The cost of creating ‘smart vessels’ has fallen dramatically in recent years, making digitalisation a financially viable and operationally compelling option for shipowners and managers, according to Columbia Group.

Speaking at a Capital Link conference in Athens this week, Mark O’Neil, President and CEO of Columbia Group, said one of the biggest barriers to digital adoption in shipping today is no longer technology itself, but a lingering misconception around cost.

“There is still a perception in the market that digitalisation is expensive,” Mr O’Neil said. “That may have been true in the past, but it is not true today. The economics have changed completely.”

Mr O’Neil explained that advances in sensors, cameras and optimisation software have significantly reduced the cost of making vessels fully digital. Where similar upgrades once required investments of around $50,000 per vessel, comparable systems can now be installed for closer to $5,000, delivering higher-quality data and greater functionality.

He said: “You can now make a vessel totally smart for a fraction of what it used to cost. In many cases, the return on investment can be achieved in weeks through fuel savings and operational efficiencies alone.”

Despite these improvements, Mr O’Neil said outdated cost assumptions continue to slow adoption across parts of the industry. He noted that when owners are presented with the current economics, perceptions often shift quickly.

Beyond cost, he identified training and system complexity as key challenges. Early digitalisation efforts brought a wide range of innovative but fragmented solutions, each requiring separate platforms and training programmes. This placed an unnecessary burden on crews and shore-based teams, he told the conference.

Mr O’Neil said: “Our people are extremely busy. They want integrated platforms with a common interface, where you train once and deploy multiple tools. Standardisation is critical if digital solutions are to be used effectively.”

He also highlighted the role of smart-vessel technology in decarbonisation, particularly as the industry reassesses the pace and practicality of alternative fuels. While alternative fuels will play a role, very few vessels currently operate on them as a single fuel source.

“What we are seeing instead is a strong focus on optimisation. Using existing assets more intelligently can deliver carbon reductions of up to 30 percent or more, regardless of fuel type,” he said.

Optimisation technologies, such as the OneLink platform provide a realistic and scalable pathway to emissions reduction while laying the groundwork for future solutions such as carbon capture, the Columbia Group chief said. He added that as technology becomes more affordable and more powerful, it must still be deployed within a strong governance framework to manage data and operational risk.

Mr O’Neil concluded: “Shipping will always be a people business. Technology should support decision-making, not replace it. With today’s economics smart vessels are no longer a future ambition, they are a viable reality.”