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The fast attack craft market is estimated to grow by USD 1.75 billion at a CAGR of 6.78% between 2023 and 2028. The market is witnessing substantial expansion, primarily driven by the heightened focus on Intelligence, Surveillance, and Reconnaissance (ISR) operations. ISR operations serve as a cornerstone in military endeavors, shaping critical decision-making processes in volatile environments through the acquisition and analysis of intelligence data. These operations involve real-time monitoring of defense entities' activities, especially in conflict zones, facilitating the tracking of crucial movements. However, challenges persist, such as the requirement for adequately trained personnel to operate effectively, technical limitations, and considerable deployment costs.
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The national defense segment will contribute a major share of the market, as the use of fast attack craft by defense forces worldwide has been growing substantially. Of late, there has been a rising need for new and modernized systems and technologies to strengthen naval forces and armaments. Globally, the demand for such cutting-edge naval craft and systems is primarily driven by rising defense budgets and territorial disputes. As a result, nations like the US have started to develop a variety of fast attack craft that will aid the nation's armed forces in naval combat.
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The national defense segment showed a gradual increase in market share with USD 2.86 billion in 2018. Fast attack craft is used in the defense sector for surveillance, intelligence gathering, patrol, interdiction, and engagement with hostile forces. Numerous technological developments have made it possible for fast attack craft to resolve important problems like automated operations and navigational issues and become an essential component of common naval applications. The cost of fast attack craft has also decreased significantly as a result of increased research and development (R&D), and these crafts now have effective propulsion systems that enable effective operation at cruising speeds. Thus, the growing technological advances and developments in fast attack craft will increase its use in national defense applications, which, in turn, will drive the growth of the fast attack craft (FAC) market in focus during the forecast period.
Fast attack craft (FAC) that are missile-armed and incorporate cutting-edge technologies pose a serious threat to enemy locations and platforms, such as military ships and airbases. These cutting-edge weapons are being developed by a number of nations in order to overcome sophisticated air defense systems like the Patriot Advanced Capability-3 (PAC-3). Hypersonic missiles are difficult for missile shields to intercept and have been developed by nations like China, India, and Russia. New-generation, high-speed naval defense systems are now required as a result of these developments. The development of FACs equipped with missiles is a priority for many nations. For instance, in June 2022, satellite images uncovered a potential new stealth missile boat (missile-armed FAC) under construction in Iran. They could operate as command vessels for swarms of smaller boats armed with rockets, torpedoes, mines, lightweight anti-ship missiles, and drones. Thus, the growing focus on deploying missile-armed FAC by countries worldwide will drive the growth of the fast attack craft (FAC) market in focus during the forecast period.
Europe is estimated to contribute 32% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Another region that offers significant growth is North America. The US is dominating North America's highly developed defense sector. In addition, the US invests in fast attack craft due to the need to increase the effectiveness of attacks against adversaries. The US currently holds a dominant position in the world market for fast attack craft, largely as a result of its extensive production initiatives and R&D spending. The majority of research and development for these technologies is focused on creating reliable and affordable fast-attack craft systems, which are essential for important missions. As of 2022, US military spending was more than USD 750 billion. More than 80% of the military spending budget is granted by the National Defense Authorization Act (NDAA), while the rest is proposed for funding overseas contingency operations. One of the largest arms buyers in the world is the US Department of Defense (DoD). All arms deals in the US are handled by the Defense Logistics Agency (DLA), which also manages the storage and tracking of inventories and suppliers as well as the procurement of raw materials, spare parts, fuel, and food. Hence, it is important for the DLA to maintain its supply chain security with all suppliers. Thus, the aforementioned factors indicate that the US has a strong foothold in manufacturing defense equipment. This, in turn, will spur warship-building activities and, in turn, will drive the growth of the fast attack craft (FAC) market in focus in the region during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
The market plays a crucial role in marine surveillance and maritime security, specializing in anti-surface warfare, anti-air warfare, and anti-piracy operations. These vessels, equipped with ship-based missile systems, are vital for protecting exclusive economic zones and coastlines, particularly in contemporary sophisticated warfare scenarios. They are essential for quick response operations and maintaining security amidst lockdowns or political uncertainties. Despite challenges such as defense budget cuts, the market thrives through robust sales networks and continuous benchmarking of capabilities. FACs are critical for rapid deployment and effective use of replacement parts, ensuring operational readiness and enhancing the breadth of defensive capabilities in diverse maritime environments.
The surge in emphasis on ISR (Intelligence, Surveillance, and Reconnaissance) operations serves as a primary driver propelling market growth. ISR operations are integral to military missions, exerting substantial influence on decision-making processes in high-risk scenarios by facilitating the acquisition and analysis of intelligence. Real-time monitoring of defense entity behavior and activities, particularly within combat zones, entails surveillance aimed at tracking critical movements. This involves the utilization of sensor-equipped systems to generate images or videos of the operational environment. Additionally, reconnaissance efforts contribute significantly to evaluating enemy forces' capabilities and the surrounding terrain, enhancing defense commanders' situational awareness.
