Table of Contents
The port management market includes any software or software enabled services used in the operation of commercial ports. A significant proportion of the companies in this sector provide technology to enable stakeholder and community management or terminal operations, though there is a growing number of IoT and data and analytics applications coming onto the market.
The port management market can be broadly split into six segments; port community systems, terminal operating systems, port call management, environment and asset management, cargo management and port logistics, and data and intelligence. Port community and terminal operating systems represent the mainstay of the port technology market, but there has recently been rapid growth in the availability and use of port call management systems.
There are 67 commercial organisations worldwide building software to support port management activities. 49% of them are startups and 40% of them are SMEs. We are yet to see any companies achieve growth that supports them becoming a scaleup. 11% of them are large corporate entities building technology for the sector.
Since 2010, $273million of venture capital has been invested in startups developing software aimed at the port management market. There are a small number of very well entrenched corporate providers operating in this space, but there is a significant number of early stage businesses coming through.
Growth in patent registrations for this technology space has been steady throughout the last two decades. The most active patent registrants in the port technology sector are Chinese and Korean academic institutions.
It is estimated that in 2020 the port management software market will be worth $3,65 million, growing to be worth $5,238 million by 2025, a CAGR of 7.50%. Despite the barriers that exist to adoption, the smart ports movement is gaining momentum in the industry and this is a relatively high growth market sector.
Introduction to Port Management Technology
Port management technologies in this report include any software or software enabled service used in the operation of commercial ports. Technology to manage marinas and harbours used principally for leisure purposes are excluded. Rather than any one technology, this encompasses a raft of complementary technologies. A significant proportion of the companies in this sector provide technology to enable stakeholder and community management or terminal operations, though there is a growing number of IoT and data and analytics applications coming onto the market.
Market Overview
The port management market can be broadly split into six segments; port community systems, terminal operating systems, port call management, environment and asset management, cargo management and port logistics, and data and intelligence. Port community and terminal operating systems represent the mainstay of the port technology market, but there has recently been rapid growth in the availability and use of port call management systems.
Port community systems
Port community systems are any electronic platform that can facilitate the exchange of information between stakeholders in a port. They have existed since the late 1970s and are widely used, particularly throughout Europe. Most port community systems built in the twentieth century were established by consortia, often made up of public and private stakeholders of a specific port. The port community system provides the critical data infrastructure that makes it possible for all of a port’s key stakeholders, whether the vessel operator, customs authority, terminal operator, stevedores, or hinterland transport operator to share data about cargo passing through.
Due to the nature of their development, many ports have built their own custom systems, making this market highly fragmented. There are a number of providers that, having developed systems for a local port, have gone on to sell their systems to other ports, usually within the same country or geographic region. For example in the Netherlands, Portbase is the principal provider, in the UK, two providers, MCP plc and CNS share the market, in the USA eModal is the principal provider, and in India, Portall is the principal provider. One of the key challenges for well established port community system providers is that they often rely on legacy technology. Further, the systems are so critical to a port’s operation that they can be difficult to update and maintain. That said, the critical nature of these systems means that well entrenched providers have a highly defensible position and are unlikely to be successfully challenged by new entrants to the market.
Terminal operating systems
Terminal operating systems (TOS) are standalone platforms that are used to manage the process and operations of an individual terminal. Terminal operating systems are widely adopted in the container sector, and are used to manage everything from quayside crane operations and straddle carriers, to terminal gates and hinterland connectivity. Increasingly, modern terminal operating systems are able to automate key operational decisions such as generating and optimising work orders for terminal equipment. Many terminal operators develop their own systems, though Navis is the market leader in packaged container terminal operating systems. Navis, owned by Finish heavy equipment manufacturer Cargotec, achieved 2019 revenue of $133 million USD in 2019 and is also one of the most active acquirers of terminal operating system providers. Navis acquired cloud based TOS provider Octopi and mixed cargo terminal TOS provider Jade Logistics in 2019. In February 2020 Cargotec issued a press release announcing a strategic review of the Navis software business, including the option to divest the business.
