India Container Market Size, Share & Trend Analysis Report By Product (20 Feet, 40 Feet, 45 Feet), By End Use (Food & Beverage, Consumer Goods, Industrial Goods, Healthcare And Others), And Segment Forecasts, 2021 - 2028

Report Overview

The India container market size to be valued at USD 10.3 billion by 2028 and is expected to grow at a compound annual growth rate (CAGR) of 1.7% during the forecast period. The growth can be attributed to the increase in maritime shipping on account of an increase in trade agreements across nations. The market is expected to further grow over the forecast period on account of the expansion of the e-commerce industry, digitalization in container shipping, and rising demand for specialized containers. Moreover, an increase in demand for commodities and rapid urbanization are expected to fuel the market growth. Significant developments in commercial vessels and innovation of cargo ships equipped with the latest technologies such as navigation systems, advanced sensors, and other components are expected to drive the demand for transportation through ships, in turn propelling the growth of the container market.

The COVID-19 pandemic has had an unprecedented impact on the transportation sector. During the initial stage of the pandemic, lockdowns were imposed in various parts of the world as part of the efforts to arrest the spread of coronavirus. Moreover, manufacturing facilities were forced to temporarily shut down. This caused disarray in the demand and supply of containers across various ports. Cargo container-loaded ships that were already routed out from the Asia Pacific dropped off several loaded containers in ports across North America and Europe. However, owing to pandemic restrictions, the containers could not return to their origin and were stuck in ports and inland rail depots. As a result, the shortage of containers in the Asia Pacific led to a hike in their prices, in turn encouraging domestic manufacturers in India to develop new containers

In an attempt to reduce dependency on China for container requirements, the Container Corporation of India (CONCOR) has selected ten strategic locations for the production of containers on a pilot basis. A major growth aspect for both international and domestic businesses will involve optimizing the internal logistics chains within the organization. This opportunity is expected to fulfill the demand for containers in India.

India Container Market Trends

The factors driving regional market expansion include expanding demand for cargo transportation via ports, growing trade agreements, rising demand for specialized shipping containers by the defense sector, and automation in container shipping. For the trading of goods, several trade agreements have been negotiated between developing and industrialized countries. As per a report published by IBEF, almost 95% of the trade volume in India is handled by maritime transportation.

Furthermore, increased investments made in the research & development of advanced materials for the manufacture of containers by major players and advances in technologies are expected to propel opportunities for market players during the forecast period. However, inconsistency in inventory and transportation costs are projected to act as a challenge for the industry expansion.

Product Insights

The product segment is further divided into 20 feet, 40 feet, and 45 feet containers. The 40 feet segment dominated the India container market in 2020, accounting for more than 50% share of the overall revenue. These containers are the largest of the standard size containers, others being 20 feet and 10 feet containers. They are typically constructed from metal and are suited for storage purposes at homes, offices, and apartments, among others. Being double the size and capacity of 20 feet containers, the 40 feet containers carry more cargo at once, representing an efficient and economical option for storage and transportation. Factors such as ample space and durability offered by the 40 feet containers are contributing to their high adoption across various applications.

The 20 feet segment is anticipated to register the second-highest CAGR over the forecast period. These containers can be used for shipping, storage, and conversion for multitudes of purposes. They are built to withstand rough conditions of the open sea, which makes them highly durable. Moreover, they are far more convenient in terms of handling and lesser expensive than the 40 feet containers. However, their lower storage capacity compared to 40 feet containers is expected to hinder the segment growth.

End-use Insights

The end-use segment is further divided into food and beverage, consumer goods, industrial goods, healthcare, and others. The consumer goods segment holds a significant market share in 2020. Consumer goods primarily include electronic devices, toys, and furniture, among other goods that are transported through shipping containers. Steady growth in the import of consumer goods is expected to drive the demand for containers in various end-use industries.

The food and beverage segment is expected to register the highest CAGR over the forecast period. This segment involves the transport of food items and beverages such as alcohol and spirits, vinegar, food ingredients, pulses, vegetable oil, frozen fruits, sauces, jams and jellies, and preserved seafood. Perishable food items and beverages deteriorate quickly if exposed to humidity or extreme temperature. Reefer containers play a vital role in the transportation of perishable food items as they offer exceptionally large storage space for cooling while easy to transport and can be placed in many locations. As a result, the increasing trade of agriculture and processed food is expected to boost the demand for containers in the food & beverage segment over the coming years.

Key Companies & Market Share Insights

The container market can be described as a competitive market with a wide presence of players such as A.P. Moller and Maersk; MSC Mediterranean Shipping Company S.A.; COSCO Shipping Development Co., Ltd.; China International Marine Container (Group) Ltd.; and Hapag-Lloyd AG; among others. However, Indian manufacturers held a 3% to 3.5% share in the global container market as India lacks the appropriate container manufacturing infrastructure and investments from the government. Hence, China and other countries supply the majority of the containers to India. There are three Chinese manufacturers that supply about 90% of the world’s containers: China International Marine Containers (CIMC), Dongfang International Container (Qidong) Co. Ltd. (DFIC), and CXIC. Moreover, China is a leading trade partner for India for the export and import of containers Indian companies have already boosted their production of containers; however, these manufactured containers are not adequate to meet the current and estimated demand globally. China has held the leading position in containers manufacturing and supply and have consistently received tenders to supply containers to various countries across the world including India.

Currently, India has a large number of shipyards, which can be arrayed to manufacture containers. Also, some Indian steel companies are developing plans to enter the container market space. However, local participation and support by the government would ultimately bring down the cost of buying containers from other countries. However, in India, the government and CONCOR are aiming to produce the shipping containers in India as part of the Atmanirbhar Bharat initiative and create an import substitute for the new shipping containers.

Recent Developments

• In June 2022, A.P. Moller-Maersk announced the planned acquisition of ResQ. This acquisition will help Maersk strengthen its training facilities

• In December 2021, China International Marine Container (Group) Ltd. collaborated with Vestas Wind Systems A/S and launched a modular side nacelle for the offshore wind turbine

• In December 2020, the Ministry of Ports, Shipping, and Waterways in India formed a committee to assess the viability of producing shipping containers in Bhavnagar, Gujarat, to drive the initiative of ‘Atmanirbhar Bharat’

Some of the prominent players operating in the India container market are:

• A.P. Moller and Maersk

• COSCO Shipping Development Co., Ltd.

• China International Marine Container (Group) Ltd.

• CXIC Group

• Singamas Container Holdings Limited

• Hapag-Lloyd AG

• Evergreen Marine Corporation

• MSC Mediterranean Shipping Company S.A.

• Yang Ming

• ZIM Integrated Shipping Services Ltd.

• DCM Hyundai Ltd.

• J.K. Technologies Pvt. Ltd.

• AB Sea Container Pvt. Ltd.

India Container Market Report Scope

India Container Market Segmentation

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the India container market report by product and end use:

• Product Outlook (Revenue, USD Million, 2018 - 2028)

  • 20 Feet

  • 40 Feet

  • 45 Feet

• End-use Outlook (Revenue, USD Million, 2018 - 2028)

  • Food & Beverage

  • Consumer Goods

  • Industrial Goods

  • Healthcare

  • Others