Global Ship Simulator Market Research Report: Forecast (2024-2030)

Market Definition

Ship Simulators are referred to as a training solution for professionals as well as learners to provide training about the operation of ships, boats, and vessels in various conditions and environments. These systems create real-world scenarios and provide training for ship operators, maritime personnel, and naval professionals, as a result, naval forces are increasingly opting for the Ship Simulator Systems.

Market Insights & Analysis: Global Ship Simulator Market (2024-30):

The Global Ship Simulator Market size is valued at around USD 3.88 billion in 2024 & is estimated to grow at a CAGR of around 6.4% during the forecast period, i.e., 2024-30. The factors attributing to the growth of ship simulators across the globe have been the rising adoption of ship simulation solutions by the naval forces of countries like the US, India, the UAE, etc., and the increasing integration of these technologically advanced solutions in the marine training institutions.

Naval forces have always been a crucial part of every nation’s military, and these forces are positioned at the sea boundaries, where they face challenging situations due to the highly unpredictable sea currents. As a result, the need for training of naval forces to overcome these situations and ensure the safety of the ships and personnel has increased significantly.  Hence, the governments of countries like India, China, the UK, etc., have been increasingly adopting and deploying ship simulators to ease the training of the naval forces in their country, thus driving the Global Ship Simulator Market. For instance,

• In 2022, the government of India upgraded the ship handling simulator to augment the practical training of the crews of ships & submarines of Western Naval Command.

This increasing deployment of ship simulators at the naval bases for training naval personnel has been driving the Global Ship Simulator Market.

Moreover, ships nowadays are integrated with advanced communication systems, sensors, etc., which is making the complete operation more complex. Therefore, the crews, maintainers & ship operators' training using the latest simulator solutions is becoming essential to keep the personnel at par with the latest emerging technologies. This increasing demand for upgraded training to minimize the risk of offshore accidents is leading to the launch of new training facilities globally. For instance,

• In 2023, Bernhard Schulte Shipmanagement (BSM), an integrated maritime solutions provider, opened a training center in Cyprus to train the crew & maintainers of the ship.

These facilities are equipped with ship simulator solutions to train the crew using realistic training scenarios. Further, there has been an increasing setup of training centers across the globe, which is expected to uplift the Global Ship Simulator Market in the coming years as well.

Global Ship Simulator Market Driver:

Extensive Adoption of the Simulation Solutions by the Off-Shore Organizations – Over the years, the expanded usage of oil and gas in the power and transportation sector has led many offshore oil & gas exploration companies like E23onMobil, Royal Dutch Shell, etc., to ramp up their oil drilling operations. These operations take place beneath the seabed and have been highly complex due to harsh environments like hurricanes, high winds, etc. Therefore, the ship operators were required to be well-trained. Hence, offshore companies like Marathon Petroleum, Furetank, and others were inclined towards ship simulator systems to train their crew to reduce the risks of sea accidents. For instance,

• In 2021, Marathon Petroleum announced investing in ship simulation systems to train the crew to operate the ships in extreme weather.

Moreover, the offshore exploration of oil & gas played a vital role in the overall increase in oil & gas production recently, especially across North American countries. The increase in the oil & gas extraction activities within the water requires regular transportation of the drilling equipment, personnel, and supplies to offshore drilling locations via ships. As a result, the need for ships & highly trained ship operators and crew would arise, which would boost the demand for ship simulator systems in the coming years as well.

Global Ship Simulator Market Opportunity:

Increasing Sea Trials for Commercial Ship Voyages to Amplify Market Growth – In recent years, the trade in regions Asia-Pacific, the Middle East & Africa, specifically in countries like India, Saudi Arabia, etc., via sea routes has significantly increased due to rising sea trade agreements & their cost-effectiveness. The extensive trade between nations led to ships covering long distances. Consequently, numerous shipbuilders and operators, such as Mitsui E&S Shipbuilding Co., Ltd. and Daewoo Shipbuilding & Marine Engineering, are increasingly conducting sea trials to fine-tune and guarantee the operational efficiency of their vessels for extended journeys. For instance,

• In 2022, Mitsui E&S Shipbuilding Co., Ltd., in partnership with MOL Marine & Engineering Co., Ltd., MOL Ferry Co., Ltd., and others completed the sea trial of its ship. The company trained its ship operators with the help of a simulation program for collision avoidance navigation.

The ship simulators are utilized by ship operating companies to prepare their crew members, perform initial testing, and recreate specific scenarios to improve the sea trial process. Also, the sea trials are likely to upsurge in the coming years with increasing trade activities to ensure the ship's efficiency for a longer duration. Thus, the growing adoption of sea trials in commercial ship journeys would boost the need for ship simulators to mitigate sea accident risks, cut costs, and enhance overall trial preparedness in the forthcoming years.

Global Ship Simulator Market Challenge:

High Cost & Complexity of Ship Simulation Causes Apprehension Among the End-Users– The cost of the ship simulator solutions has been quite higher than conventional training methods. This has led countries with relatively low economies to train their naval forces with conventional methods rather than ship simulator solutions. According to a survey by Onix Systems, a technology solution-providing company, in 2022, the average cost of setting up the simulation systems costs thousands of dollars. As a result, small-scale institutes & enterprises have been preferring alternate solutions rather than ship simulator systems, consequently restraining the market growth by restricting adoption.

Moreover, the ship simulator systems are highly complex, since they are integrated with control systems, including engines, steering, and propulsion systems. Therefore, the end-users themselves require an experienced staff to train other personnel with the help of simulators. Hence, this complexity of the systems is not only adding up as an additional cost but is also causing apprehension among the end-users to use the conventional way of training rather than the ship simulation system, which has been further retraining market growth.

