Automatic Identification System Market Extends At A Healthy CAGR Of 6% By 2033

(MENAFN- Straits Research) Introduction

Adopting automatic identification systems by maritime traffic service providers allows for ship tracking and collision prevention. Automatic identification systems provide information such as individual identification, course speed, and vessel position. This information is displayed on the screen as a supplement to the maritime radar. The increase in worldwide trade and ship traffic is one of the primary factors driving the automatic identification systems market growth. Increasing demand for adequate traffic control and management systems and rising needs for ship safety and security also contribute significantly to the expansion of the automatic identification systems market.

Market Dynamics Increased Maritime Traffic to Drive the Global Automatic Identification System Market

Increasing maritime traffic has resulted in several issues in port areas and at sea. Many ship crashes and accidents have occurred due to a lack of communication between neighboring vessels and incorrect directions from port authorities. These instances have been the driving force behind the development and implementation of ship tracking technologies, such as AIS. Additionally, various ship owners must keep track of the cargo they convey. Ship tracking equipment also assists in meeting these requirements.

A band can track large commercial vessels and manage traffic control routes. This vessel traffic service is comparable to air traffic services in that AIS is used to provide navigational guidance to vessels traversing open water. Therefore, AIS is required for accurate vessel tracking and efficient marine traffic management.

Expanding maritime global commerce routes contributes to developing ship traffic across all oceans. Russia has historically had lofty goals for expanding the NSR, aiming to transfer 80 million metric tonnes along the corridor by 2024. According to the Federal Agency for Maritime and River Transport, the Russian Northern Sea Route Administration awarded 1,155 permits for navigation along the NSR in 2021, which is 18% more than the number of permits given during the same period in 2020. Advanced AIS enabling real-time navigation to avert collisions, improve security and safety, and control marine traffic is in high demand. These factors lead to the expansion of the market.

The global reach and accessibility of AIS marine tracking systems have recently experienced tremendous development. Due to advancements in both the underlying technology and the shipping sector, the future of AIS indicates that the rate of change may only accelerate over the next few years. As vessel owners need functionality as a crucial component of onboard C&C systems, the development of autonomous boats is expected to put AIS in the limelight. It may have a significant impact on its development. In the future, it is anticipated that commercial developers of autonomous vessels will draw conclusions and endeavor to enhance AIS for the new robotic environment.

In September 2021, for example, Fujitsu Limited announced an exact AI solution for predicting vessel accident hazards on complex maritime routes, including bay areas. Field testing was undertaken between November 2020 and September 2021 under an outsourcing agreement with the Japan Coast Guard to show the new technology's use. Fujitsu utilized AI technology in the past to analyze and anticipate vessel collision hazards based on the ship's present position, speed, and heading. Now, this technology includes an algorithm to determine the degree to which a vessel follows its course, allowing for more precise danger prevention. Similar breakthroughs are anticipated to stimulate future market expansion.

Regional Insights

By region, the global automatic identification system market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

North America accounted for the largest market share and is estimated to grow at a CAGR of 5.3% during the forecast period. The region is notable for its vast coastline, which requires constant surveillance. According to the World Atlas, Canada has the longest coastline, measuring 202,080 kilometers. In addition, the United States has a total coastline length of 19,924 kilometers. In addition, the region's expanding business operations and commerce are driving the demand for marine safety and monitoring. Reading Economics says the United States is one of the world's leading exporters. Therefore, the increase in trading activities across the area is projected to contribute to the market's growth over the forecast period. In addition, the region is characterized by many AIS solution providers, which contributes to the region's high market share; hence, the region leads the market.

Europe is the second largest region. It is estimated to reach an expected value of USD 115 million by 2030, registering a CAGR of 6%. The region is one of the most important markets for automatic identification systems. Countries such as the United Kingdom, France, and Germany, among others, are the primary contributors to the region's significant revenue share. The European Space Agency provides an innovative Automatic Identification System (AIS) receiver, typically utilized aboard ships and by Vessel Traffic Services (VTS), for electronically transmitting data to identify and locate vessels. This AIS system has a range of up to 200 nautical miles, five times that of standard terrestrial VHF communication systems. This capability is likewise high for other terrestrial transmission system types. Significantly since the emergence of the COVID-19 pandemic, the port freight across the United Kingdom has increased. According to data from the United Kingdom Department of Transport, the total port freight tonnage via the important UK ports increased by 13% in the second quarter of 2021 (April-June) compared to the second quarter of 2020. The increase in freight in the country is anticipated to increase the AIS market in the region.

Asia-Pacific is the third largest region. The Asia-Pacific area has the world's busiest ports, including the Port of Shanghai, the Port of Singapore, the Port of Shenzhen, and the Port of Guangzhou, among others. The sheer volume of trade at these ports makes them susceptible to several criminal activities, necessitating strict security measures. In addition, the port authorities must handle a substantial volume of traffic for the ports to operate effectively. AIS benefits, such as enhanced vessel tracking and management and fleet management, are anticipated to create multiple prospects for regional market expansion.

Key Highlights

• The global automatic identification system market size was valued
  at
  USD 309.66
  million in 2024
  and is projected to reach from
  USD 328.24
  million in 2025
  to
  USD 523.17
  million by 2033, growing at a
  CAGR of
  6%
  during the forecast period (2025-2033).
• By application, the global automatic identification system market is segmented into fleet management, vessel tracking, maritime security, and other applications (accident investigation and infrastructure protection). The vessel tracking segment accounted for the largest market share and is estimated to grow at a CAGR of 6.4% during the forecast period.
  
• By platform, the global automatic identification system market is segmented into vessel-based and on-shore. The vessel-based segment accounted for the largest market share and is estimated to grow at a CAGR of 6.6% during the forecast period.