VHF Exchange System (VDES) Market Share, Insight, Report, Trends, Analysis, & Forecast

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, 2022-2029

 

Market Overview

The global VHF exchange system (VDES) market size was worth US$ XX billion in 2022 and is projected to show unprecedented growth by reaching up to US$ XX billion by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

The VHF data exchange system (VDES) is a radio communication system operating on the Application Specific Messages (ASM), Automatic Identification System (AIS), and VHF Data Exchange (VDE) frequencies in the Marine Mobile VHF band between ships, shore stations and satellites. VDES (VHF Data Exchange System) is the second generation of the common AIS technology used by more than 200,000 vessels globally for vessel tracking and other navigational and safety-related purposes. To incorporate with the e-Navigation strategy, VDES is the latest communication solution. VDES is an addition to AIS, introducing over VHF two-way data channels. Any ship with a VHF antenna can communicate globally through special satellite channels (up and down).

The VHF Data Exchange System (VDES) is seen as an effective and efficient radio spectrum, building on AIS capabilities and addressing the growing data requirements. A key element of VDES is modern techniques offering higher data rates than those used for AIS. Also, for data communication, the VDES network protocol is optimized such that each VDES message is transmitted with high reception confidence. VDES assists E-Navigation, and access to the Maritime Cloud is provided.

Market Dynamics

The global VHF Exchange System (VDES) market is majorly driven by increasing government support in building the VDES across different parts of the world. Growing technological advancements in satellite technology create huge opportunities for the VDES to enhance its control over operations.

Increasing government support in building the VDES across different parts of the world

Government from different parts of the world is investing immensely to grow and promote the VDES market among different end-users. Increasing investment in R&D to develop the most advanced and recent VDES technology is building the global market of VDES in recent times. Various companies have invested a major chunk of their funding to bring the latest innovations in satellite technology, such as the development of small-sized satellites which can be used in lower earth orbit (LEO) for higher data exchange speeds due to its lower latency is a significant factor which is driving the growth of the VHF data exchange system (VDES) market.

Growing technological advancements in satellite technology create huge opportunities for the VDES to enhance its control over operations.

Satellites have been some of the most important pieces of advanced technology globally over the last 60 years of their use. Over this period, these unmanned crafts have grown a lot - a trend of progressive progress that continues into the 21st century. Geostationary satellites also referred to as GEOs, help sustain many of the world's most important communication networks, both for commercial and defense purposes. Among GEOs, substantial advances have been made in signal power, which can now receive and transmit at hundreds of gigabits per second. Modern GEO satellites also operate for longer than ever before and at greater power. They are expected to play a major role in bringing broadband internet to emerging economies with lower median incomes for residents. Thus these growing developments in satellite technology is more likely to create immense opportunities for the VDES market to proliferate in the future.

For instance, in August 2020, Saab, Orbcomm and AAC Clyde Space signed a new contract to build a satellite that will use the VHF Data Exchange System (VDES). This nanosatellite will be launched primarily for maritime communications into the lower earth orbit. By updating existing systems, it can also be used for automated vessel monitoring. This whole project was co-funded by the Swedish Administration of Transport. This collaboration has helped the company to develop a ground-breaking technology that will assist them with a broader customer base to achieve a higher market share.

The absence of skilled personnel for developing the VHF data exchange system's underlying network is one of the major factors that hamper the growth of the VHF data exchange system (VDES) market in recent times.

VDES is a next-generation maritime digital communication system that offers an efficient, robust, and global data exchange in the maritime VHF band. The system offers various advantages in different applications; however, the absence of enough skilled personnel for developing the underlying network of VHF data exchange remains the major hurdle for the growth of the VHF data exchange system (VDES) market in recent times. Various companies worldwide are targeting to develop the recent technology favoring VDES; however, they are struggling to bring the advanced system due to the absence of technically stable employees in their system. Thus the market is expected to get majorly hampered due to the absence of technically stable workers in both R&D and companies worldwide.

COVID-19 Impact Analysis

The global VHF data exchange system (VDES) has shown a slight decline due to the COVID-19 pandemic, as several manufacturing plants were shut for months. Further, several countries have restricted production activities during the covid-19 pandemic due to the product supply chain's blockage.

Most businesses are shut down, and operations across several end-users of VHF data exchange system (VDES) products such as ships, satellites, and stores, thus dropping the product's global demand in 2020.