Port call management
By far the fastest growing market sector within the ports industry is port call management. Sometimes described as port call optimisation and sometimes described as collaborative port management, port call management is the practice of connecting operational stakeholders in a port community to increase overall productivity. Where port community systems allow stakeholders to share information about cargo, port call management systems allow stakeholders to share information about vessel schedules. The practice is being pioneered in a number of locations including the Port of Rotterdam, which established a Port Call Optimisation Taskforce, and has developed a number of digital applications to enable better operational data sharing among port stakeholders. Additionally, the Swedish Maritime Administration has led a collaborative European effort to develop Sea Traffic Management and Port Collaborative Decision Making. Both of these are sets of message standards for data sharing between vessels and ports. Most recently, in July 2020, the Digital Container Shipping Association (DCSA) released an open data standard for the automatic sharing of operational container vessel schedules.
In 2020, the Port of Rotterdam’s Pronto application, a cloud based platform for collaborative port call planning, was spun out and became PortXChange. As well as Rotterdam, the startup has contracts in place with the Port of Houston, Texas and container carrier Ocean Network Express. Though Rotterdam is a central hub, there is a huge amount going on outside the port city too. In Copenhagen, AI startup Portchain has developed a berth and schedule optimisation engine for container terminals and carriers. The startup uses a combination of big data analytics and machine learning to predict berth availability for container terminals around the world, allowing customers including Hapag-Lloyd and the Port of Tanjung Pelepas to plan and optimise their berth and vessel schedules up to 14 days in advance. In Singapore, demand forecasting startup Portcast uses a combination of satellite, economic, and logistics data to predict cargo demand, vessel operational schedules, and container locations in advance. US based Portcall has developed a port visibility and scheduling tool that is in use in Hawaii, the Caribbean, and ports on the East and West coasts of the United States.
As well as startups, a number of established corporate software suppliers and OEMs have entered the space recently. In 2018, Portcall won a $57,000 USD purchase order from maritime original equipment manufacturer Wartsila as part of their SparkUp Smart Marine Ecosystem Challenge to explore integrating the Portcall platform with Wartsila voyage services. In 2020 Wartsila announced the launch of Navi-Port, a just in time arrivals solution integrating the Sea Traffic Management standard with their voyage solutions offering. The solution was being trialled at the Hamburg Vessel Coordination Centre (HVCC) in partnership with Carnival Corporation before the coronavirus outbreak. Navis has also attempted to develop a port call management platform. Known as Xvela, the platform is designed specifically to connect container carriers and container terminals, making it possible to collaborate on vessel load, discharge, and scheduling. So too has ION Geophysical, the US based ocean sensing company. Their Marlin Smartport solution was developed with grant funding from the Scottish government and enables fully remote port call collaboration including planning, execution, and monitoring for small and mid-sized ports.
Environment and asset management
One of the most important roles for a port authority is that of environmental management. This requires balancing stewardship over the local natural ecosystem with the need to keep the commercial aspects of the port operation functioning safely and efficiently. This includes managing waterways to ensure that they remain dredged to an appropriate depth at all times. For most ports, this means continuously surveying and dredging dedicated channels which is an expensive undertaking. Israeli startup Docktech is building a platform to help ports better manage water depths. Docktech relies on fitting networked sounding sensors to port craft such as tugs and pilot vessels. As the boats go about their regular work, this network of sensors builds a picture of depths throughout the port that can be used to feed an algorithm that is able to predict future depth changes. The platform is being used in a number of ports to enable targeted dredging operations and is now being used by inland waterway vessels in Benelux to maximise their cargo carrying capacity.
