Global Naval Combat Vessels Market Overview
Naval Combat Vessels Market Size was valued at USD 0.31 Billion in 2023. The naval combat vessels market industry is projected to grow from USD 0.321067 Billion in 2024 to USD 0.4113 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.14% during the forecast period (2024 - 2032). Growing geopolitical tensions and worries about maritime security have led to increased demand for naval combat boats from developing nations, a key market driver for the industry's expansion.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Naval Combat Vessels Market Trends
- Growing defense spending is driving the market growth
The increase in defense spending is driving the market CAGR for naval combat vessels. The rise in regional conflicts around the world has led to an increase in defense spending. To protect their maritime rights and interests, nations are focusing their spending solely on enhancing their defense and naval capabilities. The USA, China, India, Russia, and the UK together accounted for 62% of all military spending worldwide in 2020, according to a Stockholm International Peace Research Institute report. This is a 2.6% increase from 2019. During the forecast period, the market for naval combat vessels is anticipated to grow as a result of rising defense spending by nations around the world.
Furthermore, another key factors influencing the growth of the naval combat vessels market is a greater emphasis on ISR operations. ISR (intelligence, surveillance, and reconnaissance) activities are essential to military missions because they help decision-makers in high-risk situations by gathering and analyzing intelligence. In order to keep an eye on crucial movements, surveillance means watching the actions and conduct of battlefield elements in real-time. It uses gadgets with sensors to produce images or films of the field. An information-gathering operation called reconnaissance is used to evaluate the terrain's features or the enemy's resources. These actions are interconnected and, taken together, help commanders be more aware of their surroundings. Due to the significance of these operations, the ISR domain has experienced large and quick development, and this trend will continue during the projection years. Thus, driving the naval combat vessels market revenue.
Naval Combat Vessels Market Segment Insights
Naval Combat Vessels Vessel Type Insights
The naval combat vessels market segmentation, based on vessel type includes submarine, frigates, corvettes, destroyers and others. The frigates segment dominated the market due to the growing demand for frigates coming from the developing Asian economies of China and India. The primary duty of frigates is to defend naval vessels against threatening submarines. Several governments have also raised their spending on defense equipment due to the growth in terrorist activities, which is expected to fuel demand over the next seven years.
Naval Combat Vessels Mode of Propulsion Insights
The naval combat vessels market segmentation, based on mode of propulsion, includes nuclear-powered and conventional powered. The conventional powered category generated the most income. The segment is anticipated to increase significantly due to the rising demand from nations like China and India for upgraded warship capabilities. These countries are making significant investments in enhancing the capabilities of their maritime forces so they can combat regional challenges like terrorism and piracy.
Figure 1: Naval Combat Vessels Market, by Mode of Propulsion, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Naval Combat Vessels Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American naval combat vessels market area will dominate this market because naval warships are increasingly incorporating cutting-edge fighting weapons and because governments are spending more money to ensure a strong defense system ly. The US's preference for unusual military platforms to preserve an advantage over its competitors influences its supremacy in the naval vessel market.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: NAVAL COMBAT VESSELS MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe naval combat vessels market accounts for the second-largest market share because private sector investments in constructing naval vessels are increasing. Rising consumer demand for cutting-edge autonomous battleships and cruises is projected to propel market growth in the UK. Further, the German naval combat vessels market held the largest market share, and the UK naval combat vessels market was the fastest growing market in the European region.
The Asia-Pacific Naval combat vessels Market is expected to grow at the fastest CAGR from 2023 to 2032. This is primarily explained by the rise in national defense spending in nations like China, India, and North Korea and the growing demand for warships and frigates, particularly in China and Japan. Moreover, China’s naval combat vessels market held the largest market share, and the Indian naval combat vessels market was the fastest growing market in the Asia-Pacific region.
Naval Combat Vessels Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the naval combat vessels market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the naval combat vessels industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the naval combat vessels industry to benefit clients and increase the market sector. In recent years, the naval combat vessels industry has offered some of the most significant advantages to the market. Major players in the naval combat vessels market attempting to increase market demand by investing in research and development operations include BAE Systems (U.K), Kawasaki Shipbuilding Corporation (Japan), Lockheed Martin Corporation (U.S.), Mitsubishi Heavy Industries Ltd. (Japan) and Raytheon (U.S.).
The company Mitsubishi Heavy Industries Ltd. (MHI) producesvarious heavy equipment. Power plants, chemical plants, environmental equipment, steel constructions, commercial and general machinery, shipbuilding, aviation, space systems, and air-conditioning systems are only a few of the company's goods and services. In the areas of energy, including nuclear, thermal, and renewable energy, and the environment, including chemical plants, MHI offers solutions for social infrastructure. The business additionally offers cutting-edge transportation services and technologies for use on land, at sea, and in the air. In November 2021, the second MRRV for the Philippine Coast Guard was launched by Mitsubishi Shipbuilding today during a ceremony at the Shimonoseki shipyard. The vessel will be used for offshore and coastal patrolling, extreme weather rescue missions, and boosting quick response capabilities for maritime accidents and criminality.
A leader in worldwide security, Lockheed Martin Corporation focuses on developing, manufacturing, and integrating high-tech goods and services. The company's operations include aerospace, telecommunications, electronics, information and services, energy, and systems integration. The operations of Lockheed Martin. In August 2018, the U.S. Navy received the Littoral Combat Ship (LCS) 11 and the future USS Wichita, LCS 13, from Lockheed Martin Corporation and Fincantieri Marinette Marine. The future USS Wichita, LCS 11, is the sixth Freedom-variant LCS, and LCS 13 is the seventh. Both were developed and constructed by the Lockheed Martin Corporation.
Key Companies in the naval combat vessels market include
Naval Combat Vessels Industry Developments
March 2022: The four German Navy F126 frigates will have Leonardo's OTO 127/64 lightweight (LW) Vulcano defense systems installed, thanks to Damen Naval, a division of Damen Shipyards Group.
January 2022: For USD 374.96 million, the Philippines and BrahMos Aerospace Private Ltd agreed to supply a shore-based anti-ship version of the BrahMos supersonic cruise missile. Three missile batteries, operator and maintainer training, as well as the required Integrated Logistics Support (ILS) program, are also included in the deal. In the second half of 2023, the company will assist the Philippines in establishing the bases for the anti-ship missile systems, sensor suits, and battle management systems that go along with them.
Naval Combat Vessels Market Segmentation
Naval Combat Vessels Vessel Type Outlook
- Submarine
- Frigates
- Corvettes
- Destroyers
- Others
Naval Combat Vessels Mode of Propulsion Outlook
- Nuclear-Powered
- Conventional Powered
Naval Combat Vessels Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
Naval Combat Vessels Market Highlights:
