Automatic Identification System Market Research Report—Global Forecast till 2030

Automatic Identification System Market Research Report: Information by Class (Class A and Class B), Platform (Vessel-Based and On shore-Based), Application (Fleet Management, Vessel Tracking, Maritime Security, and Others), and Region (North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America)—Forecast till 2030

ID: MRFR/A&D/9086-HCR | February 2023 | Region: Global | 174 Pages         

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Automatic Identification System Market

Automatic Identification System Market Size is anticipated to reach USD 374.99 Million by 2030, registering a CAGR of 6.5% during 2022-2030

Segmentation
Class Class A Class B
Platform Vessel-Based Onshore-Based
Application Fleet Management Vessel Tracking Maritime Security Others
Key Players
Companies Profiled   ExactEarth Ltd (Canada)    Kongsberg Gruppen ASA (Norway)    SAAB AB (Sweden)    Furuno Electric Co. Ltd. (Japan)    L-3 Communication Holdings Inc. (US)    Orbcomm Inc. (US)    True Heading AB (Sweden)    Garmin International (Switzerland)    CNS Systems AB (Switzerland)    Japan Radio Co Ltd. (Japan)
Drivers
Market Driving Forces   Increasing Maritime Transport
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Automatic Identification System Market Overview:


Automatic Identification System Market Is Projected To Grow at a USD 374.99 Million In 2030 at a CAGR Of 6.5% by 2022-2030


Vessel traffic services employ the automated identification system, an automatic tracking system that uses transceivers aboard ships to track the vessel, automatically preventing any accident. It is intended to provide two-way communication between vessels and coastal authorities on land. Other nearby ships, as well as nearby coastal authorities, may get static, dynamic, and journey data on one ship from the system. Additionally, AIS technology offers data that is presented on the screen, including unique identification, course, speed, and position.


By enabling maritime authorities to detect and monitor vessel movements, this device is intended to help a ship's officer. Additionally, activities in the very high frequency mobile marine band use the broadcast transponder system that is available and incorporated with these AIS. A standardised VHF transceiver, a positioning system like a GPS receiver, and extra electronic navigation sensors like a gyrocompass or a rate-of-turn indicator are all included in this automated identification system. The fact that these systems are fully automated and do not require human input is another factor in their widespread adoption.


COVID-19 Analysis


The emergence of the COVID-19 pandemic sent shockwaves through the global automatic identification system market, causing a steep decline in the market's growth. Much of this can be owed to largely affected global maritime transport and associated international supply chains. The unprecedented disruption caused by the pandemic led to declining cargo volumes and crippling growth prospects, thereby negatively affecting supply chains and shipping ports & networks. To contain the economic damage caused by the pandemic, the container shipping industry decided to focus on maintaining profitability rather than gaining market share. At the peak of the pandemic crisis, the cargo volumes contracted, thereby bringing in additional challenges and imbalance to the shipping industry. By reducing cargo capacity and cutting costs, the shipping industry was able to maintain profitability. As a result, the transport rates remained stable despite the declining demand. However, there were acute space limitations for transporting goods and delivery delays.To deal with the disruptions caused by the pandemic, several other changes were made, including adjustments in operations & finances and working procedures.


Despite the COVID-19 crisis, the outlook remains positive and constrained by several factors, such as the COVID-19 curve, vaccination rate, and economic recovery. In addition, governments across the world are working in close collaboration with the vaccine manufacturers for rapid vaccine rollout. With these constraints being short-term in nature and the long-term growth drivers still being relevant, the AIS industry is expected to bounce back to pre-pandemic growth levels in a couple of years. Therefore, the COVID-19 impact on the global automatic identification system market is expected to be short-term and recover in the next couple of years.


Market Dynamics


Drivers

  • Increasing Maritime Transport


Maritime transport forms the core of global trade, and its real-time tracking is possible. Cargo ships are equipped with AIS equipment that emits radio signals at regular intervals without fail to provide information pertaining to identification, speed, and location. In addition, many private service providers make use of terrestrial receivers and satellites to intercept these radio signals and transform them into organized data feeds.


