Global VHF Exchange System (VDES) Market is segmented By Components (Antenna, Transceiver, ECDIA, Others), By Communication System (Ship-to-Shore, Shore-to-Ship, Satellite to Ship, Ship to Satellite, Ship-to-Ship), By Usage-Type (Vessel Traffic Service (VTS) Communication, Maritime Safety Information (MSI), Search and Rescue (SAR) Communication, Route Exchange, Ship Reporting, Charts & Publications, Logistics, Others), By End-User (Ships, Satellites, Shore), By Region (North America, Europe, South America, Asia-Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
VHF Exchange System (VDES) Market Overview
VHF data exchange system (VDES) market size was worth US$ YY million in 2023 and is estimated to show significant growth by reaching up to US$ YY million by 2031, growing at a CAGR of 16.1% within the forecast period (2024-2031).Strategic Insights.
VHF Data Exchange System (VDES) is a two-way ship communications system utilizing a global standard designed to help the digital evolution of the maritime community. It can be considered an extension of the successful Automatic Identification System (AIS). The next-generation AIS equipment will comprise AIS and VDES in the same box installed on most commercial ships.
VDES provides a strong narrow-band communication system that allows two-way high-speed data exchange between satellites, ships and shore. The terminals are simple and small and the equipment is easily fitted onboard all ships, from small fishing vessels to tankers and cruise liners, at a low cost.
It is expected that AIS infrastructure on the shore and ship side will be upgraded with VDES systems over the next 5 to 10 years by replacing existing AIS ship equipment with combined VDES and AIS terminals. In that case, VDES will be implemented without any additional infrastructure onboard the ships. The widespread presence of AIS equipment onboard ships translates to a large potential user base for VDE services. The system is expected to include many safety-related services free of charge to the mariners.
VHF Exchange System (VDES) Market Summary
Metrics |
Details |
Market CAGR |
16.1% |
Segments Covered |
By Components, By Communication System, By Usage-Type, By End-User, and By Region |
Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
Fastest Growing Region |
Asia Pacific |
Largest Market Share |
North America |
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VHF Exchange System (VDES) Market Dynamics and Trends
The need for safer and more accurate communication devices is boosting the market share for VHF data exchange systems (VDES).
The need for safer and more accurate communication devices is boosting the market share for the VHF data exchange system (VDES)
The implementation and design of VHF Data Exchange System (VDES) services can revolutionize ship tracking communication in the decade ahead, delivering major safety, cost-effectiveness and sustainability improvements over the current Automatic Identification System (AIS). VDES is designed so that a satellite and a terrestrial component can coexist from the outset. VDE-SAT delivers a global and robust service from space, ensuring accurate monitoring of each ship at all times, even on transoceanic voyages, without the threat of loss of communication information.
A practice for fishing vessels is deactivating AIS equipment when they make catches, so nearby ships and monitoring stations cannot know their exact location. It avoids revealing information about fishing zones and fishing grounds to its competitors, as the data transmitted by AIS is not encrypted and can be obtained by all network members.
The practice becomes a security issue for AIS communications, as other vessels no longer receive information about that vessel, which may direct to collision risks or false sinking alerts. Unlike AIS, VDES-based communications are encrypted. In this way, fishers can be assured that their fishing grounds will not be obtained by competitors and can keep their VDES systems operational so maritime control agencies can be aware of the status and location of all vessels. Various leading companies utilize VHF data exchange systems for their effectiveness and reliability. For instance, in 2021, Sternula and Ghana Maritime Authority formed a partnership to strengthen maritime navigation and safety in the Gulf of Guinea on Africa's west coast. Sternula will be the VHF Data Exchange System (VDES) provider, which eases communication between vessels and authorities on land.
The need for Mandatory standards regarding the use of the VHF Data Exchange System (VDES) hampers the growth of the VHF data exchange system (VDES)
VHF Data Exchange Systems can disrupt the maritime sector, enabling services such as Vessel Traffic Service, which are difficult to deploy nowadays due to the lack of a data link. But even more importantly, However, there are some challenges that VDES will face in the future.
