Automatic Identification System Market

Key Market Overview:

Automatic identification system market size was worth over USD 265.8 Billion in 2022 and is anticipated to reach over USD 420.4 Billion by 2030, growing at a CAGR of 5.9% during the forecast period (2022-2030).

Automatic Identification System (AIS) is a maritime tracking system used to improve the safety and situational awareness of ships, boats, and other vessels at sea. The system is made up of one VHF transmitter and two VHF TDMA receivers, as well as a VHF DSC receiver. All such components are connected to a standard marine communications system that displays information and data from shipboard sensors. Further, AIS uses VHF (Very High Frequency) radio signals to transmit and receive data in terms of the vessels identity, position, course, speed, and other information. A radar screen or map is used to display such vital information by other ships and coastal authorities in order to avoid collisions, monitor vessel traffic, and respond in case of an emergency.

AIS is made mandatory by major coastal authorities for most commercial ships. However, several recreational vessels also use such systems on a voluntary basis to improve safety and assist communication with other ships. The system operates on two communication channels, one for ship-to-ship transmission, and the other for ship-to-shore transmission. Such different transmissions allow for the exchange of vessel information with coastal authorities and other relevant parties.

However, the Automatic Identification System (AIS) is installed on ships for the purpose of identifying other ships and navigational aids. Such a system is meant to assist with navigation, but should not be relied upon for avoiding collisions. Further, the system is monitored by Vessel Traffic Services (VTS) on shore for the purpose of identifying, locating, and tracking ships. For instance, the Panama Canal utilizes such AIS systems to gather information about weather conditions, such as rainfall and wind speeds.

Report Attributes	Report Details
Study Timeline	2016-2030
Market Size in 2030 (USD Billion)	420.4 Billion
CAGR (2022-2030)	5.9 %
Base Year	2021
By Type	Class A and Class B
By Component	Receivers, Transmitters, Display, Central Processing Units, and Others
By Platform	Shipborne, Airborne, and Offshore-Based
By Application	Maritime Surveillance, Fleet Management, Vessel Tracking, Search and Rescue and Others
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	Comar System, ComNav, NASA Marine Instruments, Furuno, SaaB AB, CNS Systems, L3HARRIS, Vesper Marine, Japan Radio Co. Ltd, ICOM, Jotron, COBHAM, Sealite, Spire

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Market Dynamics:

Driver:

The rising rate of international trade fuels the demand for AIS in terms of increased focus on shipping operations. Further, the growing need for new advancements, especially in satellite-based AIS also boosts the market demand along with the integration of AIS with other technologies such as GPS. Moreover, the market adoption is driven by government regulations such as the International Maritime Organizations (IMO) requirements for all vessels in terms of AIS. Also, the increased need for real-time data on vessel movements, such as position, course, speed, and cargo information propels the demand for AIS systems.

Restraint:

The installation of an AIS system is expensive, which is a major barrier to its widespread adoption. The high cost of components along with the cost of installation and maintenance also limits the market growth. Further, the sharing of sensitive information, such as the vessels position and cargo information leads to privacy and security concerns. Such risks of cyber threats restrain the growth of the AIS market as ship vessels are subjected to their national laws. Moreover, growing competition to AIS systems from other technologies such as Long Range Identification and Tracking (LRIT) and Global Maritime Distress and Safety System (GMDSS), which offer similar benefits and services. Such competition limits the growth of the AIS market.

Opportunities:

Increasing demand for AIS in offshore and coastal engineering projects to ensure safe and efficient operations is anticipated to create creative opportunities for the market growth. Further, the scope of integrating technologies such as the Internet of Things (IoT) and big data analytics with AIS is expected to enhance its capabilities and applications. Such integration is estimated to enable real-time monitoring of vessel movements as well as the analysis of data to optimize operations and reduce costs.

Automatic Identification System Market Segmentation:



By Type

The type segment is bifurcated into Class A and Class B. Class A is anticipated to contribute the largest share to the automatic identification system market growth. Since 2004, the International Maritime Organization (IMO) has mandated that all passenger ships and commercial vessels with a gross tonnage of 299 or more mandatorily need to have a class A Automatic Identification System (AIS) transponder on board to travel internationally. Thus, the rising international trade among various regions to maintain the supply chain of raw materials and end-products support the segment growth. Further, the class B segment is also projected to support the market growth in terms of volume. Class B AIS transponders are also optional for smaller vessels or pleasure crafts. This requirement is designed as per the 2002 Safety of Life at Sea (SOLAS) agreement. Thus, the increasing prevalence of pleasure crafts among the population such as canoes, motorboats, and sailboats also supports the segment growth.

