The global automatic identification system market size was valued at 260 million in 2021, and it is estimated to reach an expected value of USD 440 million by 2030, registering a CAGR of 6% during the forecast period (2022-2030). Ship tracking and collision avoidance are accomplished through automatic identification systems by vessel traffic service providers. Automatic identification systems offer individual identification, course speed, and vessel position details. The screen shows this data as an additional supplement to the marine radar. The increase in global trade and ship traffic is the key factor propelling the market's growth for automatic identification systems. Another significant element driving demand for automatic identification systems is the increasing demand for adequate traffic control and management systems, along with rising needs for ship safety and security.
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Increased Maritime Traffic
Increasing maritime traffic at sea has led to numerous problems both near the ports and on the high seas. Many collisions and accidents of ships in the past have resulted from a lack of information between the nearby ships and misguiding instructions from the port authorities. These incidents have been the main reason for the invention and usage of ship tracking devices, such as AIS. Moreover, numerous ship owners need to keep track of the cargo they are transporting. The ship tracking devices help in serving these needs as well.
Large commercial vessels can be tracked via the AIS class-A band, and routes can be managed for traffic control. Similar to air traffic control, this vessel traffic service uses AIS to provide navigational guidance to vessels sailing through open waters. Thus, AIS is necessary for providing accurate tracking of vessels and effective maritime traffic management.
The increase in global trade routes through the sea is aiding the rise in ship traffic across all oceans. Russia has, over time, had high ambitions for developing the NSR, setting a target of transporting 80 million metric tons along the route by 2024. In 2021, the Russian Northern Sea Route Administration issued 1,155 permits for navigation along the NSR, which is greater than 18% of the number of permits issued for the same period last year, according to the Federal Agency for Maritime and River Transport. The market is expected to witness massive demand for advanced AIS for real-time navigation to avoid collisions, enhance security and safety, and manage sea traffic. Such factors contribute to market growth.
Need for Improvement in Vessel Dwell Time and Port Performance
Dwell time is a vessel's time in port while loading and unloading. Every effort is made to minimize this amount of time. Shorter dwell times are desirable because vessel operating costs typically rise with dwell time. With the help of the vast data gathered from the vessel, the AIS identifies the dwell time for each vessel and may, thus, improve port performance. This is a driving force for the AIS market, as it reduces operational costs.
Compared to the global ports, many Indian airports showcased inefficiency in cargo handling due to constraints, such as long dwell time. Hence, in an attempt to improve efficiency, many ports across the developing nations globally are now deploying new technologies where AIS may play a significant role, thereby driving the market growth.
Range and Reporting Capabilities
With many vessels using Automatic Identification Systems on the oceans and with signals refreshing as often as every few seconds, there are billions of data points and terabytes of data to feed into the computer systems. Making sense of them poses many challenges. This tracking technology was designed to be used between ships at sea - a safety feature that lets vessels transmit their presence to avoid collisions. Using these messages for tracking their behavior poses three types of challenges. It includes:
Since airways are naturally loud, AIS systems use the maritime VHF band to transmit radio signals. Due to competing signals that interfere with one another, bandwidths frequently become congested in ports and other crowded areas. Additionally, the amount of data that satellites and ground-based receivers can process at once may be limited. Due to this congestion, any particular vessel could appear and disappear on the map. Although they now have a limited reception capability, adding more satellites that can receive AIS signals would improve the coverage.
AIS signals can also be spotty and long gaps in transmission are not uncommon. Moreover, tracks appear in impossible locations, over mountain ranges, and through deserts. In such cases, either the AIS transponders have malfunctioned, or it has been tampered with deliberately. Vessel operators must input codes to their AIS by hand, opening the scope for errors. The errors resulting from wrong equipment settings may lead to an emergency incident and, thus, form a significant challenge for the market. This poses challenges for the market.
Rapid Advances in AIS Vessel Tracking Systems
AIS vessel tracking systems have witnessed rapid advances in both their global reach and the accessibility of the technology. The future of AIS promises that the pace of change may only increase over the next few years, owing to the developments in the underlying technology and the shipping industry. The growth of autonomous vessels is anticipated to put AIS squarely in the spotlight. It may undoubtedly impact its development, as vessel operators demand functionality as a critical component of their onboard C&C systems. In the future, commercial developers of autonomous vessels are expected to draw conclusions and seek to optimize AIS for the new robotic world. For example, Fujitsu Limited released an exact AI system to forecast vessel accident hazards on tricky maritime routes, including bay areas, in September 2021. To show the use of the new technology, field tests were carried out between November 2020 and September 2021 under an outsourcing agreement with the Japan Coast Guard. In the past, Fujitsu used AI technology to estimate and forecast the likelihood of a vessel colliding based on the ship's present position, speed, and direction. This technology enables more precise risk mitigation by adding an algorithm to measure how closely the vessel is following its course. Similar innovations are expected to boost market growth in the future.
