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The naval combat systems market size is forecast to increase by USD 8.16 billion, at a CAGR of 3.27% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Firstly, the increasing focus on Intelligence, Surveillance, and Reconnaissance (ISR) operations at sea is leading to the adoption of advanced naval combat systems. Secondly, geopolitical tensions and the subsequent increase in defense spending by various countries are fueling the demand for these systems. Technological complexity and integration issues are challenges that market participants must address to ensure the effective implementation of these systems. Despite these challenges, the market is expected to grow at a robust pace due to the increasing need for advanced naval capabilities to ensure maritime security and defense.
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The market is witnessing significant growth due to ongoing fleet modernization programs in international navies. Shipyard workers face supply chain constraints in meeting the demand for advanced naval combat systems. The market includes various segments such as C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), Directed Energy Weapons, Laser Weapon Systems, and others. Key players in the market include Fincantieri, Ultra Electronics, Saab, and others. Engineering, logistics, after sales services, system integration, system safety, automation, unmanned operation missions, AI-based vehicles, and combat management systems are crucial aspects of naval combat systems. Navigation sensors, cyber security solutions, Synapsis Naval, Bridge Integration Platform, and integrated logistics support are also essential components. Companies focus on configuration control and system safety to ensure the effectiveness and reliability of naval combat systems. Ultra Electronics and Saab are investing in research and development to offer advanced technologies like laser weapon systems and AI-based vehicles.
Increasing focus on ISR operations is notably driving market growth. Intelligence, surveillance, and reconnaissance (ISR) operations play a crucial role in military missions, as accurate and timely intelligence gathering and analysis are essential for effective decision-making in high-risk situations. Surveillance entails real-time monitoring of enemy movements and activities through various sensors, generating imagery or videos of the battlefield. Reconnaissance is the process of obtaining information about the enemy's resources or terrain features.
Moreover, both activities are interconnected and contribute significantly to situational awareness for commanders. The importance of ISR has led to rapid advancements in this domain, with ongoing developments in technologies such as radar detection, satellite imagery, and advanced sensors. These technologies are integrated into various ship type, including combat boats, patrol boats, frigates, and aircraft carriers, to enhance their operational capabilities and improve their ability to detect and respond to enemy targets. Thus, such factors are driving the growth of the market during the forecast period.
Increasing geopolitical tensions and increased defense spending is the key trend in the market. The market is driven by the need for advanced Intelligence, Situational Awareness, Planning, and Decision making systems in naval warfare. These systems enable effective detection of Enemy targets through Radar and other sensors, and enable efficient response through open architecture Combat Management Systems. Raytheon Technologies provides an open architecture solution that allows for seamless integration of data from various ship types, including Combat Boats and Patrol Boats, as well as larger vessels such as Frigates and Aircraft Carriers.
Moreover, in 2016, the US Navy awarded Lockheed Martin a five-year contract worth USD795 million for the COMbat System-21 (COMBATSS-21), which aims to enhance the operational capabilities of naval vessels by integrating various onboard systems into a true system-of-systems architecture. This open architecture approach facilitates ease of integration of new technologies and interfaces, ensuring that naval forces remain technologically superior. Thus, such trends will shape the growth of the market during the forecast period.
Technological complexity and integration issues is the major challenge that affects the growth of the market. Naval combat systems are essential components of modern warships, encompassing intelligence gathering and situational awareness, planning, and decision-making capabilities. These systems include radar detection, fire control, ordnance, and control systems, which must be seamlessly integrated for optimal performance. Navies face the challenge of coordinating these systems, sourced from various vendors, to ensure effective combat system integration (CSI). Poor CSI can lead to significant costs and delays, potentially grounding valuable warships such as combat boats, patrol boats, frigates, and aircraft carriers.
However, despite the importance of CSI, it remains a common issue in naval fleets worldwide, with experts noting the extended timeframes required for deploying these systems in warships. Proper integration is crucial for maintaining naval readiness and ensuring mission success. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting 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 market growth analysis strategies.