Segment Analysis

The global VHF Exchange System (VDES) market is segmented based on components, communication type, usage type, end-user and region.

VDES enables higher-rate communications and is extremely scalable to serve several services in the ship-to-shore segment, thus uplifting the global market of the BDES system in the conjecture period

In terms of communication type, the global VHF exchange system (VDES) market is bifurcated into ship-to-shore, shore-to-ship, satellite to ship, ship to satellite and ship-to-ship. Out of the mentioned segment, ship-to-shore is expected to show the largest market in the forecast period. To communicate smoothly with the onshore station, VDES devices are mainly mounted on ships in place of AIS. VDES is a communications system containing numerous communications subsystems, one of them being AIS, rather than an AIS evolution. A second VDES subsystem consists of dedicated ASM channels, the purpose of which is to reduce the load of AIS channels. Also, VDES has a third subsystem, called VDE, which enables higher-rate communications and is extremely scalable to serve several services in the future. A key feature of VDES is that it supports direct ship-to-ship and ship-to-shore communication and explicitly foresees a satellite portion for VDE. Thus, the applications mentioned above of VDES in the ship-to-shore segment are more likely to accelerate the VDES market's growth in recent times.

Geographical Analysis

Rising numbers of private players, growing threats to maritime protection in the North-America region is triggering the global market of the region

As private players are increasingly building newer satellite technologies, the U.S. is expected to dominate the VHF data exchange system (VDES) market, thereby growing the North-America region's market in the forecast period. Growing threats to maritime protection have also forced naval forces to embrace VDES for communication in the region. The VHF data exchange system (VDES) market is expected to dominate Germany after the US, as the government is heavily involved in the growth of the VDES. They also collaborate with private sectors and invest extensively in research projects.

After Germany, China is expected to dominate the market for VHF data exchange systems (VDES). They are gradually implementing VDES technologies for their maritime applications; Thus, growing adoption of VDES by China in different applications is building the Asia-Pacific market in recent times at the fastest rate. The region is also conducting large-scale research to test their capabilities and to use them in different applications.

Competitive Landscape

The VHF exchange system (VDES) market is highly consolidated with the presence of limited global players. Some of the key players contributing to the market's growth include KONGSBERG, Saab, Alen Space, AAC Clyde Space, Cellnex Telecom, exactEarth, ORBCOMM, Sternula, CML Microcircuits and others.

The major players are adopting several growth strategies such as product launches, acquisitions and collaborations, contributing to the VHF exchange system (VDES) market globally. The global players follow collaboration and expansion as the market growth strategy for building revenue for their system.

• For instance, in 2020, Saab, Orbcomm and AAC Clyde Space entered into a new contract to build a satellite that will use the VHF Data Exchange System (VDES). This nanosatellite will be launched primarily for maritime communications into the lower earth orbit. It can also be used to track vessels automatically by updating existing systems. This partnership has helped the company develop a breakthrough technology that will help it achieve greater market share with a broader consumer base.

KONGSBERG

Overview: The company is based in Kongsberg, Norway and was established in the year 1814. The company offers cutting-edge technology to the maritime, defense and aerospace industry. The company provides a wide range of product categories such as deck machinery & cranes, acoustic positioning & communication, bridge systems & control centers, commercial fishfinding & fishery systems, engines, information management systems, engine room & automaton, marine robots, naval, onshore & space-based systems, pipelaying vessel, position, motion & heading systems, and others. They operate their businesses in Kongsberg defense & aerospace, Kongsberg Maritime and Kongsberg digital among which Kongsberg maritime is focused category

Key Development:

• In July 2020, KONGSBERG announced that the AISSat-1 AIS receiving satellite, first launched from the Satish Dhawan Space Center in India, has completed 10 successful years of service as it is ready to develop its next-generation payload VDES (VHF Data Exchange System). The company aims to digitalize the maritime industry entirely. The AIS infrastructure will be fully overhauled. This has helped the company increase its supply of goods and develop itself as a pioneer in maritime applications.

Why Purchase the Report?

• Visualize the VHF exchange system (VDES) market segmentation by components, communication type, usage type, end-user and highlight key commercial assets and players.
• Identify commercial opportunities in the VHF exchange system (VDES) market by analyzing trends and co-development deals.
• Excel data sheet with thousands of data points of VHF exchange system (VDES) market-level 4/5 segmentation.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global VHF exchange system (VDES) market report would provide access to an approx.: 66 market data table, 68 figures and 237 pages.

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