Recording a y-o-y growth of 8.6%, the global VHF data exchange system (VDES) market size is set to reach US$ 1,835.2 million in 2024. Over the projection period, global demand is forecast to rise at 8.5% CAGR, with total market valuation reaching US$ 4,158.4 million by 2034.
VHF data exchange system (VDES) is rising into prominence due to its benefits like faster data transmission speed and improved message reliability. This advanced communication system is designed specifically for maritime applications.
VDES operates in the very high frequency (VHF) spectrum, which is commonly used for maritime communication due to its favorable propagation characteristics over water. It represents a significant technological evolution over traditional VHF systems by enabling high-speed data communication, enhanced message integrity, and increased bandwidth efficiency.
VHF data exchange system utilizes modern digital communication techniques to support a wide range of maritime communication needs, including ship-to-ship, ship-to-shore, and ship-to-satellite data exchange. As a result, its demand is growing rapidly.
The growth of the VHF data exchange system (VDES) market is propelled by the growing need for high-quality communications. Marine communication between ships or with the shore is carried out with the help of on-board systems through shore stations and even satellites.
In case of any emergency situations, it is highly essential to have reliable and quick communication systems to communicate with other ships and shores. This is encouraging end users to adopt VHF data exchange system.
Rising interest in satellite communications is set to boost sales growth during the assessment period. Similarly, growing usage of VDES to enhance meteorological data collection due to fast communication with teams on shore will benefit the industry.
Key Market Attributes
| Attributes | Details |
|---|---|
| Base Market Value in 2023 | US$ 1,691.4 million |
| Market Size in 2024 | US$ 1,835.2 million |
| Market Value in 2034 | US$ 4,158.4 million |
| Value CAGR (2024 to 2034) | 8.5% |
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Despite a positive growth outlook, several factors are hindering growth of the VDES market. These include various problems such as electromagnetic interference in submarine communication, lack of customization in standard VDES systems, and higher cost of satellite deployment for VDES systems.
Advances in satellite communications technology, such as small satellites and low-earth orbit satellites, will benefit the market. Subsequently, the advent of 5G communication technology to improve speed of maritime communications and development of advanced encryption algorithms to improve safety of communications are set to augment market growth.
Principal Consultant
Escalating demand for improved maritime communication in military and defense applications is predicted to fuel VHF data exchange system sales. Increasing bandwidth of communications equipment, using advanced modulation and encoding techniques, and integration of VDES with Automatic Identification Systems (AIS) will further boost the market.
From 2019 to 2023, the VDES market experienced a CAGR of 7.9%, reaching a valuation of US$ 1,691.4 million. Looking ahead, the global market is forecast to rise at a CAGR of 8.5% from 2024 to 2034, indicating a spike of 0.6% from the historical period.
Growing need for high-quality maritime communication is a prominent factor propelling market growth. This is because VDES offers faster data transfer rates and greater reliability.
Nations are continuously focusing on the improvement of navigation and communication for autonomous and continuous broadcast systems that exchange safety and security information between participating vessels and shore stations. This will play a key role in fueling VDES demand.
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Europe holds a prominent portion of the global VHF data exchange system (VDES) market share. This is attributable to flourishing maritime trade and growing global navigation satellite systems industry in the region.
South Asia & Pacific is experiencing rapid growth due to high usage of maritime communications equipment. VHF radios are extensively being used for maritime communication in South Asian countries with significant coastlines, such as India, Bangladesh, Sri Lanka, and the Maldives.
VHF radios are used for ship-to-ship communication, ship-to-shore communication, port operations, and maritime safety purposes. As the region continues to witness growth of maritime exports, demand for VHF data exchange systems (VDES) is set to grow at 10.0% CAGR through 2034.
The section below sheds light on nations leading the VDES industry. The United States and China are set to remain leading users owing to booming maritime sector in these nations, rising export activities, and surging needs for enhanced maritime communication systems.
When it comes to VHF data exchange system usage, the United States leads from the forefront. There is a sharp rise in maritime trade across the United States, necessitating usage of enhanced maritime communication systems like VDES.
VDES offers multiple advantages over the traditional AIS, including enhanced data capacity, better security, and high reliability. This is making it an ideal option for maritime communication in the United States.
The United States Coast Guard (USCG) is playing a key role in propelling demand for VDES. This security branch is constantly enforcing regulations that mandate VDES adoption in the maritime sector.
Integration of VDES with automation systems and IoT devices will boost growth of the VHF data exchange system (VDES) market in the United States. Similarly, growing popularity of smart ports and maritime traffic management systems that use VDES technology is set to fuel demand.