As well as keeping waterways safe, it is also vital that they are kept secure. Operating out of the UK, startup Marble has developed a maritime intelligence capability that uses autonomous unmanned aerial vehicles to patrol port and coastal areas. As well as security, their solution can be deployed to provide aerial support in emergency operations such as search and rescue and pollution control. Also using drones to support port operators is Airobotics. The US company is the best funded startup in the port management sector, having closed $101million in venture capital. Airobotics provides autonomous drones for industrial markets including oil and gas, mining, industrial manufacturing centres and ports. Airobotics UAV drones are flown autonomously and can be used to conduct routine inspections of equipment and dry bulk cargo stockpiles, conduct security patrols, assist with emergency situations, and conduct aerial mapping and surveying tasks.
In every port, there are a large number of industrial assets constantly on the move, but putting the infrastructure in place to enable them to be properly tracked can be expensive. Canadian startup Haystack has developed a SaaS platform that enables industrial asset tracking with off the shelf Bluetooth Low Energy sensors. The system can be used to track everything from heavy machinery and small tools to safety equipment and even cruise passenger baggage. In Belgium, Romware has developed a set of industrial tracking devices that can also provide asset positioning services indoors and outdoors. But they have taken the concept one step further with the introduction of wearable IoT devices for port workers. The devices can be used to provide a live operational and safety picture of the entire port, including both equipment and people. Developed in the Port of Antwerp, the platform can be used to track lone workers, restrict access to equipment to particular workers, monitor and alert near miss and safety incidents, and analyse equipment productivity. During the coronavirus pandemic, Rombit’s solution was even adapted to enable social distancing among port workers.
Cargo management and port logistics
The ultimate aim of any port is to manage the flow of vessels and cargo. The ability to get cargo safely off a ship and onto the next phase of its journey safely and efficiently is the ultimate marker of success for a port. Though it is a rare occurrence, cargo can become damaged on its journey, whether in the port, on a ship, or during the next phase of its journey. Being able to assess whether cargo is damaged on arrival to and exit from a port minimises the risk of unfair claims being made against the terminal. But manually measuring and inspecting all containers passing through a port is both too costly and slow to be practical. Finish startup Conexbird has developed a suite of tools for container handling devices that make it possible to assess the status of a container during normal lifting operations. A Conexbird device fitted to container handling equipment uses an electronic actuator to “tap” the container. The resulting sound is measured and fed into an algorithm that determines whether the container is damaged. The technology can also be used to determine how full the container is and whether the contents have changed. Similarly, London based AI startup Zasti has developed a container damage detection algorithm. The Zasti platform can use video and still images from regular CCTV cameras to detect damage to individual containers as they pass through the port.
During its time in the vicinity of a port, a ship may need to take on supplies, spares, fuel, and change crew members. For vessels in offshore anchorages, port logistics are generally provided by boat arranged by the ships agent. Operating out of Singapore, Entrepreneur First portfolio startup F-Drones is developing an emission free transition drone that can carry heavy payloads long distances. The drone takes off and lands vertically but flies like a fixed wing aircraft. F-Drones has already received a commercial beyond visual line of sight drone license in Singapore and has conducted commercial operations with EPS, Viswa Group, and Hafnia. The startup is now working on a full scale drone that can deliver a 100kg payload up to 100km offshore.
Data and Intelligence
For both port terminals and shipping lines, having a clear understanding of the operational and commercial picture is crucial to improving decision making. In the container sector, this is particularly important as the second and third order consequences of network changes are often hard to predict. To combat this, Copenhagen startup Linergrid has developed a cloud based network optimisation engine that uses advanced mathematics to help carriers and terminals understand container line networks. For port terminals, the platform can be used to benchmark competitiveness and value add against other ports in the vicinity. The tool makes it possible to assess the networks currently using a specific terminal, as well as networks using alternate ports and terminals, and to model how shifts in network design to and from the specific terminal will impact both network costs and cargo flows for the carriers who are clients of the terminal. For dry and wet bulk ports, London based SME G-Ports provides cargo flow data on 2,500 ports terminals worldwide. As well as providing intelligence to ship owners, the platform makes it possible for ports to benchmark their own costs and terminal restrictions against competitors. Additionally, G-Ports offers comprehensive port congestion and commodity tracking tools to make it easier to predict delays at major coal, iron ore, and grain terminals around the world.
