In terms of revenue, the global vessel monitoring system market was valued at US$ 688.28 million in 2019 and is projected to reach US$ 1,571.04 million by 2027; it is expected to grow at a CAGR of 11.3% during the forecast period.
Increasing demand from fisheries and cargo vessel sectors has boosted the need to have an eye on trade to curb unauthorized dealings. Countries such as Thailand and South Korea have started using VMS technology to monitor their vessels, ensuring that fisheries are carrying marine products legally. This aspect is creating more demand for vessel monitoring technology, thereby driving the market growth. Another factor is the need for a mandatory environment to install VMS. Backed by government support, VMS is a standard system to monitor and control fisheries worldwide. The European government has mandated that all European countries should have this system, enabling them to transmit the data quickly and allow the Commission to monitor effectively. Besides, increasing international trade of goods other than fisheries at a large scale is projected to influence the demand for advanced tracking solutions, such as VMS. The above-mentioned factors are likely to fuel the market growth during the forecast period.
The government bodies operating in the market are taking steps or passing guidelines to strengthen business of fisheries which is impacting the market growth. For instance, in regions such as North America and Europe, the vessel management system needs to be heavily configured and calibrated which ultimately affects the cost of such systems. On the other hand, in developing regions such as Asia and Middle East & Africa, the configuration and calibration norms for vessel management system are quite relaxed. Regulatory norms are projected to influence the market growth.
The vessel monitoring system market has been segmented in terms of application, vessel type, and geography. Based on application, the vessel monitoring system market is segmented into fisheries management, surveillance, and others. Based on vessel type, the market is segmented into fishing vessels, cargo vessels, service vessels, passenger ships and ferries, and others. In terms of geography, the vessel monitoring system market is segmented into North America, Europe, Asia Pacific, the Middle East &Africa, and South America.
The well-established vessel monitoring system market players include Applied Satellite Technology Ltd.; Add value Technologies; Beijing Highlander Digital Technology Co., Ltd.; Bluetraker; CLS Fisheries; Orbcomm; Orolia Maritime; Trackwell; Remora; and VISMA.
Impact of COVID-19 Pandemic on Vessel Monitoring System Market
The COVID-19 outbreak, which began in Wuhan, China, in December 2019, has spread at a fast pace worldwide. This has urged governments across the globe to impose strict restrictions on the movement of humans and vehicles. The lockdowns have resulted in lesser production of goods and commodities. The vessel monitoring market players also experienced a slowdown in the volumes attributing to the fact that the production units were operating with a limited workforce. With the imposition of lockdown across countries in North America, Europe, and Asia, the industries have been witnessing declining trend. The fisheries industry requires a significant number of human labor. However, the COVID-19 virus is spreading through human contact, which is affecting the functioning of the industry. Compared to that of 2017, the vessel activities were reduced by over 69% during the lockdown, the fishing activities were reduced by 84%, and the passenger traffic by 78%. This has had a negative impact on the market.
The global vessel monitoring system market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining overview and forecast for the vessel monitoring system market with respect to all the segments. It also provides the overview and forecast for the market based on all the segmentation provided with respect to five major regions?North America, Europe, Asia Pacific, the Middle East &Africa, and South America. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the vessel monitoring system market.