China VHF data exchange system market is poised to grow rapidly from 2024 to 2034. This can be attributed to a combination of factors, including rising maritime traffic, growing emphasis on enhancing maritime safety and security, and advances in technology like software-defined radios.
China’s maritime industry is witnessing rapid growth, and the trend will probably persist through 2034. This is anticipated to propel demand for VDES as it offers enhanced communication capabilities for various maritime applications.
VHF data exchange system offers enhanced communication and data exchange between vessels and authorities. This is improving its popularity as China’s focus on enhancing maritime safety and security continues to mount.
China is also home to several leading VDES companies which are constantly striving to develop affordable VDES equipment. This will improve China’s VHF data exchange system industry share through 2034.
The table section offers deeper insights into leading segments in the global industry. This information will likely help companies to frame their strategies accordingly to stay ahead of the competition.
Based on VDES infrastructure, the VDES radios segment leads the market, holding a share of 30.0% in 2024. By communication type, the ship-to-satellite segment is forecast to grow at a high CAGR of 9.6% through 2034. In terms of end-user, the search and rescue segment will hold a prominent market share of 18.9% in 2024.
Market Growth Outlook by VDES Infrastructure
| VDES Infrastructure | Value CAGR |
|---|---|
| VHF Radios | 8.1% |
| VHF Antennas | 8.4% |
| Shore-based VHF Stations | 7.9% |
| VDES Data Processing Systems | 9.2% |
| Other Devices | 7.6% |
As per the latest analysis, VEDS radios segment is forecast to generate significant revenue of US$ 550.6 million in 2024. Over the next decade, the target segment will probably exhibit a CAGR of 8.1%.
VHF radios are the simplest and most widely used form of communication in maritime settings. This is due to their wide frequency range of 156 to 174 MHz, which is particularly well-suited for marine communication.
VHF radios are equipped with channels dedicated to distress signals, safety calls, and navigational purposes (like the Automatic Identification System), which are monitored continuously by coastal authorities and other ships. This is enhancing their appeal among end users.
Market Growth Outlook by Communication Type
| Communication Type | Value CAGR |
|---|---|
| Ship-to-Ship | 8.9% |
| Ship-to-Shore | 7.9% |
| Shore-to-Ship | 8.1% |
| Ship-to-Satellite | 9.6% |
The latest report estimated the ship-to-satellite segment to grow at a robust CAGR of 9.6% over the forecast period. This can be attributed to growing popularity of satellite communication due to its wider coverage.
Several companies operating on a global scale demand visibility across their full supply chains, including the logistics of raw materials and finished goods. As a result, more and more satellites are being used in this task as they can provide reliable communication outside reach of cellular networks.
Market Growth Outlook by End-user
| End-user | Value CAGR |
|---|---|
| Maritime Service Providers | 8.9% |
| Shipping Companies | 9.2% |
| Search and Rescue Organizations | 8.3% |
| Vessel Operators | 8.0% |
| Maritime Authorities | 8.5% |
| Others | 7.6% |
Search and rescue organizations remain key end users of VDES, holding a market share of 18.9% in 2024. Further, a CAGR of 8.3% has been predicted for the target segment during the next decade. By 2024, the target segment is set to total a market valuation of US$ 346.8 million.
Search and rescue operations rely on accurate and timely information sharing. As a result, search and rescue organizations often use VDES as it allows for efficient exchange of data-rich messages, required for locating survivors.
The wider range of VDES than conventional voice communications is another key factor encouraging their adoption among search and rescue organizations. These systems allow for wider search areas and quick response times, especially in emergencies.
The vast majority of VDES operate as per the ITU-R M.2092 Standard, according to which any communication for safety-related information is prioritized. This implies that the system was designed to improve safety of vessels in the ocean.
Leading players are focusing on employing different strategies to boost their sales and stay ahead of the competition. They are constantly launching affordable VDES equipment to meet evolving end-user needs and demands.
Several vendors, particularly the larger established companies, are focused on strengthening their presence in different regions. This involves setting up new manufacturing plants in various emerging markets, primarily in the South Asia & Pacific region. This helps reduce manufacturing costs as well as improve their logistics within the region.
Launching satellites into space can be a rather expensive endeavor for many players. As a result, players are looking to collaborate with aerospace research companies to launch their communications satellites on board rockets. This helps maritime communication companies reduce the cost of deployment and infrastructure and personnel required to deploy satellites.