As well as making short term commercial and operational decisions, ports need access to high quality data to make long term strategic decisions about infrastructure investments. UK based SME Arkevista has developed a suite of data intelligence tools for ports to enable them to better understand port traffic, port operations, and port planning and design. The tools use data from more than 50,000 commercial ports, terminals and anchorages to benchmark performance, predict tradeflow changes and identify commercial opportunities.
Market landscape
There are 67 commercial organisations worldwide building software to support port management activities. 49% of them are startups and 40% of them are SMEs. We are yet to see any companies achieve growth that supports them becoming a scaleup. 11% of them are large corporate entities building technology for the sector.
Startup providers
| Company Name | Company Status | Employee Count | Company Founded Year | Company short summary | Company Country | Thetius URL |
| Airobotics | Active Trading | 51-250 | 2014 | Airobotics provides automated drone solution for sea ports. | United States | https://thetius.com/companies/airobotics |
| BlueCargo | Active Trading | 1-10 | 2018 | Predictive algorithms for port operations, BlueCargo brings visibility to optimize operations in container port terminals | United States | https://thetius.com/companies/bluecargo |
| Intelligent Cargo Systems | Active Trading | 1-10 | 2017 | Intelligent Cargo Systems’ technology helps you manage cargo loading and discharging more efficiently, saving fuel, time and money. | United Kingdom | https://thetius.com/companies/intelligent-cargo-systems |
| Haystack Magic | Active Trading | 1-10 | 2017 | Bluetooth asset tracking for enterprises. | Canada | https://thetius.com/companies/haystack-magic |
| RanMarine Technology | Active Trading | 1-10 | 2016 | RanMarine’s current products include the WasteShark™ range, designed and used to clear plastics, bio-waste and other debris from waterways. | Netherlands | https://thetius.com/companies/ranmarine-technology |
| EyeROV | Active Trading | 1-10 | 2016 | EyeROV is an underwater drone that performs visual inspections/surveys of submerged structures. | India | https://thetius.com/companies/eyerov |
| Octopi | Acquired | 1-10 | 2015 | Octopi is a modern, web-based Terminal Operating System (TOS) built for small to medium cargo terminals. | United States | https://thetius.com/companies/octopi |
| Kpler | Active Trading | 51-250 | 2014 | Comprehensive and transparent commodity tracking. | United Kingdom | https://thetius.com/companies/kpler |
| Container Weight | Active Trading | 1-10 | 2015 | A leading container database | Netherlands | https://thetius.com/companies/container-weight |
| Hive Maritime | Active Trading | 4-10 | 2015 | Hive Maritime is a MIT start-up bringing efficiency and cost savings to the maritime shipping industry. | United States | https://thetius.com/companies/hive-maritime |
| Smartport | Active Trading | 1-10 | 2015 | Connecting knowledge | Nederland | https://thetius.com/companies/smartport |
| Portcall | Active Trading | 1-10 | 2015 | Synchronized vessel scheduling for ports, pilots, and agents | United States | https://thetius.com/companies/portcall |
| Marble | Active Trading | 1-10 | 2015 | Marble uses UAV technology to monitor coastal areas. | United Kingdom | https://thetius.com/companies/marble |
| Teqplay | Active Trading | 11-50 | 2015 | Creating the port logistics of the future. | Netherlands | https://thetius.com/companies/teqplay |
| GeoStamp | Active Trading | 1-10 | 2015 | Designed for drayage, delivered by data | United States | https://thetius.com/companies/geostamp |
| Linergrid | Active Trading | 1-10 | 2016 | LinerGrid is a cloud-based optimization tool aimed at optimizing networks in liner shipping. | Denmark | https://thetius.com/companies/linergrid |
| CargoSnap | Active Trading | 1-10 | 2016 | CargoSnap easily digitizes your files, documents and visual data. | Netherlands | https://thetius.com/companies/cargosnap |
