FILTER POSTS SHOW ALL AVIATION MARITIME
FILTER POSTS SHOW ALL AVIATION MARITIME

The Future of Maritime Connectivity – A Sneak Preview

In October 2018, Valour Consultancy will publish a long-awaited update to its maritime connectivity report. For those that simply cannot wait to get a hold of this information, we thought we’d share a sneak peek of our just-realised preliminary data…

Our statistics show that the global maritime connectivity market will continue to grow strongly in 2018, with annual service revenues projected to reach $1.6 billion by the end of the year. This represents a 5.4 per cent increase from 2017.

The VSAT portion of the market is anticipated to drive future growth, with MSS service revenues declining over the coming years. By the end of 2017, VSAT terminals accounted for only nine per cent of the installed base of vessels with some type of connectivity system installed. This will increase to 10 per cent by the end of 2018 and 18 per cent by 2027.

Revenues from VSAT terminal services represented 68 per cent of the total market (equivalent to some $1 billion) in 2017. Average monthly revenues per terminal for C-, Ku-, and Ka-band services differ considerably, however, and were recorded at $5,750, $3,078, and $2,757, respectively, in 2017. In comparison, average monthly service revenues for L-band terminals were just $169.

The passenger segment is a particularly lucrative market as many cruise and ferry line operators are seeking out greater satellite bandwidth capacities to match an ever-increasing demand from passengers to use Internet-enabled smartphones and tablets. Not only do people want to eat their breakfasts, lunches, and dinners; they wish to take pictures of them and post them on social media pages for all the world to see (or sea, if you pardon the pun).

In other maritime verticals, such as merchant, the desire to improve crew welfare is a major driver for the adoption of VSAT technologies for voice, video and email communications. Spending months away from friends and family without any communications can be sapping on morale and will likely lead to staff reconsidering their career or employment choices.

Another major driver within the shipping industry is the digitalisation of vessel operations and increasing operational efficiencies. One key cost saver is anticipating maintenance or repair work before a piece of machinery on the vessel breaks down out at sea, which is much costlier to fix than a vessel docked at a port.

Furthermore, people’s expectations are changing to the degree that not having the ability to access emails or messages is intolerable no matter where they are in the world, on land, at sea or in the air. This is a very notable trend in the leisure market. Yacht or smaller leisure boat owners want to continue with their normal life and business routines whilst sailing around the world. Access to connectivity is essential for them to achieve this.

The Future of Maritime Connectivity” report projects maritime connectivity service revenues will reach almost $2.1 billion by the end of 2027. The leisure and passenger segments are predicted to be the fastest growing areas. Indeed, ARPU for some of the biggest cruise vessels using VSAT systems is expected to easily surpass $30,000 per month.

Speedcast, the Australian service provider, has been very successful in the passenger market thanks in part to the 2017 acquisition of Harris Caprock and August 2018 purchase of Globecomm.

Within the next ten years, global VSAT terminal deployments will treble to more than 72,000 units. The Ka-band market is projected to record the biggest increase, expanding ten-fold from a small base of around 3,000 terminals at the end of 2017, to greater than 30,000 by 2027. In fact, Inmarsat recently revealed that it expects to carry out the 5,000th ship installation of its Fleet Xpress solution by the end of this month, which gives an idea of just how quickly this particular technology is being adopted.

