Middle East and Africa Marine Fleet Management Software Market Research Report: Forecast (2023-2028)

Market Definition

Marine Fleet management software is a system that manages the overall activities of the fleet & asset information between the main office & the vessels and different vessels. The purpose of fleet management software is to maintain an accurate & up-to-date overview of vessel diagnostics & location, and to identify potential risks, thereby reducing working load. The fleet management software manages the fleet remotely, increases the lifespan of the vessel, improves safety, reduces costs, optimizes routes, offers real-time notifications, and maintains communication.

Market Insights & Analysis: The Middle East and Africa Marine Fleet Management Software Market (2023-28)

The Middle East and Africa Marine Fleet Management Software Market is projected to grow at a CAGR of around 6.02% during the forecast period, i.e., 2023-28. The ports in the Middle East, such as Saudi Arabia’s King Abdullah Port, Port Salalah in Oman, Hamad Port in Qatar, Khalifa Port in Abu Dhabi, and Saudi Arabia’s Jeddah Islamic Port, are showcasing exponential growth in economic activities owing to which the region is emerging as a global transshipment hub. According to World Bank’s Global Container Port Performance Index (CPPI), the world’s four best-performing ports of 2021 are currently located in the Middle Eastern region. These busy ports in the region have to deal with large fleet traffic, due to which fleet managers & operators are substantially adopting fleet managing software as it coordinates fleet management activities with much lesser complication.  

The heavy investments in container port infrastructure & technology by various countries like the UAE, Saudi Arabia, Oman, etc., in the region, are proving to be effective as many countries are showcasing significant growth in their maritime sector. For instance:

In 2020, the ports in the UAE exhibited significant growth by securing the third rank globally in the Bunker Supply Index & fifth as a key competitive maritime hub. Middle Eastern countries are now focusing on expanding their port capacities and improving the efficiency of their bunker terminals to handle higher volumes of traffic. As a result of the high load pressure on ports in the Middle East & Africa, shipping companies and fleet managers are gradually shifting to fleet management software.

Over the past few decades, ports in the Middle East, like Ports on the Eastern Mediterranean, the Persian Gulf, and the Red Sea, have drawn enormous sums of investment, owing to which the ports have expanded their capacity. Currently, more countries in the region are developing & expanding free zones to improve their logistics services & offerings, and owing to this, the investments in these ports are rising. For instance, in 2022, Saudi Arabia’s Hassana Investment Co. invested USD2.4 billion in three flagship projects in key Dubai Ports.

Similarly, in 2022, the Saudi Arabia government announced the launch of a Global Supply Chain Resilience Initiative (GSCRI). The GSCRI aims to make the kingdom a key location for supply chain investors by attracting USD10.6 billion. These initiatives by the countries in the region are increasing the traffic in the ports, which would subsequently enhance the demand for fleet management software by onshore shipping facilities & fleet brokers, thus affecting the Middle East and Africa Marine Fleet Management Software Market size during the forecast period.

Market Dynamics:

Key Trends: Adoption of Data Analytics in Marine Fleet Management Software

Many companies, like Marine Digital, DNV, SBN Technology, etc., are offering data analytics tools for ship management. The adoption of these data analytics is emerging as during day-to-day operations of the vessels, a huge amount of data is generated & with the use of data analytic tools, a lot of information can be harnessed easily & used effectively.

The data analytics conclude fleet & vessel performance & provide fleet management reports, summaries, statistics, etc. Therefore, maritime companies are constantly investing in solutions like data analytics that can help them enhance productivity while lowering overall costs.

Further, the use of analytics provides real-time updates, which subsequently helps in better asset management. Thus, the trend of using data analytic tools in fleet management would drive the market in the forthcoming years.

Key Driver: Surging Focus of Fleet Managers on Operational Efficiency to Drive the Demand for Fleet Management Software

In the Middle East, heavy investments in container port infrastructure and technological upgradation of ports have led to an increase in average berth moves (container moves) per hour, due to which the ports are witnessing heavy loads. The use of artificial intelligence (AI), data analytics, etc., in fleet management software, helps in tracking & compiling data and analyzing the overall functioning of the vessel, subsequently aiding in saving time & finance.

Therefore, the highly competitive business environment of the Middle Eastern shipping & logistics industry encourages fleet operators to use fleet management software. During the forecast period, shipping companies & fleet managers would intensify their demand for fleet management software as they focus on creating smart vessels, ships, and fleets.