| NxtPort | Active Trading | 11-50 | 2016 | NxtPort is a trusted innovative data-sharing platform for smart ports and supply chain. | Belgium | https://thetius.com/companies/nxtport |
| Portall | Active Trading | 51-250 | 2017 | Portall is a logistics management application and delivery service application. | India | https://thetius.com/companies/portall |
| Portcast | Active Trading | 1-10 | 2017 | Portcast is a machine learning platform using real-time external data to predict cargo flows | Singapore | https://thetius.com/companies/portcast |
| ZASTI | Active Trading | 1-10 | 2017 | ZASTI AI platform provides a scientific and proven way of predicting risks and improving business efficiency. | United Kingdom | https://thetius.com/companies/zasti |
| Sensocar | Active Trading | 1-10 | 2017 | Experts in load cells and weighing electronics manufacturing | Spain | https://thetius.com/companies/sensocar |
| Urban Hawk | Active Trading | 1-10 | 2017 | Urban Hawk creates 3d maps, collate, and apply street-level data to help you find new business. | United Kingdom | https://thetius.com/companies/urban-hawk |
| Portchain | Active Trading | 11-50 | 2017 | Portchain’s AI planning solutions maximize utilization and capacity for terminals and carriers. | Denmark | https://thetius.com/companies/portchain |
| DockTech | Active Trading | 1-10 | 2017 | DockTech is a water depth prediction platform for ports and waterways. | Israel | https://thetius.com/companies/docktech |
| Port-WiFi | Active Trading | 1-10 | 2017 | Port-WiFi develops and build smart and affordable carrier grade solutions. | Belgium | https://thetius.com/companies/port-wifi |
| Awake.ai | Active Trading | 11-50 | 2018 | Smart Port & Ship Platform enabling autonomous shipping | Finland | https://thetius.com/companies/awake.ai |
| F-Drones | Active Trading | 1-10 | 2019 | Drones that can save 80% of the costs, time and manpower in marine & offshore logistics. | Singapore | https://thetius.com/companies/f-drones |
| Container 42 | Subsidiary | 1-10 | 2019 | The smartest container the planet has ever seen | Netherlands | https://thetius.com/companies/container-42 |
| PortX | Ceased Trading | 4-10 | 2017 | Dynamic port asset optimization | Netherlands | https://thetius.com/companies/portx |
| PortXChange | Subsidiary | 1-10 | 2019 | Port call optimisation | Netherlands | https://thetius.com/companies/portxchange |
| Boxinsider | Subsidiary | 1-10 | 2019 | Container tracking made simple | Netherlands | https://thetius.com/companies/boxinsider |
| Portinsider | Subsidiary | 1-10 | 2019 | One platform for port communities | Netherlands | https://thetius.com/companies/portinsider |
SME Providers
| Company Name | Company Status | Employee Count | Company Founded Year | Company short summary | Company Country | Thetius URL |
| AMS Group | Active Trading | 51-250 | 2000 | AMS Group is an engineering, project delivery and maintenance company. | Australia | https://thetius.com/companies/ams-group |
| Identec Solutions | Active Trading | 51-250 | 1999 | Identec Solutions is a global provider of wireless solutions. | United States | https://thetius.com/companies/identec-solutions |
| Augury | Active Trading | 51-250 | 2012 | Augury is a company that looks at machine health as the foundation of digital transformation. | United States | https://thetius.com/companies/augury |
| Rombit | Active Trading | 11-50 | 2012 | Building future-proof solutions for maritime services. | Belgium | https://thetius.com/companies/rombit |
| Remocean | Active Trading | 26-50 | 2010 | Provides sea monitoring systems based on the analysis of nautical radar data. | Italy | https://thetius.com/companies/remocean |
| Conexbird | Active Trading | 1-10 | 2013 | ConexBird analyses the deep structure of containers to reduce costs, time, and emissions. | Finland | https://thetius.com/companies/conexbird |
| CNS | Acquired | 26-50 | 1986 | Smart, real-time information- it’s what drives day-to-day trade through UK frontiers, and it’s what Community Network Services (CNS) provides. | United Kingdom | https://thetius.com/companies/cns |
