Marine Electronics Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034

Marine electronics refers to electronics devices designed and classed for use in the marine environment on board ships and yachts where even a small amount of salt water can destroy some electronics devices. The marine electronics include a range of system including from navigation to control and handling, each with specific application in the marine operations which ensures the safety and efficiency of the vessel.

MARKET OVERVIEW

The market valuation of the marine electronics market was valued at approximately USD 6.3 billion in 2023 and is projected to reach USD 10.3 billion in 2034 exhibiting a CAGR of 6.5% during the forecast period of 2024-2034. Marine electronics plays a crucial role in ensuring safe and efficient operations at sea. The market is aligned with electronics sectors, which makes it a sustainable and growing market.  

GROWTH DRIVERS

The increase in demand for precise and reliable navigation system drives the demand for marine electronics such as GPS and radar systems, providing assistance in improving the safety and efficiency in challenging environments. According to US government, GPS provides the fastest and most accurate method for mariners to navigate, measure speed, and determine location. This enables increased levels of safety and efficiency for mariners worldwide. It is important in marine navigation for the ship's officer to know the vessel's position while in open sea and also in congested harbors and waterways. While at sea, accurate position, speed, and heading are needed to ensure the vessel reaches its destination in the safest, most economical and timely fashion that conditions will permit.

The reliability offered by the marine electronics like GPS, radar and other navigation technologies with the safety standards drives the market toward growth. The need for accurate position information becomes even more critical as the vessel departs from or arrives in port. The government across the globe enforce strict environmental regulations in order to reduce marine pollution and emission. This drives the industry to adopt technologies like life marine monitoring systems that monitors the emissions and optimize fuel consumption. For instance, European Union's MRV (monitoring, reporting and verification), requires the per-voyage and yearly monitoring of CO2 emissions, as well as the monitoring of other parameters, including the quantities of cargo carried, miles travelled, and time spent at sea.

The strict regulations acts as a catalyst resulting in the adoption of the market. The expansion of global trade and the increase in shipping activities is one of the significant drivers of the market, as more operations of vessels requires more the utilization of marine electronics enhancing the safety and communication. Global trade growth could more than double this year, according to the three major international economic organizations including the International Monetary Fund (IMF), the Organization for Economic Co-operation and Development (OECD) and the World Trade Organization (WTO). The OECD expects global trade in goods and services to grow by 2.3% this year and 3.3% in 2025 – more than double the 1% growth seen in 2023.

According to the latest Global Trade Update released by UN Trade and Development (UNCTAD) on 2 July, the growth was primarily driven by increased exports from China (9%), India (7%) and the US (3%). This surge in global trade and anticipated surge which results in more marine operations drives the demand of the market.

MARKET SEGMENTATION:

·         By Component Type- hardware, software, services (designing, maintenance)

·         By Product Type- navigation system (radar, mapping, gyroscope, sonar and others), communication system (VHF radio, satellite communication, broadband communication and others), monitoring system (automated identification system, long range tracking, remote monitoring and others), control and handling system (power distribution and others), power and propulsion system (engine control, battery management, wire management and others) and others

·         By Vessel Type- merchant vessels, fishing vessels, military naval, recreational boats and others

·         By Region- North America, Europe, Asia Pacific, Middle East and Africa, South America

Marine Electronics Market Segment By Component Review:

The hardware segment of the marine electronics includes the physical devices and equipment that is essential for various marine operations. It involves navigation systems, communication devices, monitoring systems, control and handling systems, power and propulsion systems, and others. It provides the physical infrastructure that enables software to run.

Whereas the software takes care of the application and programs that manages, interprets and analyzes data for hardware components. It is critical for integrating various hardware components and providing user-friendly interfaces for ship operators. The services include a range of professional services like system design, installation, maintenance repair and others which ensure that the marine electronic systems are correctly integrated optimized and maintained throughout their life cycle.

Marine Electronics Market Segment By Product Type Review:

Marine navigation systems are sophisticated assemblies of instruments, tools, and software that enable ships to chart courses, determine locations, and navigate safely through the waters. These systems are vital for avoiding collisions, minimizing delays, and ensuring efficient voyages. Marine communication involves ship-to-ship and ship-to-shore communication. It enables connectivity among vessels and with onshore authorities during emergencies. They also facilitate the exchange of crucial information, such as weather updates and navigation data, to prevent accidents and ensure overall safety.