Fleet management software is essential for smart fleets & ships for a variety of purposes, such as data analytics, fuel management, crew management, and others. As a result, the emerging trend of smart shipping technology would drive demand for fleet management software over the forecast period.

Possible Restraint: Risks Associated with Cyber Threats to Act as a Limitation

The fleet management software performs a wide range of functions such as monitoring fuel & vessel safety, telematics, finance, etc., and these operations involve the handling of a large amount of confidential data. As a result, the use of this cloud-based software exposes it to data breaches. If the system lacks sufficient security, hackers can easily access data and even control vehicles within the system. For instance:

• In 2021, Multiple Greek shipping companies, were hit by a ransomware attack that spread through the systems of a popular, well-established IT consulting firm, Danaos Management Consultants.

Moreover, the vulnerability to these types of cyber-attacks is creating suspicion among fleet managers & operators, owing to which they are becoming hesitant to adopt cloud-based fleet management software, subsequently hampering the growth of the Middle East & Africa Fleet Management Software Market.

Growth Opportunity: Technological Advancements in Maritime Industry to Open New Doors for Fleet Management Software Market

The increasing shipping volumes in the Middle East & Africa are pushing the maritime industry to leverage advanced technological solutions. The rapid growth of the maritime industry in the region has also provided several opportunities & investment prospects to accelerate digital capabilities and owing to this, the digitalization of ports & terminals has been initiated.

Firstly, COVID pushed for the incorporation of digitalization of the ports, but later on, the congestion in the Middle East ports pushed the need for digitalization. The port, like Jebel Ali, has already built physical & digital infrastructure to accommodate up to ten ultra-large container ships simultaneously.

Moreover, the ongoing digitalization of the ports & terminals would require fleet management software for real-time container terminal fleet management. Further, the rising digitalization of the ports is also opening new avenues for fleet management software in the market in the Middle East.

Market Segmentation

Based on Function:

• Tracking & Monitoring
• Routing & Scheduling
• Procurement Management
• Safety Management
• Environment Management
• Document Management
• Crew Management
• Others (Account & Compliance Management, Supply Chain, and Logistics Management)

Here, Routing & Scheduling Software registered considerable growth during the historical period as it helped fleet operators in cost reduction, carbon impact minimization, and operation efficiency. The planning of routes is crucial for better operational & financial performance and for safe delivery of the consignments at the right time, due to which the adoption of these systems is growing rapidly.

Further, the demand for routing & scheduling software would increase during the forecast period as shipping companies & port authorities across the Middle East are highly dependent on the precise predictions of the arrival time of the vessels due to excess traffic in the ports.

Based on Deployment:

• On-premise
• Cloud

Among them, the Cloud-based segment acquired the maximum share of the Middle East & Africa Fleet Management Software market during the past period. The use of cloud-based software helps operators & logistics companies access business data & applications from a remote location at any unspecified time using any electronic devices like mobile phones, tablets, laptops, etc.

Owing to this, the adoption of this software was comparatively higher than On-premise software during the historical period. Furthermore, the surging focus of fleet managers to attain real-time updates & prevent the indulgence of lawsuits, accidents, thefts, and frauds is further increasing the adoption of cloud-based fleet management software.

Regional Landscape

Geographically, the Middle East & Africa Fleet Management Software Market expands across:

• The UAE
• Saudi Arabia
• Qatar
• Oman
• Turkey
• Egypt
• South Africa

The UAE demonstrated a significant shareholding and thereby dominated the Middle East & Africa fleet Management Software market in the historical period. The strategic geopolitical positioning & the government’s strategic vision for strengthening technology & innovation have led to the consistent growth of the country as a logistics center. The surge in the logistics industry & the pro-business environment has led to the growth of several major shipping companies, like the United Arab Shipping Company (UASC) UAE, Atlantic Maritime Group FZE, Gulftainer Company Limited, etc.

The expansion of the logistics industry in the region has enhanced economic competitiveness among shipping companies, causing them to boost their investments to accelerate their digital capabilities, which is positively affecting the growth of the Fleet Management Software Market in the region.

Gain a Competitive Edge with Our Middle East and Africa Marine Fleet Management Software Market Report

1. The Middle East and Africa Marine Fleet Management Software Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. The Middle East and Africa Marine Fleet Management Software Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.