| Master Terminal by Navis | Acquired | 11-50 | 1993 | Master Terminal by Navis (formally Jade Logistics) is the world’s leading terminal operating system (TOS) for mixed cargo ports. | Switzerland | https://thetius.com/companies/master-terminal-by-navis |
| eModal.com | Acquired | 26-50 | 1995 | The world’s largest port community system. | United States | https://thetius.com/companies/emodal.com |
| dbh Logistics IT | Active Trading | 11-50 | 1973 | We make logistics more efficient, faster, more profitable and safer. | Germany | https://thetius.com/companies/dbh-logistics-it |
| TGI | Active Trading | 11-50 | 1981 | Smart solutions (Terminal Operating Software) built for small to medium Container and Roro terminals In France and abroad. Find out more about TGI systems. | France | https://thetius.com/companies/tgi |
| DAKOSY | Active Trading | 51-250 | 1982 | As one of the leading IT service providers for transport and logistics, DAKOSY AG offers software solutions, in particular for forwarding and customs handling (ATLAS, Europe). | Germany | https://thetius.com/companies/dakosy |
| SOGET | Active Trading | 51-250 | 1983 | SOGET recrute ! Retrouvez ici nos offres d’emploi et nos dernières actus. | France | https://thetius.com/companies/soget |
| MCP plc | Active Trading | 11-50 | 1985 | Maritime Cargo Processing plc is the UK’s leading port Community Systems Provider (CSP). | United States | https://thetius.com/companies/mcp-plc |
| Solvo | Active Trading | 51-250 | 1992 | SOLVO is a leading Russian developer of automated control systems for warehouse complexes, container and cargo terminals, and ports. | Russia | https://thetius.com/companies/solvo |
| Marlo a.s | Active Trading | 1-10 | 1997 | MARLO delivers consulting and technology based solutions to clients in the transports and logistics sector | Norway | https://thetius.com/companies/marlo-a.s |
| innovativenavigation | Active Trading | 1-10 | 1999 | Innovative Navigation GmbH develops software in a modular design that can be used in all areas of traffic management and traffic monitoring on water, on land and in the air. | Germany | https://thetius.com/companies/innovativenavigation |
| PORTIC | Active Trading | 11-50 | 1999 | Port Community Systems (PCS) del Puerto de Barcelona. | Spain | https://thetius.com/companies/portic |
| Tideworks Technology | Active Trading | 51-250 | 1999 | Tideworks provides comprehensive terminal operating systems for growing marine and intermodal terminal operators worldwide. | United States | https://thetius.com/companies/tideworks-technology |
| G-Ports | Active Trading | 1-10 | 2003 | The right data, at a right time, in the right place | United Kingdom | https://thetius.com/companies/g-ports |
| SimPlus | Active Trading | 1-10 | 2006 | Real-time and predictive analytics for ports | Singapore | https://thetius.com/companies/simplus |
| GreigConnect | Active Trading | 11-25 | 2006 | Modular port systems, terminal system with real-time planning of activities and operations in terminals. | Finland | https://thetius.com/companies/greigconnect |
| DIABOS | Active Trading | 11-50 | 2008 | Your partner in port cost management | United Arab Emirates | https://thetius.com/companies/diabos |
| Arkevista | Active Trading | 1-10 | 2009 | Giving companies a better view of their markets. | United Kingdom | https://thetius.com/companies/arkevista |
| Portbase | Active Trading | 51-250 | 2009 | Through its port community system, Portbase offers more than 40 different services to approximately 3,600 customers in all sectors of the Dutch ports. | Netherlands | https://thetius.com/companies/portbase |
| RBS EMEA | Active Trading | 1-10 | 2009 | The Most Advanced Terminal Operating System for the Container Handling Industry | United States | https://thetius.com/companies/rbs-emea |
| Harbo Technologies | Active Trading | 1-10 | 2013 | Harbo Technologies is a company that stop oil spills before they spread. | Israel | https://thetius.com/companies/harbo-technologies |
Corporate Providers
| Company Name | Company Status | Employee Count | Company Founded Year | Company short summary | Company Country | Thetius URL |
| Wärtsilä | Active Trading | 10K-50K | 1834 | Enabling sustainable societies with smart technology | Finland | https://thetius.com/companies/wärtsilä |
