Automated Container Terminal Market Trends

Growth Drivers

• Rising worldwide trade & container volumes: Continued growth in international trade is readily increasing pressure on ports to handle cargo more efficiently, driving growth in the automated container terminal market. In December 2024, Shanghai Port announced that its Yangshan phase IV automated terminal had achieved a major milestone by handling its 50 millionth TEU, which has set a new global record for annual container throughput.  This is a fully automated terminal, operates 24/7 with remote-controlled quay cranes, AGVs, and integrated IT systems, which have enabled faster, more efficient handling of rising cargo volumes augmented by global trade growth. Therefore, the high container volumes are accelerating demand for automated terminals, as high-throughput operations enable ports to handle growing cargo efficiently.
• Increased labor costs: This, coupled with the shortage of skilled work professionals, is one of the primary drivers for the automated container terminal market since this reduces dependence on human labor and provides more predictable operational costs. In March 2022, PSA Singapore reported that, in collaboration with A*STAR’s Institute of High-Performance Computing has signed a research agreement to develop advanced fleet management solutions for automated guided vehicles at Tuas Port. The AGVs, which already play a key role in yard and wharf operations, enhance efficiency, reduce reliance on manual labor, and cut carbon emissions by approximately 50%. Hence, this initiative supports the organization’s vision of a smart, resilient, and sustainable port, enabling a very responsive automation that is capable of handling large container volumes by improving operational agility and overall productivity.
• Technological advances:  The integration of AI, machine learning, IoT sensors, and digital twin technologies allows terminals to optimize operations, carry out predictive maintenance, and simulate workflows, providing encouraging opportunities for pioneers in the automated container terminal market. In April 2025, Kalmar Corporation announced that it had signed an agreement to supply Victoria International Container Terminal in Melbourne, Australia, with four hybrid automated straddle carriers, wherein each terminal is capable of 60-ton twin lifts. The company also underscored that these carriers will operate under the Kalmar One Automation System, which is an end-to-end solution combining automated equipment and integrated software, enhancing productivity and reducing loading times. Hence, this expansion reinforces its long-standing partnership with VICT by supporting Australia’s only fully automated terminal in handling large boxships more efficiently.

Global Automated Container Terminal Initiatives and Automated Container Terminal Market Potential

Source: Company Official Press Releases

Challenges

• Extensive capital expenditure: This is one of the major issues posed by the automated container terminal market. Automation in terms of container terminals requires huge upfront cash in hardware such as automated stacking cranes, AGVs, and software systems. The costs associated with retrofitting existing infrastructure, integrating terminal operating systems, and ensuring compliance with safety standards can be restrictive for smaller ports. Therefore, the existence of this financial burden often delays adoption in this field. Additionally, high capital expenditure creates extensive dependency on financing, thereby making terminals sensitive to interest rate fluctuations and macroeconomic shifts. As a result, ROI calculations must be carefully modeled to justify the automation projects.
• Workforce & skill gaps: This is another major bottleneck for the automated container terminal market to capture the desired revenue over the forecasted years. The requirement for specialized personnel to manage, maintain, and optimize complex systems can not be possible in certain developing nations. In addition, the traditional port labor often lacks expertise in robotics, data analytics, and digital orchestration, which can create a skill gap that can slow adoption. The training programs add additional burgeoning costs, making it challenging for widespread adoption in this field. Furthermore, labor unions are resisting automation, leading to operational disruptions.  In this context, maintaining a hybrid workforce capable of operating both automated and conventional systems is not so easy, requiring continuous upskilling.