The global vessel monitoring system (VMS) market was valued at approximately US$ 688.28 million in 2019 and is anticipated to grow to around US$ 1,571.04 million by 2027, reflecting a compound annual growth rate (CAGR) of 11.3% throughout the forecast period.
The rising demand from both the fisheries and cargo vessel industries has significantly increased the necessity for monitoring trade activities to prevent illegal operations. Countries like Thailand and South Korea have begun implementing VMS technology to oversee their vessels, ensuring that fisheries are engaged in legal marine product transactions. This trend is contributing to a heightened demand for vessel monitoring solutions, thus propelling market expansion. Additionally, the establishment of mandatory regulations for VMS installation is another driving force. With government backing, VMS has become a standard tool for global fisheries management. The European Union has mandated that all member states implement this system, facilitating rapid data transmission and effective monitoring by the Commission. Furthermore, the growing international trade of various goods, beyond just fisheries, is expected to boost the need for sophisticated tracking technologies like VMS. These factors are likely to stimulate market growth during the forecast period.
Government agencies are actively working to enhance the fisheries sector, which is positively influencing market dynamics. For example, in North America and Europe, the vessel management systems require extensive configuration and calibration, which ultimately impacts the overall costs of these systems. Conversely, in developing regions such as Asia and the Middle East & Africa, the requirements for configuration and calibration are less stringent. These regulatory differences are anticipated to affect market growth.
The vessel monitoring system market is categorized based on application, vessel type, and geographical region. In terms of application, the market is divided into fisheries management, surveillance, and other uses. Regarding vessel type, it includes fishing vessels, cargo vessels, service vessels, passenger ships and ferries, among others. Geographically, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Key players in the vessel monitoring system market include Applied Satellite Technology Ltd., Addvalue Technologies, Beijing Highlander Digital Technology Co., Ltd., Bluetraker, CLS Fisheries, Orbcomm, Orolia Maritime, Trackwell, Remora, and VISMA.
Impact of the COVID-19 Pandemic on the Vessel Monitoring System Market
The COVID-19 pandemic, which originated in Wuhan, China, in December 2019, has rapidly spread across the globe, prompting governments to enforce strict restrictions on the movement of people and vehicles. These lockdowns have led to a significant decrease in the production of goods and commodities. Consequently, players in the vessel monitoring market have experienced a decline in operational volumes, as production facilities were forced to operate with limited staff. The lockdowns in North America, Europe, and Asia have resulted in a downward trend across various industries. The fisheries sector, which relies heavily on human labor, has been particularly affected, as the virus spreads through human contact, disrupting industry operations. During the lockdown, vessel activities plummeted by over 69% compared to 2017, with fishing activities decreasing by 84% and passenger traffic dropping by 78%. This situation has adversely impacted the market.
The size of the global vessel monitoring system market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aims to provide an overview and forecast for the vessel monitoring system market across all segments. Additionally, it offers insights and forecasts based on the segmentation across five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America. To further validate the data and gain deeper analytical insights, multiple primary interviews have been conducted with industry participants and experts. These participants typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the vessel monitoring system market.