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To revolutionize the maritime sector, the marine internet of thing (IoT) market has been leading in terms of the integration of smart technology and connectivity that boosts efficiency, safety as well as operational capabilities at sea. The market dynamics are influenced by increasing acceptance of IoT solutions across different maritime sectors among them shipping, offshore exploration, and naval operations. Through sensors, data analysis and connectivity marine IoT collects real-time information from ships and other equipment which in turn influences Maritime operations and decision-making.
Among several aspects driving the market dynamics of Marine IoT is an industry focus on cost containment measures and improved operational efficiencies. Ship performance can be measured through onboard sensors providing insights on factors such as fuel consumption patterns navigation efficiency engine performance as well as equipment health. Therefore, the market meets these needs with advanced IoT platforms that allow ship owners; operators and regulators to maximize efficiency in their vessels, reduce costs for entire fleet management.
Market trends defining Marine IoT are highly affected by technological advancements in sensors and communication technology. Sensor miniaturization developments in conjunction with low-power wireless protocols or satellite networks has resulted to emergence of tiny energy-efficient devices for use on ships (compact maritime devices). In this regard, providers have made a lot of progress by combining these sophisticated technologies into its marine-based IoT products so that they can be used for purposes like real time monitoring or remote diagnostics.
Marine regulations regarding safety and environment significantly contribute to shaping the dynamics of Marine IoT Market. The maritime sector experiences strict regulatory systems concerning safety emissions as well as environmental pollution. Thus vessel managers enjoy regulatory compliance because they are provided with tools to check out its air quality control program’s impact on gas emissions, monitor navigational routes within sensitive ecological zones plus guaranteeing safe procedures within their premises using the marine platform. The response offered through the market entails issuance of longtime platforms for conformity with international rules governing shipping thus making it easier for companies to integrate their existing systems into new compliance platforms.
Market dynamics are driven by the need for improved situational awareness and navigation ability in marine IoT. IoT assists vessel operators with real-time weather monitoring, route optimization, and collision avoidance to enhance the safety of ships. Consequently, this market provides devices that are integrated with these navigation systems plus other weather gadgets as well as communication networks so that they can give users up-to-date information which is vital for decision-making while avoiding risks on sea.
Data security concerns in the maritime industry shape Marine IoT Market developments significantly due to cyber-crimes committed against shipping vessels. Ships are increasingly becoming more connected and dependent upon Iot devices hence there is a great need for maintaining confidentiality and integrity of maritime data. That is why strict measures such as encrypted communications involving secure device management policies have been put in place by the markets to ensure that its integrity remains intact. As a result, marine IoT solutions have gained credibility leading to their widespread adoption throughout the entire maritime ecosystem.
Expansion of global shipping activities coupled with the demand for real-time connection drives market dynamics of Marine IoT. Shipping routes change; offshore operations extend and naval capabilities become more advanced prompting for highly reliable scalable IOT solutions. Thus international variation in demands has necessitated flexible marine based platforms which can operate at sea or be supported by various types of installations such as off-shore structures or harbors globally wherever they may be located in order to cater global connectivity requirements within maritime systems.
Marine IoT market dynamics are influenced by collaborations and partnerships among maritime technology providers, satellite communication companies and regulatory bodies. Their goal is to create standardized solutions that can be easily integrated with other IoT technologies in the marine ecosystem. With open standards as well as a collaborative market focus, Marine IoT can scale up and be adopted widely, making sure there is a connected maritime industry."
Marine Internet of Things Market Highlights:
Marine Internet Of Things (IoT) Market Overview
Marine Internet of Things (IoT) Market Size Valued at USD 689.1 Billion, market Grow at a CAGR Of 17.1% by 2024 -2032
The marine internet of things market is growing significantly due to the continuous digitization and automation of the maritime supply chain. Globally ships are being equipped with technologically advanced systems, sensors, and solutions to boost cost-efficiency and increase operational efficiency.
The global marine internet of things market has witnessed high growth in recent years due to increased seaborne trade and increasing defense expenditure. Moreover, the growing maritime tourism industry is driving the growth of the market. Furthermore, factors such as the use of renewable sources of energy and advancements in hybrid propulsion technology are expected to offer lucrative opportunities for market growth.
COVID-19 Analysis
According to MRFR, the current projections of global marine internet of things market growth till 2027 are expected to be lower than pre-COVID-19 estimates. The pandemic has had a devastating negative impact on the defense industry across the world. In the defense industry, due to a decrease in tax revenues with a decrease in GDP, it is also expected to decrease the demand for new military aircraft, naval vessels, ground vehicles, related systems, and soldier equipment in the next few years. This is also expected to decrease the demand for marine internet of things.
