Connected Ships Market Forecasts to 2030 – Global Analysis By Ship Type (Defense and Commercial), Fit (Line Fit, Hybrid Fit and Retrofit), Platform, Installation, Application and By Geography

Connected Ships Market Forecasts to 2030 – Global Analysis By Ship Type (Defense and Commercial), Fit (Line Fit, Hybrid Fit and Retrofit), Platform, Installation, Application and By Geography

According to Stratistics MRC, the Global Connected Ships Market is accounted for $6.31 billion in 2023 and is expected to reach $11.62 billion by 2030 growing at a CAGR of 9.1% during the forecast period. Connected ships refer to vessels equipped with advanced digital technologies and connectivity solutions aimed at enhancing various aspects of maritime operations. These vessels leverage cutting-edge technologies such as the Internet of Things (IoT), artificial intelligence (AI), data analytics, satellite communication, and automation tools to establish seamless connectivity between ship systems, onboard equipment, and onshore infrastructure. The application of connected technology on ships or vessels includes the improved management of critical ship operations, ship condition monitoring for preventive maintenance, and ship traffic management, among others.
According to the United Nations Conference on Trade and Development (UNCTAD), up to 80% of world trade takes place by sea in various seaports.

Market Dynamics:

Driver:

Surge in seaborne trade

With the continuous growth of global trade activities, there is an escalating demand for efficient and reliable maritime transportation. Connected ships equipped with advanced technologies such as IoT, AI, and data analytics cater to this demand by optimising vessel operations, enhancing navigation, and improving communication. Furthermore, these innovations enable smoother logistics, timely delivery of goods, and streamlined cargo handling, meeting the increased demand for efficient seaborne trade. Thereby, it will propel market demand.

Restraint:

Complexity and integration challenges

Integrating diverse digital systems and technologies, ensuring compatibility, and managing the intricacies of interconnected solutions pose hurdles. Combining various platforms, legacy systems, and new technologies into a cohesive ecosystem requires meticulous planning, expertise, and synchronization. Challenges in seamless integration may lead to operational disruptions, increased costs, and delays in implementation. As a result, it will hinder market growth.

Opportunity:

Integration of IoT and big data analytics

By combining IoT sensors and devices with sophisticated data analytics, maritime operators can collect vast amounts of real-time data from various ship systems. This integration enables predictive maintenance, operational optimisations, and informed decision-making. Analysing data streams for patterns and trends offers insights into fuel consumption, machinery performance, and safety, facilitating proactive measures to enhance efficiency, reduce downtime, and improve overall vessel operations. Thus, market demand is substantial.

Threat:

Data management and privacy concerns

The vast volume of data collected from interconnected ship systems raises apprehensions regarding storage, confidentiality, and compliance with data protection regulations like GDPR. Managing data across several platforms and protecting sensitive information offers issues that could lead to breaches or unauthorised access. Failure to address data privacy issues may lead to regulatory non-compliance and erosion of trust, hindering the widespread adoption of connected technologies in maritime operations.

Covid-19 Impact

The government's restrictions forced shipyards, shipbuilding businesses, and other vendors to drastically change their operations, leading to the halt of shipbuilding activities. The declining demand for travel and shipping enterprises resulted in the cancellation of orders for new ships, which had an immediate impact on the associated shipping industry. In addition, cruise ships were anchored because of a drop in passenger flow during the pandemic. In some cases, this led to delays in cruise deliveries and cancellations of orders. Consequently, the market expansion was adversely impacted by the decrease in demand for new ships and the reduction in production activities.

The line fit segment is expected to be the largest during the forecast period

The line fit segment is estimated to hold the largest share. Line fit refers to the integration of connectivity and digital solutions directly into newly built vessels during their manufacturing process. Line Fit solutions are pre-installed by the original equipment manufacturer (OEM) or shipbuilder, ensuring seamless integration of connectivity features such as IoT, data analytics, communication systems, and automation tools. These are customized to the vessel's specifications and operational requirements, providing an optimized and integrated digital infrastructure from the outset.
The vessel traffic management segment is expected to have the highest CAGR during the forecast period

The vessel traffic management segment is anticipated to have lucrative growth during the forecast period. Vessel Traffic Management systems enable real-time monitoring, tracking, and management of vessel movements, optimising traffic flow, preventing collisions, and ensuring navigational safety in busy waterways. These solutions facilitate efficient communication between vessels and shore-based authorities, supporting navigation, compliance with regulations, and overall operational efficiency, contributing to safer and more organised maritime transportation.

Region with largest share:

Asia Pacific commanded the largest market share during the extrapolated period due to increasing demand for efficient maritime operations. This region embraces digital transformation, integrating IoT, AI, and connectivity solutions to enhance vessel efficiency, safety, and fleet management. With a focus on optimising navigation, fuel consumption, remote monitoring, and predictive maintenance, the market witnesses the rising adoption of connected ship technologies. Moreover, government initiatives, growing trade activities, and the need for cost-effective, environmentally friendly shipping solutions further propel the adoption of connected ship technologies.
Region with highest CAGR:

North America is expected to witness profitable growth over the projection period. This market segment encompasses the integration of cutting-edge technologies and digital solutions to optimize vessel performance, safety, and operational efficiency across the maritime industry. Furthermore, North America fosters collaboration among industry stakeholders, technology providers, research institutions, and government bodies. Partnerships drive innovation, support R&D initiatives, and facilitate the implementation of advanced technologies in the maritime sector.
Key players in the market

Some of the key players in the Connected Ships Market include ABB Ltd., Schneider Electric SE, Rockwell Automation Inc., General Electric Company, Northrop Grumman Corporation, Emerson Electric Co., Valmet Oyj, Kongsberg Gruppen ASA, Wartsila Corporation, Marlink AS, Atos SE, Synectics Global, Ulstein Group ASA, Hyundai Heavy Industries (HHI), Jason, Mitsubishi Heavy Industries Group, RH Marine, Honeywell International Inc., Siemens AG and Rolls-Royce Holdings plc.

Key Developments:

In January 2023, Marlink announced an agreement with Singapore-based ship manager Thome Group for the delivery of hybrid network connectivity services for at least 100 ships.

In February 2022, Mitsubishi Shipbuilding agrees to construct the World's first demonstration test ship for liquefied CO2 transportation. The ship will integrate the company's liquefied gas handling technologies for tomorrow's long-distance, high-volume LCO2 transport needs.

Ship Types Covered:
• Defense
• Commercial

Fits Covered:
• Line Fit
• Hybrid Fit
• Retrofit

Platforms Covered:
• Ports
• Ships
• Cargo

Installations Covered:
• Onshore
• Onboard

Applications Covered:
• Fleet Health Monitoring• Vessel Traffic Management• Fleet Operation• Other Applications
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
JapanChinaIndiaAustralia
New Zealand
South Korea
Rest of Asia Pacific• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances