Maritime Security Market To Hit USD 50.8 Billion by 2033

Introduction

The global maritime security market is expected to grow significantly in the coming years. Valued at USD 25.8 billion in 2023, it is projected to reach USD 50.8 billion by 2033, with a compound annual growth rate (CAGR) of 7% from 2024 to 2033. This growth is being driven by the increasing threats to maritime security such as piracy, terrorism, and illegal activities, leading to a greater demand for enhanced security measures. Notable advancements in this field include the deployment of surveillance and tracking systems, cybersecurity solutions, and emergency response services, all of which are crucial for safeguarding vessels, ports, and coastal regions.

Key factors contributing to this growth include rising investments in maritime infrastructure and the expansion of naval fleets in critical regions such as the Arctic Ocean and the Strait of Malacca. For example, the U.S. Senate’s approval of USD 844.3 billion for the Department of Defense in July 2023 reflects the emphasis on strengthening maritime security through the induction of new ships and advanced security measures. Additionally, increased maritime traffic and offshore oil and gas activities are further driving the need for sophisticated security systems.

However, the market faces challenges such as high implementation costs and data security concerns, which might hinder the adoption of advanced maritime security technologies, especially among smaller shipping companies and economically less developed regions. Moreover, the impact of Brexit on maritime security regulations poses significant challenges, potentially affecting the operational efficiency and security measures of vessels and ports in the UK and the EU.

Recent developments in the maritime security market also highlight significant mergers and acquisitions aimed at enhancing operational capabilities and expanding market reach. For instance, in February 2024, France’s CMA CGM completed a $5 billion acquisition of Bollore Logistics, marking its largest deal to date. This acquisition aims to strengthen CMA CGM’s logistics and supply chain management capabilities.

Another notable deal includes Inchcape Shipping Services acquiring Grieg Logistics in June 2024, which enhances Inchcape’s presence in the Nordic region. Additionally, DP World finalized its acquisition of Savan Logistics in May 2024, targeting the strategic Savannakhet Special Economic Zone in Laos to bolster its logistics network. These transactions reflect the ongoing consolidation in the maritime sector as companies seek to counter market volatility and optimize their operations through strategic acquisitions.

Key Takeaways

• The global maritime security market is projected to grow from USD 25.8 billion in 2023 to approximately USD 50.8 billion by 2033, reflecting a compound annual growth rate (CAGR) of 7%.
• In 2023, the product segment dominated the market with a market share exceeding 57.4%.
• Maritime surveillance held the largest market share in 2023, accounting for over 33.4% of the global maritime security market.
• The Asia-Pacific region led the market in 2023, capturing more than 37.6% of the market share with revenue totaling USD 9.7 billion.
• Piracy incidents have notably impacted market growth, particularly in the Gulf of Aden and the Strait of Malacca.
• Terrorism threats have prompted stricter security measures, emphasizing advanced surveillance systems and enhanced training protocols.
• Illegal activities such as drug trafficking contribute to the demand for robust security solutions, driving investment in monitoring technologies.
• Surveillance and monitoring systems constitute a significant portion of market offerings, including radar and sonar technologies.

Maritime Security Statistics

• In 2022, there were 2,615 safety incidents involving vessels over 100 gross tons, a 9% increase from the previous year.
• Safety incidents grew by 7% in 2021, continuing a negative trend observed over the past decade.
• Incidents involving vessel collisions showed an upward trend as economies reopened after lockdown.
• Machine damage or failure incidents increased by 24% in 2021 and 13% in 2022, making up 55% and 57% of all incidents, respectively.
• Safety regulations under the International Maritime Organization (IMO) are evolving to accommodate new technologies and fuels.
• The IMO is transitioning from prescriptive regulations to goal-based safety requirements to facilitate technological innovations.
• In the first half of 2022, there were 592 maritime incidents, the highest number since at least 2016. These included vessel sinkings, adrifts, groundings, and fires/explosions.
• From January to June 2022, 59 theft, robbery, and piracy incidents were reported in the IFC Area of Interest (AOI), compared to 42 incidents in the same period in 2021.
• The majority of theft, robbery, and piracy incidents in 2022 occurred in areas such as the Singapore Strait, Chittagong Port (Bangladesh), and Belawan Anchorage (Indonesia).
• Tankers were the most targeted vessels, with 20 incidents (35%), followed by bulk carriers (33%) and tugs and barges (10%).
• No maritime terrorism incidents were recorded in the IFC AOI from January to June 2022.
• 21 environmental security incidents were recorded, with 14 incidents related to Maritime Pollution (MARPOL).
• Nine out of 14 MARPOL incidents were due to liquid pollution, mainly from oil spills in Indonesia, Thailand, Papua New Guinea, and India.
• One maritime cyber security incident, believed to be a ransomware attack, was reported at Jawaharlal Nehru Port Container Terminal in India.
• The IFC expects the number of cyber security incidents to remain low in the second half of 2022, with continued emphasis on cyber security measures.
• March 2022 recorded the highest number of environmental security incidents with eight out of 21 incidents, primarily MARPOL-related.
• The overall increase in theft, robbery, and piracy incidents from 2021 to 2022 is partly attributed to heightened reporting by shippers and the economic impacts of COVID-19.
• Incidents involving vessel sinkings and capsizing were the most common maritime incidents in the IFC AOI.
• Bulk carriers were the main target in the Singapore Strait (50%), followed by tankers (36%) and tugs-and-barges (14%).

