Automatic identification system or AIS is a specialized tracking system which functions automatically and are used for avoiding collision on ships by the vessel traffic services. Information provided by AIS supplements marine radar forming one the primary method for avoiding collision among water transport. AIS equipment provides information that includes unique identification, course, speed and position that gets displayed on screen. These equipment are intended for assisting a vessel's officers allowing maritime authorities to both track as well as monitor vessel movements.

The broadcast transponder system present within these AIS are used for operations in the VHF mobile maritime band. These automatic identification system integrates standardized VHF transceiver with positioning system such as GPS receiver along with other electronic navigation sensors that includes gyrocompass or rate of turn indicator. The vessels that are fitted with transceivers can then get easily tracked by automatic identification system base stations located on the side of the coast lines when vessels are out of range of networks through satellites fitted with AIS receivers capable of deconflicting a large number of signatures.

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In case of AIS being switched off or not fitted properly there can be no exchange of information via AIS on ships. It should be switched on at all times unless it must be turned off for security reasons or any other emergency. The working mode of AIS in general is continuous and autonomous because of security reasons. The global market for automatic identification system has been segmented into platform, class, application and geography.

Global automatic identification systems (AIS) market on the basis of geography has been segmented into North America, Asia Pacific, Latin America, Europe, and Middle East and Africa.

These AIS systems are fully automated requiring absolutely no human intervention that forms one of the primary reasons for its immense applications. Unlike radar, these systems are not affected by rains or sea along with providing a longer wavelength. This allows improvement in monitoring movements of other vessels particularly at night also helping personnel present in vessels. AIS provides information quickly and accurately about the risk of collision when being used with an appropriate display providing dynamic data. All these factors have helped in the growth of this market.

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On the basis of geography, it is North America followed by Europe that has formed two key regions for this market. Dependence on water transport between domestic regions as well as for cross border trade along with security breaches in the sea based borders have been a few key factors to positively drive this market.

Asia Pacific is growing at one of the fastest rates among the other regions where China, India and Korea are a few key countries playing a major role in growth. Border based security reasons along with growth of cross border trade with the help of water based transport are some key drivers for this region. South Korea is one such country that is completely landlocked and thus has to depend on water transport for trade purposes further boosting the demand for AIS.

Some of the key players that are operating in the global automatic identification systems (AIS) market include SAAB AB (Sweden), Furuno Electric Co. Ltd. (Japan), Orbcomm Inc. (U.S.), L-3 Communication Holdings Inc. (U.S.), exactEarth (Canada), Kongsberg Gruppen ASA (Norway) and CNS Systems AB (Sweden) among others.