Report Overview

Rising government investments in port infrastructure and growing demand for energy and natural resources are projected to propel the expansion of the India ports infrastructure market during the forecast period between 2023 and 2029

India Ports Infrastructure Market - Industry Trends & Forecast Report, 2029

India ports infrastructure market size was estimated at USD 5.91 billion in 2022. During the forecast period between 2023 and 2029, the size of India ports infrastructure market is projected to grow at a CAGR of 6.08% reaching a value of USD 8.9 billion by 2029. Major growth drivers for the India ports infrastructure market include an increasing of government spending on port infrastructure with the objective of fostering secure and streamlined commercial operations. The escalating demand for marine transportation of liquefied natural gas, particularly for export purposes, is expected to further for the industry's expansion. Government of India has recognized the importance of port infrastructure development for fostering economic growth and trade competitiveness. Several initiatives and policies have been implemented to enhance port infrastructure in the country, including the Sagarmala Program. The Sagarmala initiative aims to promote port-led development by modernizing existing ports, developing new ports, improving connectivity, and promoting coastal economic zones. Hence, such aspects are expected to boost the expansion of India ports infrastructure market during the forecast period.

India Ports Infrastructure Market– Overview

The ports infrastructure market refers to the sector encompassing the planning, development, and management of port facilities and related infrastructure. It involves the construction, expansion, and maintenance of ports, terminals, berths, container yards, storage facilities, access roads, rail and inland waterway connections, and other supporting infrastructure. The market encompasses both major and minor ports, with the aim of facilitating efficient and safe maritime trade activities, including the handling, storage, and transportation of goods and commodities. India has a long coastline of approximately 7,500 kilometers, making it well-positioned for maritime trade. The country has a significant number of ports, both major and minor, located along its coastlines. Some of the major ports in India include Jawaharlal Nehru Port Trust (JNPT), Chennai Port, Mumbai Port, and Visakhapatnam Port. By the year 2024, the Ministry of Shipping aims to achieve a capacity exceeding 313 billion metric tons (MMT) in collaboration with private sector participation. Minor ports are expected to contribute over 505 MMT of this capacity. Port infrastructure forms the fundamental framework for facilitating the movement of ships, cargo, and individuals within ports. The development of port infrastructure requires comprehensive long-term planning, substantial capital investments, and extended timeframes for implementation.

India Ports Infrastructure Market

Growth Drivers

Rising Government Investments in Port Infrastructure

Increased government investments in port infrastructure are expected to provide a significant boost to the India Ports Infrastructure Market. The allocation of additional funds by the government towards port development projects aims to enhance the capacity, efficiency, and overall capabilities of Indian ports. These investments facilitate the expansion and modernization of existing ports, the construction of new ports, and the improvement of connectivity and logistics networks. As a result, the India Ports Infrastructure Market is expected to experience growth, attracting private sector participation and stimulating trade and economic activities. The government's focus on port infrastructure development underscores its commitment to fostering a robust and competitive maritime sector in India.

Restraints

Political and Economic Instability

Uncertain political conditions and economic fluctuations can create challenges for infrastructure development projects, including delays, funding constraints, and regulatory uncertainties. Such instability may deter private sector investments and hinder the implementation of planned initiatives. Additionally, it can impact the overall business environment, trade volumes, and investor confidence, which are critical factors for the growth of the ports sector. To ensure sustained growth in the India Ports Infrastructure Market, it is crucial to address and mitigate potential risks arising from political and economic instability through effective governance, policy reforms, and long-term strategic planning.

Impact of COVID -19 on India Ports Infrastructure Market

COVID-19 pandemic adversely affected the India ports infrastructure market. The restrictions and disruptions caused by the pandemic resulted in a significant decline in global trade, leading to reduced import and export volumes. Lockdown measures and supply chain disruptions caused a decrease in cargo traffic, impacting port operations and revenue. The decline in economic activities and uncertainties surrounding the pandemic led to a slowdown in port infrastructure development projects and private investments. To ensure the uninterrupted flow of goods, port authorities implemented stringent health and safety measures. However, the India ports infrastructure market has gradually recovered and adapted to the evolving global trade landscape, with a renewed focus on resilience and efficiency.

India Ports Infrastructure Market

Segmental Coverage

India Ports Infrastructure Market – By Port Type

By port type, the India ports infrastructure market is bifurcated Sea Port and Inland Port segments. Sea ports, located along the coastline, handle the majority of India's maritime trade activities, including import and export of goods via sea routes. These ports provide connectivity to international markets and play a crucial role in facilitating global trade. While Inland Ports, located along rivers, lakes, or canals, also contribute to India's port infrastructure, the Sea Port segment holds greater prominence and handles a larger share of the country's overall maritime trade volume.

India Ports Infrastructure Market – By Application

Based on application, the India ports infrastructure market is bifurcated into Passenger and Cargo segments. The cargo segment holds the highest share in the India ports infrastructure market. India's robust economic growth and industrialization have fueled increased trade activities, driving higher cargo volumes. The trade liberalization and globalization have expanded international trade, further contributing to the growth of the cargo segment. The shift towards containerization in the shipping industry has also played a significant role, with ports investing in container terminal infrastructure to handle the growing demand. The rising domestic consumption in India, driven by a growing population and expanding middle class, has led to increased import and distribution of consumer goods, bolstering the cargo segment's dominance in the market.

India Ports Infrastructure Market – By Construction Type

Based on construction type, the India ports infrastructure market is split into Terminal and Equipment segments. The terminal segment dominates the India ports infrastructure market. Terminals play a pivotal role in ensuring the smooth and efficient handling of cargo within the port environment. Serving as crucial points of arrival and departure for various types of cargo, terminals facilitate essential activities such as loading, unloading, and storage. They provide the necessary infrastructure and facilities for handling diverse commodities, including containers, bulk goods, and liquid cargoes. Additionally, terminals often offer value-added services such as customs clearance, warehousing, and distribution, further enhancing their significance in the overall port operations. Given the vital role they play in facilitating trade and logistics activities, the terminal segment has emerged as the dominant sector within the India ports infrastructure market.

India Ports Infrastructure Market – By Region

Based on region, the India Ports Infrastructure Market is divided into North India, South India, East India, and West India.

Competitive Landscape

Major players operating in the India ports infrastructure market include APM Terminal, Colas, Essar Ports Ltd., IL&FS Engineering & Construction Company Ltd., Larsen & Toubro Ltd., Man Infraconstruction Ltd., Adani Group, Ramboll, AECOM, and WSP Global Inc. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2020 - Shri Mansukh Mandaviya, MOS(IC) Shipping, launched SAROD-Ports. SAROD-Ports aims to enhance the mechanism for resolving disputes by enabling a panel of technical experts to act as arbitrators. This initiative offers a cost-effective and expeditious means of dispute resolution in a fair manner. By providing a swift, affordable, and efficient conflict resolution process, SAROD-Ports aims to promote a business-friendly environment in the maritime industry.

Scope of the Report

By Port Type

• Sea Port

• Inland Port

By Application

• Passenger

• Cargo

By Construction Type

• Terminal

• Equipment

By Region

• North India

• South India

• East India

• West India