Recent Developments

• IDIS Acquires Costar Technologies: Korean video manufacturer IDIS acquired U.S. company Costar Technologies Inc., strengthening its presence in the U.S. market with Costar’s established distribution network of over 100 distributors and 1,000 systems integrators.
• SECOM Invests in Eagle Eye Networks and Brivo: Japanese security integration company SECOM CO., LTD made a significant investment of $192 million in Eagle Eye Networks and Brivo. The investment aims to enhance cloud-based surveillance and access control technologies, expanding their market reach in Europe, Latin America, and Asia Pacific.
• ACRE Acquires PremiSys Portfolio: Security firm ACRE acquired the PremiSys software and hardware portfolio from IDenticard, enhancing its capabilities in healthcare, education, data centers, and senior living facilities by offering integrated door access and video management solutions.
• Qognify Becomes Part of Hexagon: Qognify, a provider of video management and enterprise incident management solutions, was acquired by Hexagon, integrating into its Safety, Infrastructure & Geospatial division to enhance real-time monitoring and incident response capabilities.
• ASSA ABLOY Continues Acquisition Spree: ASSA ABLOY continued to expand through acquisitions in 2023, including companies like Ghost Controls, Securitech Group, Leone Fence, Lawrence Hardware, and Inovadoor Portas Industriais Ltda. These acquisitions aim to strengthen its market position by adding complementary products and solutions in various regions.
• Private Equity Investment in Maritime Security: Private equity firms have increasingly invested in maritime and defense sectors, recognizing stable revenue streams from long-term contracts and the growing importance of cybersecurity and advanced technology integration in maritime operations.
• Global M&A Activity in Maritime Sector: The United States led the global M&A activity in the maritime sector with 28 deals in the last two quarters, driven by strategic consolidations to enhance operational efficiencies and expand market share.

Key Players Analysis

BAE Systems Inc

BAE Systems Inc. plays a significant role in the maritime security sector by providing advanced technology and defense solutions to protect naval vessels and enhance maritime operations. In recent years, the company has made notable strides in uncrewed vessel technology, with the Autonomous Pacific 24 (AP24) Rigid Inflatable Boat (RIB) being awarded Lloyd’s Register Unmanned Marine Systems Certification. This vessel is designed for missions such as force protection, anti-piracy, and intelligence gathering, showcasing BAE Systems’ commitment to developing cutting-edge maritime security solutions.

Additionally, BAE Systems completed the acquisition of Ball Aerospace in February 2024, which is expected to enhance its capabilities in space and maritime security domains. Collaborations with tech giants like Microsoft have also advanced their digital maritime solutions, aiming to integrate cloud computing and enhance maritime operational efficiency.

Harris Corporation

Harris Corporation, now operating as L3Harris Technologies following its merger with L3 Technologies in 2019, is a key player in the maritime security sector, focusing on advanced technological solutions. The company has recently made significant strides in autonomous maritime capabilities. One notable development is the deployment of the Arabian Fox autonomous surface vessel, which played a crucial role in various military exercises such as Digital Horizon 2023 and Neon Defender 2023. These exercises demonstrated the vessel’s capabilities in manned-unmanned teaming operations, enhancing situational awareness and operational efficiency.

Additionally, L3Harris’ acquisition strategy included expanding its portfolio with innovative technologies, such as the integration of the WESCAM MX-10MS maritime electro-optical and infrared imaging system. These advancements underscore L3Harris’ commitment to leading the maritime security sector with cutting-edge, autonomous, and integrated maritime solutions.

Honeywell International Inc

Honeywell International, Inc. is actively engaged in the maritime security sector, focusing on delivering advanced security and automation solutions. Recently, the company has made significant moves to bolster its capabilities through strategic acquisitions and product innovations. In December 2023, Honeywell completed the acquisition of Carrier’s Global Access Solutions business for $4.95 billion. This acquisition enhances Honeywell’s building automation portfolio and positions it as a leader in digital security solutions.

Additionally, in March 2024, Honeywell announced the acquisition of Civitanavi Systems, a company specializing in high-precision inertial navigation and stabilization solutions. This move is expected to strengthen Honeywell’s offerings in autonomous operations for both aerospace and maritime applications. These acquisitions align with Honeywell’s strategy to focus on three megatrends: automation, the future of aviation, and energy transition, thereby supporting the company’s long-term growth and innovation in the maritime security sector.

