Automatic Identification System Market: Technological Advancements and Innovations Pave the Way for Future Growth

Key Market Insights

The World Automation Identification System Market size is expected to be worth around USD 491.0 Million by 2032 from USD 278.2 Million in 2023, growing at a CAGR of 6.0% during the forecast period 2023 to 2032.

This market growth can be attributed to the increasing adoption of AIS by maritime authorities and commercial vessels to improve maritime safety and efficiency.

Shipborne AIS transceivers held over 70% market share by 2023 due to being mandatory requirements on all passenger ships and commercial vessels of 300 gross tons or greater.

Asia Pacific region is currently the leading market for Automatic Identification System (AIS), followed by North America and Europe. The development of the market in this area can be attributed to increasing commercial vessels and maritime traffic in this area.

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Trends

The growing demands for live AIS data is driving creation of new applications based on AIS. For instance, AIS data is now being used to design new navigation systems for maritime vessels or traffic-management systems.
Integrating AIS together with different technologies including the use of artificial intelligence as well as big data analytics creates new market opportunities. For instance, AIS data can be combined with AI to develop new algorithms to predict vessel movements and identifying collisions that could be a possibility.

Key Industry Developments

In 2023, the International Maritime Organization (IMO) introduced an updated Automatic Identification System (AIS 2.0). AIS 2.0 offers numerous new features such as support for IPv6, enhanced security and multiple data types.
Navico unveiled their groundbreaking AIS transceiver, the HALO 24. As the first built-in radar AIS transceiver ever produced by Navico, MarineTraffic launched a mobile application enabling users to track AIS vessels worldwide from any mobile device.

Opportunities

A growing demand for security and safety in the maritime sector can create a huge market opportunity in an AIS market. The AIS system can be utilized to track vessel movements as well as detect potential threats, like terrorism and piracy.
The rising adoption of AIS technology by both commercial as well as government vessels is providing new opportunities to the market. AIS systems are now required in IMO rules for vessels with more than 300 gross tons. This has led to the widespread adoption of AIS technology on commercial vessels.
The expanding shipping and trade in emerging markets, like Asia Pacific and Latin America are also creating fresh opportunities to market participants in the AIS market.

Challenges

The price of AIS systems poses a significant problem to the marketplace. AIS systems are expensive to buy and install which could deter owners of vessels from using the technology.
A lack of understanding of AIS advantages among a few owners of vessels is a problem to the marketplace. Many owners of vessels are not aware of the advantages AIS systems can provide like increased security and safety.

Market Key Segments

Class

Class A
Class B
AIS Base stations

Platform

Vessel based
On-shore

Application

Fleet Management
Vessels Tracking
Maritime Security
Other Applications

Restraints

The strict regulations enforced by government authorities regarding usage of AIS systems is a significant limitation on the market. Some governments have a ban on the usage in AIS systems in certain regions including military zones.

The ever-growing cyber threats that are threatening ships is also a limitation on the market. AIS systems are susceptible to cyber-attacks, which could result in the release of sensitive information or interruption of the operations of maritime vessels.

Drivers

Automatic Identification System Market Key drivers driving the automatic identification system market include:

Increased Demand for Vessel Safety and Security: Automatic Identification System (AIS) systems play a critical role in improving vessel safety and security. They provide real-time information on vessel locations, identities, details and details such as distress alerts to maritime authorities as well as vessels nearby in real time to avoid collisions, track distress ships or identify suspicious vessels in real time.
Rising International Trade: With increased international trade comes increased maritime traffic. This growth in turn fuels an increased need for AIS systems as they help manage maritime traffic more effectively while decreasing risks of accidents.
Rise of maritime automation: Maritime automation has quickly gained in popularity in the shipping industry. Automatic Identification System (AIS) systems play a vital role in maritime automation systems by providing real-time data needed for tasks like vessel navigation and collision avoidance automation.
Government Regulations: Governments around the world are mandating AIS systems on certain vessels, further expanding this market.

Top Key Players in Automation Identification System Market: