Waterway Transportation Software and Services Market: Global Industry Analysis and Forecast (2022-2029)

Waterway Transportation Software and Services Market size was valued at USD 65.35 Bn. in 2021 and the total Waterway Transportation Software and Services, revenue is expected to grow at a CAGR of 9.5% from 2022 to 2029, reaching nearly USD 135.07 Bn.
Waterway Transportation Software and Services Market Overview:
Water transportation, also known as maritime transportation, is the backbone of world trade and globalization. Maritime routes, seaports, and ships are significant components of maritime transportation networks. Maritime transportation is important in freight movement across the world. According to the United Nations Conference on Commerce and Development, around 80% of international trade in products is conducted by sea, with more than 70% as containerized cargo, and the figure is significantly greater in most developing countries.

The waterway transportation software and services market has been widely adopted by shipping industries to improve company efficiency and freight security. Additionally, with the rising trend of leveraging massive digital data storage and high penetration of cloud services in the shipping/marine market, enhanced communication, tracking, and ship management technology use has increased. Likewise, the growing acceptance of different technological breakthroughs such as Machine to Machine communication (M2M) and the advent of containerization in the transportation sector has increased the software and services market for the waterway transportation industry.

The rising need for heavy freight transportation globally drives the global waterway transportation market. The rapid change in freight demand from west to east represents a massive potential for the waterway transportation software and services industry. Growing alliances and rising collaboration in waterborne commerce have led to the establishment of new markets in Asia-Pacific (APAC), the Middle East, and Africa (MEA). Developing countries such as China and India are also contributing to the change in demand, driving the Waterway Transportation Software and Services market during the forecast period.

Besides that, the emergence of new marine routes and sea ports is a generation of potential opportunities for growth in this industry. However, the long-term impact of the 2008/2009 economic crisis is impeding rapid growth in waterborne trade; however, shipping companies will be able to overcome the crisis effect by implementing new solutions such as yard management, maritime software, and next-generation shipping surveillance systems. Shipping businesses are presently focused on maximizing the Return on Investment (ROI) from their existing assets, and as a result, they are expected to invest more in IT rather than new assets.

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Waterway Transportation Software and Services Market Dynamics:
Machine-to-Machine communication penetration to improve business insights in maritime industries

The high penetration of Machine-to-Machine (M2M) communication as a feature of better business insights for shipment monitoring, supply chain operations management, and so on is the primary driver driving market growth for the global Waterway Transportation Software and Services market. The rising need for improved communication technology, real-time insight, and voyage performance analysis as part of enhancing fleet competitiveness to actively build cargo-based enterprises is driving the Waterway Transportation Software and Services industry revenue growth during the forecast period. Additionally, the increasing use of Wi-Fi-enabled underwater communication transmitters in the navy to navigate, monitor, and communicate beneath the sea surface offers lucrative growth opportunities for the Waterway Transportation Software and Services market growth during the forecast period.

In addition, one of the key factors driving the Waterway Transportation Software and Services market revenue growth is the rising convergence of unmanned underwater vehicles with better acoustic sensors to provide improved surveillance. The current trend of transitioning away from wired systems and toward marine wireless communication systems hold tremendous potential for growth in the maritime sector. The Barge Operators Association of Nigeria announced cooperation with the Maritime Workers Union of Nigeria in August 2021. This partnership was undertaken to improve waterway transportation and build improved engagement with regulatory agencies as part of providing better management of barge activities on the waterways, and it is expected to drive market growth during the forecast period.

High demand for improving e-commerce operations to support maritime transportation

The growing need for better e-commerce operations through supply chain automation or logistic operations enabling marine transportation of products is a major factor driving industry growth. Adoption of Waterway Shipping Software and Services in e-commerce operations enhances material handling systems, improves processing capabilities, and minimizes order cycle times during sea freight transportation. Waterway Transportation Software and Services with such benefit characteristics are expected to significantly influence the market growth during the forecast period. However, as global e-commerce grows, supply chain and logistics channels evolve and incorporate technological advances, with the marine sector concentrating heavily on digitalization and standardization.

