According to the Market Statsville Group (MSG), the global ship-to-shore (STS) container cranes market size is expected to grow from USD 1,056.1 million in 2022 to USD 2,437.4 million by 2033, at a CAGR of 7.9% from 2023 to 2033.
The installation of ship-to-shore (STS) cranes has increased with the growth in the number of ports, primarily due to their ability to facilitate fast container movement. This trend has been particularly pronounced since the expansion of the Panama Canal, as there has been a significant increase in the use of large-sized vessels like Panamax and Post-Panamax ships, which require STS cranes with extended outreach. The progress of the marine sector, particularly in the realm of trade through ships of various kinds, has been a crucial factor driving the container crane market. The use of large-sized vessels by major transport lines has led to the expansion of deep inland waterways to accommodate these ships, forcing ports to invest in high-capacity equipment for loading and unloading containers. In the Asia-Pacific region, port authorities have embarked on several large-scale port infrastructure projects, and electric STS cranes are expected to contribute significantly to market growth, particularly in developed regions such as Europe and North America, where strict regulations on port emissions favor the adoption of electric STS cranes. The use of electric cranes can help port authorities reduce costs by eliminating the need for traditional diesel engines and reducing maintenance costs.
Ship-to-shore container cranes are specially designed with a range of outreaches and specification detail as per each customer’s requirement. Ship-to-shore cranes enhance the reliability and efficiency of the terminal requirements to maintain productivity. Different types of ship-to-shore cranes are available that are driven by different power supplies, including electric, diesel, and hybrid. The changing vessel size and growing container traffic at the ports have pressured port operations to increase efficiency. The market is estimated to grow as these ports invest in ship-to-shore cranes to tackle throughput peaks. Greenfield projects and upgradation of existing ports fuel the demand. The high initial investment, uncertain economic conditions, and the need for regular maintenance are expected to challenge the market growth.
The pandemic caused disruptions in global trade and supply chains, leading to a decrease in cargo volumes and a slowdown in port activities. This, in turn, resulted in a decrease in demand for new STS container cranes and delays in the delivery of existing orders. Additionally, the pandemic led to restrictions on travel and movement, which impacted manufacturers' ability to conduct site inspections and commission new STS container cranes. This also led to delays in the installation and commissioning of new equipment. However, the pandemic led to an increased focus on automation and remote operation technologies in the container handling industry. This has created an opportunity for manufacturers of STS container cranes, as these cranes can be equipped with automation and remote operation capabilities to improve safety and efficiency in port operations.
Factors such as growing GDPs, changing demographics, and increasing globalization are responsible for the rising container traffic. In addition, the increase in global trading activities in many parts of the world supports the growing port traffic. While the developing countries containerized level is considered to have reached its peak, the population's rapidly growing purchasing power is supporting the economic growth in developing countries, thus facilitating growth in global trading activities. This, in turn, implies the growth of container traffic. However, the European and North American regions are observed to experience a recovery in consumer demand.
Ship-to-shore cranes are significantly expensive as compared to conventional container cranes. Besides, the lack of availability of components and equipment required to set up container cranes in underdeveloped regions is highly expensive. The global economy is growing at a pace that is not too optimistic for the port and shipping industry. A crucial factor is the high initial investment in the port development infrastructure. Further, an individual crane can cost anything above USD 6 million, which is a hefty price if the port authorities invest in multiple ship-to-shore cranes. These cranes also have high maintenance and operating costs for their entire lifetime, including energy costs, personnel training, machine wear and tear, and other associated costs. In addition, if the crane has to be upgraded or converted from diesel to electric power supply, the attributed costs may rise even further. These lifetime operating costs must be considered as they play a vital role in the return on investment on the STS cranes.
The investment in a ship-to-shore crane may also need an upgradation of the quayside and increasing the depth of the bays. These costs will only add to the crane prices, which are themselves very volatile owing to numerous factors, including technical specifications, major component costs (drives, spreaders), size of an order, and port project specifications. Furthermore, even after a crane is installed and ready for use, the period between its installation and when a ship calls at the port may be unpredictable, further attracting additional costs. Thus, these factors are expected to restrain the global ship-to-shore cranes market growth during the forecast period.
Technological development includes automation and external control of STS cranes via joystick or remote computers. Additionally, these features enable the regulator to oversee the crane operation without being impeded by the visual distortions caused by rain, wind, or fog. In June 2020, the Pacific Northwest National Laboratory (PNNL), National Renewable Energy Laboratory (NREL), and Sandia National Laboratories (SNL) jointly developed an open-source software called the Marine and Hydrokinetic Toolkit (MHKiT). This technological advancement not only enhances driver safety and operational efficiency, but also enables the automation of power intake, thereby reducing the noise and emissions produced by the cranes. Thus, technological development and innovation will help grow the ship-to-shore cranes market.
The study categorizes the ship-to-shore (STS) container cranes market based on type and application area at the regional and global levels.
Based on the type, the market is divided into seaport, and estuary port. The seaport segment accounted for the global ship-to-shore (STS) container cranes market's largest market share of around 75.3% in 2022. The seaport segment is typically the largest user of ship-to-shore (STS) container cranes, which are used to load and unload containers from cargo ships. Seaports are key nodes in global trade, and the efficient handling of containerized cargo is critical for the smooth operation of global supply chains. As a result, seaports invest heavily in STS container cranes to improve their cargo handling capabilities. Therefore, it is likely that the seaport segment accounts for the largest market share in the global STS container cranes market.
Based on the regions, the global ship-to-shore (STS) container cranes market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. Asia Pacific accounted for the largest market share of around 43.2% in 2022. The Asia Pacific region is home to some of the most occupied or busiest ports in the world, with many located in countries such as China, Singapore, South Korea, and Japan. These ports are key gateways for global trade, and their efficient operation is critical for the smooth functioning of the global supply chain. As a result, seaports in the region are increasingly investing in STS container cranes to improve their cargo handling capabilities and reduce turnaround times. Moreover, the increasing demand for containerized cargo, driven by factors such as the growing population, expanding e-commerce, and rising international trade, has led to a surge in demand for STS container cranes in the region. With the Asia Pacific region expected to continue to be a significant player in the global trade market, the demand for STS container cranes is expected to remain strong in the years to come.
The ship-to-shore (STS) container cranes market is a significant competitor, and extremely cutthroat in the sector is using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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