By Component

The component segment is divided into receivers, transmitters, displays, central processing units, and others. The receiver segment is anticipated to register the fastest CAGR growth during the forecast period. AIS devices are made up of a GPS receiver and a data radio component which allows ships globally to communicate with one another and transfer vital information to other ships as well as coastal land stations and traffic control centers via satellite. Thus, increased adoption of satellite-based automatic identification systems (SAT-AIS) is projected to support the demand for receivers during the forecast period. Further, there is a scope for expanding maritime communications with the integration of such SAT-AIS. For instance, The Ocean-2B satellites AIS payload was used to assess the effectiveness of the scene simulation system. The results show that the system is capable of accurately simulating the actual process of receiving the signal in orbit.

By Platform

The platform segment is categorized into shipborne, airborne, and offshore-based. The shipborne segment is expected to support the market growth in terms of the fastest CAGR growth. The growing integration of the Internet of Things (IoT) within ship vessels and onshore monitoring bases drives the demand for the shipborne platform. Such technology adoption is mainly due to the increasing focus on maritime safety and improved navigational efficiency. AIS is also used to monitor compliance with regulations by major domestic and commercial vessels in terms of fishing, environmental protection, and maritime security. Moreover, the airborne segment is also estimated to support the market growth in terms of volume. The emerging naval and coast guard patrol activities propel the segments growth. Also, airborne AIS provides real-time information on ship traffic and conditions at sea which helps to optimize shipping routes and reduce delays.

By Application

The application segment is divided into maritime surveillance, vessel tracking, fleet management, search, and rescue, and others. The vessel tracking segment contributed the largest shares to the market growth in 2021. The increased demand for AIS information by law enforcement agencies to monitor the movement of vessels and prevent illegal activities such as piracy and smuggling supports the growth of the segment. Such vessel tracking also plays an important role in busy shipping lanes where many vessels are operating in close proximity. Moreover, the maritime surveillance segment is also projected to support market growth during the forecast period. Since various shipping vessels use similar sea routes for international trade such as Panama Canal, Suez Canal, and Drake Passage, there is a need to ensure surveillance, especially in such ports.

By Region

The regional segment comprises Europe, the Middle East and Africa, Asia Pacific, North America, and Latin America. Asia Pacific contributed the largest shares over USD 75.9 million in 2021. The established shipping industry in the Asia Pacific is a major factor that supports the demand for AIS in vessels such as cruise ships, commercial ships, mega-yachts, and others. Further, growing exports especially from countries such as China, India, Japan, and South Korea also fuel the market growth in terms of high-volume international trade.



North America is also anticipated to support the market growth in terms of value. The growing presence of market players and increased expenditures by navy departments across the region supports the market growth in North America. Also, the rising adoption of pleasure crafts among the population due to high disposable income boosts the demand for AIS in this region.

Automatic Identification System Market Competitive Landscape:

The automatic identification system (AIS) market is highly competitive due to the presence of several established players and new entrants. Major players in this market offer a range of AIS products and services to cater to the diverse needs of customers. Such businesses also have a strong presence in the global market in terms of a well-established network of distributors and a vast customer base. Further, such companies are continuously investing in research and development activities to sustain their market position and improve the features of existing products. Such initiatives by businesses are aimed to develop new products to meet the changing market demands, especially in terms of the maritime industry. The following are major players that comprise the latest market circumstances â€\"

• Comar System
• ComNav
• NASA Marine Instruments
• Furuno
• SaaB AB
• CNS Systems
• L3HARRIS
• Vesper Marine
• Japan Radio Co. Ltd
• ICOM
• Jotron
• COBHAM
• Sealite
• Raymarine
• Spire

Recent Developments:

• In November 2022, the Spire unveiled the latest upgrade to existing AIS in terms of dark shipping detection. The system is expected to offer a solution for tracking vessels in order to retrieve their reported position for verification.

• In January 2023, Wilhelmsen released a new product called The UNITOR IW-PRO 1/2 Mini NG Kit. The kit is a versatile and lightweight impact wrench that is mainly used for tight corners and to reach difficult areas. The product is also offered with a selection of sockets for impact in terms of onboard use.