Global Automatic Identification System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Automatic Identification System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global automatic identification system market is expected to grow at a CAGR of 5.8% over the forecast period. The spread of COVID-19 severely affected the market growth. Due to the closing of international borders to contain the virus spread, ports were closed with no trade deals, hindering market growth during the pandemic.

Key Highlights

• The International Maritime Organization’s International Convention for the Safety of Life at Sea requires automatic identification systems to be fitted in international voyaging ships with 300 or more GT ( Gross Tonnage) and passenger ships, regardless of size.
• In February 2021, the Southern Region Marine Department of Malaysia issued Port Circular No. 02/2021, informing the maritime community that it may require all vessels approved to operate to activate their Automatic Identification System (AIS) at times.
• Sea freight has witnessed significant growth across the world in recent years. Considerable investments are being made for the marine industry at a global level, which has led to an increased demand for AIS, especially for vessel tracking.
• The UK planned a Maritime Trade and Investment Five-Year Plan, focusing on five main areas – Green Maritime, Digital Technologies, Autonomous Vessels, Marine Science, Maritime Professional, and Business Services. Additionally, Myanmar announced the installation of AIS on its coastal and fishing vessels to ensure maritime security. To control AIS and exchange navigation information, AIS stations are expected to be established at 19 jetties, and the range of the AIS may stretch to 48-80 kilometres.
• AIS systems transmit radio signals in the maritime VHF band, and airwaves are inherently noisy. In ports and crowded areas, bandwidths often become congested due to competing signals, which interfere with each other. Additionally, satellites and ground-based receivers may only take in limited information simultaneously. Due to this congestion, any individual vessel may drop on and off the map. More satellites receiving AIS signals shall help enhance the coverage, but currently, they are of limited receiving capacity.​

Key Market TrendsFleet Management is Expected to Hold Significant Share

• According to UNCTAD's Review of Maritime Transport 2021 International, marine shipments declined by 3.8% to 10.65 billion metric tons. However, UNCTAD forecasts a 4.3% increase in global maritime commerce in 2021, with growth expected to continue in 2022–2026.
• The world fleet comprised 99,800 ships of 100 gross metric tons or more in early 2021, equivalent to 2,134,639,907 dwt of capacity, and the global shipping fleet grew by 3% in the year leading up to January 1, 2021. With the growing number of ships, it has become difficult for shipping companies to manage and analyze these large fleets, as the reporting requirement and emission standards continuously evolve.
• Ships can connect via the fleet management system, sharing crucial information and updates. The operators can plan the arrival and departure of ships in predetermined zones. This is critical for travelling through congested ports and pre-defined zones where they must schedule slots that are only available for a limited time. The shipping businesses must pay for these slots; if they do not arrive during the scheduled time, they may have to pay even more.
• Companies such as Big Ocean Data are currently adding capabilities to their fleet management solutions, such as a 5-day weather forecast and risk-based routing capability. As the EU plans the subsequent EU monitoring, reporting, and verification (MRV) rule to monitor emissions, fleet management solutions will play a critical role in the future for ships operating in the European Union. The fleet management system may reduce the time and effort required to record speed, fuel consumption, pollutants, and work statistics.
• With the help of fleet management solutions, shipping companies can control their fleet in real-time, due to which ships are able to navigate around any unforeseen climate situation. The fleet managers are now able to trigger alarms with no lead times, due to which the crew on the ships are able to make timely decisions.

North America is Expected to Hold Significant Share

• The North American region accounts for the largest automatic identification system market share. The region is known for its large coastal area, which requires continuous monitoring. For instance, according to the World Atlas, Canada has the longest coastline globally, covering 202,080 km. Moreover, the US has a total coastline length of 19,924 km.
• Moreover, the increasing commercial activities and trade across the region also propel the need for maritime safety and surveillance. According to Reading Economics, the US is among the top exporters globally. Therefore, the growth in trading activities across the region is anticipated to bolster the market's growth over the forecast period.
• Additionally, the region is marked by a significant number of AIS solution providers, contributing to the region's high share, and hence the area dominates the market.
• The rising geopolitical tensions across the globe have made the governments focus on improving security. Various countries, such as the United States, are highly prone to multiple threats that may put any country in a compromising position. The relevant authorities keep updating the vessel owners and cruisers about the possible dangers. For instance, in September 2021, the US Maritime Administration (MARAD) issued an advisory to the US-flagged commercial vessels operating in the Persian Gulf, Red Sea, and the Western Indian Ocean about the possible AIS GPS spoofing and bridge-to-bridge communications spoofing.
• Furthermore, the government has made many investments over the years to ensure maritime safety. Moreover, the relevant authorities in the region thoroughly check the usage of the automatic identification systems. For instance, in January 2021, the US Coast Guard (USCG) witnessed an alarming increase in the number of commercial fishing vessels disabling their AIS. This resulted in causing several accidents and made it difficult for the authorities to conduct search and rescue operations.

Competitive Landscape

The global automatic identification system market is tending toward a fragmented market as the established players in the market dominate it. Due to significant innovations and increased partnerships by the players with Homeland Security agencies, the market is leading to a massive demand for AIS solutions. The recent developments in the market are:

• June 2022 - Rightship Maritime Artificial Intelligence (AI) Research and Development (R&D), established by the Singapore Maritime Institute (SMI) and supported by the National Research Foundation Singapore, is a research and development partnership to stimulate AI-based vessel risk profiling. Other partners include software supplier Kongsberg Digital AS and technology firm Wärtsilä Voyage Limited and RightShip. Rightship is making a potential partnership working proposal to more than 80 of Singapore's AI experts, offering a research grant of up to USD 4.5 million for the identical solution.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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