Connected Ship Market Size Drives at 7.73% CAGR

Connected Ship Market Outlook Scenario Planning & Strategic Insights for 2034

The global connected ship market, projected at USD 12.22 billion in 2024, is expected to reach USD 25.73 billion by 2034, growing at a CAGR of 7.73% over the forecast period. Europe led the connected ship market with 35% share, while Asia Pacific is set for fastest growth. Navigation & communication, fleet operations, commercial ships, SATCOM, OEM installs, and commercial operators dominate, with cybersecurity, autonomous ships, 5G, cloud, and defense driving future growth.

The connected ship market is projected to reach USD 25.73 billion by 2034, expanding from USD 13.16 billion in 2025, at an annual growth rate of 7.73% during the forecast period from 2025 to 2034. The growing demand for advanced communication systems from the marine sector coupled with numerous government initiatives aimed at enhancing maritime safety has boosted the market expansion.

Also, rising focus of market players for developing high-quality navigation systems for ships along with rapid investment in the defense sector is playing a vital role in shaping the industrial landscape. The advancements in 5G technology as well as integration of AI-based navigation systems in modern ships is expected to create ample growth opportunities for the market players in the upcoming days.

Connected Ship Market Growth and Trends 2025

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Introduction

The connected ship market is a prominent branch of the marine industry. This industry deals in developing advanced connectivity solutions for the shipping sector around the world. There are various types of systems developed in this sector comprising of navigation systems, communication systems, automation & control systems, security & surveillance systems, payload & mission systems and some others. These systems are used in different types of ships including commercial ships, defense ships, autonomous/unmanned surface vessels (USVs) and some others. It finds application in fleet operations & management, predictive maintenance & remote monitoring, safety & security management, environmental compliance & emission monitoring, autonomous & semi-autonomous operations and some others. The end-users of these solutions include commercial shipping operators, defense/ naval forces, offshore oil & gas operators, port authorities & coast guards and some others. This market is expected to rise significantly with the growth of the shipbuilding sector in different parts of the globe.

Highlights of the Connected Ship Market

  • Europe generated highest revenue of the connected ship market with a share of around 35%.
  • Asia Pacific is expected to rise with the highest CAGR during the forecast period.
  • By system, the navigation & communication systems segment led the market with a share of around 40%.
  • By system, the cybersecurity & surveillance systems segment is expected to rise with the fastest CAGR during the forecast period.
  • By application, the fleet operations & management segment led the market with a share of around 35%.
  • By application, the autonomous & semi-autonomous operations segment is expected to grow with the fastest CAGR during the forecast period.
  • By ship type, the commercial ships segment dominated the market with a share of around 55%.
  • By ship type, the autonomous/unmanned surface vessels (USVs) segment is expected to rise with the fastest CAGR during the forecast period.
  • By connectivity, the satellite communication (SATCOM) segment dominated the market with a share of around 45%.
  • By connectivity, the cellular/5G maritime networks segment is expected to grow with the fastest CAGR during the forecast period.
  • By distribution model, the OEM installation segment dominated the market with a share of around 60%.
  • By distribution model, the managed services & cloud-based solutions segment is expected to grow with the fastest CAGR during the forecast period.
  • By end-user, the commercial shipping operators segment dominated the market with a share of around 50%.
  • By end-user, the defense/naval forces segment is expected to grow with the highest CAGR during the forecast period.

The major trends in this market consists of partnerships, joint ventures and rising defense expenditure.

Partnerships

  • Numerous marine operators are partnering with AI providers to enhance navigation in marine systems. For instance, in August 2025, Hefring Marine partnered with Tocaro Blue. This partnership is done for developing an AI-based navigation system for manned and unmanned vessels.

Joint Ventures

  • Several market players are joining hands with technology providers for developing advanced solutions to improve vessel performance. For instance, in September 2025, ABB joined hands with Wallenius Marine. This joint venture is done for delivering providing vessel performance management services to help ship owners and operators.

Rising Defense Expenditure

  • Government of various countries such as the U.S., China, India, Germany and some others has increased their investment for developing the defense sector. According to the IISS, the global defense spending reached around US$ 2.46 trillion in 2024.

