Marine Industries Global Market Analysis - Marine Institute

114 MARINE INDUSTRIES GLOBAL MARKET ANALYSIS
Figure 22.2: Marine IT – World Market
The previously unavailable Mobile Packet Data Service is to open up new levels of
satellite communication to smaller vessels with the introduction of its capability into
the Fleet 33 service from Inmarsat. Operating in a similar way to a GPRS mobile
phone, the data connection is maintained constantly, resulting in users being charged
only for the amount of data sent or received rather the time spent actually on line.
As in other IT sectors, there is a degree of consolidation ongoing as companies
acquire other players in order to offer a range of applications.
22.2 WORLD MARKET
The very wide range of applications and lack of any official information on business
activity in the marine sector means that it is difficult to value the market.
Source: Douglas–Westwood
Table 22.1: Marine IT – World Market
1999–03 2004 2005–09
Africa 328 124 786
Asia 3,517 1,315 5,620
Australasia 129 43 224
E Europe/FSU 200 94 565
Latin America 466 140 742
Middle East 461 169 808
North America 885 304 1,396
Western Europe 3,794 1,382 5,872
TOTAL (€M) 9,780 3,570 16,012
Source: Douglas-Westwood
Figure 22.3: Marine IT – Regional Segmentation
2005–2009
In order to develop a market value, we have assumed that the IT content of capital
expenditure in three key areas of shipping operations (including IT additions to
existing ships), newbuild ship capex, and the offshore oil & gas industry capex &
opex averages 0.5% and this grows to 0.75% by 2004 and thereafter remains at
this proportion.
For example, in the case of a €35 million medium size tanker this would equate to an
IT value of €262,000.This may at first sight appear high, but the value is intended to
include capital items on the vessel such as the IT content of bridge systems,
communication systems, embedded engine control & management systems, safety
and automation systems, etc., right down to the software packages used in the design
of the vessel.
It may be argued that the IT content of other sectors could also be added, however,
the values are much smaller than the three above, and that the IT content of the very
large marine tourism sector is mainly shore-based conventional hotel/reservation
management systems and not marine-specific.
On this basis, marine IT was valued at €3.6 billion in 2004. Historically marine IT
has been growing substantially from €1.3 billion in 1999.There is an overall longterm
increase in IT content in the marine sector. Globally, the sector is set for long
term steady growth; however after a peak in 2004, annual growth is forecast at –0.9%,
although period growth 2005–2009 is 7%.
Source: Douglas–Westwood