An increase in world trade and growth in marine traffic resulted in the transformation of maritime transport. According to UNCTAD, the number of unloaded goods reached 11002.2 million metric tons in 2018 compared to 8443.83 million metric tons in 2010. Thus, over the last few years, the use of automatic identification systems (AIS) witnessed a rapid increase. The concerned government authorities worldwide have made considerable investments to integrate the AIS (Automatic Identification Systems) into ships to reduce marine accidents and enhance marine traffic management.

- Since August 2019, the Ministry of Transportation of The Republic of Indonesia made it mandatory for vessels sailing in Indonesian waters to install and activate an AIS. All Indonesian flagged vessels, to which SOLAS applies, are required to have onboard a functional AIS Class A, while the others will have a class B. The increase in the use of AIS for new maritime applications is a growing trend in the market. First, it was used for deployment on vessels for safety and collision avoidance, but the flexibility of AIS technology enables applications, like aids to navigation (ATON). ATON, an AIS transceiver, is highly capable and cost-efficient navigation to enhance the maritime domain awareness for the authorities.

- In February 2020, Supply chain technology company rise-x.io partnered with DNV GL and the National University of Singapore's (NUS) Department of Statistics and Applied Probability on a new project that aims to predict illegal bunker activity by analyzing vessel AIS data patterns. Sea freight witnessed significant growth across the world. Massive investments are being made for the marine industry at a global level, which has led to an increase in demand for AIS, especially for vessel tracking. For instance, in September 2019, the UK planned a Maritime Trade and Investment Five Year Plan, which focuses on five main areas – Green maritime, Digital technologies, Autonomous Vessels, Marine Science, and Maritime Professional and Business Services.

- The rise in traffic for commercial and travel is increasing the safety issues on the sea routes. AIS class-A band can track large commercial vessels and plan routes for traffic management. Under this system, standard marine VHF radio frequencies are used to transmit and share their MMSI number (maritime mobile service identity), type of ship, length, beam, and location. The Panama Canal uses AIS type 8 messages to offer information about rain along the canal and wind in the locks. In June 2020, Panama announced that it would "impose sanctions on all those Panamanian flagged vessels that deliberately deactivate, tamper or alter AIS's operation. AIS Class B devices are also gaining popularity since they support lower RF transmission powers and operate using simpler protocols meaning that equipment could be smaller, lower power, and lower cost.

- The spread of COVID -19 severely affected the market growth. Due to the closing of international borders to contain the spread of the virus, ports were closed with no trade deals. Recently, with container ship crew reporting COVID -19 cases, most ports have started quarantining vessels for fourteen days before entering the ports. However, to revive the economy, countries are taking substantial measures. For instance, China planned to waive or cut port fees and other logistics fees to revive imports and exports from 1 March to 30 June 2020. Port security charges, cargo dues, and some of the additional port charges are expected to be reduced by up to 20%. Costs for non -tanker cargo vessels are likely to be canceled. Such measures are expected to resume the adoption of AIS.

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Key Market Trends

Fleet Management is Expected to Hold Significant Share

- The increase in global trade and oil demand is the reason for large global fleets. Currently, shipping operators and oil companies operate a large number of fleets. According to data published by Alphaliner for the top 100 shipping companies, only one shipping company operated less than five ships in its fleet. Companies, like Maersk, MSC Mediterranean Shipping Company, COSCO Group, and CMA CGM Group, had more than 500 ships in their fleet, as of March 2019. However, with the growing number of ships, it has become difficult for shipping companies to manage and analyze these large fleets, as the reporting requirement and emission standards are continuously evolving around the world.

- Shipping companies are now using fleet management solutions available in the market to run their fleet more efficiently and profitably. For instance, India-based company Orion Marine Concepts launched its fleet management application called NAU Fleet Performance in February 2019. One of its prominent features is the integration of vessel reported data and AIS data overlay. With the help of the fleet management solution, shipping companies can control their fleet in real-time, due to which ships can navigate any unforeseen climate situation. The fleet managers are now able to trigger alarms with no lead-times, due to which the crew on the vessel can make timely decisions.