System Insights

How did the Navigation & Communication Systems Segment Led the Connected Ship Market in 2025?

The navigation & communication systems segment dominated the connected ship market with a share of around 40%. The rising integration of advanced navigation and communication systems in modern vessels to enhance tracking capabilities has driven the market expansion. Additionally, the growing investment by telecom companies for enhancing marine communication is expected to drive the growth of the connected ship market.

The cybersecurity & surveillance systems segment is expected to rise with the fastest CAGR during the forecast period. The increasing cases of cybercrime issues related to marine transportation has increased the demand for advanced cybersecurity solutions, thereby driving the industrial growth. Also, rapid investment by government for integration high-quality surveillance solutions to enhance maritime safety is expected to proliferate the growth of the connected ship market.

Application Insights

What Made the Fleet Operations & Management to be the Most Dominant Segment of the Connected Ship Market in 2025?

The fleet operations & management segment led the connected ship market with a share of around 35%. The growing adoption of AI-integrated management solutions by fleet operators to track vessel performance and reduce operational cost has boosted the market expansion. Additionally, rise in number of cargo vessel operators in the European region coupled with numerous partnerships among ship operators and technology providers is expected to drive the growth of the connected ship market.

The autonomous & semi-autonomous operations segment is expected to rise with the fastest CAGR during the forecast period. The rising deployment of autonomous vessels by naval forces to strengthen maritime defense has boosted the market growth. Additionally, the integration of advanced sensors in semi-autonomous ships to operate in tough maritime conditions is expected to foster the growth of the connected ship market.

Ship Type Insights

What Made the Commercial Ships Segment to Lead the Connected Ship Market in 2025?

The commercial ships segment led the connected ship market with a share of around 55%. The increasing sales of commercial ships in different parts of the world has increased the demand for advanced fleet management solutions, thereby fostering the market expansion. Also, the integration of IoT-based sensors in modern ships to monitor numerous activities inside the vessel is expected to propel the growth of the connected ship market.

The autonomous/unmanned surface vessels (USVs) segment is expected to expand with the fastest CAGR during the forecast period. The growing application of autonomous ships in defense organizations to invade dangerous areas has boosted the market expansion. Also, the rising use of advanced navigation systems in USVs to track real-time location in oceans and seas is expected to foster the growth of the connected ship market.

Connectivity Insights

Why did the Satellite Communication (SATCOM) Segment Held the Largest Share of the Connected Ship Market in 2025?

The satellite communication (SATCOM) segment led the connected ship market with a share of around 45%. The growing use of orbiting satellites to transmit voice, data, and video signals between ships and shore-based facilities or other vessels has driven the market expansion. Additionally, numerous advantages of SATCOM including global and uninterrupted coverage, enhanced safety and security, operational efficiency and management, high-quality data transmission and some others is expected to foster the growth of the connected ship market.

The cellular/5G maritime networks segment is expected to rise with the fastest CAGR during the forecast period. The rising use of 5G sensors in modern vessels for enhancing communication with fleet operators has driven the industrial growth. Additionally, rapid investment by telecom companies for developing the 5G infrastructure is expected to propel the growth of the connected ship market.

Distribution Channel Insights

What Made the OEM Installation Segment to Lead the Connected Ship Market in 2025?

The OEM installation segment led the connected ship market with a share of around 60%. The growing preference of fleet operators to install advanced solutions in modern vessels from OEMs has driven the market expansion. Additionally, rapid investment by OEMs for delivering superior services to ship owners is expected to drive the growth of the connected ship market.

The managed services & cloud-based solutions segment is expected to rise with the fastest CAGR during the forecast period. The rising demand for cost-effective ship management services from vessel owners of developing nations has driven the market growth. Additionally, the growing adoption of cloud-based navigation solutions in modern ships to track real-time location is expected to foster the growth of the connected ship market.

End-User Insights

Why did the Commercial Shipping Operators Segment Held the Largest Share of the Connected Ship Market in 2025?

