Integrated Marine Automation System Market Size, Share & COVID-19 Impact Analysis, By Product Type (Hardware, Software) By Solution (Vessel Management System, Power Management System, Safety System, Others) By End-User (Commercial, Defense) and Regional Forecast, 2022-2029

The global integrated marine automation system market size was USD 3.58 billion in 2021. The market is projected to grow from USD 3.84 billion in 2022 to USD 6.33 billion in 2029 at a CAGR of 7.39% in the 2022-2029 period. The global impact of COVID-19 has been unprecedented and staggering, with integrated marine automation systems experiencing a higher-than-anticipated demand during the pandemic compared to pre-pandemic levels. Based on our analysis, the global market had shown a growth of 10.6% in 2020 as compared to 2019.

Integrated marine automation is a system used to monitor and control operations on a ship. This automation system increases the operational efficiency and safety of the marine vessel. Growing demand for digitalization in the maritime sector is anticipated to increase the growth of the global integrated marine automation market. The short-term impact was observed on the market due to COVID-19 impact. However, the market is expected to recover by the end of 2022.

COVID-19 IMPACT

COVID-19 Outbreak has Increased Demand for Digitalization in Maritime Sector Propelling Market Growth

The spread of coronavirus has negatively affected the overall marine sector. Huge revenue losses resulted in the first two quarters of 2020 due to lockdown and travel restrictions. The decreased demand for marine trades and travel caused the termination of new ship orders, negatively impacting the market. Thus, owing to the drop in new ship demand and decrease in manufacturing operations, the market of marine automation systems witnessed slow growth.

However, the COVID-19 outbreak has also led several companies in the marine industry to adopt digital technologies for remote operations such as fleet monitoring and control, fleet optimization, and others. For instance, shipping companies and OEMs are adopting artificial intelligence (AI) for intelligent scheduling, predictive maintenance, and real-time analytics for improving operational performance. Companies such as ABB, Honeywell International Inc., Hyundai Heavy Industries, Hoglund, and COSCO Shipyard Group witness decline in the orders for marine automation system during COVID-19. However, from 2022, rise in the demand was observed. Thus, the COVID-19 pandemic is expected to speed up the shift towards digitalization post 2022.

LATEST TRENDS

Emergency of Electronic Chart Display and Information System (ECDIS) to Fuel Growth

The ECDIS is a dedicated digital navigation computer. The ECDIS integrates electronic navigation software with modern navigational tools such as RADAR, GPS, ARPA, and others. It stores a set of Raster Charts or Electronic Navigation Charts (ENCs) that display all the essential geographic information to complete a voyage. There is a rise in demand for the integration of ECDI systems in ships as these charts incorporate more data than conventional navigation tools. The system also automates necessary functions such as automatic route planning and monitoring, which reduces crew tasks. The surge in the adoption of ECDI systems in new and old ships is expected to fuel the market's growth.

DRIVING FACTORS

Increased Development of Software Solutions to Optimize the Operational Activities to Boost Growth

Major players are focused on developing software solutions for automating ship operations. The growing development of software to ensure efficient ship operations, vessel traffic management, and ship health monitoring is anticipated to drive the market growth. 

• For instance, in September 2020, a U.K.-based company, Windward launched a maritime software Maritime Artificial Intelligence Analytics (MAIA) 4.0 that can search, screen, and analyze dynamic maritime data and learn potential risks. This software is designed to determine voyage irregularities. 

Hence, the rising developments in software are anticipated to propel the market growth. 

Moreover, the growing adoption of technologies such as Big Data Analytics, the Internet of Things, Artificial Intelligence, and others are expected to augment the integrated marine automation system market growth during the forecast period.

Rising Investment for Incorporation of Information and Communications Technology (ICT) in Ships Expected to Fuel Market Growth

The shipbuilding and shipping companies are investing in the automation of vessels to save cost and increase efficiency of the ship operations. Moreover, increasing research and development of automated solutions by market players is expected to fuel the market growth.

• In July 2020, Sea Machines Robotics, an autonomous vessel software provider, raised USD 15 million in funding to accelerate the deployment of its technologies in an unmanned ship and naval boats.

Growing maritime trade, emerging port infrastructure, and digitalization of ships &shipyards have increased the demand for integrated marine automation systems.

RESTRAINING FACTORS

Increased Risk of Cyber Threats May Restrain Growth of the Market

The risk of a cyber-attack on a ship increases due to automation. The ships travel via routes mapped by the satellites during their voyages, increasing the risk of cyber threats. The rise in demand for connected ships, autonomous ships, has increased the adoption of integrated marine automation systems. The integration of automation systems is the first step toward automating complete vessels. However, this automation is predicted to make ships vulnerable to cyber-attacks. With growing online threats and attacks worldwide, the Maritime Safety Committee (MSC) from the International Maritime Organization (IMO) has announced provisional guidelines to prevent cyber-attacks on ships’ systems.

