Connected Ship Market Expected to Reach $12.3 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Connected Ship Market," The market of connected ship was anticipated at $6.8 billion in 2022, and is projected to garner $12.3 billion by 2032, growing at a CAGR of 6.3% from 2023 to 2032.

The connected ship industry is a vibrant and developing part of maritime technology, which has come a long way within the recent years. The industry is fundamentally focused on integrating the latest digital technologies into ships to improve connectivity, data exchange and operational capabilities. As the maritime space paves toward digital progression, connected shipping industry is likely to experience sustainable enlargement giving an ecosystem for further innovation and efficiency enhancements calculated across all stakeholders within the maritime world.

The increasing need for real-time data and insights to enhance operational efficiencies fuels the penetration of connected ship technologies. Advanced sensor system in the vessel helps to monitor engine performance, fuel consumption and equipment health continuously so that operators can make data-based decisions which would help them optimize overall performance by assessing various options. Further, legislative efforts aimed at fostering safety and reducing environmental footprint stand to promote connected shipping solutions.

Environmental compliance integration is driven by adherence to international standards, such as regulations on the monitoring and reporting of emissions relating to the International Maritime Organization (IMO). Furthermore, the industry is taking onboard digitalization through utilization of new age technologies such as artificial intelligence and cloud computing which enables smarter fleet management & navigation that is expected to fuel the connected ship market even quicker. The convergence of these factors serves to identify a transformative shift toward more interconnected, efficient, and compliant marine ecosystems.

Furthermore, the introduction of blockchain technology is also creating flows in the connected shipping market, especially in areas such as supply chain management and logistics. Blockchain improves the transparency & security of shipping operations by providing a final dispersed record. This is exhibited by blockchain platforms that enable secure and transparent documentation of cargo shipments, reduce the risk of fraud, and enhance traceability throughout the supply chain. In addition, the advent of 5G connectivity is revolutionizing connected vessel communications. High-high-speed and low latency 5G network enables seamless data exchange between ships and shore systems. This is exemplified by the use of 5G for video surveillance, remote monitoring, and telemedicine applications on ships, enhancing safety and operational oversight.

For instance, in November 2023, Latvian mobile innovator LMT, in collaboration with the local technical port services provider LVR Fleet, recently succeeded in trialing the 5G technology maritime concept that holds the potential to enable 5G connectivity over open waters. The trial was conducted on the Daugava River in Riga, Latvia, and demonstrated uninterrupted 5G shore-to-ship and ship-to-ship connectivity. A 5G connection was established with a ship using a terrestrial network, and the 5G network connectivity was successfully passed from the ship to the end user.

These technological trends underscore the transformative impact of connected ship solutions, offering unprecedented capabilities in terms of predictive maintenance, edge computing, blockchain integration, and 5G connectivity. As these innovations continue to evolve, the connected ship market is poised to redefine standards in maritime efficiency, safety, and sustainability.

In addition, there is growing recognition that connected ocean solutions are critical to addressing the unique challenges of the region's diverse ocean landscapes, making LAMEA the fastest-growing region. The Middle East with its influential waterways and strategic ports is expanding investment in connected ship technologies to improve navigation and safety. For instance, in April 2023, Abu Dhabi’s AD Ports Group introduce a new Vessel Traffic Management Information System (VTMIS) across its UAE operations, as part of ongoing efforts to enhance safety, security and efficiency.

The new technology is expected to be installed in Khalifa, Zayed and Musaffah ports as well as smaller ports in the Al Dhafra region in 2024. The VTMIS is used to integrate tools such as radar, CCTV, radios, meteorological systems, radio direction finders and towers. This is expected to provide port operators with access to real-time information and improve vessel-to-vessel and vessel-to-shore communication.

In addition, the growing importance of efficient logistics and trade routes in Latin America has fueled the adoption of these solutions to optimize supply chain operations. The implementation of IoT-enabled sensors on vessels, such as those monitoring cargo conditions and engine performance, is becoming more prevalent across the region. Moreover, regulatory initiatives promoting maritime safety and environmental sustainability drive the integration of connected ship systems. Thus, by the expansion of smart port projects in African countries, the LAMEA region is clearly at the forefront of leveraging connected ship technologies to navigate challenges and foster a more efficient and secure maritime ecosystem.

The global connected ship market is segmented into application, installation type, ship type, and region. Depending on the application, the market is segregated into fleet operations, vessel traffic management and fleet health monitoring. By installation type, it is categorized into on-board and onshore. As a ship type, it is fragmented into commercial and defense. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

KEY FINDINGS OF THE STUDY.

• By application, the fleet operations segment is anticipated to exhibit significant growth in the connected ship market in the near future.
• By installation type, the onshore segment is projected to show significant growth in the market during the forecast period.
• By ship type, the commercial segment is predicted to exhibit significant growth in the market in the predicted years.
• By Region, LAMEA is anticipated to register the highest CAGR during the forecast period.

Key players covered in the connected ship market report include ABB Ltd., Emerson Electric, General Electric, Kongsberg Gruppen, Marlink, Northrop Grumman Corporation, Rockwell Automation, Schneider Electric, Ulstein Group ASA, and Wartsila Corporation.