Customer Landscape
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.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The weapon systems segment is estimated to witness significant growth during the forecast period. The global naval combat systems market is experiencing significant growth due to various fleet modernization programs undertaken by international navies. These programs prioritize the integration of advanced technologies, such as directed energy weapons and laser weapon systems, into naval surface combatants. For instance, Fincantieri, a leading shipbuilder, is focusing on engineering and system integration of these advanced systems.
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The weapon systems segment accounted for USD 19.09 billion in 2018. Moreover, the demand for system safety, program management, and configuration control is increasing, as navies seek to ensure the optimal performance of their naval fleets. Further, the market is witnessing significant investments in combat systems for various naval platforms, including large aircraft carriers, submarines, and small patrol boats. For instance, Electronic Warfare systems are being integrated into these platforms to enhance their defensive capabilities. Weapon systems, such as missile defense and man-portable air defense systems, are also being procured in large quantities. Friend nation navies are also investing in these systems to maintain a competitive edge. For instance, the US Navy's new super stealth destroyer, DDG 1000 USS Zumwalt, is undergoing modifications to support the Navy's existing fleet of missiles. This trend is expected to continue, as navies seek to modernize their fleets and enhance their operational capabilities.
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APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Naval Combat Systems Market is experiencing significant growth due to ongoing fleet modernization programs in international navies. Shipyard workers are in high demand as they engineer and integrate advanced systems, such as directed energy weapons and laser weapon systems, into naval surface combatants. Fincantieri, Ultra Electronics, Saab, and other key players are at the forefront of this development, providing system integration, logistics, after sales services, and program management. Gyros, radars, situational awareness displays, C2 systems, visual surveillance systems, automation, and unmanned operation missions are essential components of modern naval combat systems.
Moreover, these systems require stringent configuration control, navigation sensors, cyber security solutions, and AI-based vehicles for optimal performance. Combat management systems, including the Bridge Integration Platform from Synapsis Naval, ensure effective communication and coordination among various subsystems. Electronic Warfare, Weapon, Small Patrol Boats, Large Aircraft Carriers, Submarines, and other naval assets rely on these advanced combat systems for enhanced situational awareness, system safety, and crew efficiency. Friend nation interoperability and subsystem compatibility are crucial considerations in the design and implementation of these systems. The integration of cyber security solutions is essential to protect these advanced systems from potential threats.
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.
Naval combat systems continue to evolve, with international navies investing in fleet modernization programs to enhance their capabilities. Fincantieri, Ultra Electronics, Saab, and other key players are at the forefront of this transformation, engineering advanced systems for naval surface combatants. Shipyard workers face unique challenges in integrating new technologies, such as directed energy weapons, laser weapon systems, and AI-based vehicles, into existing platforms. Logistics and after-sales services are essential for ensuring the smooth implementation of these systems. System safety, program management, and configuration control are critical components of naval combat systems. Gyros, radars, situational awareness displays, C2 systems, visual surveillance systems, automation, and unmanned operation missions are all integral parts of these systems. Navigation sensors and cyber security solutions are also crucial for maintaining fleet readiness and ensuring mission success.
Further, synapsis Naval's Bridge Integration Platform and integrated logistics support are essential for optimizing fleet operations. Electronic Warfare, Weapon, and Small Patrol Boats are other areas of focus for naval combat systems. Large Aircraft Carriers, Submarines, and Friend nation Subsystems also require advanced technologies for effective fleet management. Crew training and crew management are essential for effective use of these systems. Key players are investing in crew training programs to ensure that naval personnel are well-equipped to operate and maintain these advanced systems. In conclusion, the naval combat systems market is dynamic and complex, requiring a deep understanding of system integration, system safety, and program management. The market is expected to grow significantly in the coming years, driven by the need for advanced technologies and fleet modernization programs.
Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.27% |
Market growth 2024-2028 |
USD 8.16 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.13 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ASELSAN AS, ATLAS ELEKTRONIK GmbH, BAE Systems Plc, Elbit Systems Ltd., General Dynamics Mission Systems Inc., HAVELSAN Inc., L3Harris Technologies Inc., Leonardo Spa, Lockheed Martin Corp., Naval Group, Northrop Grumman Corp., QinetiQ Ltd., RTX Corp., Saab AB, Safran SA, Terma AS, Thales Group, and Ultra Electronics Holdings Plc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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