Marine Electronics Market

Market Overview

The Marine Electronics market size was valued at USD 5.3 billion in 2023. It is estimated to reach USD 9.24 billion by 2032, growing at a CAGR of 7.2% during the forecast period (2024–2032). The increasing demand for advanced navigation and communication systems to enhance maritime safety is a significant driver. As shipping and offshore activities expand, the need for reliable and efficient electronic equipment. The push towards digitalization and automation in the maritime sector further boosts the demand for marine electronics.

Marine electronics are specialized electrical equipment designed for ships, yachts, or boats, featuring waterproofing and corrosion resistance to withstand harsh marine conditions. These devices typically come in sizes ranging from 7 to 19 inches and serve specific purposes on watercraft. Examples include Global Positioning System (GPS) devices, Radio Detection and Ranging (RADAR) systems with video displays, chart plotters, Sound Navigation and Ranging (SONAR) systems, as well as radar displays for presenting data to operators.

The growing adoption of modern digital navigation, sonars, and radars for proximity sensing has increased the demand for marine electronic equipment. With the rise of digitization and e-commerce, there has been a rapid expansion in marine trade operations. Moreover, the global demand for boats and ships has seen an uptick, driven by fishing, shipping, and recreational water activities. This trend is observed worldwide and signifies a broader trend in the marine industry.

Market Dynamics

Market Drivers

The increasing volume of marine trade and the rising demand for secure navigation and communication systems from the military sector

The escalating volume of marine trade and the growing demand for secure navigation and communication systems from the military sector have become pivotal driving factors for the rapid advancement of marine electronics. According to the International Chamber of Shipping (ICS), the global maritime transport industry carries around 90% of world trade by volume and generates over USD 500 billion in freight rates annually.

The military sector's reliance on secure and sophisticated electronic systems for maritime operations has also contributed to the expansion of marine electronics. Naval forces across the globe are investing in advanced navigation and communication technologies to enhance their capabilities and ensure national security. According to the Stockholm International Peace Research Institute (SIPRI), the global military expenditure reached USD 1.98 trillion in 2020, an increase of 2.6% from 2019, with the US, China, India, Russia, and the UK being the top five spenders.

Growing adoption of electronic charting systems and GPS technology for efficient vessel navigation.

The widespread adoption of electronic charting systems (ECDIS) and GPS technology is a key driver in modern maritime navigation. Mandates from the International Maritime Organization (IMO) have accelerated this shift, with approximately 75% of the global fleet embracing ECDIS by 2021. Integrating GPS with electronic charts enhances accuracy, real-time updates, and situational awareness. This transition has notably reduced navigation-related incidents, aligning with the industry's goal to enhance safety. The benefits include proactive navigation, optimized routes, and fuel savings. Regulatory push, safety improvements, and operational efficiency have propelled the maritime sector toward embracing electronic navigation technologies.

Market Restraint

High cost associated with sonar systems

The costs associated with sonar systems are a challenge for the market. Sonar systems are divided into commercial and defense segments. Commercial sonar, used by private individuals for activities like fishing and treasure hunting, typically falls within the $100 to $1,000 price range and doesn't demand substantial investments in research and development (R&D). Conversely, sonar systems for defense applications come with higher price tags and require substantial R&D investments. This hinders the evolution of sonar modules as manufacturers need to tailor these devices to meet specific customer requirements. Additionally, ongoing R&D efforts are essential to keep sonar equipment updated with the latest technology, ensuring acoustic excellence while maintaining reasonable pricing. These factors collectively impede the overall growth of the sonar systems market.

Market Opportunities

The emerging applications and markets for marine electronics, such as autonomous shipping, biometrics, augmented reality, and virtual reality

The marine electronics industry is experiencing significant changes with the introduction of various advanced applications, providing opportunities for growth and innovation. One notable area is autonomous shipping, where improvements in navigation systems, sensors, and artificial intelligence enable uncrewed vessels, enhancing operational efficiency and reducing risks associated with human error. Integrating biometrics in marine electronics enhances security, restricting access to critical maritime systems and data to authorized personnel. Augmented reality (AR) and virtual reality (VR) technologies are transforming training and simulation in the marine sector, offering realistic and immersive experiences for crew members to improve their skills and decision-making capabilities. This contributes to enhanced training effectiveness and overall safety at sea. The combination of these emerging applications creates a dynamic landscape for the marine electronics industry, providing opportunities for companies to invest in research and development, collaborate with technology partners, and meet the growing demand for advanced solutions in the maritime sector. As the industry evolves, those at the forefront of innovation can benefit from the numerous possibilities these technologies bring to the marine electronics market.

Regional Analysis

Based on region, the global marine electronics market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global marine electronics market shareholder and is expected to expand substantially during the forecast period. The global email encryption market is projected to be dominated by North America as North America has the presence of established marine electronics manufacturers and increased defense spending by respective governments. The growth is attributed to the massive presence of various marine electronics device manufacturing companies across the region. Growing investment in anti-submarine warfare and unmanned underwater vehicle systems and rising advancements in marine industry is driving the growth of the market. The US Navy has spent significantly on sonar systems to counter unseen threats in the ocean. Thus, the increasing demand from the US for research and defense-related purposes aids the growth of the marine electronics market in North America. Canada is also a crucial adopter of ships and their components, such as electronic products, as it has one of the longest coastal lines in the world. The increasing number of illegal maritime activities in the ocean surrounding Canada has resulted in the Royal Canadian Navy engaging in monitoring and surveillance activities.

