[White Paper] Bringing Industrial Internet to Marine Industry & Ships Into the Cloud

Executive Summary

The industrial internet concept, connecting machines and using automated data analytics along with domain expertise to optimize operations and maintenance, has already created significant value in many industries like power generation and commercial aviation and is now becoming a reality for the marine industry. While the opportunity across industries will exceed 10 trillion dollars per year in the next 15 years, the opportunity for asset owners, operators and managers to reduce costs, improve fuel efficiency, and increase uptime and reliability is approximately 20 billion dollars today and will exceed 50 billion dollars by 2030. Potential annual value creation for individual ships could be as high as $1M or greater when considering potential fuel savings, optimizing maintenance, decreasing downtime and increasing utilization.

This opportunity exists across sectors, ranging from super?tankers to inland tugboats and offshore platforms and takes into account savings across fuel and maintenance, increases in uptime and productivity and decreases in risk associated with non?compliance, specifically with regards to environmental regulations.

Figure 0 lays out major value creation levers for a large cargo vessel (e.g., tanker, container, roll?on rolloff, etc). While newer vessels will have the greatest potential value creation due to existing sensors and technology infrastructure, there are likely between 20,000 and 30,000 vessels in the global fleet today which likely create an attractive ROI. These vessels already have sufficient sensors and robust enough technology infrastructure such that the required investment level is minimal and the value gained from the existing onboard data will enable substantial improvement in how the business is operated. While there is tremendous value at stake, it will also take individual owners and operators time to fully capture the value. In the mean?time, before performance analytics are fully incorporated into all business processes, even partially capturing the value in short term will be attractive to many owners and operators.

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Rob Bradenham, Ken Krooner