The Boat and Ship MRO Market is expected to exhibit a growth rate of over 9% during the forecast period 2020 - 2025.
- Due to increase in trade and commerce between various nations, usage of commercial ships have increased and they are being put more into work. Due to this factor, need for scheduled maintenance and breakdown maintenance is increasing, propelling the growth of MRO market.
- The exponential rise in fishing industry fuelled by large scale adoption of motorized boats, large capacity boats and fishing vessels is also propelling the growth of boat MRO market. Developing economies such as India has witnessed more than 100% growth in fisheries output during 2014 - 2015. The global fishing fleet is exhibiting a growth rate of more than 1.2% and this factor is expected to drive the market.
- Due to increased marine activity, there has been a significant rise in the number of collision incidents between vessels. In April 2020, a Venezuelan patrol boat sank in the Caribbean Sea after colliding with a Portoguese cruise ship. In the same month, a Japanese destroyer sustained damage in form of a one meter hole after colliding with a Chinese fishing vessel. Such incidents are increasing untimely and emergency repairs, thus propelling the Boat And Ship MRO market.
Key Market Trends
Advancement In Digital Technology Is Driving The Market Growth
The present day technologies such as Augmented Reality, Virtual Reality, etc. are driving the growth of Boat and Ship MRO market. With the help of such technologies, the repair and maintenance becomes fast and easy. Augmented Reality (AR) is expected to have more impact on the market. With the help of Augmented Reality, the onboard mechanic or engineer can be easily connected to the experts in support centres, who can quickly guide the repair operations by providing digital images on smart glasses, HUD displays, tablets, etc. thus making repairs and maintenance operation fast and with reduced errors. Augmented Reality is also being used in training the crew regarding maintenance, repairs and overhauls, thus widening their area of expertise. Firms such as Wartsila and Valmet have invested in Augmented Reality and subsequently enhanced their customer service performance by providing their experts virtually everywhere.
Asia Pacific To Exhibit The Highest Growth Rate During Forecast Period
Asia Pacific region is home to strong developing economies such as India and China who are now investing more to boost their international exports. The fishing industry has also boomed in the region due to large scale adoption of powerful motorized boats. The countries in the Asia Pacific region are also investing heavily to modernize their existing naval fleets to counter piracy and sea border violation activities. A large portion of the fleet present in this region consist of old ships that need timely repairs and maintenance. Indian Navy for instance has witnessed incidents of untimely breakdown of their vessels in the past few years. According to Allianz Global Corporate And Strategy, Asia Pacific waters are the most unsafe waters with the total losses constituting 45% of total global cargo loss due to shipping casualty in 2018. These factors are propelling the growth of market in the region. The presence of large number of IT and technology firms in the region is fuelling the growth of technology such as Virtual Reality, Augmented Reality, Mixed Reality and Extended Reality and these technologies are expected to significantly drive the Boat and Ship MRO market in the region. The sea trade volume and trade value witnessed a decline in Asia Pacific region in 2019 after growing continuously for 9 years post 2009 crisis. This fall is attributed to ongoing trade war between India and China and the COVID 19 outbreak is expected to further hinder the market.
The Boat and Ship MRO market is a slightly fragmented one with major players such as Larsen and Toubro Shipbuilding Limited, Huntington Ingalls Industries, Abu Dhabi Ship Building Company, etc. dominating the market.
The market is witnessing collaborations among shipping and software companies which is leading to cost reduction and rapid operational execution of maintenance, repair and overhaul processes. In 2018, ShipNet and ShipMate collaborated to provide combined services of Planned Maintenances Services, safety management along with payroll services and programs. In February 2020, Huntington Ingalls Industries partnered Titan Acquisition Holding an commit its San Diego Shipyard for ship repair operations.
Several startups such as Maindeck, Nautix Technologies, Closelink etc. are working towards integrating technologies such as Data Science, cloud computing, etc. with the maintenance processes to boost the reduction in operational time.
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