APAC Vessel Monitoring Systems (VMS) Market Synopsis

APAC Vessel Monitoring Systems (VMS) Market Size Was Valued at USD 306.60 Million in 2023 and is Projected to Reach USD 888.55 Million by 2032, Growing at a CAGR of 12.55% From 2024-2032.

A Vessel Monitoring System (VMS) is a satellite-based system installed on fishing fleet vessels to monitor and track their movements and fishing activities. The arrangement consists of a mobile transmitter on the vessel, a wireless connection provided by a communication company linking the transmitter to the National Marine Fisheries Service (NMFS) Office of Law Enforcement (OLE), and a secure OLE facility for monitoring compliance by staff. The primary functions of a VMS include tracking vessel locations, identifying possible fishing activities, and providing a means of communication. For VMS to be effectively utilized for fisheries management objectives, the management rules must align with the capabilities of VMS.

• The Asia-Pacific (APAC) Vessel Monitoring Systems (VMS) market is witnessing rapid growth, driven by increasing maritime traffic and stringent regulatory requirements. In 2022, China led the region with 8,839 vessels, followed by Japan with 4,023, South Korea with 1,696, and India with 1,145 vessels. This significant number highlights the dynamic maritime operations in the region, which account for over one-third of global maritime traffic.
• VMS plays a crucial role in enhancing safety, security, and efficiency across various vessel types, including fishing boats, cargo ships, and naval vessels. These systems enable real-time tracking of vessel movements, ensuring compliance with fishing regulations and geographic restrictions, such as no-fishing zones. By providing immediate location information, VMS helps combat illegal fishing and enhances maritime safety, particularly during search and rescue missions.
• The integration of advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) is set to revolutionize VMS capabilities. These innovations facilitate accurate data analysis, risk prediction, and optimized vessel routing, ultimately supporting environmental sustainability initiatives. As countries in the APAC region compete for dominance in key sea routes, the demand for effective vessel monitoring grows, highlighting the importance of robust surveillance systems.
• Moreover, the increasing adoption of VMS in developing countries presents significant market opportunities, fueled by rising investments in the marine sector and advancements in IoT technology. However, challenges such as high implementation costs and data privacy concerns must be addressed through collaboration among industry stakeholders.
• The APAC VMS market is poised for substantial growth, driven by regulatory pressures, technological advancements, and the need for sustainable maritime practices, paving the way for safer and more effective maritime operations in the region.

APAC Vessel Monitoring Systems (VMS) Market Trend Analysis

Increasing Maritime Trade

• The Asia-Pacific region has emerged as a global economic powerhouse, with countries like China, Japan, India, South Korea, and Singapore playing pivotal roles in international trade. Rapid industrialization and economic growth have led to increased maritime imports and exports. According to UNCTAD, Asia accounted for 42% of global exports and 64% of imports in 2022, solidifying its position as the leading maritime cargo handling center.
• The diverse nature of maritime trade, encompassing everything from small boats to supertankers, necessitates enhanced monitoring and management of marine activities, driving the demand for Vessel Monitoring Systems (VMS). Real-time positioning technologies, such as the Automatic Identification System (AIS), facilitate effective tracking of vessel movements. Collaborations, like the agreement between the International Maritime Organization (IMO) and the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), aim to promote sustainable maritime transport in the region.
• Approximately 70% of the world’s container traffic traverses Asia-Pacific ports, reflecting the complexity of supply chains that involve sourcing materials globally. This trend amplifies the need for comprehensive VMS to monitor vessel movements and cargo tracking. Additionally, the region's fisheries and aquaculture activities are expanding, with Asia producing nearly 60% of the world’s catch, further underscoring the importance of VMS in enforcing regulations and promoting sustainability.
• As maritime trade and digital logistics grow, the APAC VMS market is positioned for continued expansion, driven by the need for real-time tracking, enhanced maritime security, and improved supply chain visibility.

Opportunity

Integration Of Multiple Systems Into An Overarching Vessel Monitoring System

• The APAC Vessel Monitoring Systems (VMS) market is poised for substantial growth, driven by the integration of various systems into a unified platform. This strategic approach enhances operational efficiency, streamlines maritime activities, ensures regulatory compliance, and promotes sustainable practices. By combining GPS tracking, weather monitoring, and communication tools, vessel operations can be optimized, safety measures improved, and data management simplified.
• Vietnam has effectively addressed the European Commission's yellow card warning by implementing a VMS to manage fishing vessels and prevent violations of foreign waters. A study in Ca Mau province, surveying 94 fishermen, revealed that 99.5% of fishing vessels were equipped with VMS, with the ZuniVN-01 being the most popular choice at 39.7%. Other frequently used systems included Viettel S-tracking (24.2%) and BA-SAT-01 (23.5%), indicating a need for further research on VMS in Vietnam's fisheries sector.
• Additionally, integrating weather monitoring systems enhances situational awareness for vessel operators and maritime authorities. Access to real-time weather data allows operators to adjust routes proactively, optimize fuel consumption, and reduce risks associated with adverse conditions. Automated alerts during severe weather events enable preemptive actions for crew safety and accident prevention.
• Furthermore, incorporating environmental monitoring sensors into VMS promotes sustainable maritime practices and ensures compliance with regulations by assessing the environmental impact of vessel operations, thereby implementing measures to reduce carbon footprints and mitigate pollution.