The commercial shipping operators segment dominated the connected ship market with a share of around 50%. The growing use of advanced fleet management solutions by shipping operators to enhance real-time monitoring of modern vessels has driven the market expansion. Also, rapid investment by shipping companies to integrate advanced sensors in commercial ships is expected to drive the growth of the connected ship market.

The defense/naval forces segment is expected to expand with the highest CAGR during the forecast period. The increasing use of autonomous ships by defense organizations to enhance maritime safety has boosted the market growth. Additionally, rising investment by government of several countries for strengthening the defense sector is expected to propel the growth of the connected ship market.

Geographical Insights

Why Europe Dominated the Connected Ship Market in 2025?

Europe dominated the connected ship market with a share of around 35%. The increasing sales of cargo ships in several countries such as Germany, France, Netherlands, Italy, Luxembourg, UK and some others has driven the market expansion. Additionally, numerous government initiatives aimed at developing the maritime sector coupled with rapid investment by public sector entities to strengthen the shipbuilding industry is playing a vital role in shaping the industrial landscape. Moreover, the presence of various market players such as Sperry Marine B.V., Wärtsilä, Kongsberg Maritime and some others is expected to propel the growth of the connected ship market in this region.

  • In May 2025, Wärtsilä launched Wärtsilä Carbon capture solution in Europe. This solution is designed to reduce maritime emission by 70%.

Germany and France are the major contributors in this region. In Germany, the market is generally driven by the rapid adoption of autonomous ships in the defense sector coupled with technological advancements in the shipbuilding sector. In France, the increasing sales of commercial ships along with rise in number of fleet operators has boosted the market growth.

Asia Pacific is expected to expand with the highest CAGR during the forecast period. The growing adoption of autonomous ships by the defense sector in numerous countries including China, India, Japan, South Korea and some others has boosted the market growth. Also, rapid investment by government for strengthening the maritime safety coupled with technological advancements in the telecom sector is contributing to the industry in a positive manner. Moreover, the presence of numerous market players such as Hyundai Heavy Industries Co., Ltd., Ascenz Marorka, Seven Seas Marine Navcom and some others is expected to drive the growth of the connected ship market in this region.

  • In October 2024, HD Hyundai launched Smart-ship Solution (ISS 2.0) in South Korea. It is an advanced solution equipped with several features including trim optimization, container loss prevention, onboard report editing capabilities and some others.

China led the market in this region. The growing emphasis of government for deploying advanced vessels in the defense sector coupled with availability of raw materials at reasonable prices has boosted the industrial growth. Additionally, rapid investment by telecom companies for developing the 5G infrastructure is contributing to the industry in a positive manner.

Industry Leader Announcement

  • In January 2025, Dr. Mario Paniccia, the CEO of ANELLO Photonics made an announcement stating that, “The launch of the ANELLO Maritime INS signifies a pivotal advancement in our mission to transform navigation, enhancing precision and reliability for autonomous vessels operating in GPS-denied or spoofed environments, our technology has been rigorously field-tested across land, air, and now in sea environments. We are excited to offer a navigation solution for autonomous systems in challenging maritime environments."

Competitive Landscape

The connected ship market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Schneider Electric; Sperry Marine B.V.; YALTES Electronic and Information Systems Production and Trade Inc.; Wärtsilä; Kongsberg Maritime; Danelec Marine A/S; Anglo-Eastern; Rockwell Automation; Marlink B.V.; HD Hyundai Heavy Industries Co., Ltd. and some others. These companies are constantly engaged in developing connectivity solutions for the shipping sector and adopting numerous strategies such as acquisitions, partnerships, launches, business expansions, collaborations, joint ventures and some others to maintain their dominance in this industry.

Rockwell Automation Geographic Revenue % (2024)

  • According to the annual report of Rockwell Automation, around 61% revenue of the company was generated from North America followed by others in 2024.

Recent Developments

  • In March 2025, Rastrac launched Rastrac Marine Vision. Rastrac Marine Vision is a GPS tracking and asset management solution designed for boat rental companies.
  • In January 2025, Samsung Electronics launched an AI-powered analytics software. This software is designed for enhancing connectivity in modern ships.
  • In November 2024, Thales launched CoastShield. CoastShield is a surveillance system solution designed for enabling nations to enhance coastal protection and safe maritime operations.

