MARITIME SECURITY MARKET ANALYSIS

Maritime Security Market Size and Trends

Global maritime security market is estimated to be valued at USD 24.90 Bn in 2024 and is expected to reach USD 40.34 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.1% from 2024 to 2031.

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Global maritime security market is expected to witness significant growth over the forecast period due to growing geopolitical threats at sea and rising instances of piracy and terrorism. Furthermore, increasing efforts by governments and ports authorities to enhance maritime domain awareness for ensuring safe and secure international waters boosts demand for maritime security solutions. Advancements in surveillance technologies such as integration of IoT, analytics and artificial intelligence are further expected to provide new opportunities for the market players. However, resistance from regulatory bodies and privacy concerns related to use of certain surveillance technologies can hamper the market growth. Market players are focusing on development of advanced and integrated systems with an aim to automate security processes, and this can drive the growth of maritime security market in the near future.

Market Driver: Piracy activity at sea

One of the key drivers for the growth of maritime security market is rise in piracy activity across major trade routes and sea lanes globally. While piracy at sea has been an issue for centuries, the scope and impact of such criminal activities has increased substantially over the past couple of decades.  Asia Pacific, Africa and Latin America countries have witnessed increase in attacks on merchant and commercial vessels by pirate groups. These pirate gangs are often well organized and launch rapid attacks to seize cargo and demand ransom. Some of the major areas that have been impacted include the waters off Somalia and West Africa coastlines.

According to reports, the Gulf of Guinea witnessed over 90 pirate attacks in 2020, thus, making it an area with highest piracy risk in the world. Billions of dollars of cargo is transported through this region annually on trade routes linking Europe and Asia. Even a small number of successful pirate attacks can lead to massive financial losses for shipping companies. These also disrupt the global supply chains of numerous industries reliant on maritime transport. With increased globalization and just-in-time manufacturing practices, even short-term disruptions can have far reaching ripple effects. This has forced ship owners and operators to raise security levels and invest in anti-piracy solutions to safeguard their assets. Governments have been compelled to boost maritime security by deploying more coast guard assets and naval ships for protection and surveillance operations.

Another key factor driving growth of maritime security market is increased threat of terrorist and militant groups targeting commercial ships and ports globally. While piracy is often motivated by financial gain, terror attacks aimed at sinking or hijacking commercial vessels tend to have stronger geopolitical and ideological goals of instilling fear and disrupting international trade and commerce. Some of the major incidents include the 2000 bombing of the USS Cole in Yemen and the 2002 bombing of the French tanker Limburg near Yemen. The ability of terrorist groups to plan and carry out complex naval attacks poses a serious ongoing risk. Experts warn terrorist organizations may seek to acquire weapons like submarines or explosive-laden small boats to wreak even greater havoc.

Ports and harbors which act as vital nodes of the global economy have also emerged as attractive targets. A successful terror attack could paralyze port operations for extended periods and impact billions of dollars in cargo traffic.