APAC Vessel Monitoring Systems (VMS) Market Segment Analysis:

APAC Vessel Monitoring Systems (VMS) Market is segmented on the basis of Vessel Type, System, End-User, and Region

By Vessel Type, Fishing Vessels segment is expected to dominate the market during the forecast period

• A fishing vessel is a specialized boat designed specifically for capturing fish and other marine creatures across oceans, lakes, and rivers. These vessels are equipped to target various species, including shrimp, krill, and cephalopods, and are utilized in commercial, artisanal, and recreational fishing.
• To enhance the monitoring and control of fishing activities, the Fishing Vessel Monitoring System (VMS) has been implemented. This system involves installing monitoring devices on fishing boats that transmit crucial information about their location and activities. Unlike traditional surveillance methods such as aerial patrols, VMS offers a modern approach by using GPS technology and satellite communications to provide real-time data. Each device is assigned a unique identification number, serving as an electronic tag for the vessel, and sends reports containing timestamps and geographic coordinates. This integration of advanced technology promotes transparency, compliance, and sustainability in the fishing industry.
• Recent trends indicate a shift towards electronic monitoring systems, particularly in large commercial vessels, which use video cameras and sensors to ensure adherence to regulations. These systems automatically record fishing activities and provide accurate data on catch amounts and locations, supporting sustainable practices.

By End-User, Fishery segment is expected to dominate the market during the forecast period

• Fishery includes two primary components: the sector engaged in raising or catching fish and other water organisms, and the particular sites where these actions take place, often referred to as fishing grounds. This sector encompasses both wild fisheries, where fish are caught in their natural habitats, as well as fish farms that grow fish in controlled settings.
• These activities can be observed in different types of water sources such as rivers and lakes (making up about 10% of the total catch) and vast ocean areas (representing roughly 90% of the catch). Around 500 million people worldwide rely on these activities for their income. This emphasizes the important contribution fisheries make to global food security and creating jobs, especially in coastal areas.

APAC Vessel Monitoring Systems (VMS) Market Regional Insights:

• The rapid growth of the shipping sector in the Asia-Pacific (APAC) region is driving demand for advanced Vessel Monitoring Systems (VMS), presenting significant market opportunities. With increasing ship numbers, VMS ensures safety, effective fleet management, and compliance with international maritime regulations. Key features of VMS include live tracking, ship path monitoring, and enhanced maritime emergency handling.

• In 2022, East Asia reported 34,783 ships, Southeast Asia 27,844, and South Asia 19,990, underscoring the need for robust VMS technologies. The integration of artificial intelligence (AI) and machine learning (ML) can revolutionize VMS by improving data analysis accuracy, predicting risks, and optimizing vessel routes to reduce costs.
• China plays a pivotal role in the global maritime industry, leading shipbuilding with 93% of global production and owning 5,997 ships. Government initiatives to enhance maritime infrastructure and combat illegal activities further drive VMS demand, highlighting the region's potential for maritime governance and security advancements. 

APAC Vessel Monitoring Systems (VMS) Market Top Active Players:

• Thales (France)
• Wärtsilä Corporation (Finland)
• Furuno Electric Co., Ltd. (Japan)
• Addvalue (Singapore)
• Japan Radio Co. (Japan)
• Highlander (China)
• CLS (France)
• Falcon Mega Solutions (Pakistan)
• Pivotel Group Pty Limited (Australia)
• Orbcomm (USA)
• Skymate (USA)
• Pole Star Space Applications (United Kingdom)
• Mackay Communications (USA)
• Bluetraker (Slovenia)
• Pulsar Solutions, LLC (USA)
• Trackwell FIMS (Iceland)
• ComNav (Canada)
• Ryokuseisha Corporation (Japan)
• Other Major active Players.

Key Industry Developments in the APAC Vessel Monitoring Systems (VMS) Market:

• In April 2024, Saildrone, and Thales Australia partnered to enhance the surveillance capability of USVs, Thales Australia signed an agreement with California-based Saildrone to collaborate on integrating its BlueSentry sonar system into Saildrone's Surveyor-class unmanned surface vessels The deal was announced at the Navy League Sea-Air-Space 2024 global maritime exposition in National Harbor, Maryland.
• In March 2024, Wartsila collaborates with a leading naval engineering firm to reduce port emissions across North America. Technology group Wartsila has entered into a collaboration agreement with Elliott Bay Design Group, a naval architecture and shipbuilding firm based in Seattle, to further develop the design of the EBDG Clean Harbor Alternative Mobile Power Barge. Using Wartsila's methanol engine technology, the collaboration offers a cost-effective solution to reduce emissions from large ships in situations where traditional land-based power is limited or unavailable.