Recent innovations in bulk cargo freight management as part of providing retailers with an interconnected, automated supply chain are only a few of the variables contributing to conquering complexity and exceeding customer expectations. Veson Nautical announced the Veson Partner Network in March 2021 to enhance the value of the Veson IMOS platform as the standard platform driving marine trade with higher efficiency and profitability. Such advancements are expected to drive the growth of the global Waterway Transportation Software and Services market during the forecast period.

Rising accidents at an alarming rate during sea freight transportation

Because of the significant surge in the e-commerce business, there has been increasing commercial pressure on marine freight transportation to arrive on time and, as a result, undertake more journeys. As a result, containers are piled higher above the ship's maximum capacity, resulting in cargo sinking and containers tipping over. The increasing push to expedite deliveries raises the danger of safety mistakes during freight transportation. The incidents are leading to the interruption of supply networks for hundreds of shops and manufacturers, resulting in massive financial losses. According to the World Shipping Council, more than 3,000 containers dropped into the water in 2020, with 1,000 boxes falling into the sea in 2021. These factors have had a negative influence on market growth and restraining the market growth.

Number of Marine Accidents by Year as of September 30, 2022:



Year
Collision
Contact
Grounding
Sinking
Flooding
Capsizing
Fire
Explosion
Facility
damage
Fatality/
Injury


2022
129
67
102
6
11
41
26
2
7
103


2021
199
80
173
3
36
69
26
3
35
119


2020
190
94
155
13
15
52
29
2
21
134


2019
219
98
201
11
26
67
31
1
40
145


2018
243
86
172
21
26
52
24
2
24
180


2017
200
96
181
14
22
55
27
3
23
143


2016
217
94
163
5
19
46
26
3
21
144


2015
244
102
202
5
12
56
38
3
20
122



Waterway Transportation Software and Services Market Segment Analysis:
Based on End-User, the Consumer and Retail segment held the largest market share of about 38% in 2021. The segment is expected to grow at a CAGR of 9.2% during the forecast period and dominate the Waterway Transportation Software and Services market. The retail business is a rapidly increasing and highly competitive business. The industry works with a diverse range of items, each with its own set of needs for order processing. Retail sales in the United States have increased significantly and consistently in recent years. This industry is looking for efficient ways to enhance productivity.

Likewise, the industry is heavily investing in the supply chain to remain competitive and obtain an advantage over competitors. To boost profit margins, merchants must frequently monitor transportation activities, including compliance and cost control. Effective transportation management contributes to increased uniformity and control across the retail organization. Retailers can accurately optimize transportation planning, restrict volume shipping, and estimate demand with real-time visibility into shipping operations.

In Europe, inland navigation is widely utilized for the long-distance transportation of bulk materials and, as a result, the delivery of those items to port cities. In Brussels, inland navigation accounts for 20% of the city's supply and is mostly made up of building materials (57%) and petroleum products (26%). The canals in the Paris area also carry a lot of traffic, mainly building materials (75%) and agricultural products (9%), although they are severely underutilized. These factors are expected to increase segment growth throughout the forecast period.
Waterway Transportation Software and Services Market Regional Insights:
North America dominated the global Waterway Transportation Software and Services market with a share of 36% in 2021 and is expected to maintain its dominance during the forecast period. The significant investments in the defense industry and maritime research is expected to be the primary driver for the North American Waterway Transportation Software and Services market. North America is one of the most important marketplaces for technological solutions. It is also expected to be a significant player in the global economy, particularly in the development and use of new technology. The industrial sector is growing continuously, in line with the increasing penetration of the internet, regarding the sales of primary commodities.

According to the International Trade Administration, the United States now has 14 FTAs in place with 20 countries, assuring considerable development in international freight transport and maritime ancillary services. Rising investment in water transportation, shipping facilities, and port infrastructure is one of the key factors driving market growth in the region.

The rising use of unmanned underwater vehicles by naval defense systems in the United States and Canada as part of military and security operations is providing considerable market growth potential. The US Office of Naval Research announced a $9.3 million contract with Advanced Acoustic Concepts LLC in January 2021. This contract was signed as part of the development of sophisticated technologies to aid in the identification of objects in deep ocean conditions. Such governmental initiatives are set to create significant growth opportunities for the market during the forecast period.