| PortVision | Acquired | 251-1K | 1964 | Track commercial vessel traffic in real-time | United States | https://thetius.com/companies/portvision |
| ION Geophysical | Active Trading | 251-1K | 1969 | ION Geophysical provides acquisition equipment, software, planning and seismic processing services, and seismic data libraries to the global oil & gas industry. | United States | https://thetius.com/companies/ion-geophysical |
| TBA Group | Acquired | 251-1K | 1996 | Providing #software & #consultancy solutions for the lifecycle of ports, terminals & warehouses. Delft, NL | Doncaster, UK | Leicester, UK | United Kingdom | https://thetius.com/companies/tba-group |
| Descartes Systems Group | Active Trading | 1K-5K | 1981 | The Descartes Systems Group Inc. Descartes is perhaps best known for its abrupt and unexpected turnaround in the mid-2000s after coming close to bankruptcy in the wake of the dot-com bubble collapse. | Canada | https://thetius.com/companies/descartes-systems-group |
| MGI | Active Trading | 251-1K | 1985 | Experts in cargo community systems. | France | https://thetius.com/companies/mgi |
| Cargotec | Active Trading | 10K-50K | 2005 | Cargotec Oyj is a Finnish company that makes cargo-handling machinery for ships, ports, terminals and local distribution. | Finland | https://thetius.com/companies/cargotec |
Funding, investment and M&A
Since 2010, $273million of venture capital has been invested in startups developing software aimed at the port management market. There are a small number of very well entrenched corporate providers operating in this space, but there is a significant number of early stage businesses coming through. The median average funding raised by startups in the sector is $2.2million. The mean average invested in seed stage startups in the sector is $1.1million and the mean average invested in venture stage startups is $53.4million.
The mean average invested in venture stage startups is higher than many other maritime technology sectors. This is indicative of the expense of scaling and gaining market share in this market. Additionally, it’s important to note that 20% of startups and SMEs operating in the port sector have been funded through non equity grants, this is high compared to other sectors and indicates significant interest in emerging port technology from governments, local authorities, and research bodies. Except for terminal operating systems, this market is highly fragmented. Though much of the media interest in this space is focused on the development of smart ports through startup driven innovation, it is important to note that the average age of sector SMEs is 21 years. Many of these companies are privately owned, well capitalised and hold highly defensible market positions, particularly port community systems. TOS provider Navis has been the most active acquirer of new technology in recent years, after acquiring two of their indirect competitors (Octopi and Jade Logistics) in 2019.
Patent Registrations
Worldwide there are 2,412 patents registered relating to technology that supports port management activities. The first dates back to 1862, and relates to the invention of a new kind of conveyor for loading grain onto ships. Growth in patent registrations for this technology space has been steady throughout the last two decades. The most active patent registrants in the port technology sector are Chinese and Korean academic institutions. The University of Hanoi and the Korean Advanced Institute of Science and Technology are the two most active patent registrants followed by Zhejiang University, China.
The most popular patent classifications in this sector relate to engineering techniques for fixed constructions in or near water, specifically with reference to piers, groynes, sea walls, breakwaters, and wave abating structures. The second most popular classification is for computer and calculation systems, specifically with reference to the administration and management of warehousing, loading, distribution and shipping. A CSV of all relevant patent data is available on request.