SEGMENTATION

By Product Type Analysis

Software Segment to Grow at Faster Rate Owing to Increasing Software Development

Based on product type, the integrated marine automation system market is segmented into hardware and software. The hardware segment is anticipated to dominate the market due to the rise in installation of automation systems in old and new ships. The software segment is expected to grow at a higher CAGR during the forecast period due to the growing development of software to increase digitalization in the maritime sector.

By Solution Analysis

Vessel Management System Segment to Dominate the Market Owing to Rising Adoption to Increase Efficiency

Based on the solution, the market is classified as vessel management, power management, safety, and others. The vessel management system segment is anticipated to lead the market during the forecast period. The segment's growth is attributed to the increased adoption of vessel management systems by naval, marine, and offshore companies to increase ship efficiency by monitoring and controlling the operations.

By End-User Analysis

Commercial Segment to Grow at High CAGR Owing to Rising Shipbuilding Orders and Ship Modernization Contracts

Based on end-user, the market is segmented into commercial and defense. The commercial is estimated to be the largest and fastest-growing segment throughout the projection period. The growth is accredited to the rising shipbuilding orders and ship modernization contracts owing to the growing maritime trade and travel. The rising demand for marine automation systems from OEM and aftermarket companies for installation in new ships and old ships is predicted to augment the market growth.

REGIONAL INSIGHTS

The global market is segmented based on region into North America, Europe, Asia Pacific, and Rest of the World.

Asia Pacific accounts for the largest market share with a market size of USD 1.20 billion in 2021 and is anticipated to grow at a higher compound annual growth rate through the projection period. The dominance is attributed to major shipbuilding companies such as China Shipbuilding Industry Corporation, Daewoo Shipbuilding & Marine Engineering, and others that drive the region's integrated marine automation system market.

According to a published report, Japan, South Korea, and China account for 90% of global cargo ships. Hence, the presence of shipbuilding companies supports the automation of ships in the region.

The market in Europe is predicted to grow substantially owing to the growing demand for cruise ships and autonomous ships. The ongoing ship modernization programs will facilitate the growth of the market in Europe.

North America segment is expected to grow due to increasing research and development of marine automation systems by key players such Honeywell International Inc., General Electric, Emerson Electric Co., and others. The stringent government norms related to the software and the installation of the product on the advanced ship will have a short-term impact on the growth of North America.

KEY INDUSTRY PLAYERS

Market Players Are Using Strategies Such as Collaboration, Investment, Partnerships, and Others to Increase Market Potential

Companies have been concentrating on the automation of ship operations over the last few years. Several companies are taking initiatives to digitalize their ships. There has been a rise in investments in the modernization of capabilities to increase efficiency and decrease costs. Key players are using collaboration and partnership strategies to increase the market potential. For instance, Hoglund signed a partnership agreement with Veracity to assist the ship owners in speeding up their digitalization initiatives.

Other key players are investing in the research and development of automation systems by adopting Artificial Intelligence, the Internet of Things, and Augmented Reality.

LIST OF KEY COMPANIES PROFILED:

• ABB (Switzerland)


• Honeywell International, Inc. (U.S.)


• Rolls-Royce PLC (U.K.)


• Wartsila (Finland)


• Kongsberg (Norway)


• Siemens (Germany)


• Hyundai Heavy Industries (South Korea)


• General Electric (U.S.)


• Ingeteam (Spain)


• Emerson Electric Co. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• In October 2021 –Hoglund was awarded a contract by Sunrise Reliance LLC to supply Automation and Fuel Gas Supply System (FGSS) for retrofitting2400 TEU container ship. Hoglund and COSCO Shipyard Group will work on delivering an integrated solution that includes Power Management System (PMS), FGSS, Ship Performance Monitor (SPM), and full automation of new systems on the ship.


• In November 2021, MJR Power and Automation was awarded a contract to install its marine automation platform MAP-OE on SMS Roman tugboat.

REPORT COVERAGE

The market report provides a detailed analysis of the industry and focuses on key aspects, such as key players, product types, solutions, and end-user of integrated marine automation systems. Moreover, the research report offers insights into market trends, competitive landscape, market competition, product pricing, control system, and market status, highlighting key industry developments, and segment of the integrated. In addition to the factors mentioned above, it encompasses several direct and indirect factors that have contributed to the sizing of the global market over recent years.

Report Scope & Segmentation