According to the Market Statsville Group (MSG), the global ship management market size is expected to grow from USD 926.4 million in 2022 to USD 3,007.8 million by 2033, at a CAGR of 11.3% from 2023 to 2033.
The ship management sector has experienced significant growth in recent years and is expected to continue expanding in the upcoming years. The market's growth can be attributed to increased investments in research and development activities, the entry of new players, product innovation, technological advancements, effective resource allocation, and growing competition among industry rivals to expand their regional and customer bases. Additionally, supportive government policies, incentives, and favorable laws are factors that drive the growth of the ship management market in the foreseeable future. The rising disposable income and increased customer spending capacity will further contribute to the market's growth. Additionally, factors such as the rising need to efficiently manage complex supply chain operations, increase sustainability across the marine industry, and growing demand for centralized administrative data to reduce overall shipment costs and enhance shipyard productivity are driving the adoption of the ship management market across the globe.
Moreover, the major market players are also adopting various measures to stay in the competition. For instance, In April 2021, Falkonry collaborated with Lloyd's Register to integrate its predictive digital twin technology with asset performance and risk management solutions targeted toward heavy industries such as chemicals, oil, and gas.
Ship management plays a significant role in overseeing and managing maritime traffic, which involves activities such as ship registration and management, visa issuance for ships entering and departing ports, foreign vessel management, ship maintenance management, and technical ship management. Further, the ship management system uses advanced technological equipment to monitor and manage vehicular traffic in the oceanic and sea waters. Ship management software manages and creates an overview of all ships and asset information between the main office and vessels. It helps organizations to organize, plan, rate, route, ship, track, and settle shipments to customers and reduces paperwork associated with shipments. Companies can manage the complex supply chain more efficiently under this platform. In addition, ship management software minimizes shipment time and cost, which has made it popular among logistic companies and other businesses, creating demand for this software.
The pandemic caused the shipping and maritime industry to face the worst circumstances as the workforce in these sectors had been shut down for the safety of the employees and the prevention of the escalation of the virus. This setback had also been caused owing to the cargo being standstill via water or air during the quarantine period, as it might have caused the virus to spread. All the trade chains, including significant export and import trade, faced a downfall. And the ports being come to a standstill caused the ship management industry to experience loss. During the adverse pandemic time, a ban had also been imposed by the governments of various countries on the entry of containers and vessels that were being operated from other ports. The health authorities of every country, to avoid the risk of spreading the virus, led to a decline in the import and export of products and goods between the countries. All such goods and products that used to be conveniently carried on a ship were forced to follow certain standard rules and procedures, reducing the demand for such cargo. These restrictions and a decrease in demand for cargo led to a decline in demand for ship management, and hence the industry suffered a significant downfall.
The delivery time plays an important role in any transportation, especially in the maritime industry. It plays a significant role as the shipments also include essential raw materials, finished goods, or parts of some machinery. The latency of the delivery of such goods will lead to suppliers being unable to meet their commitments to their customers. This increasing need to reduce the delivery time for shipment demands for better management of ships drives the market's growth. The transit time is the duration taken for a shipment to move from one point, is a crucial element that impacts various businesses and operations that rely on suppliers to procure raw materials or finished products for further processing, repackaging, or distribution. Suppliers transport these goods based on the purchase orders received from their customers, using the most suitable and cost-effective mode of transportation agreed upon by both parties.. In businesses, transit time plays an important role in the total time taken to realize a purchase order placed with a supplier.
In the current and competitive business environment, most organizations choose to operate on lean business models that operate on a strict policy of waste elimination and cost reduction. To operate on this model, they focus on improving and optimizing their processes. Here, the lead time of the required materials plays an important role, and transit time directly affects it. Fluctuating lead time can make purchase orders difficult and unrealistic. Companies fail to meet their deadlines without getting the raw materials at the right time. Thus, increasing the demand for reduced delivery time.
