Sofware Solutions Picking up Steam

By Greg Trauthwein, Editor
Thursday, October 17, 2013

A new study from Germany show rapid expansion in the maritime fleet management software sector.       

While shipowners are generally classified conservative in the uptake of new technology, the advent of increasingly sophisticated software solutions which manage everything from fuel  to cargo to crew make a compelling financial case to modernize quickly.
Earlier this summer Germany’s Fraunhofer CML issued what is arguably the most thorough study to date which analyzes the software market as applied to shipping companies. Entitled “Fleet Management Systems 2013,” the 60-plus page report provides exhaustive detail and insightful research on software solutions from 46 providers globally, with many pages of product overview helping to measure how one system stacks up versus another. In short, the study seeks to provide clarity to what many see as a confusing technology sector, one born of in-house solutions and evolving with the shipping industry to that of a more corporate and unified approach.
The umbrella term Fleet Management Systems (FMS) covers software solutions that support specific business processes in ship management.
In analyzing the shipping software market, it is important to keep in perspective that it is still in its infancy compared to the industry as a whole, as the study found that providers have been in the market for an average of 18 years, while nearly 30% of the companies have entered the market in the past decade.
Maritime Reporter editorial staff have noted a palpable uptick in the appetite for advanced software systems in recent years, and the report helps to support this notion. While difficult to pinpoint the total value of the market given that many of the software providers and their clients are private, the Fraunhofer CML studies estimates the size of the global FMS market to be $408-545 million and growing rapidly. The wide chasm in determining market size is due too to the disparity in company size, as larger companies offering more comprehensive solutions value the market higher. In general terms, researchers at Fraunhofer found the average cost of an FMS application was between $5,400-10,800 per year, per vessel.
Despite a generally horrible year for shipping in 2011, the FMS market grew about 7.5%, and the market is expected to grow between 8-17% in 2013.
While drivers for the growth are numerous, reduced fuel consumption and cost is the overriding reason ship owners are venturing into more sophisticated programming, as solid data is emerging which correlates efficient route and weather planning, for example, and its direct effect on saving fuel and money. Less tangible but still important factors in software solution growth in the sector centers on rapid communication capabilities connecting ship to short. Put simply, ship owners today are able to access faster, more reliable communications cheaper, and while the trend does not exactly mirror shore-based capabilities, the gap is narrowing.
Faster, cheaper communication are opening a plethora of new areas for onboard software development, as efficiency measures such as real-time machinery monitoring and maintenance assist, as well as crew welfare initiatives such as real-time medical assistance emerge from concept to reality.
In assessing the 46 companies, the study found an average operating revenue of $5.2 million, meaning that the majority of the companies are relatively small, and given the overall size of market, it is still a highly fragmented sector with fierce competition, meaning future consolidation to fewer, larger players is a distinct reality.
Finally, the industry-wide trend toward cloud solutions is noticeable in the FMS market, as nearly half (48%) of the providers currently provide cloud-enabled software solutions. While the other half does not, the study found that the majority of them plan to do so in the future.

$5,400-10,800 average cost, per vessel per year, of an FMS application

$5.2 million average operating revenue of software companies in the study

18 average age of software companies in the study

48 Average age of software companies in the study
 

$408-545 million Estimated size of the global market for Fleet Management Systems

 

For additional information on “Fleet Management Systems 2013,” contact Fraunhofer CML:
T: +49 4042878 4476
E: claudia.bosse@cml.fraunhofer.de
www.cml.fraunhofer.de

(As published in the October 2013 edition of Maritime Reporter & Engineering News - www.marinelink.com)         

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

Trelleborg Report Optimistic for Port Investment

The latest 'Barometer Report' from Trelleborg's marine operations business sector, discusses the issues impacting ports and terminals around the globe, and reveals

New Generation of Turbochargers Announced

MAN Diesel & Turbo has announced the development of a new turbocharger series specifically matched to the requirements of two-stroke engines. For the first time ever,

Green Passenger Ferries from Faaborg Vaerft

The first full-electrical passenger ferry in composite is delivered to Ballerina AB in Stockholm, Sweden. Faaborg Vaerft A/S has delivered the first full-electrical passenger vessel,

News

Gladding-Hearn Delivers Third NYPD Boat

With more than a dozen patrol boats and a fireboat built by Gladding-Hearn Shipbuilding, Duclos Corporation, operating in New York Harbor, the Somerset, Mass.,

Cook Joins Horizon Shipbuilding as Operations VP

Horizon Shipbuilding, Inc. announced that Mickey Cook has joined the corporation as the Vice President of Operations for the Bayou La Batre shipyard. Cook, one of the founders of C & G Boatworks,

Update: SS Central America Salvage

Odyssey Marine Exploration completes current phase of SS Central America recovery; 15,500+ gold and silver coins, 45 gold bars recovered to date; 161,000-square meter,

Communication

Haze and Reduced Visibility at Singapore Ports

Due to the presence of haze, the Maritime & Port Authority of Singapore Port Marine in their Notice No.113 of 2014 dated 15 September 2014 have informed the

Seasat Wins Contract from Maersk Supply Services

Seasat A/S, the Danish communications services provider, specialized in delivering reliable broadband, television and voice services for the maritime market announces

L-3 MSI to Equip Third Quantum Class Ship

L-3 Marine Systems International (L-3 MSI) announced today that it has been awarded a contract to provide a range of navigation, lighting and communication systems

Software Solutions

Rickmers' Fleet Equipped with Bluetracker

Long-term efficiency gains for the fleet on account of data capture and analysis on board and onshore. Declaration of intent signed at the SMM.   Rickmers Shipmanagement

d'Amico Fleet to Fit InfoSHIP EGO Monitoring

International classification society RINA Services informs it is to fit RINA’s InfoSHIP EGO performance monitoring system to d’Amico Group’s entire fleet. The first

SevenCs Release ChartServer 4.3

SevenCs explains that ChartServer is a WMS server that enables the user to view nautical chart data (e.g. S-63 encrypted ENCs). The newly released ChartServer 4.

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Electronics Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1544 sec (6 req/sec)