Fast Attack Craft (FAC) Market by Application, Type, and Geography - Forecast and Analysis 2023-2027

Fast Attack Craft Market Forecast 2023-2027

The fast attack craft market is estimated to grow by USD 2.02 billion at a CAGR of 8.1% between 2022 and 2027. 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.

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Fast Attack Craft Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by application (national defense and technical research), type (missile-armed FAC and non-missile armed FAC), and geography (North America, Europe, APAC, Middle East and Africa, and South America). 

Product Segment Analysis: 

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. The segment showed a gradual increase in market share with USD 2.7 billion in 2017 and continued to grow by 2021. 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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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.

Type Segment Analysis: 

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.

Regional Analysis:

North America is estimated to contribute 35% to the growth by 2027. 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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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.

Technavio’s Exclusive Market Customer Landscape

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

Market Dynamics and Customer Landscape

The market is witnessing substantial growth driven by escalating national defense requirements and increased focus on maritime surveillance. As countries strengthen their naval capabilities, there's a growing demand for agile and versatile vessels like FACs to counter various threats in coastal areas. With the rise in military actions and tensions in maritime regions, navies are emphasizing the deployment of FACs equipped with advanced anti-ship missiles, torpedoes, and integrated protection systems to bolster offensive positions and enhance maritime security.

Furthermore, the trend towards the development of technologically advanced FACs is gaining traction, with an increasing focus on incorporating cutting-edge features such as multi-static antisubmarine capabilities and underwater acoustic missiles. This trend aligns with the growing need for agile and stealthy naval assets capable of effectively countering evolving threats such as piracy and anti-surface warfare. As defense budgets continue to rise globally and navies modernize their fleets, the demand for next-generation FACs equipped with advanced weaponry and surveillance capabilities is expected to surge, driving significant market growth in the coming years.

Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. 

Key Market Driver

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.

Significant Market Trends

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.

Major Market Challenge

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.

Who are the Major Fast Attack Craft Market Companies?

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:

• BAE Systems Plc
• 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.
• Navantia SA
• Mitsubishi Heavy Industries Ltd.

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.  

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Application Outlook 
  • National Defense
  • Technical research

• Type Outlook 
  • Missile-armed FAC
  • Non-missile armed FAC

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The Market is witnessing significant commercial development, driven by factors such as product pricing, product penetration, and the country GDP of key markets. End application industries, influenced by consumer buying behavior and various economic and political factors, play a crucial role in shaping the market landscape.

Social scenarios and evolving market segments contribute to the market's outlook, prompting companies to analyze company profiles and conduct Porter's Analysis to assess competitive rivalry, the threat of new entry, the threat of substitution, supplier bargaining power, and buyer bargaining power. Value Chain Analysis and pricing analysis further aid in understanding market dynamics, while regulations and government spending influence research and development growth. SWOT analysis helps companies identify winning imperatives, strengths, weaknesses, opportunities, and threats, guiding decisions regarding company regional footprint and industry footprint to capitalize on lucrative opportunities.

In the realm of business, the maritime sector operates at the intersection of economic forces and strategic imperatives. Factors like Company weaknesses, Company opportunities, Company threats Company industry footprint have to be determined before investment. Economic factors play a pivotal role in shaping the market outlook, driving market evolution and influencing the strategies adopted by industry players. Market outlook, influenced by economic indicators such as GDP growth, inflation rates, and trade policies, sets the stage for the industry's trajectory. As economic landscapes shift, market dynamics evolve, necessitating a robust research methodology to navigate the complexities effectively.

Companies within the maritime sector must leverage their strengths while acknowledging and addressing their weaknesses. Whether it's technological innovation, operational efficiency, or global reach, understanding company strengths is crucial for maintaining a competitive edge. Conversely, weaknesses such as supply chain vulnerabilities or regulatory compliance issues must be mitigated to safeguard against threats and capitalize on opportunities. Speaking of opportunities, the maritime sector presents a plethora of them. pls

In navigating the maritime sector, the Ace Matrix serves as a valuable tool for assessing strategic options and prioritizing initiatives. By evaluating factors such as attractiveness and feasibility, companies can chart a course for sustainable growth and competitive advantage. In essence, the maritime sector is a dynamic ecosystem shaped by economic factors, market dynamics, and strategic imperatives. By leveraging strengths, mitigating weaknesses, and seizing opportunities, companies can navigate the ever-evolving landscape, leaving a lasting imprint on the industry. 

Fast Attack Craft Market Scope
Report Coverage	Details
Page number	145
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.1%
Market growth 2023-2027	USD 2,025.14 million
Market structure	Concentrated
YoY growth 2022-2023(%)	6.43
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 35%
Key countries	US, Iran, China, Japan, and UK
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., Navantia SA, and Mitsubishi Heavy Industries Ltd.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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