Many players are actively working on improving their existing products or launching new products into the market. This can help them maintain their position in the market. The new launches seem to be centered on using satellite communications.
The global market is set to hit a value of US$ 1,835.2 million in 2024.
Global demand is predicted to rise at 8.5% CAGR through 2034.
The global VHF exchange system (VDES) market size is set to reach US$ 4,158.4 million by 2034.
VHF radio segment dominates the market with a share of 30.0% in 2024.
South Asia & Pacific is forecast to record a rapid CAGR of 10.0%.
Saab, Atos, Kongsberg Maritime, and Japan Radio. Co., Ltd.
A radio communication system that operates between ships, shore stations, and satellites.
1. Executive Summary
1.1. Global Market Outlook
1.2. Demand Side Trends
1.3. Supply Side Trends
1.4. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Key Market Trends
3.1. Developments in Marine Communication Systems
3.2. Regulatory Mandates for Maritime Industry
3.3. Demand for Maritime Connectivity
3.4. Integration for Satellite Communication Networks with Marine Networks
3.5. Other trends
4. Pricing Analysis
4.1. Pricing Analysis, By Product Type
4.2. Average Pricing Analysis Benchmark, By Top Countries
5. Market Background
5.1. Macro-Economic Factors
5.2. Forecast Factors - Relevance & Impact
5.3. Value Chain
5.4. COVID-19 Crisis – Impact Assessment
5.4.1. Current Statistics
5.4.2. Short-Mid-Long-Term Outlook
5.4.3. Likely Rebound
5.5. Market Dynamics
5.5.1. Drivers
5.5.2. Restraints
5.5.3. Opportunities
6. Global Market Demand (Value in US$ million) Analysis 2019 to 2023 and forecast, 2024 to 2034
6.1. Historical Market Value (US$ million) Analysis, 2019 to 2023
6.2. Current and Future Market Value (US$ million) Projections, 2024 to 2034
6.2.1. Y-o-Y Growth Trend Analysis
6.2.2. Absolute $ Opportunity Analysis
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By VEDS Infrastructure
7.1. Introduction / Key Findings
7.2. Historical Market Size (US$ million) Analysis By VEDS Infrastructure, 2019 to 2023
7.3. Current and Future Market Size (US$ million) Analysis and Forecast By VEDS Infrastructure, 2024 to 2034
7.3.1. VHF Radios
7.3.2. VHF Antennas
7.3.2.1. Omni-directional Antennas
7.3.2.2. Directional Antennas
7.3.2.3. Dual-band Antennas
7.3.3. Shore-based VHF Stations
7.3.4. VDES Data Processing Systems
7.3.5. Other Devices
7.4. Market Attractiveness Analysis By VEDS Infrastructure
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Communication Type
8.1. Introduction / Key Findings
8.2. Historical Market Size (US$ million) Analysis By Communication Type, 2019 to 2023
8.3. Current and Future Market Size (US$ million) Analysis and Forecast By Communication Type, 2024 to 2034
8.3.1. Ship-to-Ship
8.3.2. Ship-to-Shore
8.3.3. Shore-to-Ship
8.3.4. Ship-to-Satellite
8.4. Market Attractiveness Analysis By Communication Type
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034,By End User
9.1. Introduction / Key Findings
9.2. Historical Market Size (US$ million) Analysis By End User, 2019 to 2023
9.3. Current and Future Market Size (US$ million) Analysis and Forecast By End User, 2024 to 2034
9.3.1. Maritime Authorities
9.3.2. Vessel Operators
9.3.3. Search and Rescue Organizations
9.3.4. Shipping Companies
9.3.5. Maritime Service Providers
9.3.6. Others
9.4. Market Attractiveness Analysis By End User
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
10.1. Introduction / Key Findings
10.2. Historical Market Size (US$ million) Analysis by Region, 2019 to 2023
10.3. Current and Future Market Size (US$ million) Analysis and Forecast by Region, 2024 to 2034
10.3.1. North America
10.3.2. Latin America
10.3.3. East Asia
10.3.4. South Asia and Pacific
10.3.5. Western Europe
10.3.6. Eastern Europe
10.3.7. Middle East And Africa
10.4. Market Attractiveness Analysis by Region
11. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034
11.1. Introduction
11.2. Historical Market Size (US$ million) Trend Analysis By Market Taxonomy, 2019 to 2023
11.3. Current and Future Market Size (US$ million) Forecast By Market Taxonomy, 2024 to 2034
11.3.1. By VEDS Infrastructure
11.3.2. By Communication Type
11.3.3. By End User
11.3.4. By Country
11.3.4.1. United States
11.3.4.2. Canada
11.3.4.3. Mexico
11.4. Market Attractiveness Analysis
11.4.1. By VEDS Infrastructure
11.4.2. By Communication Type
11.4.3. By End User
11.4.4. By Region
11.5. Market Trends
11.6. Key Market Participants - Intensity Mapping
12. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034
12.1. Introduction
12.2. Historical Market Size (US$ million) Trend Analysis By Market Taxonomy, 2019 to 2023
12.3. Current and Future Market Size (US$ million) Forecast By Market Taxonomy, 2024 to 2034
12.3.1. By VEDS Infrastructure
12.3.2. By Communication Type
12.3.3. By End User
12.3.4. By Country
12.3.4.1. Brazil
12.3.4.2. Chile
12.3.4.3. Rest of Latin America
12.4. Market Attractiveness Analysis
12.4.1. By VEDS Infrastructure
12.4.2. By Communication Type
12.4.3. By End User
12.4.4. By Country
13. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034
13.1. Introduction
13.2. Historical Market Size (US$ million) Trend Analysis By Market Taxonomy, 2019 to 2023
13.3. Current and Future Market Size (US$ million) Forecast By Market Taxonomy, 2024 to 2034
13.3.1. By VEDS Infrastructure
13.3.2. By Communication Type
13.3.3. By End User
13.3.4. By Country
13.3.4.1. China
13.3.4.2. Japan
13.3.4.3. South Korea
13.4. Market Attractiveness Analysis
13.4.1. By VEDS Infrastructure
13.4.2. By Communication Type
13.4.3. By End User
13.4.4. By Country
14. South Asia & Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034
14.1. Introduction
14.2. Historical Market Size (US$ million) Trend Analysis By Market Taxonomy, 2019 to 2023
14.3. Current and Future Market Size (US$ million) Forecast By Market Taxonomy, 2024 to 2034
14.3.1. By VEDS Infrastructure
14.3.2. By Communication Type
14.3.3. By End User
14.3.4. By Country
14.3.4.1. India
14.3.4.2. ASEAN
14.3.4.3. Australia & New Zealand
14.3.4.4. Rest of South Asia and Pacific
14.4. Market Attractiveness Analysis
14.4.1. By VEDS Infrastructure
14.4.2. By Communication Type
14.4.3. By End User
14.4.4. By Country
15. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034
15.1. Introduction
15.2. Historical Market Size (US$ million) Trend Analysis By Market Taxonomy, 2019 to 2023
15.3. Current and Future Market Size (US$ million) Forecast By Market Taxonomy, 2024 to 2034
15.3.1. By VEDS Infrastructure
15.3.2. By Communication Type
15.3.3. By End User
15.3.4. By Country
15.3.4.1. Germany
15.3.4.2. Italy
15.3.4.3. France
15.3.4.4. United Kingdom
15.3.4.5. Spain
15.3.4.6. BENELUX
15.3.4.7. Nordics
15.3.4.8. Rest of Western Europe
15.4. Market Attractiveness Analysis
15.4.1. By VEDS Infrastructure
15.4.2. By Communication Type
15.4.3. By End User
15.4.4. By Country
16. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034
16.1. Introduction
16.2. Historical Market Size (US$ million) Trend Analysis By Market Taxonomy, 2019 to 2023
16.3. Current and Future Market Size (US$ million) Forecast By Market Taxonomy, 2024 to 2034
16.3.1. By VEDS Infrastructure
16.3.2. By Communication Type
16.3.3. By End User
16.3.4. By Country
16.3.4.1. Russia
16.3.4.2. Poland
16.3.4.3. Balkan & Baltics
16.3.4.4. Rest of Eastern Europe
16.4. Market Attractiveness Analysis
16.4.1. By VEDS Infrastructure
16.4.2. By Communication Type
16.4.3. By End User
16.4.4. By Country
17. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034
17.1. Introduction
17.2. Historical Market Size (US$ million) Trend Analysis By Market Taxonomy, 2019 to 2023
17.3. Current and Future Market Size (US$ million) Forecast By Market Taxonomy, 2024 to 2034
