A new report from ABI Research predicts that revenues generated by the container security and tracking market will grow by a compound annual growth rate of 27 percent from $212 million in 2011 to $690 million in 2016.
ABI attributes the forecasted growth in the market to an increased need to have more visibility, monitoring and tracking of containers in what has been a "security-challenged" industry. While this is expected to help spur the adoption of GPS-based tracking solutions in the market, the study anticipates that there will be a slow migration from legacy solutions such as OCR and RFID/RTLS followed by a "more aggressive uptake" of GPS and cellular-based products.
"With a lot of regulations and legislation being introduced in the aftermath of 9/11, expectations that this industry would finally take off were high, prompting many vendors to enter this market with advanced solutions," said Dominique Bonte, group director of ABI’s telematics and navigation group. "While RFID-based point solutions at port yards are becoming more established – at least in North America and Western Europe - uptake of more advanced GPS-based solutions has been disappointing, despite several solutions having been made available by vendors such as SkyBitz, DB Schenker, Starcom, and Pointer Telocation – mainly for the intermodal market."
For more information about the Cargo Container Security and Tracking study or ABI Research, visit www.abiresearch.com.