The growing usage of various transportation modes to transfer oil to refineries and terminals has resulted from the rise of US oil production and changes in the location of oil production. Although pipelines remain the most common means of transporting oil, the importance of water transportation has grown significantly in recent years. Additionally, lower trade restrictions have raised the need for information about transportation infrastructure and services inside North American countries such as Canada and the United States. The Canada-US Free Trade Agreement and the succeeding North American Free Trade Agreement were important indications for the liberalization of goods and services trade between these nations.

The European market is expected to grow at a CAGR of 8.5% during the forecast period and hold significant market share by 2029. This is because the total proportion of IWT in the Netherlands was 44.6% in 2017. Different sorts of products were transported on IWWs, with bulk freight (ore, sand, mineral oil) accounting for 50% and containers accounting for 14%. (CCNR, 2018). The modal split for hinterland container transport in Rotterdam, Europe's largest port in terms of both handled TEUs and cargo gross weight, is 54% road transport, 35% inland navigation, and 11% rail transport (BVB, 2017). According to Konings (2009), even if the IWT share for containers is lower than that of road transport, it has increased by 10-15% in the Netherlands over the last decades.
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Waterway Transportation Software Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 65.35 Bn.


Forecast Period 2022 to 2029 CAGR:
9.5%
Market Size in 2029:
US $ 135.07 Bn.


 Segments Covered:
by Deployment
1. On-Premise
2. Cloud
3. Hybrid


by Solution
1. Warehousing
2. Vessel tracking
3. Freight security
4. Yard management
5. Audit & claim
6. Ship broker software
7. Maritime software
8. Others


by Services
1. Managed services
2. Consulting/customization services
3. Training services


by End-User
1. Consumer and retail
2. Oil and gas
3. Industrial and manufacturing
4. Energy and mining
5. Aerospace and defense
6. Construction
7. Chemicals
8. Pharmaceuticals and Healthcare
9. Food and beverages
10 Others



Waterway Transportation Software and Services
Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Key Players in the Waterway Transportation Software and Services Market are:
1. Accenture PLC (US)
2. Veson Nautical Corporation (US)
3. Aljex Software Inc. (US)
4. Kirby Corporation (US)
5. American Commercial Lines, Inc. (US)
6. HighJump Software Inc. (US)
7. Trans-i Technologies Inc. (US)
8. Oracle Transportation Management Cloud (US)
9. LogiNext Mile (US)
10. Flexport (US)
11. FourKites, Inc. (US)
12. SAP SE (Germany)
13. Cognizant Technology Solutions Corp. (India)
14. FRETRON (India)
15. Descartes Systems Group (Canada)
16. The Descartes Systems Group Inc. (Canada)
17. Bass Software Ltd. (Malaysia)
18. Zero North (Denmark)
19. Maersk Line (Denmark)
20. DNV (Norway)
21. Hidrovuas do Brasil (Brazil)

FAQs:

1. What are the growth drivers for the Waterway Transportation Software and Services market?
Ans. The rising need for heavy freight transportation globally, Machine-to-Machine communication penetration to improve business insights in maritime industries, and High demand for improving e-commerce operations to support maritime transportation are expected to be the major driver for the Waterway Transportation Software and Services market.

2. What is the major restraint for the Waterway Transportation Software and Services market growth?
Ans. The Rising accidents at an alarming rate during sea freight transportation is expected to be the major restraining factor for the Waterway Transportation Software and Services market growth.

3. Which region is expected to lead the global Waterway Transportation Software and Services market during the forecast period?
Ans. The North American market is expected to lead the global Waterway Transportation Software and Services market during the forecast period due to the significant investments in the defense industry and maritime research.

4. What is the projected market size & growth rate of the Waterway Transportation Software and Services Market?
Ans. The Waterway Transportation Software and Services Market size was valued at USD 65.35 Bn. in 2021 and the total Waterway Transportation Software and Services, revenue is expected to grow at a CAGR of 9.5% from 2022 to 2029, reaching nearly USD 135.07 Bn.

5. What segments are covered in the Waterway Transportation Software and Services Market report?
Ans. The segments covered in the Waterway Transportation Software and Services market report are Deployment, Solution, Services, End-User, and Region.