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The global automatic identification system market size was USD 242.2 million in 2020. The market is projected to grow from USD 250.3 million in 2021 to USD 374.8 million in 2028 at a CAGR of 5.94% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with automatic identification systems witnessing a negative impact on demand across all the regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 6.74% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s growth and demand, returning to pre-pandemic levels once the pandemic is over.
An Automatic Identification System is a tracking system that shared the location of vessels in the vicinity. AIS, also known as the broadcast transponder system, operates in the VHF mobile maritime frequency band. This provides a terrestrial-based monitoring system of suitably equipped ships. This information is collected by shore stations, other vessels, and satellites, thus enabling other equipped vessels to identify other vessels in their area. Vessel Traffic Services (VTS) ashore use AIS to identify, locate and monitor vessels. An AIS transponder normally works in an autonomous and continuous mode, regardless of operating in the open seas or coastal or inland areas. AIS transponders use two different frequencies, VHF maritime channels 87B (161.975 MHz) and 88B (162.025 MHz). The Panama Canal uses the AIS to provide information about rain along the canal and wind in the locks.
The AIS is also being used for different applications, including the widespread transmission of critical environmental conditions information, such as sea state and weather, to mariners, forecasters, and emergency response providers. Several pilot projects are in the research & development phase that will demonstrate the capacity and promise of AIS data and the AIS platform to serve multiple purposes, providing overall maritime domain awareness while maintaining its most important objective of tracking vessels to aid safe, secure, efficient and environmentally sound maritime operations. Considering the above factors, the automatic identification system market is expected to witness substantial growth in revenue during the forecast period.
COVID-19 Pandemic Had Deep Impact on Naval and Shipbuilding Industry
The naval and shipbuilding industry has witnessed exceptional challenges amid the COVID-19 pandemic across the world. Manufacturing halt disrupted supply chain, and isolation periods for staff affected the market growth. Moreover, investments in the shipbuilding sector declined during the pandemic. The decline in shipbuilding services for different applications such as offshore service, maritime trade, maritime export, and others has impacted the demand for automatic Identification systems.
Furthermore, many small companies engaged in the maritime and shipping industry have gone bankrupt due to less demand for automatic marine systems and the inability to handle the company's finances during the pandemic.
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Growing Trend of Space-Borne Automatic Identification System to Boost Market Growth
Space-borne SAR and AIS are complementary, and ship surveillance using an integrated combination has attracted much attention. At present, the demand for space-borne Identification Systems is increasing. Since more and more satellites are equipped with AIS payloads. Moreover, corresponding software and hardware are being designed to boost the market growth in forthcoming years. For instance,
Adoption of IoT in Automatic Identification System to Boost Market Growth
The key players involved in the evolution of vessel tracking and monitoring technology are looking forward to the future of smart global ocean trade and supply chains, harnessing satellite AIS, Internet of Things (IoT) connectivity, and Big Data to deliver unprecedented levels of visibility and control. The IoT is the next generation of internet-based Internet Protocol (IP). It facilitates end-point devices by allowing the automated use of data generated by sensors or devices that are connected to wired communication networks. AIS will have a vital role in marine IoT in general due to the growing need for more effective decision-making systems as to what course of action to take in any given situation. Thus, higher growth numbers are expected during the forecast period. For instance,
Growth in International Seaborne Trade to Propel Market Growth
UNCTAD’s Maritime Transport Report 2020 projected that maritime trade growth would expand by 4.8% in 2021. The merchant ships are majorly used for seaborne trade. Asia Pacific is the largest seaborne trading region. In 2019, Asian seaports handled 6.9 billion tons of goods unloaded and 4.5 billion tons of goods loaded. Asian countries, such as China, Japan, and South Korea, have emerged as the leading countries in the shipbuilding sector. The automatic Identification system is the essential system of the naval ships. Thus, the expansion of naval sector due to growing international seaborne trade activities propels the market's growth during the forecast period.
Cybersecurity Threats to Hamper the Market Growth
The maritime sector has faced constant vessel alteration owing to the rising automation and digitization. Autonomous vessel infrastructure comprises a combination of highly integrated software & hardware and electromechanical systems forming computer networks. The publication AIS data is one of the major cyber threats on the world-wide-web, or elsewhere, subject to the provisions of their national laws and might create ships that may be more vulnerable to terror acts via piracy and cyber-attacks. These leaks in AIS data e could be detrimental to the safety and security of ships and port facilities, thus hindering the market development.
Class A AIS Segment Dominated Market in 2020
Based on class, the automatic Identification system market is segmented into class A AIS, class B AIS, and AIS-based stations. Class A AIS dominated the market in 2020 as it has been mandated by the International Maritime Organization (IMO) for vessels of 300 gross tonnages and upwards engaged in international voyages, cargo ships of 500 gross tonnages and upwards not engaged on international voyages. The growing international maritime trade and cargo delivery services have boosted the segment growth. Class B AIS is one of the emerging segments as class B AIS transponders are mainly used by recreational vessels and smaller commercial vessels. Moreover, class B transponders also receive all class A and class B AIS transmissions. Thus, higher growth numbers are expected shortly.