Top Connected Ship Market Players

Connected Ship Market Top Key Players

Connected Ship Market Segments

By System

  • Navigation Systems
  • Communication Systems
  • Automation & Control Systems
  • Security & Surveillance Systems
  • Payload & Mission Systems

By Application

  • Fleet Operations & Management
  • Predictive Maintenance & Remote Monitoring
  • Safety & Security Management
  • Environmental Compliance & Emission Monitoring
  • Autonomous & Semi-Autonomous Operations

By Ship Type

  • Commercial Ships
  • Defense Ships
  • Autonomous/Unmanned Surface Vessels (USVs)

By End-User

  • Commercial Shipping Operators
  • Defense/Naval Forces
  • Offshore Oil & Gas Operators
  • Port Authorities & Coast Guards

By Connectivity / Communication Mode

  • Satellite Communication (SATCOM)
  • Radio Frequency & VHF/UHF Communication
  • Cellular/5G Maritime Networks
  • Hybrid Communication Systems

By Distribution / Business Model

  • OEM Installations
  • Aftermarket Upgrades
  • Managed Services & Cloud Solutions
  • R&D & Collaborations

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa
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  • Insight Code: 1811
  • No. of Pages: 150
  • Format: PDF/PPT/Excel
  • Last Updated: 04 September 2025
  • Report Covered: Revenue + Volume
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Ajit Bansod is a skilled and research-driven analyst at Towards Automotive, with over 3 years of experience specializing in the intersection of automotive innovation and intelligent communication technologies.

Learn more about Ajit Bansod

Aditi Shivarkar, with 14+ years of experience in automotive market research, specializes in tracking trends across vehicle technologies, mobility solutions, and materials innovation. She delivers accurate, actionable insights that drive excellence in the automotive sector—fueling strategies around electrification, sustainability, and advanced manufacturing.

Learn more about Aditi Shivarkar

FAQ's

The connected ship market is expected to grow from USD 13.16 billion in 2025 to USD 25.73 billion by 2034, at a CAGR of 7.73%. Growth is fueled by the rising adoption of advanced communication systems, government-driven maritime safety programs, and strong investments in defense and commercial fleet modernization.

Major drivers include the integration of AI and 5G for navigation, government investments in maritime safety, growing commercial ship sales, and increasing defense spending. The surge in demand for cybersecurity and surveillance systems to counter rising cyber threats is also accelerating adoption.

Europe currently leads with about 35% market share due to strong shipbuilding activity and technological adoption. However, Asia-Pacific is expected to grow at the fastest rate, driven by high defense spending in China, India, Japan, and South Korea, coupled with telecom investments in 5G maritime networks.

Key disruptions include AI-powered navigation systems, 5G-based maritime networks, IoT-enabled fleet management, autonomous/unmanned surface vessels (USVs), and advanced cybersecurity solutions. These technologies are reshaping fleet operations, safety, and autonomous vessel deployment.

Rising global defense expenditure, which reached USD 2.46 trillion in 2024, is accelerating adoption of autonomous vessels, AI navigation, and cybersecurity solutions. Naval forces are increasingly deploying connected systems for enhanced maritime surveillance, fleet coordination, and operational efficiency.

Navigation & communication systems currently lead with about 40% market share, reflecting strong demand for real-time vessel tracking and marine communication. Meanwhile, cybersecurity & surveillance systems are expected to register the fastest growth due to heightened maritime security threats.

High-growth opportunities lie in autonomous vessels (USVs), cloud-based fleet management, AI-powered navigation, cybersecurity, and 5G maritime solutions. Companies investing early in these disruptive segments are well-positioned to benefit from rising adoption across defense and commercial shipping.

Stricter maritime safety regulations and emission compliance mandates are pushing ship operators to adopt connected solutions. For instance, Wärtsilä’s carbon capture technology aims to cut emissions by 70%, reflecting how sustainability regulations are driving technology adoption and investment.

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