Industry: Automotive & Transportation
Published Date: April-2025
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 180
Report ID: PMRREP35188
The global connected ship market size is estimated to grow from US$ 7,759.9 Mn in 2025 to US$ 13,385.5 Mn by 2032. The market is projected to record a CAGR of 8.10% during the forecast period from 2025 to 2032.
According to Persistence Market Research, the market is experiencing considerable growth driven by the rising demand for integration of automation and Internet of Things (IoT) in the maritime industry, growing focus on safety and security, and government support to develop advanced ships. Prominent companies such as ABB, Kongsberg Gruppen, Wartsila Corporation, and Northrop Grumman Corporation are focusing on adopting strategies such as partnerships, merger and acquisitions, and product innovation to increase their revenue. For instance, in 2024, Wärtsilä, Finland-based manufacturing company achieved record economic and commercial results, with net sales hitting approximately US$ 7.15 billion. The operating profit was around US$ 793.09 million, marking a 78% increase, and net profit was around US$561.36 million, up by 89%. In the entire figures of the company, the marine technologies segment contributed significantly, showcasing exciting growth opportunities for the players present in the market.
Key Industry Highlights
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Market Attribute |
Key Insights |
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Connected Ship Market Size (2025E) |
US$ 7,759.9 Mn |
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Market Value Forecast (2032F) |
US$ 13,385.5 Mn |
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Projected Growth (CAGR 2025 to 2032) |
8.10% |
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Historical Market Growth (CAGR 2019 to 2024) |
7.70% |
According to the United Nations Conference on Trade and Development (UNCTAD), the total seaborne trade is projected to grow on average by 2.4% and containerized trade by 2.7% between 2025 and 2029.
Maritime shipping has been a crucial driver for globalization, facilitating international trade by efficiently transporting goods across major ports. As economies grow, the increasing demand for raw materials and manufactured goods are anticipated to boost the maritime traffic. Besides, maritime trade remains the most cost-effective method to transport large volumes of commodities and products.
The rise in sea trade activities is expected to drive demand for connected ships. Technologies such as IoT sensors and advanced data analytics help to optimize vessel utilization, reduce operational costs, and enhance safety through real-time ship monitoring and controlling. In addition, connected ships facilitate compliance with environmental regulations by providing advanced monitoring, tracking, and reporting capabilities.
As per maritime studies, in 2024, maritime shipping volumes have been robust, with port container traffic up by 6.6% year-on-year (YOY) in the year to August 2024. Yet cybersecurity risks are expected to pose considerable challenges in the market to a certain extent. The maritime sector relies heavily on automated technologies for communication, navigation, and fleet management. This reliance is exploited by cyber criminals to disrupt global supply chains and communication networks. Connected ships, being an important part of maritime infrastructure, are at the risk of being targeted to disrupt operations or steal sensitive data, leading to high operational costs.
For instance, in March 2025, multiple vessels reported GPS jamming incidents while transiting through the Strait of Hormuz, disrupting electronic navigation systems for several hours. This incident highlights the vulnerability of maritime navigation systems to cyber threats, emphasizing the need for corrective cybersecurity measures.
With the rise in cyber security incidences across maritime industry, globally the companies need to adopt strong cybersecurity measures. Increasing investments in research and development of secure automated technologies such as AI, IoT, and advanced navigation systems, can streamline operations, while improving vessel performances. Moreover, government support in compliance is expected to attract investments by major companies to develop secure maritime solutions. For example, the International Maritime Organization’s (IMO) Maritime Safety Committee (MSC) addresses maritime cybersecurity by issuing guidelines and resolutions, encouraging companies to develop advanced safety management systems to enhance safety and security.
According to the International Energy Agency (IEA), international shipping accounts for about 2% to 3% of global energy-related CO2 emissions. Despite efforts to reduce emissions, global fossil fuel CO2 emissions reached a record high in 2024, with an increase of 0.8% from 2023. The concerns regarding maritime pollution drives the companies to prefer alternative fuel solutions such as biofuels and hydrogen-based fuels.
Connected ships are expected to benefit by the growing preference of alternative fuels on account of improved operational efficiency and reduced environmental impact, while ensuring compliance with stringent regulations.
For example, in 2023, the International Maritime Organization (IMO) adopted a revised strategy that aims for net-zero emissions by 2050. Such aggressive approach in reducing maritime emissions is anticipated to propel the companies to invest in sustainability technologies. In addition, it is likely to encourage innovation in ship design, digital technologies, and propulsion systems.