Europe's marine electronics market accounts for the second-largest market share due to the the elimination of tariffs and reduction of non-tariff barriers on the trade of marine electronics and other electronic products between the EU and Japan, as part of the EU-Japan Economic Partnership Agreement (EPA) that came into force in 2019. The EU and Japan are major producers and consumers of marine electronics, especially for commercial and military applications. According to the European Commission (EC), the EU-Japan EPA will boost the EU's GDP by 0.76% and increase the EU's exports to Japan by 13.2% by 2035.

The Asia-Pacific marine electronics Industry is expected to grow at the fastest CAGR from the forecast period. The improved economic conditions and the resulting financial empowerment of the population have positioned consumers in a better financial standing. This, in turn, has spurred a heightened interest and demand for advanced marine technologies, especially those with applications in military settings. The evolving geopolitical landscape, with a focus on maritime security, has further intensified the need for sophisticated marine electronic systems, contributing significantly to the overall market growth. China emerges as a significant player in the Asia-Pacific marine electronics industry, holding a substantial market share. The country's economic prowess, technological advancements, and strategic focus on maritime capabilities have positioned it as a key player in the region. China's robust marine electronics sector reflects its commitment to maritime development, bolstered by a growing economy and a burgeoning middle class with increasing purchasing power.

Segmental Analysis

The global marine electronics market is bifurcated into component, vessel type, application and industry

Based on components, the global marine electronics market is bifurcated into hardware and software

Hardware segment holds the largest market share as a result of the armed forces' increasing naval footprint, which is brought on by the purchase of new ships and submarines as well as upgrading programs for existing naval vessels. Hardware such as Marine electrical screeners, fish finders/SONAR modules, thermal and visible cameras, marine very high frequency (VHF) communication devices, audio/video equipment, marine autopilots, autonomous identification systems, analog and digital communication displays, and satellite TVs consider the hardware of the marine electronic ecosystem.

Based on vessel type, the global marine electronics market is segmented into Merchant Vessels, Fishing Vessels, Container Ships, Recreational Boats and Others

The merchant vessels owns the highest market share. Merchant vessels, integral to global trade, are cargo ships designed for transporting goods across oceans. Their dominance in the marine electronics industry's vessel type segment is attributed to the critical role they play in facilitating international commerce. These vessels rely on advanced navigation systems, such as GPS and radar, for precise route planning and collision avoidance. Communication technologies, including satellite communication and radio systems, ensure connectivity with onshore entities and other vessels. Automation and control systems enhance operational efficiency, managing functions like engine propulsion and cargo handling. Instrumentation and safety systems contribute to safety and security by monitoring vessel conditions and detecting potential hazards. The continuous evolution of marine electronics caters to the complex technological demands of merchant vessels, emphasizing their significance in global maritime operations.

Based on application, the global marine electronics market is bifurcated into Navigation, Communication, Automation, Instrumentation and Safety Systems and Others 

Navigation dominates the application segment within the marine electronics industry. The need for precise and efficient navigation tools is widespread across various vessel types, including merchant ships and recreational boats. Key components of navigation include advanced GPS technologies, radar systems, and electronic chart displays, each playing a crucial role in improving navigational capabilities. Advanced GPS technologies ensure accurate positioning for optimal route planning, while radar systems contribute to situational awareness by detecting potential obstacles in real time. Electronic chart displays offer visual representations to aid in route planning and facilitate adjustments for safe navigation through waterways. This integration of navigation technologies is fundamental to route optimization and crucial functions like collision avoidance, highlighting the essential role of navigation systems in promoting maritime safety and operational efficiency.

Based on industry, the global marine electronics market is divided into Government and Defense, Merchant Navy, Fishing and Sports and Others

The Government and Defense segment dominates the global market. The Government and Defense segment of the marine electronics industry focuses on specialized systems for naval and defense operations. This includes advanced navigation systems, such as radar and GPS, for positioning and threat identification. Communication systems ensure secure connectivity between vessels and command centers. Automation systems control propulsion and weapon systems, enhancing operational efficiency. Electronic warfare technologies counter threats through electronic countermeasures and signal intelligence. Instrumentation and monitoring devices contribute to situational awareness, and safety systems include collision avoidance and emergency response features. Overall, these technologies are tailored to meet the specific needs of national security at sea.

Recent Developments

• October2022- The U.S. Navy has approved Northrop Grumman Corporation’s new Electronic Chart Display and Information System (Navy ECDIS) for deployment to its fleet. The U.S. Navy’s Operational Test and Evaluation Force (OPTEVFOR) issued a formal determination that Navy ECDIS is operationally suitable, operationally effective and cyber survivable. This new capability will be a core element to all U.S. Navy bridge and navigation systems.
• November2023- Simrad a brand of Navico Group, one of the leader in marine electronics and navigation, announced the release of its new HALO 5000 solid-state radar for the commercial market, designed to provide superior situational awareness for commercial vessels, reduced ownership cost and flexible installation.