- Secondly, with the amount of data available, shipping companies can investigate accidents more effectively. Due to the availability of historical data, the investigation and insurance process became highly manageable in less time. By using the fleet management system, ships can communicate among themselves, sharing valuable information and updates. The operators can plan the arrival and departure of vessels in predefined zones. This is very important for navigating through crowded ports and predefined areas where they must book their slots available for a particular time. The shipping companies must pay for these slots, and the companies may have to shell out more if they do not arrive during the booked slot.

- Currently, vendors, like BigOceanData, are including features, like 5-day weather forecast and risk-based routing capability, to their fleet management solutions. Fleet management solution will be a crucial part of the future for ships operating in the European Union. The fleet management system may eliminate the complexity and time it takes to record data, like speed, fuel usage, emissions, and work statistics. In February 2019, the European Commission tabled a proposal concerning the amendment of Regulation (EU) 2015/757 on the monitoring, reporting, and verifying carbon dioxide emissions from maritime transport. Steps like these are expected to fuel the growth of the automatic identification system in fleet management.

North America is Expected to Hold Significant Share

- The North American region accounts for the largest market share in the automatic identification system market. The region has a large coastal area that requires continuous monitoring. The increasing commercial activities and trade in the region are propelling the need for maritime safety and surveillance. Also, many AIS solution providers are based in this region; hence the region dominates the market. The key benefits, like better navigation, maritime traffic management, enhanced coastal surveillance for security, improvement in monitoring the movements of other vehicles, and prevention from collisions, are several factors driving the growth in the adoption of AIS in the region.

- Furthermore, there are many investments made by the government to ensure maritime safety. For instance, in March 2019, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) updated the advisory document involving the risks for parties with regards to petroleum shipments to Syria. The update adds to the list of deceptive shipping practices used, like disabling the automatic identification system (AIS); to mask the destination of the cargo destined for the government of Syria. These practices are done to complicate the clarity on the destination of petroleum bound for Syria.

- The U.S. State Department (State) previewed on March 9, 2020, new U.S. Government economic sanctions compliance measures that will have a considerable effect on the global maritime industry. The department explicitly called out the Advisory’s focus on automatic identification system (AIS) transponders and the U.S. Government’s expectation that they never are turned off and that all industry participants play an active role in ensuring continuous and accurate AIS information is available. For example, the department explained that they expect vessel registries to ask for AIS histories when registering vessels. Any apparent manipulation of the AIS systems should be grounds for denying registration to a ship.

- Also, Orbcomm Inc., a global provider of machine-to-machine (M2M) and Internet of Things (IoT) solutions, announced that the government of Canada implemented its one-year option on its contract through Orbcomm’s Canadian partner Maerospace, a global supplier of automatic identification system (AIS); data and maritime domain awareness solutions. Furthermore, the Canadian government made it mandatory to install an automated identification system in the vessels. For instance, the federal navigation safety regulations mandated the incorporation of AIS in vessel tracking systems, automatically providing vessel position updates and relevant data to marine traffic operators.

Competitive Landscape

The automatic identification system market is tending toward the fragmented market as the established players in the market dominate it. Due to significant innovations and an increase in partnerships by the players with Homeland Security agencies, the market is leading to a massive demand for AIS solutions. Key players in the market are - Saab AB, Furuno Electric Co. Ltd, exactEarth Limited, Orbcomm Inc., etc. The recent developments in the market are -

- April 2020 - Saab AB delivered the first GlobalEye Swing Role Surveillance System aircraft to the United Arab Emirates. The GlobalEye aircraft also comes with comprehensive features such as Star SAFIRE 380-HD round-the-clock electronic surveillance system, Leonardo Seaspray 7500E marine target radar coupled with AFAR in the ventral fairing, HES-21 radio and electronic reconnaissance system, airborne defense complex, and AIS automatic defense identification system.

- In December 2019 - exactEarth Ltd., it had announced the renewal of its contract with Antrix Corporation Ltd., the commercial arm of the Indian Space Research Organization (ISRO), to provide satellite-AIS data services to the Indian Navy. The two-year subscription revenue contract is estimated to be valued at USD 1.2 million in total. exactEarth will provide live and archived data from exactView RT which is the company's second-generation real-time satellite-AIS data service.

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