Shipping containers are standardized reusable steel boxes used for intermodal shipments of freight all over the world. They are essential for international trade as they allow goods to be shipped in bulk from manufacturers to retailers worldwide. Shipping containers help reduce shipping costs by allowing faster loading and unloading of cargo from ships, trucks, and trains. They protect cargo from damage, theft and adverse weather during long-distance transportation.
The global shipping containers market is estimated to be valued at US$ 14484.04 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Rising global trade presents a major growth opportunity for the shipping containers market. International trade volumes have been steadily increasing over the years and are expected to continue on an upward trajectory driven by globalization. As more goods are traded globally between nations, shipping carriers will need more containers to transport these goods. Since containers allow for an efficient intermodal solution, increased demand for shipping will directly boost demand for new containers. The integration of economies worldwide is fueling higher commerce between countries, creating sustained demand for container shipping. Expanding international trade volumes present a massive opportunity for shipping lines to invest in additional containers and capitalize on the growing freight transportation requirements across the world.
Porter's Analysis:
Threat of new entrants: The shipping containers market requires high initial capital investments to build production facilities, purchase raw materials, and equipment. This poses high entry barriers for new players.
Bargaining power of buyers: The buyers have moderate bargaining power in this market. The market has several established manufacturers who produce standard shipping containers of varying specifications. Buyers can negotiate on price.
Bargaining power of suppliers: The suppliers have moderate bargaining power. Steel is the major raw material used and it has few suppliers globally with established presence. However, the suppliers cannot influence prices significantly due to availability of substitutes.
Threat of new substitutes: There are limited threats of substitution as no close substitute offers the standard structural strength and durable multi-use functionality of shipping containers.
Competitive rivalry: The market has few large players dominating the market. The intensity of competition is high based on pricing, product innovation, and industry certifications.
SWOT Analysis:
Strength: Widely used global standard for maritime shipping. High structural strength and durability for multi-trip use.
Weaknesses: Heavy weight increases shipping costs. Prone to damage if mishandled during transportation
Opportunities: Growing international trade and e-commerce markets. Use of specialized containers such as refrigerated ones.
Threats: Volatility in steel and fuel prices impacts production costs. Stringent regulatory norms on cargo safety and container specifications.
Key Takeaways:
The global Shipping Containers Market Demand is expected to witness high growth due to rise in international trade.
Regional analysis: Asia Pacific dominates the market currently holding over 50% share supported by busier ports in China, Singapore and India. North America is the second largest market and is expected to grow at a faster rate due to rise in trade with Asia.
Key players: Key players operating in the shipping containers market are China International Marine Containers Co. Ltd, Singamas Container Holdings Limited, Dong Fang International Container (Hong Kong) Co. Ltd, CXIC Group Containers Company Limited, and Sea Box Inc.
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