17.3.1. By VEDS Infrastructure
17.3.2. By Communication Type
17.3.3. By End User
17.3.4. By Country
17.3.4.1. KSA
17.3.4.2. Other GCC Countries
17.3.4.3. Turkiye
17.3.4.4. South Africa
17.3.4.5. Rest of Middle East and Africa
17.4. Market Attractiveness Analysis
17.4.1. By VEDS Infrastructure
17.4.2. By Communication Type
17.4.3. By End User
17.4.4. By Country
18. Key Countries Analysis- Market
18.1. United States Market Analysis
18.1.1. By VEDS Infrastructure
18.1.2. By Communication Type
18.1.3. By End User
18.2. Canada Market Analysis
18.2.1. By VEDS Infrastructure
18.2.2. By Communication Type
18.2.3. By End User
18.3. Mexico Market Analysis
18.3.1. By VEDS Infrastructure
18.3.2. By Communication Type
18.3.3. By End User
18.4. Brazil Market Analysis
18.4.1. By VEDS Infrastructure
18.4.2. By Communication Type
18.4.3. By End User
18.5. Chile Market Analysis
18.5.1. By VEDS Infrastructure
18.5.2. By Communication Type
18.5.3. By End User
18.6. Germany Market Analysis
18.6.1. By VEDS Infrastructure
18.6.2. By Communication Type
18.6.3. By End User
18.7. Italy Market Analysis
18.7.1. By VEDS Infrastructure
18.7.2. By Communication Type
18.7.3. By End User
18.8. France Market Analysis
18.8.1. By VEDS Infrastructure
18.8.2. By Communication Type
18.8.3. By End User
18.9. United Kingdom Market Analysis
18.9.1. By VEDS Infrastructure
18.9.2. By Communication Type
18.9.3. By End User
18.10. Spain Market Analysis
18.10.1. By VEDS Infrastructure
18.10.2. By Communication Type
18.10.3. By End User
18.11. Nordics Market Analysis
18.11.1. By VEDS Infrastructure
18.11.2. By Communication Type
18.11.3. By End User
18.12. BENELUX Market Analysis
18.12.1. By VEDS Infrastructure
18.12.2. By Communication Type
18.12.3. By End User
18.13. China Market Analysis
18.13.1. By VEDS Infrastructure
18.13.2. By Communication Type
18.13.3. By End User
18.14. Japan Market Analysis
18.14.1. By VEDS Infrastructure
18.14.2. By Communication Type
18.14.3. By End User
18.15. South Korea Market Analysis
18.15.1. By VEDS Infrastructure
18.15.2. By Communication Type
18.15.3. By End User
18.16. India Market Analysis
18.16.1. By VEDS Infrastructure
18.16.2. By Communication Type
18.16.3. By End User
18.17. ASEAN Market Analysis
18.17.1. By VEDS Infrastructure
18.17.2. By Communication Type
18.17.3. By End User
18.18. Australia & New Zealand Market Analysis
18.18.1. By VEDS Infrastructure
18.18.2. By Communication Type
18.18.3. By End User
18.19. KSA Market Analysis
18.19.1. By VEDS Infrastructure
18.19.2. By Communication Type
18.19.3. By End User
18.20. Other GCC Countries Market Analysis
18.20.1. By VEDS Infrastructure
18.20.2. By Communication Type
18.20.3. By End User
18.21. Turkiye Market Analysis
18.21.1. By VEDS Infrastructure
18.21.2. By Communication Type
18.21.3. By End User
18.22. South Africa Market Analysis
18.22.1. By VEDS Infrastructure
18.22.2. By Communication Type
18.22.3. By End User
19. Market Structure Analysis
19.1. Market Analysis by Tier of Companies
19.2. Market Share Analysis of Top Players
19.3. Market Presence Analysis
20. Competition Analysis
20.1. Competition Dashboard
20.2. Competition Deep Dive
20.2.1. Business Overview
20.2.2. Product Portfolio
20.2.3. Profitability by Market Segments (Business Segments/Region)
20.2.4. Recent Market Development
20.2.5. Key Strategies
20.3. Major Vendors
20.3.1. Saab
20.3.2. Kongsberg Maritime
20.3.3. Furuno Electric Co., Ltd.
20.3.4. Navico
20.3.5. IHI Corporation
20.3.6. MOL Techno-Trade, Ltd.
20.3.7. ArkEdge Space
20.3.8. AAC Clyde Space
20.3.9. ORBCOMM
20.3.10. TST Corporation
20.3.11. Sternula
20.3.12. Japan Radio Co., Ltd.
20.3.13. Jotron
20.3.14. Comrod Communication
20.3.15. McMurdo
21. Assumptions and Acronyms Used
22. Research Methodology
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VHF Data Exchange System (VDES) Market
