Naval Combat Weapons Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Naval Combat Weapons Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Naval Combat Weapons Market is anticipated to grow at a CAGR of 4% during the forecast period.

The COVID-19 pandemic had a significant impact on the naval combat weapons market because various weapon manufacturing companies took a greater hit regarding production during the pandemic. The emergence of the coronavirus pandemic has led to shutdowns resulting in effects on the supply chain as well as the production of naval combat weapons. Various naval weapon companies witnessed a decline in the number of orders for combat weapons worldwide.

The demand for naval combat weapons is anticipated to experience substantial growth during the forecast period. The growth is attributed to the rising investments from naval combat weapons manufacturers in advanced technologies such as artificial intelligence, the Internet of Things (IoT), and big data analytics in combat weapons. The naval forces are advancing rapidly with the development and integration of high energy laser (HEL) weapon systems with artificial intelligence onto ships to support the ship’s self-defense mission.

The significant increase in defense spending and procurement programs by various countries in recent years may propel the growth of the market in the coming years. According to the data released by the Stockholm International Peace Research Institute (SIPRI), world military spending has continued to witness growth in 2021, reaching an all-time high of USD 2.1 trillion. In 2021, the total global military expenditure increased by 0.7% as compared to previous years. Moreover, increasing naval tensions worldwide have led various countries to modernize as well as upgrade their naval fleet with combat weapons which are being developed with new and advanced technologies such as enemy detection by sound and elimination. Such increasing investments in advanced naval weapon technologies for combat purposes will propel the market growth in the coming years.

Increasing expenditure from the defense forces on the expansion of the naval fleet and modernization of existing submarines drive the growth of the market. Growing focus on enhancing naval capabilities and increasing procurement of new submarines boosts the market growth. In April 2021, Progeny Systems Corporation would build and upgrade an integrated system to help submarine crew members to control submarine combat weapons such as missiles, torpedoes, unmanned underwater vehicles (UUVs), and mines. Furthermore, in late 2019, United States navy deployed the new W76-2 low-yield Trident submarine warhead.

United States Navy is on track to deploy hypersonic weapons on its attack submarines in 2028. The first Zumwalt-class destroyer will get a hypersonic weapon in 2025 and the first Virginia-class submarine will deploy with hypersonic weapons in 2028. Furthermore, key players highly invested in artificial intelligence for anti-submarine warfare missions in which the sensors equipped with AI technology can detect enemy submarines based on noise and eliminate such submarines are also gaining popularity. Thus, growing spending on improving the naval sector and the rising installation of advanced weapons on submarines drive the growth of the market.

An increase in defense spending from countries such as China, India, South Korea, Japan, and others drives market growth across the region. China is the fastest-growing market for naval combat weapon systems. The People’s Liberation Army Navy (PLAN) currently, has the largest number of major surface combatants of any navy worldwide. According to the 2020 China military power report, China has the largest navy in the world with an overall battle force of approximately 350 surface ships as well as submarines including over 130 major surface combatants. Moreover, China has two functioning aircraft carriers deployed near Taiwan with the country launching a third aircraft carrier. The Pentagon estimates that China’s overall naval fleet will grow and reach 420 ships by 2026 as compared to the current count of 350 ships. Moreover, according to Pentagon estimates, China will also be adding 110 submarines, many of which will be equipped with nuclear-tipped missile systems.

According to the Center for Strategic and International Studies, the growth of the military budget in China has outpaced its overall economic growth because China spends more on its military than any other country except United States. With the order of Chinese President, Xi Jinping for modernizing the Chinese army by 2035, there have been various advancements in terms of the production of naval combat weapons with advanced technologies. Moreover, various contracts which have been signed by China to retrofit their ships and submarines with advanced naval combat weapons will lead to its significant growth during the forecast period.

The military communication market is moderately consolidated. Some of the most prominent naval combat weapons market players are Terma, Leonardo S.p.A, Thales Group, L3 Harris Corporation, and General Dynamics Corporation. Various companies are now focused on improving their naval combat weapons product portfolio and manufacturing weapons with advanced technologies that will enable the naval forces of various countries to gain a competitive edge. New technologies such as detecting and isolating enemy submarines or ships by sound and then eliminating them is a new concept that is being worked upon and developed by various companies worldwide. Moreover, integrating artificial intelligence in naval combat weapons to be used for providing countermeasure options is also gaining popularity worldwide.

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