ID: MRFR/A&D/0895-HCR | 120 Pages | Published By Sejal Akre on March 2023
Naval Combat Systems Market Size is expected to reach USD 38.95 Billion by 2027, registering a CAGR of 2.68% during 2020-2030.
Naval Combat Systems Market Overview
Naval Combat Systems Market is driven by an excellent degree of demand for new naval systems as a result of the envisioned and ongoing fleet modernization programs of the global armed forces and other military blocks. However, the inherent capital-intensive nature of the industry and its subsidiaries due to the high associated cost of research and development and the recent outbreak of the COVID-19 pandemic induced by the disruption in the global supply chain are some of the factors that are likely to hinder the growth of the market in focus during the forecast period that will be ending in 2027.
COVID AnalysisThe outbreak of the COVID-19 pandemic has resulted in several supply chain constraints on the naval combat systems market scale which has escalated the cost of mergers and acquisition for several naval programs, as a part of the global market premises. With the shipyard workers being exposed to the impact of the pandemic followed by the COVID-19 infection, the overall attendance had declined by 50% during the peak of the pandemic, which further, resulted in the extension of deadlines for the completion of several shipbuilding programs in the global market premises. Besides this, the marine systems are prone to uncertain issues like breakdowns due to the extreme complexity of the integrated systems that might be resulting in unplanned work for the shipyards.
On this note, the electrical failure onboard of the CVN 75 resulted in an extension of extra three months of repairs to the ship’s availability schedule that have further, resulted in the subsequent delay in the repair schedule of USS Abraham Lincoln. For example, the US Navy’s shipyards were able to complete only 38 out of the total 51 maintenance orders for both the aircraft carriers and submarines during the historic forecast period of 2015-2019. Also, as per the stats that have been circulated after the August 2020 report of the US Government Accountability Office (GAO), the effects and trends that have been introduced by the COVID-19 are expected to exacerbate the carrier and submarine maintenance delays that are already in plague the US Navy shipyards during the forecast period that will be ending in 2027. The naval combat systems market revenue is likely to rise during the ongoing period.
The increased need for modernization of naval combat systems, as a part of the naval combat systems market revenue, will offer new growth opportunities to the market players. The market factors that are responsible for the growth of the global naval combat systems market are the rapid increase in investments in submarines and a substantial increase in the number of unmanned underwater vehicles. Several contracts, as a part of the market, have been signed to bolster the growth of the market during the forecast period that will be ending in 2027. . In 2015, one of the prominent companies - Israel Military Industries signed a contract with Germany for 4 TKMS MEKO Patrol systems. In 2018, another prominent company - BAE Systems signed a contractual agreement with the U.S. Navy to modernize and further, upgrade the guided-missile destroyer USS Howard and USS Oscar Austin.
The naval combat systems market share has been witnessing certain challenges that might restrain the market from growing during the period that will be ending in 2027. The high cost that is associated with the submarines and installation procedures along with the delay due to the pandemic has been creating issues for the market that is on the way to its growth.
The Technological beliefs and advancements are further supporting the development of the newer generation naval systems which is proving to be beneficial for the growth of the naval combat systems market share during the ongoing forecast period that will be ending in 2018. The trends suggest that as each nation wants its naval combat capabilities to be up to date, technology will help in acing the worldwide need. As several countries are currently operational with older naval fleets, they are emphasizing the widescale procuring systems with the latest technologies. Also, the trends support that there has been again a qualitative technological edge over their adversaries.
There are various types of naval systems and hence, the growing demand for the same is beneficial for the market size during the forecast period that will be ending in 2027. The market has been segmented based on the following:
Based on the vessel type
The naval combat systems market has been segmented based on vessel time and includes aircraft carriers, submarines, corvettes, submarines, destroyers, and many other vessel types.
Based on the global locations
The naval combat systems market has been segmented based on the global locations and includes the performance of players from regions like North America, the European market, the APAC region, and the Middle East and Africa.
The North America and Asia-Pacific region are expected to experience a tremendous amount of global growth during the forecast period that will be ending in 2027. The escalated tensions between the countries that are a part of the Asian-Pacific region have led to countries demanding and increasing their military spending levels and further, their naval fleets, which will boost the growth of the naval combat systems market during the ongoing forecast period.
The naval combat systems market analysis has been witnessing a commendable amount of competition as a part of the recent developments that have been undertaken during the forecast period that will be ending in 2027. The rising competition is a result of the efforts of the following market players:
The naval combat systems market report has been prepared to help the investors understand the unfolding of the market during the forecast period of 2021-2027. The market report helps in understanding the need of the market to propel after the outbreak of the pandemic and further, discusses the factors that will help in giving rise to the factors that will drive the market towards expansion and growth by the end of the period in 2027.
The naval combat systems market registered a CAGR of 2.68% during 2020-2030.
Martin, General Dynamics, Raytheon, and Thales, are some reputed companies in the naval combat systems market.
Increase in need for unmanned underwater vehicles to support naval combat systems market expansion.
APAC naval combat systems market can rise exponentially.