With the prospects for VSAT in maritime incredibly rosy, it can be easy to overlook the MSS market. As such, the report also delves into the low-speed and no voice MSS segment (GMDSS and asset tracking) of the maritime communications market and provides forecasts for the broadband and voice portion (Fleet Broadband and OpenPort). Although VSAT is steadily cannibalising these markets across different maritime verticals, annual L-band service revenues are projected to decline at a slower rate than some might expect. Demand in the fishing, merchant and leisure sectors will continue to support this limited bandwidth technology.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="4867|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2018/09/yacht-3480913_1280-min-1024x682-1.jpg[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text]In October 2018, Valour Consultancy will publish a long-awaited update to its maritime connectivity report. For those that simply cannot wait to get a hold of this information, we thought we’d share a sneak peek of our just-realised preliminary data… Our statistics show that the global maritime connectivity market will continue to grow strongly in 2018, with annual service revenues projected to reach $1.6 billion by the end of the year. This represents a 5.4 per cent increase from 2017. The VSAT portion of the market is anticipated to drive future growth, with MSS service revenues declining over the coming years. By the end of 2017, VSAT terminals accounted for only nine per cent of the installed base of vessels with some type of connectivity system installed. This will increase to 10 per cent by the end of 2018 and 18 per cent by 2027. Revenues from VSAT terminal services represented 68 per cent of the total market (equivalent to some $1 billion) in 2017. Average monthly revenues per terminal for C-, Ku-, and Ka-band services differ considerably, however, and were recorded at $5,750, $3,078, and $2,757, respectively, in 2017. In comparison, average monthly service revenues for L-band terminals were just $169. The passenger segment is a particularly lucrative market as many cruise and ferry line operators are seeking out greater satellite bandwidth capacities to match an ever-increasing demand from passengers to use Internet-enabled smartphones and tablets. Not only do people want to eat their breakfasts, lunches, and dinners; they wish to take pictures of them and post them on social media pages for all the world to see (or sea, if you pardon the pun). In other maritime verticals, such as merchant, the desire to improve crew welfare is a major driver for the adoption of VSAT technologies for voice, video and email communications. Spending months away from friends and family without any communications can be sapping on morale and will likely lead to staff reconsidering their career or employment choices. Another major driver within the shipping industry is the digitalisation of vessel operations and increasing operational efficiencies. One key cost saver is anticipating maintenance or repair work before a piece of machinery on the vessel breaks down out at sea, which is much costlier to fix than a vessel docked at a port. Furthermore, people’s expectations are changing to the degree that not having the ability to access emails or messages is intolerable no matter where they are in the world, on land, at sea or in the air. This is a very notable trend in the leisure market. Yacht or smaller leisure boat owners want to continue with their normal life and business routines whilst sailing around the world. Access to connectivity is essential for them to achieve this. “The Future of Maritime Connectivity” report projects maritime connectivity service revenues will reach almost $2.1 billion by the end of 2027. The leisure and passenger segments are predicted to be the fastest growing areas. Indeed, ARPU for some of the biggest cruise vessels using VSAT systems is expected to easily surpass $30,000 per month. Speedcast, the Australian service provider, has been very successful in the passenger market thanks in part to the 2017 acquisition of Harris Caprock and August 2018 purchase of Globecomm. Within the next ten years, global VSAT terminal deployments will treble to more than 72,000 units. The Ka-band market is projected to record the biggest increase, expanding ten-fold from a small base of around 3,000 terminals at the end of 2017, to greater than 30,000 by 2027. In fact, Inmarsat recently revealed that it expects to carry out the 5,000th ship installation of its Fleet Xpress solution by the end of this month, which gives an idea of just how quickly this particular technology is being adopted. With the prospects for VSAT in maritime incredibly rosy, it can be easy to overlook the MSS market. As such, the report also delves into the low-speed and no voice MSS segment (GMDSS and asset tracking) of the maritime communications market and provides forecasts for the broadband and voice portion (Fleet Broadband and OpenPort). Although VSAT is steadily cannibalising these markets across different maritime verticals, annual L-band service revenues are projected to decline at a slower rate than some might expect. Demand in the fishing, merchant and leisure sectors will continue to support this limited bandwidth technology.[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

The Scandinavian dream of maritime communications: A transformational agreement between Ericsson and Maersk

Despite the moderate adoption of new advancements on communication technologies and industrial IoT, the shipping industry is still lagging behind in their implementation of end-to-end solutions, data management, and operational processes for integral connectivity. With more than 90% of consumable goods being shipped around the globe, there are still some unimpeachable factors that need to be accounted for if connectivity is set to be the milestone for a new system of sustainable performance. Yet, there are key players that are beginning to act upon major changes, taking a step forward through strategic collaborations.