VDES is not considered compulsory for vessels of any kind by International Maritime Organization or other national authorities. Without a regulatory necessity to support VDE, manufacturers will have to offer low-cost entry terminals to VDES. In other words, for VDES to achieve high penetration, fully VDES-compliant receivers (including ASM, AIS and VDE) must be available at a price similar to that of AIS-only receivers.
However, the use of VDES has been regulated by the International Telecommunication Union (ITU) at the world radio conference. For the terrestrial VDE part, a 100 kHz spectrum was assigned for the down- and uplink and two 25 kHz channels for ASM (satellite and terrestrial). VHF Data Exchange System (VDES) is still on its way to becoming an ITU standard supported by the International Association of Marine Aids to Navigation and Lighthouse Authorities.
Moreover, the use of AIS has been mandated, which has kept its demand stable. Initially, only large vessels ( more than 300 gross tonnages) were instructed to fit a Class A AIS transceiver. After some time, a lower-cost type of AIS transceiver was specified. The lower-cost transceiver was mandated in some countries in smaller vessels. The adoption of AIS has been such that vessels are equipped with AIS transceivers in many cases, even though they are not mandated to do so.
COVID-19 Impact Analysis on VHF Exchange System (VDES) Market
Maritime transport underpins supply chain linkages and economic interdependency, with ports and shipping estimated to handle a significant percentage of trade by volume and value. One of the activities majorly impacted due to the spread of COVID-19 is the shipping and maritime industry. The epidemic has caused the maritime sector to face the worst circumstances as the workforce in these sectors has been shut down to prevent the escalation of COVID-19, which has directly impacted the sales of VHF data exchange systems.
During the first 24 weeks of 2020, the ship calls diminished by 8.7%, down from 1.1 million calls registered during the first 24 weeks of 2019. Much decline happened in Week 12 of 2020 when COVID-19 was a pandemic. However, the emergence of the COVID-19 situation has shown how digital solutions can benefit maritime activities that normally demand physical presence, such as onboard inspections. With VDES satellite services, authorities have communicated with vessels in areas with otherwise limited coverage without being present in the area. Therefore, the sector is looking toward digital services, such as satellite-based VDES, which can provide faster, more stable and reliable solutions at a lower cost to ship owners and authorities, thus improving maritime efficiency and safety.
VHF Exchange System (VDES) Market Segmentation
The global VHF data exchange system (VDES) market is segmented by component, communication system, usage type, application and region.
The irreplaceability of antennas and the advancement in their technologies help the respective sector to experience growth in the VDES market.
The global VHF data exchange system (VDES) market is segmented into Antenna, Transceiver, ECDIS and others based on component. The antenna dominates the market of the mentioned components. In radio engineering, an antenna is developed to interface radio waves and electric currents that travel between a transmitter and a receiver. Antennas are used in VDES systems to link various components involved in the system, such as satellites or control bases on shore.
Antennas are generally composed of metals such as aluminum since the conductivity of the respective metal affects the quality of the signal transmitted or received. The antenna's height and position are essential to ensure the proper working of the VDES systems along with a parameter known as antenna gain, which is the ratio of power transmitted in a particular direction to a reference point.
