Market Trends of Maritime Information Industry
Automated Identification Systems to Dominate the Market
- An automatic identification system is a computerized tracking system that shows other nearby vessels. It is installed on ships to identify ships and nautical signs. In coastal waters, coastal authorities use AIS as a monitoring tool for land-to-ship communications to broadcast information about tides, NTMs, and local weather conditions. In addition, AIS helps monitor dangerous cargo movements and manage commercial fishing activities in the area.
- The concerned government authorities worldwide have made considerable investments to integrate AIS (Automatic Identification Systems) into ships to reduce marine accidents and enhance marine traffic management. The global maritime sector is increasingly adopting Automatic Identification Systems (AIS). Maritime activities such as vessel traffic management employ AIS by helping fleet staff make well-informed decisions pertaining to collision avoidance, vessel navigation, grounding of ships, and vessel rescue.
- The International Maritime Organization's "International Convention on the Safety of Life at Sea" requires all international passenger ships and passenger ships of 300 GT (gross tonnage) or more to install an automatic identification system regardless of their size. This is leading to a rapid increase in the installation of automatic identification systems, thereby boosting the market's growth. The rise in global trade routes through the sea is increasing ship traffic in the oceans. According to the study, there are four times as many ships at sea now than 20 years ago. Factors like these are helping in AIS demand.
- Surveillance of sea freight and oceanic vessels has significantly increased as stringent environmental regulations such as marine protected areas (MPAs) require more comprehensive surveillance to reduce traffic restrictions risks and detect illegal traffic. The increasing spending on marine products and services by various governments worldwide, increasing security threats, and the growing number of waterborne transportation and trade are the main factors driving the market's growth.
- Moreover, several leading players are focusing on developing new products to gain a competitive advantage in the market. For instance, in May 2022, ACR Electronics and Ocean Signal announced introducing integrated AIS (Automatic Identification System) within its EPIRBs to offer commercial and recreational users extra reassurance that other nearby vessels will be notified in an emergency.
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Asia-Pacific to Witness the Significant Growth
- According to a survey conducted by Allianz Global Corporate & Specialty (AGCS), a unit of the Allianz Group, the number of reported shipping incidents overall in Asia increased by 22% in the past four years. This calls for increased use of maritime information systems.
- Many ports, mainly Indian ports, are now deploying new technologies where automatic identification systems play a significant role, driving the market's growth. This is expected to solve the inefficiency of Indian ports in cargo handling, owing to constraints such as long dwell time.
- Maritime information plays a vital role in economic development, as most of the global trade is conducted by sea and is estimated to reach 180 billion metric tons in volume by 2030, per the OECD. As this continuous business growth has driven up the number of illegal activities, governments of counties including China, Japan, and India are increasing the maritime budget, which will likely provide market growth opportunities.
- The government in the region is also supporting the growth of the maritime industry, further fuelling the market growth. For instance, in May 2023, the government of India announced five initiatives to make the country a global leader in the maritime sector. The five initiative, also called "Panch Karma Sankalp," includes 30% financial support from the government to promote green shipping and digitization of ports.
- In many cases, port infrastructure in Asia is new, and there are many new or expanding ports in China, Korea, Japan, and Malaysia. This calls for an improved maritime information system to address future challenges. Safety at sea is gaining importance, and the governments of various countries are investing in tracking technologies. The governments of countries like China play a vital role in promoting maritime security since the maritime industry adds to the economic growth of these regions.
- Further, countries like India, China, Japan, and South Korea continuously increase their defense budgets yearly to strengthen national security. The government of India is planning to handle threats by implementing a national automatic identification system to ensure the safety and security of its coastline.
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