Many governments across the globe are focused on controlling COVID-19 outbreaks in their countries. Hence, they are investing more in healthcare equipment and the development of vaccines. Therefore, the defense expenditures on new products are expected to be lower in the next few years. The defense expenditure is expected to increase gradually during the forecast period after the pandemic ends.
Likewise, due to the decrease in global trade, the maritime transport industry is also growing at a low pace. Therefore, the demand for new technologies by commercial ship operators is also expected to be low in the upcoming years.
Thus, it is expected that the global marine internet of things market will grow at a slower rate in 2021 and 2022; from 2023, it will grow gradually.
Market Drivers
Increase in Seaborne Trade
Maritime transport is considered the backbone of global trade and economy; shipping carried more than 85% of the world’s goods, by volume, in 2019. Seaborne trade continues to expand, bringing benefits to consumers across the world through competitive freight costs. This is also expected to drive the growth of the global marine internet of things market during the forecast period.
Growing Maritime Tourism Industry
Increasing Adoption of IoT Globally
Opportunities
Use of Renewable Energy
The use of renewable energy sources for power generation on board ships is expected to boost the demand for marine IoT solutions. Recently, the increase in investment for the development of electric vessels with advanced electronics is also expected to drive the demand for marine IoT during the forecast period. The use of renewable energy can save the overall operating cost of the vessel to a large extent. Thus, the increasing use of renewable energy is expected to drive global market growth.
Advancements in Hybrid Propulsion Technology
Restraints
Vulnerable to Cyberattacks
Military vessels that rely on satellite communication in remote areas are vulnerable to cyberattacks. For instance, the cyber intelligence company IntelCrawler found that of the 3 million VSATs installed on military and commercial vessels, around 10,000 could be easily accessed due to configuration weaknesses. The terminals with data transmission rates between 4 Kbps to 16 Mbps used in narrowband and broadband data transmission were more vulnerable to cyberattacks.
Cumulative Growth Analysis
Demand for Improving the Efficiency of Vessels Requires Advanced IoT Devices is Expected to Bolster the Market’s Growth Rate
The global marine internet of things market growth is expected to be at a rate of 6.2% over the analysis period (between 2021 and 2027), on account of increasing demand for improved efficiency of vessels with advanced IoT devices.
Segment Overview
By Application
Route & Operation Optimization: The route & operation optimization segment accounted for the largest market share in 2019. This can be attributed to the rising use of IoT in route mapping and operation optimization.
Asset Tracking: The asset tracking segment is expected to grow at the highest CAGR during the forecast period. The use of IoT in asset tracking is increasing over the last few years, which helps handle all the assets efficiently.
Equipment Monitoring: The equipment monitoring segment is expected to grow at the highest CAGR during the forecast period. IoT equipment are connected through the Internet network, which helps monitor all the equipment efficiently, driving the growth of this segment.
By Ship Type
Commercial: This segment dominated the marine internet of things market in 2019. The commercial segment comprises cargo vessels such as container vessels, bulk carriers, tankers, and general cargo ships, passenger vessels such as yachts, cruise ships, and ferries, and other vessels such as fishing vessels, tugs &workboats, dredgers, research vessels, and submarines. Due to factors such as increasing seaborne trade, growing maritime tourism industry, rising adoption of IoT, and implementation of the IMO Sulphur 2020 Regulation, the demand for IoT systems and solutions for commercial applications is anticipated to increase during the study period.
Defense: The segment is expected to register the higher growth rate during the study period. The defense segment includes destroyers, corvettes, frigates, offshore support vessels, aircraft carriers, and submarines. Increasing military spending on the development of new and advanced combat vessels is expected to increase the demand for IoT solutions.
Regional Analysis
North America Accounted for the Largest Market Share
North America comprises two major countries, namely, the US and Canada. North America dominated in terms of military expenditure and technological advancements and generates a very high demand for marine internet of things. Although Canada makes some investments in developing such advanced weapons, the country’s market is primarily dependent on the US. The region accounted for the largest share in the global market in 2020, primarily due to the increasing adoption of advanced naval vessels by the US Navy for tactical missions. This is expected to drive the growth of the market during the review period. Moreover, the presence of major marine internet of things solution providers such as Cisco Systems, Inc. is fueling the market's growth in North America.
Additionally, the increasing military expenses by the US Department of Defense (DOD) on marine internet of things, in recent years, have resulted in the market witnessing a significant surge in demand in this region.
