Shipping Container Market

Shipping Container Market Statistics – 2027

The global shipping containers market was valued at $8.70 billion in 2019, and is projected to reach $12.08 billion by 2027, registering a CAGR of 4.3% for the forecast period 2020-2027.                    

A shipping container is a container with strength suitable to withstand shipment, storage, and handling. These containers range from large reusable steel boxes used for intermodal shipments to the ubiquitous corrugated boxes. The containers are a means to bundle cargo and goods into large unitized loads, easily handled, moved, and stacked, and can be tightly packed in a ship or yard - similar to cardboard boxes and pallets. They are generally made up of aluminum and steel. The size and type built of each container comply with specifications and regulations formulated by the International Organization for Standardization (ISO).

China entered into the shipping container manufacturing in 1980 with the formation of CIMC in Shenzhen, China, but only gained its greatest momentum beginning in 1993. Not only was China’s low cost of labor an issue, but was also becoming the largest producer and recycler of steel. Till 1995, Taiwan, Hong Kong, Japan, Korea, and most of Europe were producing their shipping containers in Mainland China. Since 1996, CIMC is the largest manufacturer of ISO containers in the world, and by 2007 China produced 82% of the entire world supply of ISO shipping containers. Now, there are many small companies in China that fabricate the ISO certified containers. 

Factors such as increase in demand for cargo transportation through ships and rise in trade-related agreements supplement the growth of the shipping containers market. Moreover, fluctuations in transportation and inventory costs hamper the growth of the shipping containers market. However, factors such as anticipated trend of automation in marine transportation and increase in marine safety norms are expected to provideopportunities for the growth of the shipping containers market during the forecast period.

The global shipping container market is segmented into container size, product type, end use, and region. By container size, the shipping container market is categorized into small containers (20 feet), large containers (40 feet) and high cube containers (40 feet). By product type, it is divided into dry storage containers, flat rack containers, refrigerated containers, special purpose containers, and others. By end use, it is classified into food & beverages, consumer goods, healthcare, industrial products, vehicle transport, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

Key players operating in the market include A.P. Moller–Maersk Group, CARU containers, China International Marine Containers, COSCO SHIPPING Development Co., Ltd, CXIC Group, OEG Offshore limited, Singamas Container Holdings Limited, TLS Offshore Containers International, W&K Containers, Inc., YMC Container Solutions,and others.

Increase in demand for cargo transportation through ships

There is a rise in demand for the transportation of cargo through water ways. This is because the number of cargos are efficiently transferred to the other end in a securer way as compared to other means of transportation. Moreover, cargo ships are less expensive for shipping goods as compared to road and air transits. Ships can carry more cargo from one place to another within a short span of time. As per the records of UNCTAD, approximately 1687 million tons of cargo is transported every year in around 177.6 million containers covering 998 billion tons-miles. The recent developments in commercial vessels and giant players’ innovation of better and efficient cargo ships equipped with latest technology such as advanced sensors, navigation system and other components is creating a demand for the cargo transportation through ships. This leads to the growth of the shipping container market and eventually the cargo industry growth.

Rise in trade-related agreements

Numerous trade related agreements have been carried out between the developed and the developing nations to transport goods from one place to another. This has enabled the suppliers to choose water ways as a better and efficient means of transportation. This increased inclination has led the cargo container manufacturers to develop better and efficient containers of different shapes and sizes. This boosts the growth of the market. Also, free trade agreement has enabled a reduction in duties and taxes. Further, there has been an increase in trade activities as exporters and importers need not pay taxes to the government. Countries in trade blocs are lifting bans and making trade more flexible. Hence, the rise in trade-related agreements leads to the demand for stronger containers thereby supplementing the growth of the shipping containers market.

Fluctuations in transportation and inventory costs

Carrying goods from one place to another requires a suitable mode of transportation, which means there should be an efficient usage of the medium. The cost incurred in transportation and holding inventory is another important factor that has a negative impact on logistics. Price is the most significant factor that affects the overall logistics services from the first function till the goods are delivered. This continuous fluctuation in transportation and inventory cost of the material has affected the shipping industry by enabling the customers to opt different methods to transport the goods, which eventually suppresses the growth of the global shipping containers market.

Anticipated trend of automation in marine transportation

The steps toward automation and giant companies demonstrations of autonomous ships has enabled various countries for joining hands to develop automated vessels to be used in passenger and cargo transportation, which eventually leads to the growth of the shipping industry. For instance, Rolls Royce and Finland based ferry operator Finferries demonstrated the world’s first fully autonomous ferry. Also, Norwegian built YaraBirkeland is a fully autonomous container ship, which is intended to carry containers and is to start working in 2020. In addition, Norway based Kongsberg partnered with Yara is planning to develop all electric vessels by 2020. Thus, based on the introduction of automation in shipping industry, the shipping container industry is expected to grow due to the increased safety measures, which eventually leads to the growth of the shipping containers market.

Key Benefits For Stakeholders

• This study presents the analytical depiction of the global shipping containers market analysis along with the current trends and future estimations to depict imminent investment pockets.

• The overall shipping containers market opportunity is determined by understanding profitable trends to gain a stronger foot hold.

• The report presents information related to the key drivers, restraints, and opportunities ofthe global shipping containers market with a detailed impact analysis.

• The current market is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.

• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

 Shipping Container Market Report Highlights