The monitoring systems include long and short-range tracking and remote monitoring technologies that enables the vessel tracking that leads to avoidance of any collision with real time surveillance of vessel performance, fuel usage and other environmental conditions. The control and handling system is critical for safe operation of all onboard systems, particularly in large commercial vehicles, where failure of electrical systems may lead to significant operational and safety risk. The power and propulsion systems includes engine control, battery management, wire management and others that contributes to operational efficiency, longevity and safety of battery health with proper functioning of electrical wiring.

Marine Electronics Market Segment By Vessel Type Review:

The merchant vessels like cargo ships, tankers, container ships and others are the backbone of the global trade activities. The merchant ship transports cargo or carries passengers for hire. These vessels rely heavily on marine electronics for navigation, communication and safety in order to ensure the efficient transport of goods across the globe. These electronics helps in optimizing the routes and reducing fuel consumption. A fishing vessel is a boat or ship used to catch fish and other valuable aquatic animals in the sea, lake or river.

They utilize navigation systems like sonar technology in order to locate fish and navigate through fishing grounds. The military naval vessels like submarines, aircraft carriers or others utilizes sophisticated marine electronics for combat operations, navigation communication and surveillance. The recreational boats like yachts, sailboats, personal watercraft and other utilizes marine electronics for navigation, communication and safety. It helps them by providing advanced navigation aids, real time whether monitoring and entertainment systems.

Marine Electronics Market Regional Analysis:

North America is a significant market driven by the presence of robust maritime industry with significant commercial, shipping, naval and recreational boating activities in the countries present in this region. Moreover, the government and military invests significantly in this industry for defense and security purposes. Europe is a valuable market driven by factors like extensive commercial shipping routes and fishing industries. Moreover, the region has strict environmental regulations that drives the adoption of technologies. that are useful in monitoring emissions and optimized optimizing fuel consumption.

Asia Pacific is a rapidly growing market driven by the action of shipping and trade activity in this region and it is one of the global hub for shipping trade with major ports in the countries like China, Japan, India, South Korea and others. The region is also known as the manufacturing hub of electronics which significantly drives the advancements and innovations of the market.

The Middle east and Africa is a growing market driven by strategic maritime routes like Suez Canal and the importance of these routes for global trade drives the demand of advance maritime electronics to ensure the safety and efficiency of the shipping operations. South America market is expected to grow due to expansion of the fishing industries and emerging offshore energy sector.

Key Challenges:

The more the marine electronics become interconnected and reliant on digital technologies, the more the risk of cyber-attacks increases as unauthorized access to critical systems may lead to operational disruptions or even accidents. The development and implementation of advanced marine electronics like integrated based systems, automated navigation real time data analytics, monitoring system and others are very costly which may deter the market due to huge investment at initial stage by small operators, hindering the market growth and adoption.

Competitive Landscape:

In the highly competitive marine electronics market, companies are investing heavily in research and development to innovate and improve their products and services. They are also collaborating, forming strategic partnerships, or acquiring other companies to gain access to new market segments, enhance distribution networks, and increase market share. The news and development include – Garmin, a marine electronics manufacturer, has been selected as the exclusive supplier of marine electronics and audio solutions for Independent Boat Builders, Inc. (IBBI) starting from model year 2025 through 2029.

This agreement covers Garmin's full range of products, including chart plotters, navigation systems, trolling motors, stereos, and speakers. IBBI, representing a network of 15 top boat brands in the U.S., collectively builds over 25% of the nation's boats. In January 2024, Cambridge Pixel, located in the United Kingdom, released a new software package to help instructors and students learn how to use marine radars properly. SPx Radar Trainer is intended to make it easier for students to become acquainted with radar controls by giving a current simulation of a typical radar display accompanied by charts and 3D environment views. In November 2023, Simrad® Marine Electronics, a pioneer in marine electronics and navigation, launched its new HALO® 5000 solid-state radar for the commercial sector, designed to give commercial boats improved situational awareness, lower ownership costs, and flexible installation options.

Global Key Players:

·         Honeywell International

·         General Dynamics

·         Furuno Electric Co., Ltd.

·         Kongsberg Maritime

·         Navico Group

·         Wärtsilä

·         Northrop Grumman

·         Thales

·         Tokyo Keiki.

·         L3Harris Technologies, Inc.

·         Other Players