APAC Races Ahead at the Fastest Rate as China and India Take the Lead
Asia-Pacific accounted for the largest market share in 2019. The market in the region is also projected to register the highest CAGR during the forecast period, primarily due to the increasing defense expenditure in India and China and the rising demand for new and advanced naval vessels. Moreover, high seaborne trade is driving the regional market growth. In Asia-Pacific, the market growth is significantly driven by major countries, such as China, Japan, India, and Australia, due to the rising investments in marine IoT. Increasing military expenditure and rising territorial conflicts between neighbouring countries such as China, South Korea, and North Korea are driving the regional market. According to SIPRI, China’s military spending increased from approximately USD 215 billion in 2016 to USD 250 billion in 2018. Additionally, military expenditure in India grew by around 9% from 2017 to 2019. Furthermore, military modernization activities and increasing development of soldier equipment by China, India, and other Asian countries are further driving the market's growth.
Competitive Landscape
Significant Investments by Players to Intensify Competition
The global marine internet of things market is expected to grow significantly in the coming years due to increasing defense expenditure and a rise in seaborne trade globally. The global marine internet of things market is characterized by the presence of several global and regional vendors. The global market is highly competitive, with all the players trying to gain maximum market share. Frequent changes in government policies, intense competition, and government regulations are the key factors that impact global market growth. The vendors compete based on cost, product quality, and reliability.
Key Players Operating in the Global Marine Internet of Things Market:
- Cisco Systems, Inc. (US)
- Marine Digital GmbH (Germany)
- Vodafone Group Plc (UK)
- Ericsson AB (Sweden)
- Orange Business Services (France)
- Wartsila Oyj Abp (Finland)
- Accenture Plc (Ireland)
- Dualog AS (Norway)
- Wilhelmsen Holding ASA (Norway)
- NTT Group (Japan)
Recent Developments
On Mar.09, 2023, Magellan X (Singapore), a leading digital solutions provider, announced the development of disruptive industrial Internet of Things (IIoT) and AI platforms to help maritime and other heavy industries meet their ESG sustainability goals. The tech firm's three disruptive digital solutions are designed to capture the deficit gap by capturing real-time, certifiable data, using IIoT, and producing actionable AI analytics.
On Dec.01, 2022, Zamil Offshore announced that it is set to deploy internet-of-things (IoT) infrastructure on 60 vessels. Following its agreement with Inmarsat, the offshore services major will roll out its advanced IoT system to assist in the performance optimization of vessels in the Gulf. The system will be deployed on Inmarsat's Fleet Connect & Fleet Data items and other vessels to help identify effective methods to meet optimum vessel performance expectations set by Saudi Aramco.
On Dec.08, 2021, Wartsila Voyage announced a strategic partnership with Microsoft to industrialize marine IoT. The company is set to provide industrialized IoT for shipping through a scalable cyber-secure platform integrated with Microsoft Azure IoT Edge. Intelligent Edge technology will help the shipping industry fulfill its decarbonization goals.
On Oct.27, 2021, HMM, South Korea's flagship liner operator, announced that it is set to pilot Internet of Things (IoT) technology for refrigerated and frozen shipping containers. IoT enables the pinpointing of the real-time location of reefers and changes in humidity, temperature, carbon dioxide (CO2), and vibration. Refrigerated and frozen containers need to maintain a constant temperature to their destination.
On Oct.01, 2020, Taiwanese bulk carrier, U-Ming Marine Transport Corporation (U-MING) announced a partnership with Ericsson to develop an IoT fleet management platform. U-MING aims to digitize its fleet performance management through intelligent IoT connectivity. This innovative fleet performance management platform (FPM) will benefit the company with increased efficiency, greater safety, reduced costs, and lower environmental risks
- December 2020 – Ericsson launched Mesh Networks, which it claims makes next-generation mobile connectivity the go-to choose for enterprise connectivity across the sea.
- June 2020 – The China Navigation Company (CNCo) has partnered with Dualog to test its maritime-optimized file and folder replication service designed to simplify the collection and distribution of large data volumes between ship and shore.
Report Overview
Scope of the Report
The scope of the report highlights drivers, opportunities, restraints, and challenges surrounding the global market. With easy-to-comprehend segmentation that includes component, application, ship type, and region, MRFR projections are based on historical and expected trends. Major firms active in the global market have been profiled and paired with the top strategies employed by them to remain competitive in the industry.
Segmentation Table
Component
- Sensing Devices
- Network Connectivity
- IoT Platforms
- IT Solutions & Services
Application
- Route & Operation Optimization
- Asset Tracking
- Equipment Monitoring
Ship Type
- Commercial
- Defense
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