According to research by Frost & Sullivan, global trade expansion and the growing complexity of supply chains are demonstrating the demand for container intelligence along trade lanes.
(For more information, click here.)
The U.S. container scanning market had revenues of $380 million in 2006 and is expected to reach $1.27 billion in 2013. Globally, the market had 2006 revenue of $310, with expectations of $599.2 million in 2013, the research showed.
“Despite differing opinions on the appropriateness of container security systems, the public and private sector are both demanding increased visibility,” said David Fishering, Frost & Sullivan Research Analyst. “While the government needs information for intelligence and risk assessments, the shipping industry wants the information to increase visibility and efficiency throughout the supply chain.”
The report cited technological limitation and high cost as the two main factors holding back market growth. In areas controlled by the government, obtaining funding for advanced technology is difficult and the industry as a whole has been sluggish in implementing advanced technology due to its high cost.
“In order to meet the needs of the government and the shipping industry, the container security providers are expected to innovate and develop systems that increase the value proposition through integration and interoperability,” Fishering said.
By integrating systems, the industry can produce more accurate and timely date, as well as improve the value proposition for clients in both the public and private sector, according to the report.