Automatic identification system is a type of tracking system used on ship by vessel traffic services (VTS). It helps in identifying the location of vessel with the help of electronically exchanging data between various nearby vessels, automatic identification system base stations and satellites. An automatic identification system is designed specifically to enable two-way communication between on-shore based coastal authorities and various vessels. Globalization is considered as one of the important factor responsible for the growth and expansion of maritime transport industry. Marine transportation is expanding significantly due to increasing global trade. Also maritime transportation is less expensive as compare to other mode of transportation. These all factors are encouraging growth of global automatic identification market.