Maritime AI market nearly triples in size in the last 12 months, report shows

September 12, 2024, by Fatima Bahtić

In the past 12 months, the maritime artificial intelligence (AI) market has seen an explosive expansion, nearly tripling in size, a new report shows.

The report entitled “Beyond the Horizon: Opportunities and Obstacles in the Maritime AI Boom“ was published by maritime research firm Thetius and commissioned by Lloyd’s Register (LR).

The integration of AI into the maritime market has witnessed impressive growth. The research estimates that the maritime artificial intelligence market is now valued at $4.13 billion, with a projected five-year compound annual growth rate of 23%. Compared to the data published by Thetius in 2023, this marks a substantial increase from last year’s valuation of $1.47 billion, underscoring the rapid adoption of AI technologies across the sector.

This data was produced by Thetius IQ, a database that tracks the movement of more than 4,000 maritime organizations. Through 604 market updates logged by Thetius IQ within the last 12 months, 420 organizations have developed, sold, bought, or invested in AI technologies within the maritime industry.

In 2023, the system tracked only 276 organizations, suggesting growth in AI-based solutions from maritime stakeholders.

According to Thetius, this rise aligns with the industry’s increasing demand for energy-efficient and safe operations. Regulatory pressure and the desire from shipping lines to reduce their emissions and maintain competitive advantage present a huge opportunity for startups and SME technology providers to bring new and innovative solutions to the market.

Furthermore, the report identifies 36 shipping companies that have implemented or plan to deploy AI-enabled technologies within the past year.

Small and medium-sized entities (SMEs), which make up 63% of AI technology suppliers, have played a pivotal role, alongside 18% corporate entities and a rising 17% startups – a 5% increase from 2022-2023, according to the available data.

“The findings of the report show that the maritime sector, often perceived as traditional and resistant to change, is now embracing AI with remarkable enthusiasm. This shift is driven by the need for greater operational efficiency, enhanced safety, and a commitment to sustainability. AI technologies are being harnessed to optimise voyages, predict maintenance needs, enhance navigational safety, and manage energy consumption more effectively,” commenting on the findings, Mark Warner, Global Content and Communications Director, Lloyd’s Register said.

Areas of AI application

Thetius’ report introduced six critical areas of AI application. These include voyage optimization, data-driven condition-based maintenance, autonomous navigation, safety and compliance, and energy and port management.

One example of AI being used to optimize voyages is Ardmore Shipping’s deployment of DeepSea Technologies’ solution. Following extensive trials in 2023, Ardmore Shipping partnered with DeepSea Technologies in early 2024 to implement Pythia, the company’s voyage optimization tool, across its fleet. According to Ardmore’s commercial project manager Ha Eun Ruppelt, the shipping company has been optimising voyages manually for over 10 years, but it was consuming a substantial amount of man-hours.

The partners have already completed a yearlong full-scale trial of the technology on Ardmore vessels, during which time DeepSea and Ardmore worked together to refine a series of algorithms powered by AI-generated vessel behavior models leveraging Ardmore’s historical data to allow an AI approach to be deployed within the context of tramp trade.

Another DeepSea technology was selected by Singapore-based ship management company Eastern Pacific Shipping (EPS). The company opted for a fleet-wide deployment of DeepSea’s performance monitoring platform Cassandra Performance Monitoring. With the technology installed onboard the ships, EPS wanted to minimize fuel consumption, reduce greenhouse (GHG) emissions, and support its decarbonization goals.

The report also emphasizes that it is important to recognize that AI is a suite of tools and not one specific tool in a toolbox. AI should not be deployed in isolation. It should be combined with other technologies to create the most value.

“Systems such as AI will only be effective in the long run if users are confident and willing to engage with them. Organisations can further enhance trust in AI by focussing on change management. Sharing knowledge and being transparent about successes and challenges can enhance the value of applying technologies like AI, especially in areas where caution and uncertainty remain,” it was concluded.