The transformational agreement between Maersk Line – the world’s largest shipping company – and Ericsson – the world’s leading provider of technology and services to telecom operators – serves as a chronological example of process innovations and virtual solutions to the importance of ship-to-shore connectivity. This combination of forces strongly adheres to the values and visions outlined by the Swedish corporation; “To lead transformation through mobility, where we as a leading innovator drive transformation of industries and communities towards a sustainable Network Society…”

Back in 2012, the initial agreement contemplated the ongoing installation of mobile and satellite communications technology that enabled the Danish giant to access real-time monitoring across its fleet. Whilst the common connectivity has made its progress throughout time, the core objectives have always been based upon the improvement of vessel operations, fuel consumption, and electric conditions. Again, with nearly 300,000 refrigerated containers annually scheduled to move around 343 ports at 121 countries, Maersk Line faces a logistical challenge and a plausible margin of error that was eclipsed by the use of a Remote Container Management (RCM) system.

Launched in 2015, and under sophisticated technicalities, RCM supports the tracking of ships around the vast oceans, relying on three components: A GPS unit to monitor the movement of a ship, a SIM card that withstands high temperatures and exposure, and a GSM antenna to strengthen data signals. By implementation, Maersk Line has been able to deliver vital statistics of performance that comprises temperature, location, and power supply. At the same time, the shipping company uses the available data to maximise safety, operational/process efficiencies, and cargo care, requiring less manual inspection prior, during, and after-trip missions.

This volume of data is also loaded onto the cloud and sent back to shore-based offices for analysis. But major cloud upgrades have also been employed by the Swedish corporation to enable shipping to benefit from high connectivity, industry applications, and systems integration. The Ericsson’s Maritime ICT cloud, which has already been fortified by the strategic addition of Inmarsat’s Ka-/L- high-speed broadband Fleet Xpress product, offers an end-to-end managed cloud solution that connects vessels at sea to shore-based operations including maintenance service providers, customer support centers, fleet/transportation partners, port operations and authorities.

As part of industry applications, Ericsson’s eye on shipping powers Maersk’s commitment to digital innovations and IoT in the launch of Plug and Play Supply Chain & Logistics. Adhering Plug and Play as a strategic unifier, this digital platform aims to connect corporations to startup companies, enabling an open supply chain and logistics ecosystem. Importantly, this holistic program is set forward to enable a powerful transformation of the freight and logistic industry via a better access of large amounts of data, new technology, and more channels for engaging customers.

Through careful implementation of RCM, ICT Cloud, and industry applications, Ericsson is committed to higher connectivity and bandwidth, and logistics architectures. Nevertheless, Ericsson and Maersk Line are gradually achieving superior integration through voyage optimisation (operations and environmental efficiencies), cargo monitoring (keeping track of cargo through wirelessly connected vessels and real-time communications), and crew morale. This latter factor enhances crew satisfaction and retention rates, efficient coaching and development, and increased ability to cope with health crises that may occur while at sea.

To justify the inclusion of communication technologies and IoT at sea, Orvar Hurtig, Head of industry and Society at Ericsson argues: “Vessels at sea do have systems in place that allow them to monitor critical functions and fuel usage, set and maintain an optimal course and ensure the welfare of their crew, but they are not particularly well integrated with fleet management systems onshore and they do not maximise the potential of real-time data. As the driving force behind the networked society and the world leader in telecommunications, Ericsson is the right partner to help connect these disparate systems and enable them to share information with low latency”