As antennas are an irreplaceable component of VDES, the demand for advanced and optimal antennas that could transfer signals over a wide range with minimum interference and signal loss is growing exponentially. The respective factor brings extensive growth prospects to the antenna sector in the VDES market and introduces advancements in the technologies employed to manufacture antennas. For instance, a group of researchers for the Institute for Infocomm Research, Singapore, has developed a circularly polarized turnstile antenna for VHF data exchange systems or VDES systems to satisfy the EIRP requirement to avoid interference and fulfill the link budget based on system requirements over a wide-angle coverage
Global VHF Exchange System (VDES) Market Geographical Share
Asia-Pacific holds the largest market share for VHF data exchange systems, with India being the fastest-growing country, followed by China and the Rest of Asia-Pacific due to growth primarily owing to the region's thriving maritime trade
Asia-Pacific holds the largest market share for VHF data exchange systems, with India being the fastest-growing country, followed by China and the Rest of Asia-Pacific. The growth is primarily owing to the region's thriving maritime trade. According to the UNCTAD Review of Maritime Transport 2020, Asia-pacific accounts for over 76 percent of all maritime trade loaded and unloaded in developing countries. Furthermore, as per United Nations Economic and Social Commission for Asia-Pacific, after a turbulent year for the world economy, international commercial trade in the Asia-Pacific area returned significantly in 2021, surpassing pre-pandemic levels (ESCAP). According to ESCAP, regional merchandise exports and imports have increased by 23.1% and 22.8%. After adjusting for inflation, Asia-Pacific surpassed the rest of the globe in 2021, with real export and import growth of 10% and 9.1%, respectively, compared to 7.7% and 6.7% overall.
However, The present trade rebound may falter because of COVID-19 sub-variant outbreaks in the second half of 2021. In 2021, the region's services trade fell by 19.6% (US$ 55 billion). Travel services were the hardest damaged, but merchandise-related, ICT and financial services did well. Services trade is predicted to recover through 2022, though not equally across sectors modestly. Investments are being made to develop new ports and terminal expansions to cater to the region's maritime traffic.
The ports are implementing new perimeter security systems for tracking unidentifiable items and materials, automatic alarms in the event of an unusual gathering of personnel, tracking alarms of camera tampering and incorporation of VDES for real-time ship update response to the growing need for security and surveillance system
VHF Exchange System (VDES) Market Companies and Competitive Landscape
The global VHF data exchange system (VDES) market is highly competitive with local and global key players. Key players contributing to the market's growth are CML Microcircuits, KONGSBERG, Saab, AAC Clyde Space, Cellnex Telecom, Alén Space, Spire Global ORBCOMM, Sternula, Rapid Mobile (Pty) Ltd, among others.
The major companies are adopting several growth strategies, such as product launches, acquisitions and collaborations, contributing to the global growth of the VHF data exchange system (VDES) market.
- For instance, On October 12, 2021, Sternula signed a one-of-a-kind partnership arrangement with Ghana's maritime authority. The alliance helps to enhance the maritime sector in West Africa as a whole. The forerunner initiative will catalyze the future widespread use of next-generation AIS technology.
- On July 9, 2021, Sternula and collaborators developed the first European VDES test platform. The new "VDES Living Lab" initiative will create an open testbed for maritime enterprises to try digital services based on VDES technology. VDES adds open data exchange capability, allowing all types of data to be exchanged and will be a key component in the marine industry's digital transformation.
Kongsberg
Overview: KONGSBERG is a leading global technology company that provides mission-critical solutions to customers in the most difficult environments. They are the world's leading experts in ocean technology, with ocean-related solutions accounting for 80% of our revenue. The Yara Birkeland, designed and built by KONGSBERG and YARA, is the world's first fully electric, fully autonomous container vessel. The company's solutions and products are developed from the ship's core digital system to its propellers, using leading technologies. They help their customers from the planning and design phase through maintenance and service and recycling, providing a complete end-to-end service
Product Portfolio: POSITION SYSTEMS: GNSS COMPASS AND POSITION SENSOR – SEANAV: With no moving parts, the SeaNav 300 provides position and true heading output. DIFFERENTIAL ABSOLUTE AND RELATIVE POSITION SENSOR: Differential Absolute & Relative Position Sensor (DARPS) is a DP position reference system explicitly designed for offshore loading operations. The DARPS system combines high-performance sensors for the absolute and relative positioning of two vessels, such as a shuttle tanker and an FPSO/FSU.
Key Development
- On October 19, 2021, The Kognifai Marketplace launched a new frontend to Kongsberg Digital's maritime digital ecosystem. Shipowners and operators will benefit from the marketplace's easy access to market-leading digital applications as they strive for operational excellence.
