According to the Market Statsville Group (MSG), the global Vessel Traffic Management Market size is expected to grow from USD 5,371.8 million in 2021 to USD 10,815.2 million by 2030, at a CAGR of 8.1% from 2022 to 2030.
Vessel traffic services (VTS) are shore-based systems that provide ships with information ranging from simple information messages, such as the position of other traffic or weather-related hazard alerts, to comprehensive traffic control within a port or canal. Ships entering a VTS territory must notify authorities by radio and may be tracked by the VTS control center. Ships must listen for navigational or other warnings on a specified frequency. They may be immediately summoned by the VTS operator if there is a risk of an incident or, in locations with limited traffic flow, for direction on whether to proceed.
Vessel traffic management strategies are used for determining and estimating a variety of maritime environments that are used for providing safety to marine borders as well as improving the marine environment. The vessel traffic management is utilized for gathering, storing, displaying, analyzing, and isolating critical data in maritime transportation. Aside from that, the widespread usage of automated identification systems, radars, VHF communication systems in offshore equipment and ports, and CCTV security cameras will drive market growth in the next years.
Concerns about maritime security and a strong focus on port security due to illegal immigration activities have resulted in significant demand for vessel traffic management operations at sea ports, propelling the growth of the vessel traffic management market in recent years. Furthermore, an increase in sea trade activities, quick port construction and development projects, and the number of defense and commercial boats or ships will increase the size of the vessel traffic management business in the coming years.
Evidently, the enormous necessity for strengthening, updating, and assuring maritime ports' safety has become significant market demand in recent years. Furthermore, marine traffic management systems identify, connect, and maneuver boats in the seas, influencing market patterns. Increased maritime traffic and increased funding for the port building will fuel the growth of the vessel traffic management business over the forecast period. Furthermore, seaport authorities' embrace of 3-D vessel traffic management technology will give new development prospects for the vessel traffic management business in the coming years.
The COVID-19 outbreak created several issues for businesses like aviation, shipping, and maritime. Following the COVID-19 epidemic, these sectors faced numerous economic challenges. Since the outbreak's inception, the shipping and marine industries have been among the most damaged internationally. The maritime and marine sectors have been put in the worst conceivable position as their workforces have been shut down for safety and to stop the spread of COVID-19. This delay has also been caused by the suspension of all forms of cargo through water or air during the quarantine period (isolation period), as such cargos might transfer the virus from one port to another.
This widespread outbreak has significantly impacted the shipping and maritime sectors, not just at China's ports (where the virus is assumed to have originated) but also in ports across the world. The FTA has issued instructions to ensure that orders be implemented and that failure to do so would result in the imposition of hefty fines on individuals who violate them. All of these instructions are managed in collaboration with the proper authorities and must be followed in order to prevent the spread and outbreak of this infectious sickness, as well as to ensure the security and safety of individuals who work in such transportation facilities.
One of the most serious supply chain issues that fleet operations managers face is port congestion. As a result of COVID-19 and high demand, several ports have experienced heightened port congestion. These delays are problematic as, in addition to inefficiencies in time, they largely result in higher costs at all stages of freight transit and delivery. Fleet operations managers may evaluate the time spent at a major port, forecast potential delays, and make voyage-related decisions such as slowing down to save fuel and enhance vessel efficiency. Vessel traffic management technologies will let ports follow boats as they cruise the seas, plan efficient operations while accounting for bunkering costs and weather, and evaluate visual trip reports to analyze incidents, performance, and charter party compliance.
Natural disasters such as hurricanes, typhoons, and earthquakes cause mayhem worldwide, wreaking havoc on national and regional economies. High population density, economic expansion, and climate change contribute to the rising economic toll of natural disasters. During the recovery phase, firms, enterprises, and individuals work to restore and rebuild their livelihoods after a disaster. This refers to a company's ability to export its goods, ensuring that it can continue to exist. Disasters in coastal areas, particularly port cities, will harm not just the businesses in the affected city but also those in the surrounding region that rely on the city's port services. The resulting disruptions have the potential to spread across supply chains, inflicting severe economic harm.
Opportunity: Technological advancement in VTM will surge the market growth
With the growing technological advancements globally, the vessel traffic management market will witness a significant growth rate over the forthcoming period. For instance, ST Engineering of Singapore and Kongsberg Norcontrol of Norway have collaborated to build a center to develop digital technologies and decision-making tools for maritime operators, such as vessel route analysis, traffic hotspot forecasting, and collision warning. ST Engineering and Kongsberg Norcontrol introduced the S$9.9 million ($7.3 million) Next Generation Vessel Traffic Management System. The Maritime and Port Authority of Singapore's Maritime Innovation and Technology Fund supports the MPA Living Lab initiative. At the facility, smart algorithms will be employed to anticipate high-traffic zones and avoid probable collisions.
A scheduled system in 2021 will allow maritime authorities to improve navigational safety, handle increased vessel traffic volumes within congested shipping lanes with increased safety, security, and efficiency, and enable seamless and autonomous information exchange between unmanned vessels. In order to maintain the VTMS at the forefront of the industry, the new lab will focus on research, discovery, conceptualization, and validation of novel operational concepts, processes, business rules, and technology relating to vessel traffic management.
The study categorizes the vessel traffic management market based on end user, component, investment, system, and onboard components at the regional and global levels.
By End User Outlook (Sales, USD Million, 2017-2030)
By Component Outlook (Sales, USD Million, 2017-2030)
By Investment Outlook (Sales, USD Million, 2017-2030)
By System Outlook (Sales, USD Million, 2017-2030)
Brownfield segment accounts for the highest CAGR during the forecast period by investment
Based on the investment, the vessel traffic management market is divided into brownfield and greenfield. During the forecast period, the brownfield segment of the vessel traffic management market is expected to grow at the fastest CAGR. Major investments are being made in port expansion and modernization programs. These factors fuel market expansion.
Based on the end-user, the global vessel traffic management market is divided into commercial and defense sectors. The commercial segment of the vessel traffic management market is expected to account for the highest share during the forecast period. Commercial ports are primarily utilized for international trade, and there are many more commercial ports than navy ports.
Asia Pacific accounts for the highest CAGR during the forecast period by Region
Based on the regions, the global vessel traffic management market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. The Middle East and Africa is expected to grow at Highest CAGR during the forecast period. The presence of major trading countries such as China, India, Singapore, and Australia contribute to the region's higher CAGR growth. This region is also experiencing massive port development and renovation projects. Moreover, the rising trourism and growing transportation and logistics globally will create a lucrative growth opportunity for the market.
The global vessel traffic management market is highly competitive, with key industry players adopting strategies such as product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most market companies focus on expanding operations across regions, augmenting their capabilities, and building strong partner relations.
Major players in the global vessel traffic management market are:
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