Market Trends of Port Equipment Industry
This section covers the major market trends shaping the Port Equipment Market according to our research experts:
Government Initiatives for Development of Ports are Driving the Market
In India, till November 2019, several projects with total project cost of USD 1.90 billion have been awarded in the last three years for the upgradation of major ports. As of Union Budget 2019-20, the total allocation for the Ministry of Shipping is USD 272.22 million. In March 2018, a revised Model Concession Agreement (MCA) was approved to make port projects more investor-friendly and make investment climate in the sector more attractive. In January 2018, Yangshan Port, China inaugurated automated container terminal port with investment of USD 2.15 billion.These kinds of initiatives will increase the volume capacity of the docks and to handle the containers and tankers more port equipment will be required which will create a demand in the market.
Asia Pacific is Expected to be the Leader
Asia pacific region accounts for around 65% of the world traffic of the maritime trade transport. With the presence of some of the major developing nations in the world like China and India, the region has seen government investments in the port industry on a large scale. Around 95% of the trade by volume takes place through marine route in India so there is a demand for more developed and large port in the region. For instance, the Government of India has initiated project Unnati under which the plan is to upgrade and improve the efficiency of 12 ports in the country. This will lead to growth for the port equipment industry in the region during the forecast period.