The global automatic identification system market is segmented by application, platform, and region.
By application, the global automatic identification system market is segmented into fleet management, vessel tracking, maritime security, and other applications (accident investigation and infrastructure protection).
The vessel tracking segment accounted for the largest market share and is estimated to grow at a CAGR of 6.4% during the forecast period. AIS is an impressive tool for keeping track of the global fleet. MarineTraffic, for example, combines the world's largest terrestrial AIS network with the finest commercially available satellite AIS coverage to provide the most up-to-date vessel position data and enable data-driven decision-making. The AIS Vessel tracking system has a few advantages over radar systems, such as the fact that it is not impacted by rain or the sea and that its transmission is better than radars due to the longer wavelength. Moreover, if the landmasses are not too high, it is possible to "see" around curves and behind islands. Demurrage validations, further reducing the cost associated with it. The most popular vessel tracking system is GPS, which has a high penetration in the market.
By platform, the global automatic identification system market is segmented into vessel-based and on-shore. The vessel-based segment accounted for the largest market share and is estimated to grow at a CAGR of 6.6% during the forecast period. A vessel-based automatic identification system is installed onboard a ship or vessel. These systems that include AIS transponders or AIS transceivers are installed on the vessel and are used to automatically transmit the information related to the vessel's geographical position, identification, and other crucial information, to other ships or coastal authorities. The increasing number of vessels across the globe is expected to propel the demand for shipborne AIS, thereby driving market growth.
On-shore is the second largest. On-shore AIS facilitates information interchange by serving as the foundation for coordinating various marine industry segments for efficient operation. Effective communication among the governing authorities and the vessel out on the sea is crucial in ensuring the procedure is performed without any significant challenge capable of disrupting the entire process. The Automatic Identification System is used at the shore for various applications, including vessel traffic and port management. The high traffic at multiple ports across the globe has necessitated an automatic identification system to efficiently manage port traffic and eventually reduce the cost of shipping operations. Such applications drive segment growth.
By region, the global automatic identification system market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
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North America accounted for the largest market share and is estimated to grow at a CAGR of 5.3% during the forecast period. The location is well-known for having a sizable coastal area, which necessitates ongoing surveillance. For instance, the World Atlas states that Canada, with 202,080 km of shoreline, is the world's longest coastline. Additionally, the US's coastline spans a total of 19,924 km. Further, the region's growing commercial activity and commerce drive the demand for marine safety and monitoring. According to Reading Economics, the US is one of the top exporters in the world. Therefore, the increase in trading operations across the region is anticipated to boost market growth throughout the projection period. The region is also distinguished by the existence of a sizeable number of AIS solution providers, which contributes to the region's high share and aids in its dominance of the sector.
Europe is the second largest region. It is estimated to reach an expected value of USD 115 million by 2030, registering a CAGR of 6%. The region is one of the prominent regions in the automatic identification system market. Countries such as the UK, France, and Germany, among others, are the key contributors to the high revenue share of the region. A cutting-edge Automatic Identification System (AIS) receiver from the European Space Agency is typically used aboard ships and by Vessel Traffic Services (VTS) to identify and locate vessels by electronically transferring data. The range of this AIS system is up to 200 nautical miles, which is five times more than the range of conventional terrestrial VHF communication systems. The level of capability is high for all terrestrial transmission system types. The port freight across the UK is witnessing an increase, especially after the outbreak of the COVID-19 pandemic. According to the statistics published by the United Kingdom Department of Transport, the total port freight tonnage through the major UK ports increased 13% in Q2 2021 (April-June) compared to Q2 2020. The increasing freight in the country is expected to give rise to the adoption of the AIS market in the region.
Asia-Pacific is the third largest region. The Asia-Pacific region has most of the busiest ports globally, including the Port of Shanghai, Singapore Port, Shenzhen Port, and Port of Guangzhou, among others. The high traffic at these ports makes them prone to multiple illegal activities, which calls for stringent security measures. Moreover, a high amount of traffic is required to be managed by the port authorities for the efficient functioning of the ports. Benefits offered by AIS, such as improved vessel tracking and management, and fleet management, among others, are expected to provide numerous opportunities for regional market growth. In line with this, the regional market is expected to witness the fastest growth globally over the forecast period. Various political conflicts, coupled with the outbreak of the COVID-19 pandemic, have caused significant reductions in the trading activities of China, which is a prominent trading nation in the region. Various countries, including the United States, have placed restrictions on imports from China, thereby reducing its trade. Therefore, this may be a barrier to the regional market's growth over the next few years.
List of key global automatic identification system market companies profiled