Transmitter Segment to Dominate Market during 2021 -2028
Based on components, this market is segmented into transmitters, receivers, central processing units, displays, and others. The receiver segment grows at a higher pace, owing to advancements in radars and satellite communication services. Moreover, the growing adoption of satellite-based automatic identification systems (SAT-AIS) is a crucial factor responsible for segment growth during the forecast period. Furthermore, the demand for GNSS products and solutions has created a surge in demand for receivers operating at a very high frequency. The central processing unit is one of the major segments in the market. The fast, efficient, and real-time data is the need of the hour by naval and offshore service providers.
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Shipborne Segment to Witness Highest CAGR During Forecast Period
Based on platform, this market is segmented into airborne, shipborne, and offshore-based platforms. The shipborne platform to witness higher CAGR owing to increased naval and maritime activities. Moreover, the development of autonomous ships is one of the major factors driving the segment growth. These ships include the latest technology, such as data analysis technology, Internet of Things (IoT), and onshore monitoring bases connected by broadband communication. The airborne segment is expected to be the emerging market as an increase in patrol activities by navy and coast guard across international sea borders and international ports around the world.
Vessel Tracking Segment Witnessed Highest Market Share in 2020
Based on application, the automatic identification system market is segmented into fleet management, vessel tracking, maritime security, search and rescue, and other applications. The main purpose of the system is vessel tracking. This application helps border control agencies with better handling capabilities on maritime traffic. The growing maritime traffic worldwide due to increased trade activities is one of the major factors responsible for the segment during the forecast period. Maritime security and surveillance were two of the major drivers for the uptake of AIS technology. Maritime transportation was identified as a major threat vector and was one of the drivers behind the push from the coast guard and navy to have greater visibility and efficient security aid. Thus, higher growth of the maritime security segment is anticipated in revenue soon.
Asia Pacific Automatic Identification System Market Size, 2020 (USD Million)
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The market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
The Asia Pacific held the dominant market position in 2020 and the regional market is valued at USD 72.9 million. The progress is expected due to the rapidly increasing maritime trade and economic development in the region. The UNCTAD Review of Maritime Transport 2020 states, that Asia contributed about 65% of global container port traffic and persisted in a prominent position in container port cargo handling. The Asia Pacific dominated the market in 2020. The growth is attributed to the well-developed shipbuilding industry involved in the development of complex naval vessels, such as ferries, cruise ships, mega yachts, and submarines. Furthermore, the demand for the system in the defense sector increases due to ongoing territorial conflicts among countries such as China, India, and Pakistan.
Europe is expected to witness significant growth during the forecast period. The growth attributed to the rising investments in autonomous development of progressive ship projects from various European countries drive the automatic Identification system market growth. The rise in the number of ships due to growing international seaborne trade has led to rising demand for the systems across Europe.
The market in North America is projected to grow moderately during the forecast period. Increasing procurement contracts of naval vessels from the U.S Navy and rising demand for dry cargo and maritime tourism across the region propel the market's growth. For instance, market players such as L3Hariss Technologies Inc., Exact Earth, and Garmin Ltd are responsible for market growth in this region.
The rest of the world market stood at increasing maritime trade in the Middle East & Africa, and Latin American countries to drive the market growth during the forecast period. The Unique Group in the UAE introduced a UnI-Cat vessel for unmanned surveys in shallow waters in the year 2019. The organization designed and integrated autonomous sensors, communications technology, and AIS in naval ships. Thus higher growth numbers are anticipated in this region.
Technological Advancements in Automatic Identification System to Boost Market Growth
The competitive landscape of the AIS market depicts the domination of selected players such as ExactEarth Ltd, Orbcomm Inc., and Gramin. These companies focus on designing and developing advanced maritime traffic solutions. Moreover, these companies are expanding their geographic reach all over the world in the forthcoming years. For Instance, In May 2021, Unseen labs partner with ORBCOMM to provide maritime surveillance services for government and commercial AIS customers.
An Infographic Representation of Automatic Identification System Market
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The global automatic identification system market report provides detailed market analysis and focuses on key aspects, such as renowned manufacturers, products, demanding technologies, and end-users. Moreover, it offers insights into the trends and highlights key industry developments. In addition to the factors mentioned above, the market report encompasses several direct and indirect factors that have contributed to the market's growth over recent years.
Value (USD Million)
By Class, Platform, Application, Component, and Geography
Fortune Business Insights says that the global market size was USD 242.2 million in 2020 and is projected to reach USD 374.8 million by 2028.
Registering a CAGR of 5.94%, the market will exhibit steady growth over the forecast period (2021-2028).
The shipborne segment is the leading segment in the market.
Saab AB, ExactEarth, and L3Hariss Technologies Inc. are the leading players in the global market.
Asia Pacific dominated the market in terms of share in 2020.
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