Industry adoption
As with many maritime market sectors, the port management sector has slowly embraced digitalisation over the last 30 years, but there is still a great deal of progress left to make. Most port terminals have some kind of terminal operating system in place, and most major ports have a community system, but the adoption of asset management systems, port call management systems, cargo management technologies, or smart logistics is still in its early stages.
One of the key challenges for developing new technology for the ports sector is the number of stakeholders involved in a port call. Building a port call management platform, for example, requires input and collaboration from a large number of stakeholders. This makes it incredibly difficult for a startup or SME operator to conduct this kind of development. A model that appears to be working successfully is where the port operator takes an active role in developing new ventures. The Port of Rotterdam’s digital ventures team has already spun out one new company (Port X-Change), and has nine other services at varying stages of development through the Port of Rotterdam Lab. Similarly, the Port of Tyne in the UK has opened an Innovation Lab with the aim of catalysing research and new technology development activity. Though the port isn’t developing technology themselves, they aim to act as a central hub for startups and SMEs throughout the UK to collaborate on new ideas and have facilitated multiple events, hackathons, and proof of concept studies to date.
We are still at the very early stages of the impact IoT adoption in the ports sector. For many ports building the network infrastructure to enable IoT driven systems across a large geographic footprint requires significant investment. Though there are some companies, like Port Wifi, that offer specialised WiFi, LoRa, and M2M IoT networks, there is little evidence that any individual network provider has gained significant traction. There is an important role to be played here by port OEMs such as Konecranes and Cargotec, as it is operational technologies such as STS cranes and straddle carriers that will become the main users of any IoT networks developed. As with port call management, there is a natural barrier to the adoption of IoT because of the complex dynamics between multiple stakeholders involved.
Market size and opportunities
It is estimated that in 2020 the port management software market will be worth $3,654 million, growing to be worth $5,238 million by 2025, a CAGR of 7%. Despite the barriers that exist to adoption, the smart ports movement is gaining momentum in the industry and this is a relatively high growth market sector.
There is a healthy pipeline of startups entering this technology sector and it is expected that the number of startups will continue to grow in response to the growing number of port related incubators and accelerators. Outside of the terminal operating system market, there has not been a great deal of M&A activity, but there are a large number of small and medium enterprises operating with a good local market position.
A major future opportunity for the ports industry is the development of infrastructure and technology that can facilitate the decarbonisation of the shipping industry. Of the estimated $1trillion required to decarbonise the industry, 87% of the investment will need to be made in shoreside infrastructure. Because of the size of the challenge, the speed required, and its importance to society, we expect to see significant grant funding made available through national and international governments in the next five years to enable research and development. Decarbonising ports, and enabling the decarbonisation of the vessels that use them, represents both the biggest challenge and the biggest opportunity this sector has ever seen.
Conclusion
The port management software market is worth $2.9 billion annually. Though there are some relatively mature market sectors within it such as terminal operating systems and port community systems, there are also nascent technology areas that will drive high growth in the sector over the next five years. It is estimated that the port management software market will grow to be worth $4.1 billion by 2025, a CAGR of 7.5%.
The existing market dynamics act as a barrier to growth, however. This is in part because of the number of stakeholders involved in any port community, and in part because of the level of infrastructure investment required to enable new technology areas such as IoT to function. Except for the terminal operating system market, there has been limited M&A activity in recent years but there are a significant number of SMEs operating in this sector, particularly those who are focused on serving their local port community.
There is a healthy pipeline of new startups entering the sector who have good access to both grant and equity funding. However, this is an expensive market to achieve scale in, the average funding for venture stage startups is $53.4 million, and there is limited evidence of significant technology adoption outside the port community and terminal operating system markets.
By far the most significant opportunity for the ports sector is the development of technology and infrastructure to enable decarbonisation. Most of the investment required for the decarbonisation of the industry will be in shoreside infrastructure and ports will play a key role in that journey. There is likely to be significant grant and government funding available for the sector to invest in decarbonisation R&D and technology adoption.