Global Ship Simulator Market Trend:

Integration of Artificial Intelligence (AI) & Virtual Reality (VR) for Immersive Training to Amplify Market Growth– In recent years, Artificial Intelligence (AI) and Virtual Reality (VR) have been increasingly adopted by ship simulation systems providing companies like VSTEP, Wartsila, etc., to enhance the effectiveness and provide real-time training to the end-users. These technologies have allowed the creation of virtual & highly realistic environments, including the visual and auditory aspects of maritime operations. This has been helping trainees to feel as if they are on an actual ship and increasing the effectiveness of training. Moreover, these technologies have been making the training process more engaging & immersive than conventional training. As a result, end-users like shipping companies, naval forces, etc., have recently started adopting ship simulator systems based on AI & VR technologies, consequently boosting the Global Ship Simulator Market.

Further, the companies are adopting innovative ship simulation systems with upgraded features like a complete understanding of the sea behavior via simulation & vessel operation understanding. For instance,

• In 2022, VSTEP launched a vessel simulator system integrated with AR/VR technologies to provide individual training to the end-users to navigate realistic environments, such as Rotterdam, Hong Kong, and New York.

Thus, the increasing launches of these technologically advanced solutions would further ramp up the demand for ship simulators in the naval defense and shipping companies to ease the training in the forthcoming years.

Global Ship Simulator Market (2024-30): Segmentation Analysis

The Global Ship Simulator Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It also includes predictions for the period 2024–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Type:

• Ship Bridge Simulators
• Engine Room Simulators
• Cargo Handling Simulators
• Communication / GMDSS Simulators
• Remotely Operated Vehicle (ROV) Simulators
• Others (Vessel Traffic Ship Simulator, Survival Craft Simulators, etc.)

The maritime regulations, both at the international and national level, set forth by the International Maritime Organization (IMO), mandates that maritime personnel be proficient in Global Maritime Distress and Safety System (GMDSS) procedures and the utilization of related equipment. As a result, the end-users like shipping companies, naval forces, etc., required the ship operators & crew to have proper certifications & training. Thus, they embraced the Communication / GMDSS Simulators to train their personnel to adhere to these regulatory mandates, which has consequently boosted the share of this segment in the Global Ship Simulator Market. For instance,

• In 2022, Wartsila delivered its Communication / GMDSS Simulators in Australia to provide training at the South Metropolitan TAFE's Fremantle campus.

In addition, the escalated trade activities between the countries, and relatively lower cost than the air freight has been increasing the transportation or shipping of goods through sea routes. According to the United Nations Conference on Trade and Development (UNCTAD), in 2021, global shipments via sea increased by approximately 3.2% compared to 2020. The increase in the trade through sea would continue to rise in the forthcoming years due to the increasing trade agreements between nations like Australia, India, the UK, etc. This surge in shipping activities is anticipated to necessitate the requirement for Cargo Handling Simulators to provide individuals with hands-on training without the necessity for additional physical cargo to reduce the potential for accidents and injuries. Thus, the share of the Cargo Ship Handling Simulators in the Global Ship Simulator Market is projected to increase in the forthcoming years.

Based on End Users:

• Naval Defense
• Marine Training Institutions
• Oil & Gas
• Shipping Companies

Ship simulators are widely used in the training activities, ship operations, combat simulations, and emergency response procedures of naval forces and coast guard agencies of countries like the US, India, etc. Therefore, the share of the Naval Forces in the Global Ship Simulator Market is significant. Moreover, to upscale the training of the naval forces, the governments of countries like India, the UAE, etc., are increasing their fund allocation. For instance,

• According to the Indian Department of Navy, in 2022, the budget allocation for the naval force was approximately USD 8.75 billion, an increase of about 29% compared to 2021.

Hence, as the budget allocation for Naval Forces is increasing across countries like India, the US, etc., for the training of naval personnel, it would consequently increase the need for ship simulation systems. Thus, the share of the Naval Forces in the Global Ship Simulator Market is expected to remain dominant in the forthcoming years.

Global Ship Simulator Market (2024-30): Regional Projections

Geographically, the Global Ship Simulator Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Among the regions, North America dominates the Global Ship Simulator Market. The countries, especially the United States, in the North American region, have extensive coastlines along multiple oceans (Atlantic, Pacific, and Arctic) and are strategically located near international waterways. This geographical position necessitates robust naval capabilities to protect maritime interests and ensure security. As a result, the government of the North American countries are increasing their funds to upgrade the training for the naval officers. For instance,

• In 2023, the US government announced the naval force budget allocation of around USD255.8 billion for FY2024-2024, an increase of about USD11 billion compared to 2022.

This surge in the budget allocation to upgrade the systems & ease the training of the naval personnel is leading to an increase in the share of North America in the Global Ship Simulator Market. In addition, the governments of Asia-Pacific countries like China & India are increasingly investing in ship simulator systems to position their forces at par with the other countries. Thus, the share of Asia-Pacific in the Global Ship Simulator is projected to surge in the forthcoming years.

Global Ship Simulator Industry Recent Development:

• In 2023 Wärtsilä, announced the supply of its ship simulation systems in a new maritime educational center & a simulation training lab in Sweden. This would help the individuals to learn the correct way of navigating the pilot boats & cruise ships.
• In 2023 Rheinmetall AG, launched a new & innovative ship simulator platform called “Total Ship Trainer” for the Thailand Navy to train the naval personnel & reduce the risk of sea accidents.  

Gain a Competitive Edge with Our Global Ship Simulator Market Report

• Global Ship Simulator 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 business organizations to gain a holistic understanding of the market dynamics & to make informed decisions.
• This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Ship Simulator Market Report aids in assessing & mitigating risks associated with entering or operating level in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.