Dynamic Positioning System Market

Dynamic Positioning System Market Overview

The global dynamic positioning system market is expected to reach US$ 10.3 Billion and exhibit growth at a CAGR of 11.6% in the forecast period from 2022 to 2032. The market is estimated to be valued at US$ 8.2 Billion in 2022. The rapid expansion of the cargo shipping industry and the increasing seaborne trade are anticipated to drive the demand for dynamic positioning systems in the near future.

Dynamic positioning system is a specially developed computer-controlled system that is capable of maintaining a vessel’s heading and position automatically by utilizing its own thrusters and propellers. The urgent need to meet various classification norms based on the guidelines implemented by the International Maritime Organization is expected to drive the sales of dynamic positioning systems.

The ongoing innovations in the marine industry and the rapid development of autonomous ships by several key players globally owing to the rising maritime trade are estimated to accelerate the market. The surging number of ship upgradation projects to transport passengers and cargo from one location to another without manual intervention is another vital factor that is set to augment the growth.

In February 2022, Yara, a Norwegian chemical company, announced that Yara Birkeland, the world’s first zero-emission and fully autonomous cargo ship completed its first maiden voyage in Norway. It contains computers and sensors that enable the vessel to operate either via remote control or autonomously. The development of similar other innovative ships across the globe is set to drive the market.

Which are Some Prominent Drivers Spearheading Dynamic Positioning System Market Growth?

As ships are considered to be economical, compared to the other means of transportation, the bulk cargo transported and traded through various sea routes worldwide has surged at a fast pace over the years. As per the International Trade Administration (ITA), in 2018, nearly 70.93% of goods were transported through the sea in the U.S. alone. This trend is expected to continue throughout the forthcoming years, thereby propelling the sales of dynamic positioning systems.

Seaborne trade activities help in reducing freight costs and these are also suitable for transporting goods in bulk, as well as heavy goods efficiently. The rapid expansion of the e-commerce sector across the globe is another vital factor that is likely to drive the demand for maritime trade, thereby pushing the market.

What are the Challenges Faced by the Dynamic Positioning System Industry?

The lack of skilled personnel for operating dynamic positioning systems is a vital hindrance to the growth in this market. These systems require an innovative computer controlled software solution to gain information about the position of thrusters and the effect of wind on the container.

At present, these systems are considered to be a crucial part of operations, especially in the offshore sector. They require highly skilled and specially trained operators to manage the complex systems. These operators are set to play a significant role in the smooth operation of vessels equipped with dynamic positioning systems. Driven by the above-mentioned factors, the demand for dynamic positioning systems may get hampered in the upcoming years.

Why is Asia Pacific Emerging as an Opportunistic Dynamic Positioning System Market?

Asia Pacific is expected to dominate in the forthcoming years in terms of the dynamic positioning system market share. This growth is attributable to the presence of a well-established shipbuilding industry in China, Singapore, and Hong Kong. It is further set to result in the growth of seaborne trade and the high demand for ships.

According to the United Nations Conference on Trade and Development (UNCTAD), Asia is leading the maritime trade industry worldwide. The region accounted for 62% of goods unloaded and 41% of goods loaded in 2019. Thus, the ongoing expansion of maritime trade in the region is projected to bode well for the market.

Besides, the rising popularity of various recreational water activities and increasing investments in the offshore shipping industry, especially in New Zealand are some of the other vital factors that are likely to push the regional growth.

Nikhil Kaitwade

Principal Consultant

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How is Europe Contributing to the Growth of the Dynamic Positioning System Market?

The surging number of deep-sea operations in the U.K., Germany, and France is estimated to propel the dynamic positioning system market share in Europe. The presence of leading companies, such as Wärtsilä, KONGSBERG, Rolls-Royce plc., and ABB in the region is another crucial factor that is likely to augur well for the market.

In February 2022, for instance, U.S. automaker Rivian and France's Renault announced that they will exclude seabed metals from their supply chain and support a moratorium on deep-sea mining. France aims to invest in seabed exploration activities to discover potential solutions for extracting metals sustainably. Similar other initiatives by key players in Europe are anticipated to spur the growth in this market.

Market Competition

Some of the most renowned players operating in the global dynamic positioning system market are Moxa Inc., Kongsberg Gruppen, Navis Engineering, Praxis Automation Technology B.V., General Electric, Norr Systems Pte Ltd., ABB, Marine Technologies, LLC, Wärtsilä, and Rolls-Royce plc.

The global market is highly fragmented with the presence of small and private enterprises, already established companies, and small-scale retailers, suppliers, and distributors. Most of these market participants are focusing on investing huge sums for the development of cutting-edge products. Meanwhile, a few other players are engaging in joint ventures to co-develop new products to fulfill the high unmet needs of end-use industries.

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Report Scope

Dynamic Positioning System Market: Segmentation

By Equipment Type:

• Class 1
• Class 2
• Class 3

By Component:

• Power System
• DP Control System
• Thruster System

By Application:

• Passenger Vessels
• Merchant Vessels
• Platform Supply Vessels/Offshore Support Vessels
• Naval Vessels and Operations

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• APEJ
• Japan
• Middle East and Africa