A shortage of skilled personnel in maritime and inland waterway transport that operates ship management solutions has become a major problem. There is an acute need for seafaring skills and maritime expertise at sea, onshore, and in the inland waterway sector. If the current shortage continues to increase in the forthcoming years, it will create challenges for the maritime / logistics industry, which needs marine expertise and experience. This factor may restrain the growth of the ship management industry, as it decreases the efficiency of the operations.
As a result of economic and trade growth, the maritime and shipping industry has experienced a steep increase in recent years. This high demand for transport services triggered a growing demand for qualified personnel. The labor markets have not been able to respond to this demand, leading to a shortage of qualified personnel in the transport sectors. Due to the complexity and ongoing development of new technologies, it is witnessed to be hard to keep up with modern requirements. According to the Institute of Marine Engineering, Science and Technology survey, only around 20% of those asked said that they felt new crew ability was of a high standard. The technologies which the industry buys are more complex to operate and maintain than in the past, and there is an increasing requirement to seek support from shore-based technical staff, often working for the manufacturers themselves, to assist with maintenance.
International trade is booming. Exports in many countries are growing at double rates, and global trade has already surpassed the pre-pandemic levels of 2019. And the main transport of global trade is ocean shipping, and it provides the main transport arteries for global trade. As demand for global freight increases, maritime trade volumes are set to uprise. This comes with opportunities for the ship management market. According to United Nations Conference on Trade and Development (UNCTAD), around 80 percent of global trade by volume and over 70 percent of global trade by value carried by sea and handled by ports worldwide. Maritime transport is the backbone of international trade and the global economy. A rise in traded inputs for medical goods and metal products and increases across all regions helped drive the export growth. Digitally deliverable services such as computer, financial, and business services were the main drivers of international trade growth. According to The World Trade Organization (WTO), world exports of intermediate goods (IG), such as parts and components, rose by 47 percent year-on-year in the second quarter of 2021. The rise in international trade means an increase in shipments. These shipments have to be coordinated and managed for better operational efficiency. This factor drives the market growth.
The study categorizes the ship management market based on type and application area at the regional and global levels.
Based on the type, the market is segmented into comprehensive technical management of ships, crew provisioning and management, ship maintenance management, ship supply, and others. The ship maintenance management segment accounted for the largest market share of around 32.7% in 2022 in the global ship management market. Ship Maintenance Management is an essential aspect of ship management that focuses on the maintenance and repair of ships. It involves the scheduling, planning, and execution of maintenance activities to ensure that ships remain in good working condition and are compliant with regulations. The Ship Maintenance Management segment includes a range of services, including dry-docking, repairs, refurbishments, and upgrades. Dry-docking is a critical maintenance activity that involves taking a ship out of the water for inspection, cleaning, and repairs. It is essential to ensure that ships remain seaworthy and comply with regulations. Repairs and refurbishments involve fixing damaged equipment or replacing outdated systems to improve efficiency and performance.
Based on the regions, the global ship management market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. Asia Pacific accounted for the largest market share of around 45.2% in 2022. The region's significant growth is due to the expansion of the maritime industry, the increasing demand for energy and natural resources, and the growing need for efficient and cost-effective shipping services. The region's expanding maritime industry has created significant opportunities for ship management companies, which provide essential services that help ensure vessels' safe and efficient operation. With increasing competition and regulations, ship owners are looking to ship management companies for cost-effective solutions. The Asia Pacific region is also a significant consumer of energy and natural resources, and many of these resources are transported by sea. As demand for energy and natural resources continues to grow, the demand for efficient and cost-effective shipping services is increasing.
In addition to the growth in the maritime industry and the demand for energy and natural resources, the Asia Pacific region's regulatory environment is also driving demand for ship management services. The region's increasing focus on environmental protection and safety regulations has led to a growing need for compliance services, including auditing, training, and certification. As the region's economies continue to grow, demand for ship management services is expected to increase, creating significant opportunities for ship management companies in the coming years.
The ship management market is a significant competitor and extremely cutthroat in the sector is using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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