Inevitably, the importance of superior communications and IoT will keep redefining the nature of sea-to-shore connectivity. The transformational agreement between Ericsson and Maersk Line keeps progressing in their pursuit of successful shipping of consumable items, data management, safety/navigation planning, environmental impacts, and real-time communications. Though, it is recommended that ship operators take sea-to-shore connectivity at heart to excel at the abovementioned factors, since Scandinavian firms are sending signals that they are conquering the vast ocean through major investment in digital communications and networks.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="4990|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2017/05/container-158362_1280-1-1024x512-1.png[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text] Despite the moderate adoption of new advancements on communication technologies and industrial IoT, the shipping industry is still lagging behind in their implementation of end-to-end solutions, data management, and operational processes for integral connectivity. With more than 90% of consumable goods being shipped around the globe, there are still some unimpeachable factors that need to be accounted for if connectivity is set to be the milestone for a new system of sustainable performance. Yet, there are key players that are beginning to act upon major changes, taking a step forward through strategic collaborations. The transformational agreement between Maersk Line - the world’s largest shipping company - and Ericsson - the world's leading provider of technology and services to telecom operators - serves as a chronological example of process innovations and virtual solutions to the importance of ship-to-shore connectivity. This combination of forces strongly adheres to the values and visions outlined by the Swedish corporation; “To lead transformation through mobility, where we as a leading innovator drive transformation of industries and communities towards a sustainable Network Society…” Back in 2012, the initial agreement contemplated the ongoing installation of mobile and satellite communications technology that enabled the Danish giant to access real-time monitoring across its fleet. Whilst the common connectivity has made its progress throughout time, the core objectives have always been based upon the improvement of vessel operations, fuel consumption, and electric conditions. Again, with nearly 300,000 refrigerated containers annually scheduled to move around 343 ports at 121 countries, Maersk Line faces a logistical challenge and a plausible margin of error that was eclipsed by the use of a Remote Container Management (RCM) system. Launched in 2015, and under sophisticated technicalities, RCM supports the tracking of ships around the vast oceans, relying on three components: A GPS unit to monitor the movement of a ship, a SIM card that withstands high temperatures and exposure, and a GSM antenna to strengthen data signals. By implementation, Maersk Line has been able to deliver vital statistics of performance that comprises temperature, location, and power supply. At the same time, the shipping company uses the available data to maximise safety, operational/process efficiencies, and cargo care, requiring less manual inspection prior, during, and after-trip missions. This volume of data is also loaded onto the cloud and sent back to shore-based offices for analysis. But major cloud upgrades have also been employed by the Swedish corporation to enable shipping to benefit from high connectivity, industry applications, and systems integration. The Ericsson’s Maritime ICT cloud, which has already been fortified by the strategic addition of Inmarsat’s Ka-/L- high-speed broadband Fleet Xpress product, offers an end-to-end managed cloud solution that connects vessels at sea to shore-based operations including maintenance service providers, customer support centers, fleet/transportation partners, port operations and authorities. As part of industry applications, Ericsson’s eye on shipping powers Maersk’s commitment to digital innovations and IoT in the launch of Plug and Play Supply Chain & Logistics. Adhering Plug and Play as a strategic unifier, this digital platform aims to connect corporations to startup companies, enabling an open supply chain and logistics ecosystem. Importantly, this holistic program is set forward to enable a powerful transformation of the freight and logistic industry via a better access of large amounts of data, new technology, and more channels for engaging customers. Through careful implementation of RCM, ICT Cloud, and industry applications, Ericsson is committed to higher connectivity and bandwidth, and logistics architectures. Nevertheless, Ericsson and Maersk Line are gradually achieving superior integration through voyage optimisation (operations and environmental efficiencies), cargo monitoring (keeping track of cargo through wirelessly connected vessels and real-time communications), and crew morale. This latter factor enhances crew satisfaction and retention rates, efficient coaching and development, and increased ability to cope with health crises that may occur while at sea. To justify the inclusion of communication technologies and IoT at sea, Orvar Hurtig, Head of industry and Society at Ericsson argues: “Vessels at sea do have systems in place that allow them to monitor critical functions and fuel usage, set and maintain an optimal course and ensure the welfare of their crew, but they are not particularly well integrated with fleet management systems onshore and they do not maximise the potential of real-time data. As the driving force behind the networked society and the world leader in telecommunications, Ericsson is the right partner to help connect these disparate systems and enable them to share information with low latency” Inevitably, the importance of superior communications and IoT will keep redefining the nature of sea-to-shore connectivity. The transformational agreement between Ericsson and Maersk Line keeps progressing in their pursuit of successful shipping of consumable items, data management, safety/navigation planning, environmental impacts, and real-time communications. Though, it is recommended that ship operators take sea-to-shore connectivity at heart to excel at the abovementioned factors, since Scandinavian firms are sending signals that they are conquering the vast ocean through major investment in digital communications and networks. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]