VHF Exchange System (VDES) Market Industry News, Applications and Trends 2029

Market Overview
The Global VHF Exchange System (VDES) Market is expected to grow at a CAGR of 16.1% during the forecasting period (2022-2029).

VHF Data Exchange System (VDES) is a two-way ship communications system utilizing a global standard designed to help the digital evolution of the maritime community. It can be considered an extension of the successful Automatic Identification System (AIS). The next-generation AIS equipment will comprise AIS and VDES in the same box installed on most commercial ships.

VDES provides a strong narrow-band communication system that allows two-way high-speed data exchange between satellites, ships, and shore. The terminals are simple and small and the equipment is easily fitted onboard all ships, from small fishing vessels to tankers and cruise liners, at a low cost.

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Market Dynamics
The need for Mandatory standards regarding the use of the VHF Data Exchange System (VDES) hampers the growth of the VHF data exchange system (VDES)

VHF Data Exchange Systems can disrupt the maritime sector, enabling services such as Vessel Traffic Service, which are difficult to deploy nowadays due to the lack of a data link. But even more importantly, However, there are some challenges that VDES will face in the future.
VDES is not considered compulsory for vessels of any kind by International Maritime Organization or other national authorities. Without a regulatory necessity to support VDE, manufacturers will have to offer low-cost entry terminals to VDES. In other words, for VDES to achieve high penetration, fully VDES-compliant receivers (including ASM, AIS and VDE) must be available at a price similar to that of AIS-only receivers.

However, the use of VDES has been regulated by the International Telecommunication Union (ITU) at the world radio conference. For the terrestrial VDE part, a 100 kHz spectrum was assigned for the down- and uplink and two 25 kHz channels for ASM (satellite and terrestrial). VHF Data Exchange System (VDES) is still on its way to becoming an ITU standard supported by the International Association of Marine Aids to Navigation and Lighthouse Authorities.

Moreover, the use of AIS has been mandated, which has kept its demand stable. Initially, only large vessels ( more than 300 gross tonnages) were instructed to fit a Class A AIS transceiver. After some time, a lower-cost type of AIS transceiver was specified. The lower-cost transceiver was mandated in some countries in smaller vessels. The adoption of AIS has been such that vessels are equipped with AIS transceivers in many cases, even though they are not mandated to do so.

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Market Segmentation:
By Component
• Antenna
• Transceiver
• ECDIS
By Communication System
• Ship-to-Shore
• Shore-to-Ship
• Satellite-to-Ship
• Ship-to-Satellite
• Ship-to-Ship
By Usage Type
• Vessel Traffic Service (VTS) Communication
• Broadcast of Maritime Safety Information (MSI)
• Search and Rescue (SAR) Communication
• Route Exchange
By Application
• Ships
• Satellites
• Shores

Competitive Landscape
The global VHF data exchange system (VDES) market is highly competitive with local and global key players. Key players contributing to the market's growth are CML Microcircuits, KONGSBERG, Saab, AAC Clyde Space, Cellnex Telecom, Alén Space, Spire Global ORBCOMM, Sternula, Rapid Mobile (Pty) Ltd, among others.
The major companies are adopting several growth strategies, such as product launches, acquisitions and collaborations, contributing to the global growth of the VHF data exchange system (VDES) market.

For instance, On October 12, 2021, Sternula signed a one-of-a-kind partnership arrangement with Ghana's maritime authority. The alliance helps to enhance the maritime sector in West Africa as a whole. The forerunner initiative will catalyze the future widespread use of next-generation AIS technology.

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