By ship, the commercial segment is projected to dominate with a share of 65% in 2025. With the rise in global trade, the need for efficient logistics drives the adoption of connected technologies. These technologies enable real-time route optimization, significantly reducing travel time and operational costs.
The defense segment is projected to witness a steady growth during the forecast period. Naval units across several countries are adopting modern warfare technologies to strengthen their strategic positions. For example, in 2025, the U.S Department of Navy is allotted a budget of approximately US$ 257 billion to prioritize national defense strategy, and strengthening maritime dominance.
By installation, the onboard segment is anticipated to witness a considerable growth during the forecast period. The segment growth is attributed to the growing companies’ focus on integrating digital solutions such as AI and data analytics to improve efficiency and reduce operational costs.
The onshore segment is expected to grow at a substantial rate in the forthcoming years. The increasing adoption of connected ships data to manage port activities and track traffic status is anticipated to drive the growth of the segment.
Asia Pacific is projected to account for a share of 34.2% in 2025. The rise in seaborne trade activities in countries such as China, India, South Korea, and Indonesia is expected to boost the demand for connected ships in these regions. Shipping companies in Asia Pacific are actively investing in digitalization by adopting IoT, AI, and data analytics to improve operational efficiency. Further, the authoritarian bodies from respective countries in Asia Pacific are emphasizing development of new ports which is likely to support the adoption of connected technologies.
For instance, in 2024, South Korea announced its plan to spend US$ 9.76 billion by 2045 to build Jinhae New Port in a project that will turn Busan into a mega port and develop supply infrastructure for alternative fuels. The project’s objective is to build 66 berths in Busan Port, with a capacity to dock vessels up to 30,000 twenty-foot equivalent unit (TEU).
North America is projected to grow considerably in the forthcoming years. Companies in the U.S. and Canada are focusing on modernizing maritime infrastructure by adopting technologies such as blockchain to streamline custom processes and enhance traffic efficiency.
Supportive government policies are further fueling growth in this region. For example, the U.S. Coast Guard enforces various safety regulations such as the Vessel Incidental Discharge Act (VIDA) and the Ballast Water Management Program. This helps connected ships to monitor water discharge and other environmental parameters to ensure compliance with these regulations.
The U.S. connected ship market is projected to dominate the market during the forecast period. The high traffic levels on major trade routes such as the East Coast and the Gulf of Mexico is responsible for driving the need for better communication on this route. For example, real-time weather data, collision avoidance systems, and remote diagnostic technologies allow fleet operators to minimize human error and prevent spillage. Besides, Los Angeles and Seattle ports are investing in green technologies to enhance environmental sustainability, thus creating better growth opportunities in the forecast period.
Europe is likely to witness a steady growth in 2025, driven by the growing emphasis on technological, regulatory, environmental, and economic factors that align with the region’s focus on sustainability. For instance, the FuelEU Maritime Regulation aims to reduce greenhouse gas emissions from maritime transport by promoting adoption of renewable and low-carbon fuels. It has set limits on the yearly average GHG intensity of energy used by ships over 5,000 gross tonnage calling at EU ports, starting with a 2% reduction by 2025 and reaching up to 80% reduction by 2050. Such initiatives are anticipated to boost the adoption of connected technologies to optimize fuel consumption and emissions.
The global connected ship market is characterized by the presence of established companies that focus on maintaining a stronghold through adoption of several growth strategies. These include, product innovation, investments in research and development activities, regional expansion, strategic acquisitions and partnerships, and providing global support. For instance, Kongsberg maintains a global service network with over 700 trained engineers, ensuring comprehensive support to its customers globally. Besides, the company engages in research collaborations to develop new technologies and sustainable solutions to maintain its market position.
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Report Attribute |
Details |
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Historical Data/Actuals |
2019 - 2024 |
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Forecast Period |
2025 - 2032 |
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Market Analysis |
Value: US$ Mn |
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Geographical Coverage |
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Segmental Coverage |
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Competitive Analysis |
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Report Highlights |
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Customization and Pricing |
Available upon request |
By Ship
By Installation
By Fit
By Application
By Region
To know more about delivery timeline for this report Contact Sales
The connected ship market size is US$ 7,759.9 Mn in 2025.
The industry will likely be valued at US$ 13,385.5 Mn in 2032.
The industry is estimated to rise at a CAGR of 8.10% through 2032.
A few leading players are Hyundai Heavy Industries Co., Ltd., Wärtsilä, Kongsberg, Schneider Electric, and Rockwell Automation.
Asia Pacific is projected to account for a large share in 2025 and through the forecast period.
