Naval Vessels and Surface Combatants Market Forecasts to 2030 – Global Analysis By Ship Type (Submarines, Frigates, Destroyers, Corvettes, Auxiliary Vessels and Other Ship Types), System (Sensor System, Electrical System, Weapon Launch System, Communicati

Naval Vessels and Surface Combatants Market Forecasts to 2030 – Global Analysis By Ship Type (Submarines, Frigates, Destroyers, Corvettes, Auxiliary Vessels and Other Ship Types), System (Sensor System, Electrical System, Weapon Launch System, Communication System, Control System, Marine Engine System and Other Systems), Solution, Application and By Geography

According to Stratistics MRC, the Global Naval Vessels and Surface Combatants Market is accounted for $468.9 billion in 2023 and is expected to reach $793.3 billion by 2030 growing at a CAGR of 7.8% during the forecast period. Naval vessels and surface combatants are maritime platforms designed for military operations at sea. They include a wide range of ships, such as aircraft carriers, destroyers, frigates, corvettes, and patrol vessels, equipped with various sensors, weapons, and communication systems to fulfil specific naval missions. Naval vessels and surface combatants play a crucial role in protecting maritime interests, safeguarding sea lanes, projecting national power, and maintaining stability in strategic maritime regions.

According to the Government Accountability Office report, the operating and support costs and propulsion hours in which ships are operational or training reduced during the year 2021 increased by approximately USD 2.5 billion on ten10 ship classes.

Market Dynamics:

Driver:

Threat environment

As maritime security threats evolve, nations seek to bolster their naval capabilities to address emerging challenges such as maritime piracy, territorial disputes, and asymmetric warfare tactics. Additionally, the proliferation of advanced anti-ship missiles and submarine threats further underscores the importance of modernizing naval fleets with highly capable surface combatants equipped with advanced sensors, weapons systems, and defensive measures. Therefore, the threat environment is a significant element accelerating market demand.

Restraint:

Maintenance and lifecycle management

These vessels require extensive and ongoing maintenance, repair, and overhaul throughout their operational lifespan, which can impose substantial costs and logistical challenges. However, the complexity of modern naval platforms, coupled with the need to adhere to stringent regulatory requirements and safety standards, further exacerbates these challenges. Therefore, maintenance and lifecycle management pose significant restraints in the naval vessels and surface combatants market limiting the market expansion.

Opportunity:

Technological advancements

Integration of advanced sensor suites, including radar, sonar, and electronic warfare systems, provides improved situational awareness and enhances the ability to detect and track potential threats, ranging from enemy ships and submarines to incoming missiles and aircraft. Moreover, the proliferation of unmanned systems, such as unmanned surface vessels (USVs) and unmanned underwater vehicles (UUVs), is revolutionizing naval operations by extending the reach and capabilities of surface combatants. Overall, technological advancements continue to drive innovation and transformation in the naval vessels accelerating the market demand.

Threat:

Environmental challenges

Naval vessels operate in diverse and often harsh maritime environments, encountering challenges such as extreme weather conditions, sea state variability, and environmental hazards like pollution and marine debris. These environmental factors affect the performance and reliability of naval vessels, increasing maintenance requirements, operational risks, and crew safety concerns. Overall, environmental challenges are the significant factors hindering the market demand.

Covid-19 Impact

The COVID-19 pandemic had a significant impact on the naval vessels and surface combatants market. Lockdown measures and restrictions on movement have disrupted manufacturing operations, leading to production delays and supply chain disruptions for naval vessels and surface combatants. On the positive side, the pandemic has accelerated the adoption of digital technologies and remote collaboration tools, facilitating virtual training, maintenance, and procurement processes in the naval domain.

The frigates segment is expected to be the largest during the forecast period

The frigates segment is estimated to hold the largest share. Frigates often carry a mix of offensive and defensive armaments, such as torpedoes, anti-ship missiles, surface-to-air missiles, and naval guns. Moreover, frigates are also used for maritime patrol, surveillance, and presence missions, making them valuable assets for maritime security and stability. Their ability to operate independently as part of a task group gives naval commanders flexibility in responding to a wide range of threats and contingencies.

The line fit segment is expected to have the highest CAGR during the forecast period

The line fit segment is anticipated to have lucrative growth during the forecast period. Line fit offers several advantages to both shipbuilders and naval operators. For shipbuilders, line fit streamlines the construction process, as equipment and systems can be installed according to pre-determined specifications, reducing the need for modifications or adjustments later on. It also ensures that the vessels are delivered to customers with the desired capabilities and configurations from the outset, enhancing customer satisfaction and reducing the risk of delays or cost overruns.

Region with largest share:

Asia Pacific commanded the largest market share during the extrapolated period due to its strategic significance, growing maritime security challenges, and increasing defense investments by regional powers. With a vast expanse of maritime territories, vital sea lanes of communication, and numerous territorial disputes, the region is characterized by dynamic geopolitical dynamics and evolving security threats. Furthermore, major players in the naval vessels and surface combatants market are actively engaged in supplying naval assets to countries in the Asia-Pacific region, including aircraft carriers, destroyers, frigates, submarines, and patrol vessels, to meet the evolving defense requirements.

Region with highest CAGR:

North America is expected to witness profitable growth over the projection period. The United States, in particular, dominates the region's market with its formidable navy, extensive naval infrastructure, and robust defense industrial base. Furthermore, North America is home to leading defense contractors and shipyards specializing in the design, development, and production of naval vessels and surface combatants. Overall, North America remains a key hub for naval vessels and surface combatants, driving innovation, technological advancement, and strategic partnerships in the global maritime defense industry.

Key players in the market

Some of the key players in the Naval Vessels and Surface Combatants Market include BAE Systems, United Shipbuilding Corporation, Abu Dhabi Ship Building, General Dynamics Corp, Damen Shipyards Group, Naval Group, Huntington Ingalls Industries, Mitsubishi Heavy Industries Ltd, China State Shipbuilding Corporation, Navantia SA, Fincantieri SpA and Cochin Shipyard Ltd.

Key Developments:

In November 2023, Mitsubishi Heavy Industries Ltd. (MHI) and Orica have signed a Memorandum of Understanding agreement to explore potential opportunities for collaboration on emission reduction initiatives, aligned with MHI and Orica's shared decarbonisation ambitions.

In November 2023, Mitsubishi Heavy Industries, Ltd. (MHI) and Indonesia's Institute Technology Bandung (ITB) announced an extension of their joint R&D partnership to support the development of cleaner fuel firing, building on research conducted last year on ammonia-fired power generation using gas turbines with further analyses and trials.

In September 2023, BAE Systems and QinetiQ have signed a framework agreement which will see both parties collaborate in the area of autonomous uncrewed air systems (UAS) and mission management systems.

In May 2023, BAE Systems is collaborating with Eaton, through a memorandum of understanding (MoU), the companies will initially offer a solution for the medium-duty commercial truck platforms market, with a Class-7 pickup and delivery demonstration vehicle in development.

Ship Types Covered:
• Submarines
• Frigates
• Destroyers
• Corvettes
• Auxiliary Vessels
• Other Ship Types

Systems Covered:
• Sensor System
• Electrical System
• Weapon Launch System
• Communication System
• Control System
• Marine Engine System
• Other Systems

Solutions Covered:
• Retro Fit
• Line Fit

Applications Covered:
• Combat Operations
• Coastal Operations
• Search and Rescue
• Mine Countermeasures Operations (MCM)
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements