding cities are
driving the need for a digital revolution in the industry. Developing new ports
and upgrading infrastructure at existing ports are necessary, and port
authorities must make significant investments in smart technologies. These
investment needs are mainly triggered by external drivers, and port authorities
may struggle to keep up with the additional investments required for smart
ports.
One of the significant elements driving the demand for smart
port infrastructure is the increase in global trade activities and the need to
enhance port efficiency. Smart port infrastructure comprises automated mooring
systems, shore power, gate automation, and smart energy and environmental
solutions. The smart energy and environment solutions sub-segment includes
smart lighting, smart meters, professional services, managed services, and
waste treatment and disposal units. Maritime transport is critical for
international trade, and according to UNCTAD, approximately 80% of the volume
of international trade in goods is carried by sea. To improve port efficiency
and reduce operating costs, smart port infrastructure needs to be developed to
enable smooth port operations.
The adoption of Industry 4.0 technology is expected to boost
demand for process automation in the smart port market, with the aim of
improving port efficiency. Process automation involves the use of computers and
robotics to automate port operations and integrate sensors, networks,
standards, and advanced intelligence into the process. Automation has several
benefits, such as reducing fuel consumption, carbon emissions, and equipment
replacement costs. The use of smart infrastructure in port elements such as
terminal automation, cargo handling, port community systems, safety, and
security has enabled extensively busy ports to handle a capacity of over 18
million TEU per year. This segment is expected to be the fastest-growing during
2022-2027, particularly in China, Singapore, and South Korea, which serve as
major trade corridors. Governments and stakeholders are investing heavily in
these ports to ensure that they remain efficient and maintain their competitiveness
in the global market.
During the forecast period, the Asia Pacific region is
expected to lead the global smart port market. This is due to the region's
dominant position in global maritime trade, with a 54% share according to the
UNCTAD Review of Maritime Transport. The Asia Pacific region has experienced
significant economic growth in recent years, particularly in the manufacturing
and energy sectors, resulting in increased maritime trade activities. The
Organization for Economic Cooperation and Development has predicted that
maritime trade volumes will triple by 2050, leading to an increase in demand
for ships to transport manufactured goods worldwide.
According to the UNCTAD Maritime Transport 2021 report,
emerging nations in the Asia-Pacific region accounted for 60% of global exports
and 70% of imports, with East Asia and China experiencing significant
expansion. A smaller percentage of trade was with developed nations. Asia
Pacific is one of the fastest-growing regions globally, driven by factors such
as international manufacturing hubs, global supply chains, low production
costs, and export-led development policies, resulting in a growing volume of cargo
moving through sea routes. As a result, the number of ports in the Asia Pacific
region is increasing, and existing ports are expanding to accommodate the
increasing cargo traffic. To improve efficiency, existing port facilities in
the region are implementing automation, streamlined work processes, new
equipment, and staff training.
The major players in the global Smart Port Market
- IBM
- ACCENTURE
- ABB
- SIEMENS
- GENERAL ELECTRIC
- TRELLEBORG
- ROYAL HASKONING
- KALMAR
- WIPRO
- RAMBOLL GROUP
- MICROSOFT
- TCS
- NAVIS
- IKUSI VELATIA
- PORT OF ROTTERDAM
- APM TERMINALS
- ABU DHABI PORTS
- HUTCHISON PORTS
- BLOC.
- SCIENTIFIC ENTERPRISES
- NAUTIX
- IOCURRENTS
- PORT SOLUTIONS
Recent Developments in Smart Port Market
The smart port market has seen recent developments that
highlight the industry's increasing adoption of technology to improve port
operations. One significant development is the contract between ABB and Port of
Toulon, France, in June 2022, to connect the largest shore-to-ship project in
France. The Port of Toulon is committed to sustainability, and the ABB shore
connection technology can supply three ferries simultaneously or one cruise
liner with their energy requirements. Accenture's acquisition of Ergo, an
Argentina-based integrated data and AI consulting service in April 2022, broadens
Accenture's Cloud First capabilities to enable data-led transformations in the
Hispanic South American market. In March 2021, Siemens was awarded a contract
by the Port of Kiel to implement a cloud-based power monitoring solution for
its shore power system to cover the electricity demand of all ships while
berthed. Additionally, IBM was awarded a contract by the Spanish Port Authority
in January 2019 to use a blockchain-based shipping platform (Tradelens) to
improve operational efficiency for freight forwarders, shipping firms,
shippers, and logistics service providers. These developments showcase the
increasing importance of technology in improving efficiency, sustainability,
and operational performance in the smart port market.
The smart port market has been experiencing significant
growth in recent years, driven by advances in technology and increasing demand
for efficient and sustainable port operations. One recent development in the
market has been the surging adoption of Industry 4.0 technologies, such as
process automation, to improve port efficiency. This includes the use of
robotics and computers to automate port operations, as well as the integration
of sensors, networks, and augmented intelligence into the process. By automating
terminal operations, ports can operate more smoothly and experience fewer
delays, leading to reduced fuel consumption and carbon emissions.
Another trend in the smart port market is the growing focus
on sustainability and environmental concerns. Many ports are investing in green
technologies and initiatives, such as electrification of cargo handling
equipment and the use of renewable energy sources. This not only helps to
reduce emissions but also improves the overall efficiency of port operations.
Governments around the world are also playing a significant
role in the development of smart port infrastructure. In the US, the Maritime
Administration of the Department of Transportation has issued a Notice of
Funding Opportunity (NOFO) to encourage states and port authorities to apply
for federal grant funding for port and intermodal infrastructure-related
projects. Similarly, the UK government has pledged significant funds for the
construction of new port facilities.
In terms of market segmentation, the extensively busy ports
segment is expected to be the fastest-growing segment during the forecast
period of 2022-2027. These ports, which handle a capacity of more than 18
million TEU per year, are primarily located in China, Singapore, and South Korea
and are investing heavily in smart infrastructure, terminal automation, cargo
handling, port community systems, and safety and security.
Overall, the smart port market is expected to continue its
growth trajectory in the coming years, driven by technological advancements,
increasing demand for efficiency and sustainability, and government support for
smart port infrastructure development.