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The naval vessels market is estimated to grow by USD 82.64 billion at a CAGR of 13.5% between 2022 and 2027. The increasing investment in maritime surveillance capabilities is driven by the need to enhance maritime security, monitor illegal activities such as smuggling and piracy, and protect maritime trade routes. The increasing demand for unmanned underwater vehicles (UUVs) is driven by their ability to perform a variety of tasks, such as underwater surveillance, mine detection, and oceanographic research, without putting human operators at risk. Smart weapons are gaining traction among armed forces due to their precision, effectiveness, and ability to reduce collateral damage, leading to increased adoption and demand in the defense market.
Market Forecast 2023-2027
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This report extensively covers market segmentation by type (destroyers, aircraft carriers, frigates, submarines, and others), application (search and rescue, combat operations, mcm operations, and coastal surveillance), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The destroyers segment will account for a major share of the market's growth during the forecast period.? A destroyer is a type of naval vessel that is designed for high-speed operations, long endurance, and multi-mission capabilities. Basically, destroyers are smaller than cruisers and battleships but larger than frigates and corvettes. Destroyers are known for their versatility and firepower. Thus, making them a crucial component of modern naval vessels. The main role of a destroyer is support to other larger ships and to provide protection, such as aircraft carriers or amphibious assault ships.
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The destroyers segment was valued at USD 17.28 billion in 2017.?Destroyers have advanced features such as anti-craft, anti-submarine, and anti-surface capabilities, enabling them to defend against threats from air, sea, and underwater domains. Guided missiles, torpedoes, cannons, cutting-edge radar and sonar systems, and more are all available on destroyers. These ships frequently perform tasks including engaging surface ships, carrying out anti-submarine warfare operations, providing air defense, enforcing blockades, and assisting land operations with seaside air raids. Thus, destroyers will continue to dominate this market during the forecast period.
Based on application, the market has been segmented into search and rescue, combat operations, MCM operations, and coastal surveillance. The search and rescue?segment will account for the largest share of this segment.?Naval vessels play an important role in search and rescue operations, particularly in the marine environment. Naval vessels are often equipped to respond quickly to suffering calls and emergencies at sea. Their speed and mobility allow them to reach the affected areas on time and provide quick assistance to those in need.
Moreover, to conduct rescue operations effectively naval vessels are designed with specialized equipment and facilities. Guided missiles, torpedoes, cannons, cutting-edge radar and sonar systems, and more are all available on destroyers. These ships frequently perform tasks including engaging attacking surface ships, carrying out anti-submarine warfare operations, providing air defense, and assisting land operations with sea side air-raid. Therefore, the search and rescue segment by application is contributing to the growth of the market during the forecast period.
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North America is estimated to contribute 41% 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. With the US and Canada as the main nations, North America is the leading revenue-generating district in the worldwide maritime vessels market. Factors, for example, the rising examination and interest in the advancement of maritime vessels drive the development of the market in the district.
Due to the rising efforts toward modernizing its naval combat capabilities, the US Department of Defense (DoD) is likely to add more advanced naval vessels for the US Navy. Amid rising tensions in the Middle East and APAC, the US continues to maintain various naval bases overseas as a strategic move. Due to the rising budget allocation, new funding, and changes in the fleet type, it is expected that the demand for naval vessels will increase in the US which will further grow this region during the forecast period.
The market is influenced by various factors, including global defense spending and technological advancements. The market is driven by procurement and development activities aimed at enhancing naval capabilities. However, challenges such as delays and extra expenditures in the defense manufacturing sector impact market growth. Geopolitical tensions and maritime disputes also play a role in shaping the market landscape. Shipbuilders face the challenge of reducing production rates amid fluctuating demand. Comprehensive intelligence on products, pricing, and customers is essential for navigating this complex market successfully. 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.
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.
Austal Ltd.: The company offers naval vessels such as high-speed support vessels, littoral combat ships, and patrol boats designed for rapid response and coastal defense operations.
BAE Systems Plc: The company offers naval vessels such as Type 45 destroyers, Queen Elizabeth-class aircraft carriers, and Astute-class submarines renowned for their technological advancements.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 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.
The market 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.
The market is undergoing significant development efforts to modernize and expand its naval fleet. With negative impacts such as a reduction in production rates in the initial few years, countries like India and France are focusing on force structure expansion plans and qualitative technological edge. The market also sees advancements in unmanned vehicles and the development of next-generation vessels like the Next-Generation Logistics Ship (NGLS) and European patrol corvette (EPC). Noteworthy players include Korea Shipbuilding & Offshore Engineering and Hyundai Heavy Industries (HHI).
The market is witnessing advancements driven by Naval Vessel Research and development efforts at the Shimonoseki shipyard. Global defense supply chains are evolving to meet the demand for modern warships, including those in the North American naval vessels market. The market sees a trend towards distributed fleet architecture and the development of smaller ships for various naval forces, such as the Indian Navy with vessels like INS Vikramaditya and INS Vikrant, and the French Navy.
Countries like China and the Philippines are also investing in their naval capabilities with programs like the Next-Generation Logistics Ship (NGLS) and Corvette Acquisition Program (CAP). The market is influenced by Aerospace & Defense Research and ongoing Defense Research efforts. Merchant ships and the modernization of the Chinese Naval fleet are key factors. Innovations like the Next-Generation Logistics Ship (NGLS) program are shaping the market, alongside initiatives like those of the Philippine Department of National Defense (DND).
Naval Vessels Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.5% |
Market growth 2023-2027 |
USD 82.64 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
13.16 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 41% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abu Dhabi Ship Building PJSC, Austal Ltd., BAE Systems Plc, China Shipbuilding Trading Co. Ltd., Damen Shipyards Group, Fincantieri Spa, Fr. Lurssen Werft GmbH, General Dynamics Corp., Hanwha Corp., HD Hyundai Co. Ltd., Huntington Ingalls Industries Inc., Kalashnikov Concern JSC, Larsen and Toubro Ltd., Lockheed Martin Corp., Mitsubishi Heavy Industries Ltd., Naval Group, Navantia SA, PT PAL Indonesia, thyssenkrupp AG, and United Shipbuilding Corp. |
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, Market condition analysis for the 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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