“The global VHF exchange system (VDES) market is expected to grow at a high CAGR of 15.5% during the forecasting period (2021-2028)”.
The VHF data exchange system (VDES) is a radio communication system operating on the Application Specific Messages (ASM), Automatic Identification System (AIS), and VHF Data Exchange (VDE) frequencies in the Marine Mobile VHF band between ships, shore stations and satellites. VDES (VHF Data Exchange System) is the second generation of the common AIS technology used by more than 200,000 vessels globally for vessel tracking and other navigational and safety-related purposes. To incorporate with the e-Navigation strategy, VDES is the latest communication solution. VDES is an addition to AIS, introducing over VHF two-way data channels. Any ship with a VHF antenna can communicate globally through special satellite channels (up and down).
The VHF Data Exchange System (VDES) is seen as an effective and efficient radio spectrum, building on AIS capabilities and addressing the growing data requirements. A key element of VDES is modern techniques offering higher data rates than those used for AIS. Also, for data communication, the VDES network protocol is optimized such that each VDES message is transmitted with high reception confidence. VDES assists E-Navigation, and access to the Maritime Cloud is provided.
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The global VHF Exchange System (VDES) market is majorly driven by increasing government support in building the VDES across different parts of the world. Growing technological advancements in satellite technology create huge opportunities for the VDES to enhance its control over operations.
Increasing government support in building the VDES across different parts of the world
The government from different parts of the world is investing immensely to grow and promote the VDES market among different end-users. Increasing investment in R&D to develop the most advanced and recent VDES technology is building the global market of VDES in recent times. Various companies have invested a major chunk of their funding to bring the latest innovations in satellite technology, such as the development of small-sized satellites which can be used in lower earth orbit (LEO) for higher data exchange speeds due to its lower latency is a significant factor which is driving the growth of the VHF data exchange system (VDES) market.
Growing technological advancements in satellite technology create huge opportunities for the VDES to enhance its control over operations.
Satellites have been some of the most important pieces of advanced technology globally over the last 60 years of their use. Over this period, these unmanned crafts have grown a lot – a trend of progressive progress that continues into the 21st century. Geostationary satellites also referred to as GEOs, help sustain many of the world’s most important communication networks, both for commercial and defense purposes. Among GEOs, substantial advances have been made in signal power, which can now receive and transmit at hundreds of gigabits per second. Modern GEO satellites also operate for longer than ever before and at greater power. They are expected to play a major role in bringing broadband internet to emerging economies with lower median incomes for residents. Thus these growing developments in satellite technology are more likely to create immense opportunities for the VDES market to proliferate in the future.
For instance, in August 2020, Saab, Orbcomm, and AAC Clyde Space signed a new contract to build a satellite that will use the VHF Data Exchange System (VDES). This nanosatellite will be launched primarily for maritime communications into the lower earth orbit. By updating existing systems, it can also be used for automated vessel monitoring. This whole project was co-funded by the Swedish Administration of Transport. This collaboration has helped the company to develop a ground-breaking technology that will assist them with a broader customer base to achieve a higher market share.
By Communication System
Satellite to Ship
Ship to Satellite
Vessel Traffic Service (VTS) Communication*
Maritime Safety Information (MSI)
Search and Rescue (SAR) Communication
Charts & Publications
Middle East and Africa
The VHF exchange system (VDES) market is highly consolidated with the presence of limited global players. Some of the key players contributing to the market’s growth include KONGSBERG, Saab, Alen Space, AAC Clyde Space, Cellnex Telecom, exactEarth, ORBCOMM, Sternula, CML Microcircuits, and others.
The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to the VHF exchange system (VDES) market globally. The global players follow collaboration and expansion as the market growth strategy for building revenue for their system.
For instance, in 2020, Saab, Orbcomm, and AAC Clyde Space entered into a new contract to build a satellite that will use the VHF Data Exchange System (VDES). This nanosatellite will be launched primarily for maritime communications into the lower earth orbit. It can also be used to track vessels automatically by updating existing systems. This partnership has helped the company develop a breakthrough technology that will help it achieve greater market share with a broader consumer base.
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