Page 26: of Maritime Reporter Magazine (May 2016)

MARINE ELECTRONICS

Navico Makes its Commercial Push he ascension of Navico in recreational marine elec- mercial space. It’s acquisition of Consilium was arguably

Marine electronics group tronics business – an estimated $1 billion market its ? rst major move toward the commercial sector, as its

Navico, a literal ‘house of

Tglobally – was fast and furious, growing from rough- customers were saying “you need to be serious about ra- ly 7% of the global market in 2005 to nearly 30% in 2007, dar in the commercial market,” said Fargo. “With The Ar- brands’ for the recreational, standing steady at about 35% today, fueled by a strategy gus Radars, Category 1 and Category 2 radars, the biggest built on the acquisition of strong brands mixed with or- segment (served) are merchant and IMO classed vessels. sail, power and commercial ganic growth. While today roughly 70% of its $400m in So it was a product acquisition, it was a market acquisi- marine markets, is making a annual revenue still comes from its recreational business, tion, and it was a relevance to customers.”

Navico is doubling down on its efforts to the commercial Next on the ‘to do’ list was ECDIS, particularly with strong push in the commer- marine electronics market, which on the hardware side is the looming requirement regarding the installation of of cial sector with its Simrad measurably larger at an estimated $2.5 billion annually, ECDIS aboard commercial ships. “The MARIS acquisi- not to mention the value of the fast-growing ‘digital ma- tion was a strategic one in terms of taking on an inno- brand. Armed with a stock- rine’ services sector which, in the end, could dwarf the vative supplier with an installation base of about 8,000 hardware side of the business. ships,” said Fargo. “Again, with the MARIS acquisition pile of new technology and we achieved product growth, market growth (into bigger a global network of sales

The Commercial Push ships); and relevance growth.” “The owners of our company realized that there was But ECDIS in and of itself was not the only end-game and support, Christian Ols- room for growth (in the recreation side), but growth from with the MARIS acquisition, as the technology came with son, VP Commerical Marine, a leading position is a particular challenge, and it takes a the ability to distribute charts, which tied in neatly with lot of money,” said Mike Fargo, Global Product Line Di- Navico’s Digital Marine Division strategy, said Olsson.

Americas, and Mike Fargo, rector – responsible for commercial product line. “Look- “Digital Marine could be so many things, a total market ing at the commercial space three years ago, it was real- that could be tens of billions of dollars.” The Chart side

Global Product Line Director, ized that we have room for growth. So the challenge to the of the ECDIS business ? t into this well and immediately, explain how this ‘David’ aims management team was to double (the size of our business) as the company became a direct UKHO distributor of new in ? ve years time,” and commercial was the natural space. charts and updated charts.

to take on the commercial

An initial glance into the commercial marine electronic While the “House of Brands” strategy offers many marine electronic ‘Goliaths.’ business and Navico saw a fragmented market with many strengths in diversity of technology, talent and share of vendors. So it set about its business of consolidation, with market, it also comes with challenges in the form of cus- the realization that it needed to add several core compe- tomer confusion, product and service overlap, and gen- tencies to be considered a serious contender in the com- erally the ability to concisely explain the depth, breadth

By Greg Trauthwein 26 Maritime Reporter & Engineering News • MAY 2016

MR #5 (26-33).indd 26 5/5/2016 2:50:29 PM