Preliminary research of Fairfield Market Research indicates a promising growth outlook for global connected ship market during the course of next few years.
Rising Maritime Industry and Technology Integration to Bode Well for the Connected Ship Market
The maritime industry, since past few years, has been evolving steadily and has transformed the marine logistics activities significantly. With growing innovation and digitization, connected ships are being developed that have the potential to optimize various facets in business operations in the sector. Furthermore, with technological advancements, authorities are setting targets to achieve zero emissions in the maritime industry. For instance, in March 2022, the International Maritime Organization (IMO) has set targets to reduce the overall greenhouse gas (GHG) emissions by at least 50% from the international shipping sector by end of 2050. This calls for optimization in the navigation of the vessel along with increased efficiency, which can be achieved through technology. This aspect is likely to complement the demand for connected ships, in turn boosting the growth of connected ship market. Furthermore, sea transportation has also increased since past years. For instance, according to the Organization for Economic Co-operation and Development (OECD), around 90% of transported cargo is through maritime trading and this volume is expected to approximately triple by 2050. In this backdrop, growth in the maritime industry and growing integration of technology in the sector is expected to pave new avenues for global connected ship market in the forthcoming years.
Demand for Efficient Traffic Management to Influence Growth of the Connected Ship Market
Significant growth in the international trade especially post-COVID-19 pandemic continues to influence the demand for smooth traffic flow and sea traffic management. Increasing seaborne transactions are likely to create major traffic congestions in international marine routes. As per UNCTAD (United Nations Conference on Trade and Development), around 80% of the overall trade volume across the globe is carried out by sea. This has created a demand for effective port traffic management systems with efficient traffic congestion management. This aspect remains instrumental in driving the growth of the connected ship market on the global front.
Europe to Slate Dominance in Connected Ship Market, Asia Pacific to Emerge as a Lucrative Go-to-Region
Developed economies in Europe are poised to account for a significant revenue share in the connected ship market. This is mainly owing to increasing congestion of the Mediterranean Sea routes coupled with rising imports of products such as electronic devices, oil and spices from Middle East and Asia Pacific. In addition, the demand for autonomous cruises and ships in the region has increased drastically, thus fuelling the growth of the connected ship market. Seaborne trade has also picked up steam which has resulted in an increased adoption of advanced ships and vessels. For instance, according to European Commission, seaborne external freight in Europe accounts for about 90% of the overall freight in the region. In addition, United Kingdom has been investing in shipbuilding and is planning to make an investment of around US$5.3 Bn in the sector. This investment also includes the zero-emission vessels. With the Maritime 2050 strategic plan, the government of United Kingdom is focusing on higher investments in several projects to develop autonomous ships in the maritime industry. These initiatives and investments in the shipbuilding space are expected to pave potential avenues for the in the coming years.
On the other side of the spectrum, Asia Pacific is likely to prevail as a lucrative region for the connected ship market. This can be attributed towards growing maritime trade backed by rising inclination towards adoption of new age technology in the marine industry. Emerging economies in Asia Pacific such as India, and China are poised to remain at the forefront of growth apropos to maritime trading activities. For instance, according to United Nations Conference for Trade and Development (UNCTAD), the intraregional trading volumes, export of goods and commodities coupled with rising manufacturing activities across China, South Korea, India, and Japan are expected to significantly increase, especially after gaining momentum post the COVID-19 pandemic. Also, according to United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), merchandise trading has witnessed significant recovery in Asia Pacific with export growth of more than 10% in the region as compared to other nations worldwide. These factors have contributed towards the rise in the marine transportation, in turn complementing the growth of the connected ship market in Asia Pacific.
Connected Ship Market: Competitive Scenario
New technological innovations, collaborations and partnerships are being pursued by the key players in the connected ship market. For instance, in November 2022, a Singaporean startup, Smart Ship Hub, is working on building a novel technology that will enable ships to connect with each other in order to optimize capacity, thus building a shared economy in the maritime logistics. In July 2021, a new online platform was launched by ABB Ltd. The new ABB Ability Marine Fleet Intelligence-Advisory has the ability to collect data from a huge variety of vessels. Likewise, same year in November, an advanced integrated navigation and bridge solution was delivered by Wartsila for the polar expedition vessel of Lindblad Expedition.
A few of the major players in connected ship market include Northcorp Grumman Corporation, Marlink, Wartsila Oyj, ABB Ltd., Kongsberg Gruppen, Ulstein Group ASA, General Electric Co., Valmet Oyj, and Inmarsat Global Limited.
Regional Classification of the Global Connected Ship Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Connected Ship Market
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