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Sep 30, 2019 7:00 AM ET

Automatic Identification Systems (AIS) Market is registering towards growth with 6.15% CAGR through 2025 | OGAnalysis

iCrowd Newswire - Sep 30, 2019

The $275.8 million Automatic Identification Systems (AIS) Market is an emerging market positively impacted by technology-driven trends between 2019 and 2025. OG Analysis research team identifies digitized navigation, autonomous propelling, and better surveillance as factors set to drive the automatic identification systems (AIS) growth.

Automatic Identification Systems (AIS) Market forecast till 2025

Onshore and offshore port sectors are moving towards building automated handling capabilities to meet the demand for reduce downtime, enhance accuracy and improve the decision making process.  New advanced technologies are transforming the entire marine transportation sector and are providing new growth opportunities for AIS suppliers.

Further, enhanced coastal surveillance, better navigation and maritime traffic management largely drives the market growth. The utilization of automatic identification systems to improve situational awareness, overcome the limitation of sight and avoid collision remains core strengths of the AIS equipment.

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The advantages and operational efficiency of Class A type AIS systems shapes the market share to 42.8% in 2018. Further, growing consumption of Class A systems is largely driven by continuous increase in vessel size from Aframax to VLCC to ULCC in oil industry and similar trends in other sectors.

However, fluctuations across marine transport sector, slow down in economy, regional trade blocks as well as prolonged weakness in commodity prices significantly hamper the market growth.

Long-term contracts, alliances and acquisitions are observed across key market players

Key companies are working in alliances to deliver efficient coverage services, for example, in 2018, ExactEarth Ltd and IHS Markit announced an alliance agreement that provides new combined tracking services as well as offers unprecedented frequency and coverage of vessel movements worldwide.

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Further, major players are investing in acquisitions to develop platforms for digitized AIS systems. For instance, in 2018, Wartsila’s acquisition of Transas announced transaction value of MEUR 210 for the development of smart products and a digital platform.

Other players are strengthening market presence by extending government funded contracts. Accordingly, in 2018, ORBCOMM Inc. and Maerospace Corporation Expands AIS Contract with Government of Canada.

Key players operating in automatic identification systems (AIS) market include Saab AB,Furuno Electric Co. Ltd, exactEarth Limited, Orbcomm Inc., Garmin Ltd, Kongsberg Gruppen ASA, True Heading AB, Japan Radio Company Ltd., C.N.S. Systems AB, Transas Marine Limited, ComNav Marine Ltd, and L3 Technologies Inc.

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IMO regulations to provide long term Automatic Identification Systems (AIS) market opportunity

A mandate was issued by International Maritime Organization (IMO) to deploy Automatic Identification System (AIS) equipment Ships of 300 tonnes or more in international voyages, cargo ships of 500 tonnes or more in local waters and all passenger ships irrespective of size.

This will provide strong support for companies operating across the global automatic identification systems (AIS) industry value chain.

Vision for aquatic ecosystem conservation allures the Automatic Identification Systems (AIS) market

Wide adoption of AIS systems to safeguard aquatic ecosystems and water ecologies with advantages to track oil spill accidents and patrolling of illegal oily discharge largely drives the market growth.

Accordingly, SkyTruth created Oil Spill Tracker with support from Surfrider Foundation and Ocean Conservancy, to track the impact of the oil spill on the Gulfs and coastlines. In addition, advance AIS systems are ensuring the transparency and legality of fishing and seafood products. For example, WWF partnered with navama evaluated data from the Automatic Identification System (AIS) and are retracing the routes and activities of fishing vessels, including those suspected of illegal fishing. 

Expansion of seaborne trading and maritime industry favours satellite based Automatic Identification Systems (AIS) market

Automatic Identification Systems (AIS) market value is brimming over satellite based AIS system across developed regions. SAT AIS provides better satellite imagery, and accurate tracking of seafaring vessels worldwide with larger covering of the oceans and the Antarctic.

Accordingly, European Space agency in partnership with European Maritime Safety Agency is promoting SAT-AIS systems and technologies across seaborne countries. Further, European associations are focusing on ARTES 21, which includes the design, development, integration, deployment, running and validation of applications utilizing satellite-based AIS data.

In addition, vessel traffic services are required to carry out efficient search and rescue operations coupled with responsive accident investigation. Satellite-AIS are delivering search and rescue (SAR) across maritime safety organizations in Australia, South Africa, Canada and Japan.

Upcoming trend of port automation is creating opportunities for Automatic Identification Systems (AIS) market across Americas & Europe

Huge investments for automation of port operations drive the market for Automatic Identification Systems growth across the regions. For instance, capital expenditures of over $10 billion for automation of 40 ports likely to be partially or fully automated is estimated over the forecast period

In addition, the development of first global AIS network, Mobile App AISLive, a mobile application for tracking the vessel in real time applications drives the market growth across North America and Europe.

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