Electronic Navigational Charts (ENC) Market: Overview
An electronic navigational chart (ENC)
caries information on features useful for marine navigation, including
coastlines, bathymetry, beacons, and obstructions. Electronic
navigational charts are complied with International Hydrographic
Organization (IHO) S57 specifications. The IHO S57 standard is used by
ECDIS (Electronic Chart Display and Information System) manufacturers to
display navigational data on the charts. Electronic navigational charts
are much superior to raster or paper charts. Systems using ENCs can be
programmed to provide information about an approaching threat in
relation to charted information and a ship’s movement and position. ENCs
are approved by the International Maritime Organization (IMO) as a
paper chart equivalent. Further, as per the IMO, vessels and ships
equipped with ENCs do not need to not carry paper charts as is normally
required under the Safety of Life at Sea (SOLAS) Convention. The
contract fee for electronic navigational charts is determined on the
basis of contract period, number of units, and types of ENCs.
Electronic Navigational Charts (ENC) Market: Drivers and Restraints
Safety requirements set up by the IMO,
increase in trend toward safe navigational systems, and expansion of the
maritime and aircraft industry worldwide are expected to propel the
global electronic navigational charts market in the coming years. The
paper catalogue is replaced by a digital catalogue (of which there are
many available), the order is sent by e-mail, and the chart distributor
sends a license for the ENCs by e-mail. The advantage of ENCs is that
the CDs that hold the ENCs are usually already on board. The ship can
then load the charts from the CDs onto the ECDIS when the license is
issued, eliminating the need to physically send any goods. Many
companies are trying to enter into the electronic navigational charts
space through M&A activities. For instance, in 2017, Garmin Ltd.,
acquired the Italian electronic navigation charts company, Navionics
S.p.A.. Moreover, the requirement of training pertaining to electronic
navigational charts is likely to hamper the growth of the electronic
navigational charts market. Shipping companies face challenges while
training crew in the use of ECDIS. There are options to follow a generic
ECDIS training or a type-specific training. However, the crew also
needs to be trained in ordering and licensing procedures. The process of
operating a digital catalogue, planning a voyage, determining license
requirements, and loading the licenses onto the ECDIS requires training
in its own right. This is especially true due to the many different
types of catalogue software in existence, all with their own user
interface and peculiarities.
Electronic Navigational Charts (ENC) Market: Segmentation
The electronic navigational charts market
can be segmented based on application, component, and region. Based on
application, the electronic navigational charts market can be classified
into aviation, marine, and others. In terms of component, the
electronic navigational charts market can be categorized into hardware,
software, and services. Based on geography, the electronic navigational
charts market can be segmented into North America, Europe, Middle East
& Africa, Asia Pacific, and South America. North America and Europe
are expected to lead the electronic navigational charts market due to an
expansion in the maritime sector, increase in safety pertaining to
navigational systems, and the presence of established players providing
electronic navigational charts. Moreover, a rise in the popularity of
electronic navigational charts for ships and aircrafts is expected to
propel the electronic navigational charts market in Asia Pacific over
the forecast period from 2018 to 2026.
