Smart Shipping Container Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Smart Shipping Container Market Size

Smart Shipping Container Market Analysis

Hardware Category Is Largest and Fastest-Growing

The hardware category holds the largest share, around 50%, and it is expected to witness the highest CAGR over the forecast period, owing to the extensive use of different components for monitoring and tracking applications. A large number of sensors are required for efficaciously monitoring the condition of the package being transported on a ship, flat railway wagon, or semi-trailer truck.

These components essentially provide detailed information on the humidity, temperature, and pressure inside and the movement of the package, to help shippers save money during their transportation. They also react to the changes occurring every minute in relation to the interior environment and respond immediately to it, relaying the information to a central monitoring facility located remotely. Thus, the remote diagnosis enabled by these components helps pinpoint the exact location of the cargo and saves significant time for crew members in fixing the problem.

This approach of remote condition monitoring ultimately helps reduce the damages incurred due to the loss or destruction of the goods. It also reduces the requirement for regular in-person checkups, which, in turn, saves time and aids in offering more convenience to the inspection crew.

Essentially, these components ensure the accuracy and reliability of shipment tracking with real-time information on their whereabouts and condition. Among all the hardware components, sensors hold the largest share because they are the most-used electronic components in smart containers.

Software demand is also growing significantly, as it acts as the interface between the location-based data and central control room, which can gather the required information for analysis. Hence, the rising need of transporters for insights into the package location and condition is propelling the demand for software that can offer enhanced analytics support.

Global Positioning System Dominates Market

GPS dominates the market because of its role in monitoring and tracking the movement of the package. The tracking of live data by modern GPS and cellular modem technology is of great help to the control centers involved in improving transportation management.

Furthermore, the rapid adoption of the Bluetooth Low Energy (BLE) technology is due to the increasing acceptance of IoT devices, which require an efficient means of communication. It is predicted that most containers will be equipped with IoT in the coming years since the integration of such technology is necessary for connectivity and communication.

The long-range wide area network (LoRa WAN) category is expected to grow at the highest rate, attributed to the advantage of LoRa WAN over other technologies, such as Wi-Fi and BLE. LoRa WAN offers long-range communication due to its high bandwidth. Moreover, it improves the performance of containers by enabling data sharing and delivering accurate information about the location.

Food & Beverage Vertical Is Expected To Grow at Highest Rate

The food & beverage vertical is expected to grow at the highest CAGR, more than 20%, ascribed to the increasing demand for perishable and packaged food. The focus of individuals is shifting from home-made to ready-to-eat food, which is driving the demand for smart marine transportation solutions for eatables.

It is understood that due to the logistical challenges and the varying climatic conditions in places where cargo is shipped, the food & beverage sector suffers a lot. Due to this, large quantities of food & beverages rot, thus resulting in heavy revenue losses to the industry. The use of smart marine transportation solutions enables food & beverage companies to reduce this risk via remotely changing the climatic conditions inside the container.

The pharmaceutical industry is also growing in the market as it is highly sensitive to time and quality assurances. Pharma products require appropriate storage and transportation conditions, especially with regard to temperature, owing to the stringent government regulations on quality and safety they must adhere to. The increasing demand for vaccines, drugs, and other medical supplies is, thus, boosting the market advance. Drug supply chains are exceptionally demanding, as transporters are expected to maintain cold-chain practices, as well as avoiding robberies during transportation.

Additionally, it is expected from the industry that it delivers critical products to customers at a competitive operational cost and in a secure manner. Smart containers have arisen as the most-reliable and -efficient solution for the delivery of delicate drugs. The pharmaceutical industry also benefits from them with the improved location tracking, humidity and pressure monitoring, near-real-time temperature maintenance, and heightened security, which ultimately aids in better adherence to government regulations.

Containers also carry donated organs and, therefore, require to be sealed tightly. Additionally, appropriate temperature should be maintained, and the entire thing must be kept in a safe location on the ship, to avoid the harm from jerking and unintentional falling.

Geographical Analysis

Europe has the leading position in the smart shipping containers market, with around 40% share in 2022. This is attributed to the presence of various key players offering hardware integrated with IoT sensors and advanced software for efficient data analytics.

In Europe, Germany holds the leading position, and it will grow with a CAGR of 18%, attributed to the fast adoption of advanced technologies, including artificial intelligence, machine learning, and IoT.

Moreover, the existence of various shipping companies in the region boosts the demand for smart shipping solutions. Moreover, in November 2022, the European Community Shipowners’ Associations (ECSA) announced that at least 20 million ETS allowances, which equal EUR 1.5 billion as per the current ETS carbon price, will be earmarked to maritime projects under the Innovation Fund.

Furthermore, the existence of highly industrialized economies, such as Germany, the U.K., France, Italy, and Belgium, boosts the solution demand. The government is also implementing initiatives to facilitate the growth of industries. For instance, according to the EU, 64% of the R&D expenditure by the private sector and 49% of the expenditure on innovation in Europe are accounted for by the manufacturing industry. As a result, shippers are using cutting-edge technologies, such as IoT, 3D printing, robotics, high-performance modeling and computing, and artificial intelligence.

Report Breakdown

Based on Offering

• Hardware
  • Sensors
    • Temperature
    • Pressure
    • Humidity
    • Gas
  • Connectivity devices
  • Telematics & telemetry devices
• Software
• Services

Based on Technology

• Global Positioning System (GPS)
• Cellular
• Long-Range Wide- Area Network (LoRa WAN)
• Bluetooth Low-Energy (BLE)

Based on Vertical

• Food & Beverage
• Pharmaceutical
• Oil & Gas
• Chemical

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

Top Smart Shipping Container Companies