The connected ship market is expected to experience significant growth, with projections suggesting it will reach USD 25.73 billion by 2034, expanding from USD 13.16 billion in 2025. This growth will occur at an annual rate of 7.73% over the forecast period from 2025 to 2034. The demand for advanced communication systems in the marine sector and government initiatives aimed at enhancing maritime safety are key factors driving this expansion. Furthermore, innovations in 5G technology and the integration of AI-based navigation systems are expected to create ample opportunities for market players.
Overview of the Connected Ship Market
The connected ship market is an essential segment of the marine industry, focusing on the development of advanced connectivity solutions for shipping. These systems encompass navigation systems, communication systems, automation and control systems, security and surveillance systems, and more. Connected ships include a variety of vessels, such as commercial ships, defense ships, and autonomous unmanned surface vessels (USVs). Applications of connected ship technologies include fleet management, predictive maintenance, safety and security, environmental compliance, and autonomous operations.
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Key Insights of the Connected Ship Market in 2025
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Europe generated the highest revenue in the connected ship market, holding a share of around 35%.
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Asia Pacific is expected to exhibit the highest growth rate (CAGR) during the forecast period.
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The navigation and communication systems segment led the market with a share of approximately 40%.
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The cybersecurity and surveillance systems segment is anticipated to grow at the fastest CAGR.
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Fleet operations and management led the market, comprising about 35% of the total market share.
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Commercial ships dominated the market with a share of approximately 55%.
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Satellite communication (SATCOM) is the most dominant connectivity type with a 45% market share.
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OEM installation accounted for around 60% of the market share in the distribution model.
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Commercial shipping operators held the largest share of the market at about 50%.
Market Trends in 2025
1. Partnerships and Collaborations
Marine operators are increasingly partnering with AI providers to improve navigation systems for both manned and unmanned vessels. For instance, Hefring Marine partnered with Tocaro Blue in August 2025 to develop an AI-powered navigation system for vessels.
2. Joint Ventures
Several companies are entering joint ventures to deliver advanced services to ship owners and operators. In September 2025, ABB and Wallenius Marine formed a joint venture aimed at providing vessel performance management services.
3. Rising Defense Expenditure
Countries around the world are increasing their defense budgets, which directly impacts the growth of connected ship technologies. For example, global defense spending reached USD 2.46 trillion in 2024, driving demand for advanced naval solutions.
System Insights
Navigation & Communication Systems: Market Leaders
The navigation and communication systems segment currently leads the connected ship market, accounting for around 40% of the total market share. The increasing integration of advanced systems to enhance ship tracking and communications capabilities is a key driver of growth. Moreover, investments by telecom companies are further strengthening the demand for enhanced marine communication.
The cybersecurity and surveillance systems segment is expected to grow at the fastest rate due to rising cyber threats and the increasing demand for maritime security solutions.
Application Insights
Fleet Operations & Management
This segment accounted for around 35% of the market in 2025. The growing adoption of AI-powered fleet management systems by operators has enhanced the ability to track vessel performance and reduce operational costs. Furthermore, the rise in cargo vessel operators, particularly in Europe, is also propelling the growth of this segment.
Autonomous & Semi-Autonomous Operations
The autonomous and semi-autonomous operations segment is projected to grow at the highest CAGR. Autonomous ships are increasingly being deployed by defense forces, while semi-autonomous vessels are benefiting from the integration of advanced sensors, allowing them to operate in challenging maritime environments.
Ship Type Insights
Commercial Ships: Dominant in Market Share
Commercial ships dominate the market, with a share of approximately 55%. The increasing demand for advanced fleet management solutions in commercial vessels has contributed to this dominance.
Autonomous/USVs: The Future of Maritime Operations
The autonomous/unmanned surface vessels (USVs) segment is expected to grow at the highest CAGR due to their rising use in defense applications and their ability to perform complex tasks in dangerous environments.
Connectivity Insights
Satellite Communication (SATCOM): Leading the Charge
SATCOM leads the market with around 45% of the share, providing global coverage for data, voice, and video transmissions. Its ability to deliver reliable communication across vast oceans contributes significantly to the market’s growth.
5G Networks: The Future of Maritime Communication
The cellular/5G maritime networks segment is poised for rapid growth during the forecast period, driven by investments in 5G infrastructure and the adoption of 5G technology for faster communication and enhanced ship performance.
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Distribution Channel Insights
OEM Installation: The Preferred Method
The OEM installation segment currently dominates with around 60% market share, driven by fleet operators’ preference for integrating advanced systems directly from original equipment manufacturers.
Managed Services & Cloud-Based Solutions: Fastest Growing Segment
Managed services and cloud-based solutions are expected to see the highest growth due to their cost-effectiveness and the rising demand for cloud navigation systems.
End-User Insights
Commercial Shipping Operators: The Largest Segment
Commercial shipping operators represent the largest market share, driven by the need for advanced fleet management and real-time vessel monitoring solutions.
Defense/Naval Forces: The Fastest Growing End-User
The defense/naval forces segment is expected to grow at the highest rate, driven by the increasing adoption of autonomous ships for enhanced maritime security.
Geographical Insights
Europe: Leading the Market
Europe remains the dominant region, generating about 35% of the total market revenue. The presence of key players like Wärtsilä and Kongsberg Maritime and the increasing demand for commercial ships in countries like Germany and France support the region’s growth.
Asia Pacific: A Rising Star
Asia Pacific is set to grow at the fastest rate, with countries like China, India, and Japan leading the adoption of autonomous ships, further boosting the connected ship market.
Key Players in the Connected Ship Market
1. Schneider Electric
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About: Schneider Electric is a global leader in digital transformation, offering energy-efficient and automated solutions.
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Products: Marine automation, navigation solutions, and fleet management systems.
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Market Cap: USD 90 billion.
2. Sperry Marine B.V.
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About: Sperry Marine provides advanced navigation solutions to the maritime industry.
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Products: Navigation and communication systems, ship management software.
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Market Cap: Part of the larger Navico Group.
3. Wärtsilä
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About: Wärtsilä offers advanced marine technologies, including propulsion systems and connected ship solutions.
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Products: Marine engines, navigational systems, and environmental solutions.
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Market Cap: USD 12 billion.
4. Kongsberg Maritime
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About: Kongsberg Maritime specializes in advanced maritime technology solutions.
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Products: Navigation, communication, and surveillance systems.
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Market Cap: USD 7 billion.
5. Rockwell Automation
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About: Rockwell Automation focuses on industrial automation, with applications in the maritime sector.
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Products: Automation and control systems for ships.
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Market Cap: USD 30 billion.
FAQs
1. What is the projected market size of the connected ship market?
The connected ship market is projected to reach USD 25.73 billion by 2034, growing from USD 13.16 billion in 2025.
2. Which segment is expected to grow the fastest in the connected ship market?
The cybersecurity and surveillance systems segment is expected to grow with the fastest CAGR during the forecast period.
3. Which region dominates the connected ship market?
Europe currently dominates the connected ship market, generating around 35% of the total revenue.
4. What is driving the growth of the connected ship market?
The demand for advanced communication systems, government initiatives for maritime safety, and the integration of 5G and AI technologies are key drivers of market growth.
5. Who are the major players in the connected ship market?
Key players include Schneider Electric, Sperry Marine B.V., Wärtsilä, Kongsberg Maritime, and Rockwell Automation.
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