As per the United Nations Conference on Trade and Development (UNCTAD), the international shipping industry carried out more than 80% of global merchandise trade in terms of volume and over 70% by its value in 2017. However, global merchandise trade registered a contraction of 0.5% in terms of volume in 2019. This decline was due to a rise in global trade tensions and tariffs, which resulted in a decline in imports from developing countries, including China and other emerging economies of the world.Furthermore, the maritime transport industry growth further declined in 2020, owing to the unprecedented disruption caused by the COVID-19 pandemic.Therefore, the short-term outlook for the maritime transport industry looks grim but given that maritime transport is a crucial enabler of the effective functioning of international supply chains, the maritime transport industry is expected to witness positive growth, and in turn, push the global supply chain towards a sustainable recovery. Thus, increasing maritime transport is expected to drive the growth of the global automatic identification system market during the forecast timeline.


Opportunities

  • AIS-Based Nowcasts for Real-Time Information on Trade Activity


Maritime data provided by the AIS equipment promise high potential in sourcing real-time information on activities pertaining to global seaborne trade. However, currently, no such globally applicable end-to-end solution is known to the global seaborne trade industry, which can transform raw data from the AIS equipment into economically meaningful insights and policy-relevant international seaborne trade indicators. The raw data emitted in the form of radio signals by the vessel fleets across the world for the purpose of navigational safety can be used to gauge global seaborne trade indicators. By leveraging machine learning techniques, the maritime data can be used to evaluate trade volumes at all geographical levels, including local, bilateral, multilateral, and international.


Seaborne trade is an integral component of global economic activity.Even slight fluctuations in seaborne trade are reflected in global economic growth, propelling or hampering growth on their own.Moreover, businesses put significant effort and commitment to monitor trade data from several sources to develop their short-term outlooks and make information-based investment decisions. Therefore, real-time seaborne data is of immense importance, both for policymakers and businesses. Additionally, AIS-based nowcasts can prove to be the much-needed predictive power for involved entities, particularly for countries with large volumes of seaborne trade data. Thus, the need for real-time information on global seaborne trade activity has created lucrative opportunities for the major players in the global automatic identification system market.


Restraints

  • Growing Concerns over Quality and Reliability of Information Provided by AIS


An automatic identification system was initially introduced as an instrument to identify vessels in maritime navigation. However, with the passage of time, it is now also used for tracking vessels and sharing vital information such as identification, speed, and location.In addition, it also serves other purposes, such as vessel management in waterways and overall surveillance to enhance safety levels.It offers great promise, particularly for the growth of the maritime industry. However, it has its own limitations, such as a lack of quality data.


AIS can only be beneficial if the quality of data is good; otherwise, it is challenging to capitalize on the data provided by AIS. The primary factor impacting the quality of data is the range of the AIS and associated equipment.  AIS usually offer information (in terms of radio signals) about ships that are only operating in short-range. Therefore, depending upon the range, the signals can be inconsistent and noisy at times. Thus, growing concerns over the quality and reliability of the information provided by AIS are expected to restrain the growth of the global automatic identification system market to a certain extent during the review period.


Cumulative Growth Analysis

  • High Demand for Monitoring Systems to Bolster Market’s Growth Rate


The global automatic identification system marketis forecasted to register a growth rate of 4.2% over the analysis period (between 2021 and 2027) onaccount of the increasing demand for monitoring systemsto understand and correlate seaborne trade indicators.


Segment Overview


Increasing Demand for AIS Application Specific Messages to Drive the Market Growth for Class A AIS


The global automatic identification system market based on class has been segmented into Class A and Class B.The class A segment accounted for the largest market share in 2020. The class A AIS is used for AIS application-specific messages, such as meteorological and hydrological data, electronic broadcast notices to mariners, and other marine safety information.


Rising Incorporation of AIS-Based Advanced Systems to the Marine Vessels to CreateStrong Demand for Vessel-Based AIS


Based on platform, the global automatic identification system market is segmented into vessel-based and onshore-based.The vessel-based segment dominated the automatic identification system market in 2020, owing to the advanced features offered by AIS to the marine vessels.


Regional Analysis


Increasing Freight Activities and Marine Tourism to Drive the Growth of the North America AIS Market


The North Americanautomatic identification system market is driven by factors such as increasing freight activities and the growing marine tourism industry in the region.Additionally, the region stands second among all the regions in terms of global oil production and consumption, which is responsible for large-scale freight activities in the region.