Amid escalating tensions along the Line of Actual Control (LAC) between India and China, India has increasingly leveraged its reconnaissance capabilities to bolster surveillance along its land borders with China. These efforts are directed at monitoring troop movements and infrastructure developments, underscoring the vital role of ISR operations. Consequently, the market has witnessed notable advancements, driven by the imperative for enhanced surveillance capabilities, with continued growth anticipated in the foreseeable future.
Increasing demand for warships is an emerging trend in market growth. The growing demand for naval combat readiness and the growing global fleets of naval ships are factors that motivate many defense organizations to buy warships. Many nations are significantly increasing their naval spending on the development and armament of naval ships with directed energy weapons.
For Instance, in November 2022, BAE Systems was awarded a USD 5.07 billion contract by the UK Ministry of Defence to manufacture the next five City Class Type 26 frigates for the Royal Navy in Glasgow. One of the most cutting-edge warships in the world is the City Class Type 26 frigate. It has high-intensity air defense capabilities and is built for anti-submarine warfare, but it can also adapt to carry large amounts of aid and house medical facilities. Thus, increasing demand for naval ships will drive the growth of the global market during the forecast period.
The need for trained personnel for operation is a major challenge impeding market growth. Fast attack craft is a fusion of weapons and communication systems that operate with computer technology. The control point for detection, tracking, and actions is concentrated at one location, which reduces overhead and boosts effectiveness. However, fast attack craft operation also necessitates the use of trained or qualified personnel.
Traditionally, firing a missile or torpedo from a naval warship required one or two trained army personnel who only knew how to operate the weapon and how the missiles being used could maneuver. Currently, to operate them, trained personnel with a high level of computer knowledge, as well as that related to the weapon and its maneuvering abilities, are required because the majority of weapon systems have been integrated with computer-based networks and automation capabilities. Thus, the shortage of such personnel poses a challenge for defense organizations, which, in turn, may limit the adoption during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
China Shipbuilding Trading Co. Ltd. - The company offers shipbuilding products and services. The key offerings of the company include fast attack crafts such as offshore patrol purposes.
CONSTRUCTIONS MECANIQUES DE NORMANDIE - The company offers yachts, fishing boats, navel ships, and cruises. The key offerings of the company include fast attack crafts such as Combattante FS46.
We also have detailed analyses of the market’s competitive landscape and offer information on 10 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis. Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Aviation Cyber Security Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, China, Germany, Japan, India - Size and Forecast
Cyber Weapon Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Japan, UK, Germany - Size and Forecast
Helicopter Engines Market by End-user and Geography - Forecast and Analysis
The market plays a critical role in maritime protection and coastal areas, where exclusive economic zones and trade sea routes demand swift responses to political scenarios and military activities. These vessels, equipped with guided missiles and underwater acoustic missiles, establish offensive positions and create a virtual barrier against threats. Designed for combat missions with low-cost platforms, FACs balance maintenance costs and budgetary limitations, making them strategic investments for nations with investment pockets for military actions. As multi-static antisubmarine and missile-armed fast attack capabilities advance, the FAC market focuses on aerospace integration and strategic steps to maintain seaborne dominance. Projections indicate growth in demand for FACs amidst evolving technological advancements and geopolitical shifts, highlighting their pivotal role in modern naval strategies.
Further, the development and deployment of missile fast attack craft play a pivotal role in safeguarding exclusive economic zones and coastal regions, complementing larger capital ships in strategic maritime defense. Collaborations and strategic decision-making enhance their business value and facilitate commercial development, while patents protect technological innovations amid evolving political and social scenarios. Government spending drives their development growth, emphasizing winning imperatives such as a robust sales network and scalability in global markets. These craft exemplify agility and efficiency, crucial in modern naval operations, ensuring readiness to address diverse security challenges and maintain maritime stability.
Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market growth 2024-2028 |
USD 1.75 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
6.23 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 32% |
Key countries |
US, China, Japan, UK, and Iran |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BAE Systems Plc, China Shipbuilding Trading Co. Ltd., CONSTRUCTIONS MECANIQUES DE NORMANDIE, Daewoo Shipbuilding and Marine Engineering Co. Ltd., Damen Shipyards Group, Fincantieri Spa, Fr. Lurssen Werft GmbH, Garden Reach Shipbuilders and Engineers, Goa Shipyard Ltd., Hanjin Heavy Industries and Construction Holdings Co. Ltd., Mitsubishi Heavy Industries Ltd., and Navantia SA |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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