The import/export business is one of our world’s greatest treasures. Many countries rely heavily on this business model for economic growth and development. Shipment has always been an aggravating issue due to the high costs, inconvenience, and overall complexity of conducting business on a global level. I am sure you have seen those giant, metal shipping containers before and according to recent market research, we will be seeing a lot more of them in the near future.
Why Shipping Containers?
More and more businesses are choosing to rent these shipping containers for the simple fact that they do not require the unloading and reloading of goods at intermediate points on its journey. These containers can facilitate transport on both land and sea with the use of trucks, rails, and ships. According to market research, the global shipping containers market is expected to witness significant growth by 2025.
Dry Containers Dominating The Market
Dry containers have a very high market value. Recent market research estimates that the value of the dry container market segment will reach an excess of $7 billion by the end of 2025. This means the dry container segment will likely dominate the market growth and is expected to grow at the high value CAGR (compound annual growth rate) of 8.4% in the years to come.
Growing Sales of Specialized Containers
The demand of superior quality and highly efficient containers along with the steady improvement of seaborne trade are just a couple of the factors contributing to the development of the worldwide market for shipping containers. There are fierce growth opportunities in the years to come due to favorable government policies, the increasing demand for reefer containers, and a rising preference for the 40-foot tall cube containers.
20 ft. Sub-Segment Dominating Market Growth
The dry containers market segment can be further segmented into 20 ft., 40 ft., and 40 ft. high cube containers. Specifically, the 20 ft. sub-segment is expected to grow at a higher CAGR than the others, anticipated at 8.6% and estimated to reach a value of over $1.9 billion by 2025.
On the other hand, the 40 ft. high cube sub-segment is currently the largest and will likely remain the largest sub-segment, despite its lower growth rate. This sub-segment is estimated to reach a value of over $3.4 billion, even though it is only projected to grow at a value CAGR of 8.4% in the years to come.
Reefer Containers Also Contributing To The Growth Rate
Reefer containers are some of the most widely used for global shipping. These containers are available in a variety of sizes, same as dry containers, with sizes ranging from 20 ft., 40 ft., and 40 ft. high cube. They are projected to be the fastest growing segment with a CAGR of 10.2% throughout the next several years. Currently, 40 ft. high cube and 20 ft. sub-segment reefer containers are expected to push the growth rate of the reefer container market.
Davenport Laroche is a leading shipping container investment agency based out of Hong Kong.