Moreover, the regionis characterized by the presence of somemajor automatic identification system solution providers, such as L-3 Communication Holdings Inc. and Orbcomm Inc.,which, in turn, is fueling the growth of the regional market.


Rising Demand for Advanced Naval Vessels and Booming Intra-region Maritime Transport to Help APAC Dominate the Global AIS Market


Asia-Pacific accounted for the largest market share in 2019. The regional market is also projected to register the highest CAGR during the forecast period. The region has witnessed a rise in the demand for advanced naval vessels over the past decade.Additionally, the intra-region maritime transport industry has been growing at a robust growth rate.


Moreover, the region has the highest share in global oil consumption and is among the largest oil producers. Additionally, China has the largest number of vessels, with over 5,000 commercial ships of 1,000 gross tons and more. Many of these ships are employed in domestic trade. Similarly, Indonesia owns a large number of ships, most of which are used for inter-island and coastal transport.As a result, the shipping industry in the region has been growing at a significant pace. Therefore, Asia-Pacific automatic identification system market is expected to dominate the global market during the forecast period.


Competitive Landscape


Significant Investments by Players to Intensify Competition


The automatic identification system market is likely to grow significantly in the coming years, primarily due toincreasing maritime transport. The global market is characterized by the presence of several international and regional vendors. The market is highly competitive, with all the players trying to gain maximum market share. Frequent changes in government policies, intense competition, and government regulations are the key factors that impact global market growth. The vendors compete based on cost, product quality, and reliability.


List of Key Companies Covered in this Report



  • exactEarth Ltd. (Canada)

  • Kongsberg Gruppen ASA (Norway)

  • SAAB AB (Sweden)

  • Furuno Electric Co. Ltd. (Japan)

  • L-3 Communication Holdings Inc. (US)

  • Orbcomm Inc. (US)

  • True Heading AB (Sweden)

  • Garmin International (Switzerland)

  • CNS Systems AB (Switzerland)

  • Japan Radio Co., Ltd. (Japan)


Recent Developments


Due to the COVID-19 pandemic outbreak, local authorities prohibited several cargo and passenger ships from docking at ports. This left many merchant seamen stuck on board the vessel itself. Since their ships were detained on the territorial sea for an extended time, shipowners were also compelled to pay additional expenses.


Additionally, because of the outbreak's restrictions on ship movement, many sailors had to have their work contracts extended since their terms ended. Additionally, there has been a decrease in the import and export of commodities and products to lessen the possibility of COVID-19 spreading.


Report Overview


Scope of the Report


The scope of the report highlights drivers, opportunities, restraints, and challenges surrounding the Automatic Identification System Market. With easy-to-comprehend segmentation that includes class, platform,application, and region, MRFR projections are based on historical and expected trends. In addition, major firms active in the global market have been profiled and paired with the top strategies employed by them to remain competitive in the industry.


Segmentation Table




  • Class

    • Class A

    • Class B




  • Platform

    • Vessel-Based

    • Onshore-Based




  • Application

    • Fleet Management

    • Vessel Tracking

    • Maritime Security

    • Others





Report Scope:

Report Attribute/Metric Details
  Market Size   2.667 billion
  CAGR   4.2% (2022–2030)
  Base Year   2019
  Forecast Period   2022-2030
  Historical Data   2019
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Class, Platform, Application
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   exactEarth Ltd., Kongsberg Gruppen ASA, SAAB AB, Furuno Electric Co. Ltd., L-3 Communication Holdings Inc., Orbcomm Inc., True Heading AB, Garmin International, CNS Systems AB, and Japan Radio Co., Ltd.
  Key Market Opportunities   AIS-Based Nowcasts for Real-Time Information on Trade Activity
  Key Market Drivers   Increasing Maritime Transport Improved Navigation & Maritime Traffic Management


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Frequently Asked Questions (FAQ) :

Automatic Identification System Market Size is anticipated to reach USD 2.667 and registering a CAGR of 6.5% by 2021-2030
 

exactEarth Ltd. (Canada),Kongsberg Gruppen ASA (Norway),SAAB AB (Sweden),Furuno Electric Co. Ltd. (Japan),L-3 Communication Holdings Inc. (US),Orbcomm Inc. (US),True Heading AB (Sweden),Garmin International (Switzerland),CNS Systems AB (Switzerland),Japan Radio Co., Ltd. (Japan)

North America is Largest share investing Region in AIS Market