Leonardo-Finmeccanica

Leonardo-Finmeccanica, a key player in the maritime security sector, focuses on providing advanced technological solutions to enhance naval and maritime operations. Recently, Leonardo has made significant strides with new product launches and strategic partnerships. In 2023, the company introduced a new multi-role offshore patrol vessel (OPV) equipped with cutting-edge sensors and communication systems to boost surveillance and response capabilities.

Additionally, Leonardo acquired a 30% stake in GEM Elettronica, enhancing its capabilities in maritime and coastal surveillance. The company also secured a major contract with the United Arab Emirates in early 2024 to supply advanced radar and electronic warfare systems, reinforcing its position in the Middle Eastern market. These developments highlight Leonardo’s commitment to innovation and expansion in the maritime security field.

Elbit Systems Ltd

Elbit Systems Ltd. is a leading provider of maritime security solutions, known for its advanced technologies that enhance naval operations and coastal surveillance. Recently, Elbit Systems has focused on expanding its product offerings and market reach through strategic initiatives. In January 2023, Elbit Systems Sweden secured a contract to supply combat management systems to the Royal Swedish Navy, which will improve underwater detection and real-time data tracking capabilities.

Additionally, the company launched a new maritime drone system designed for surveillance and reconnaissance missions, reflecting its commitment to innovation. Elbit also completed the acquisition of Sparton Corporation, which specializes in the development of sonobuoys and maritime systems, further strengthening its portfolio in underwater warfare technology. These developments underscore Elbit Systems’ strategic growth and continued leadership in the maritime security sector.

SIGNALIS S.A.S.

SIGNALIS S.A.S., a subsidiary of Airbus Defence and Space, is a prominent player in the maritime security sector, specializing in coastal surveillance and vessel traffic management systems. The company is known for its advanced solutions that ensure the safety and efficiency of maritime operations. Recently, SIGNALIS has made significant advancements with new product launches and strategic collaborations.

In 2023, SIGNALIS introduced its next-generation coastal surveillance system, which integrates artificial intelligence to enhance threat detection and response capabilities. The company also expanded its market presence by securing a major contract with the Port of Singapore Authority to upgrade its vessel traffic management system.

Additionally, SIGNALIS strengthened its technological capabilities through a partnership with a leading AI firm to develop more sophisticated maritime security solutions. These developments highlight SIGNALIS’ ongoing commitment to innovation and its role as a key contributor to global maritime security.

Saab

Saab, a renowned defense and security company, plays a significant role in the maritime security sector by providing advanced solutions for naval operations and coastal defense. Recently, Saab has made several strategic advancements to enhance its maritime capabilities.

In 2023, Saab launched the latest version of its A26 submarine, which features cutting-edge stealth and sensor technologies designed to improve underwater operations and surveillance. The company also secured a major contract with the Royal Australian Navy to deliver its Saab 9LV combat management system, enhancing the Navy’s operational effectiveness.

Furthermore, Saab has strengthened its market position through the acquisition of BlueBear Systems Research, a company specializing in autonomous systems, which will boost Saab’s capabilities in unmanned maritime operations. These developments demonstrate Saab’s commitment to innovation and its strategic efforts to expand its footprint in the maritime security sector.

Kongsberg Gruppen

Kongsberg Gruppen, a leader in defense and maritime technology, is renowned for its advanced maritime security solutions that enhance naval operations and coastal surveillance. Recently, Kongsberg has made significant strides in expanding its capabilities and market reach.

In 2023, the company launched its new “Kongsberg Maritime Integrated Bridge System,” which integrates advanced navigation and automation technologies to improve vessel safety and efficiency. Kongsberg also secured a substantial contract with the Norwegian Navy to provide its “SeaProtector Remote Weapon Station,” enhancing the Navy’s operational capabilities.

Furthermore, Kongsberg strengthened its position in the autonomous maritime sector through the acquisition of Horten-based company, Blueye Robotics, which specializes in underwater drones. These strategic moves underscore Kongsberg’s commitment to innovation and its pivotal role in advancing maritime security technologies.

Raytheon Anschutz GmbH

Raytheon Anschutz GmbH, a subsidiary of Raytheon Technologies, is a key player in the maritime security sector, known for its advanced navigation and surveillance systems that enhance maritime safety and operational efficiency. Recently, Raytheon Anschutz has focused on expanding its product portfolio and market presence. In 2023, the company launched its next-generation Synapsis NX integrated bridge system, which offers enhanced user interfaces and advanced automation features for improved navigation and situational awareness.

Additionally, Raytheon Anschutz secured a significant contract with the German Navy to upgrade their fleet’s navigation systems, reflecting the company’s strong position in the defense sector. The company also entered into a strategic partnership with a leading AI firm to develop innovative maritime security solutions leveraging artificial intelligence for threat detection and response.

These developments highlight Raytheon Anschutz’s commitment to innovation and its strategic efforts to maintain a leading role in the maritime security industry.

Conclusion

In conclusion, the maritime security market is expected to experience substantial growth due to the need for robust security measures amidst rising maritime threats and increasing global maritime activities. However, addressing the challenges of high costs and regulatory complexities will be crucial for the sustained growth and adoption of advanced maritime security technologies.

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