The global shipping containers industry is expected to become a US$12 billion industry in the next six years driven by more trade agreements and growing demand for cargo service.

Allied Market Research said in its Global Opportunity Analysis and Industry Forecast for 2020-2027 that the global shipping containers industry was pegged at US$8.70 billion in 2019 and is projected to garner US$12.08 billion by 2026 — registering a CAGR of 4.3% from 2020 to 2027. 

Prime determinants of the market growth

In the report, the US-based market research firm said the rise in trade-related agreements and an increase in demand for cargo transportation through ships drive the growth of the global shipping containers market.

On the contrary, it noted that frequent various transportation and inventory costs hinder the market — although the trend of the automation in marine transportation and surge in marine safety norms are expected to open new opportunities for the market players in the future.

COVID-19 pandemic impact

Allied Market Research noted that the ongoing coronavirus outbreak has negatively affected the global shipping container industry.

It said the sudden change in the source of revenue for transport operators has resulted in the shortfall of funds, which would hamper the market growth. 

Scarcity of skilled labor during the lockdown across various countries and the need to take corrective measurements after lockdown to protect the workforce would also negatively impact the global shipping container market, it added.

Large containers to dominate the market

In its analysis, Allied Market Research said the small container segment held the lion's share in 2019, contributing to nearly 1/3 of the global shipping containers market, as small containers accumulate less space as compared to large-sized containers and thus, the larger number of containers can be loaded over the ship.

However, the large container segment is expected to manifest the highest CAGR of 4.8% during the forecast period. This is due to the increasing trend towards cargo transportation through shipping means. 

Healthcare segment to record the fastest growth

Allied Market Research said the healthcare segment is expected to portray the highest CAGR of 5.8% from 2020 to 2027, owing to increased production of medicines and healthcare instruments across the globe.

However, it noted that the industrial products segment held the largest share, accounting for around 1/4 of the global shipping containers market in 2019, as manufacturing companies prefer to transport big machines and other industrial equipment across countries over other available alternatives. 

Meanwhile, the same research said Asia-Pacific region, followed by Europe and North America, is forecasted to record the fastest CAGR in the six-year period.

The global shipping containers market across Asia-Pacific, followed by Europe and North America, held the largest share in 2019, accounting for more than 1/3 of the market.

Moreover, it noted that the region is expected to register the highest CAGR of 5.5% during the forecast period, owing to increased production and transportation of different categories of cargo from Asia-Pacific to different parts of the world.