"Smart Market Solutions to Help Your Business Gain Edge over Competitors"

Naval Vessels and Surface Combatants Market Size, Share, COVID-19 Impact Analysis, Russia-Ukraine War Impact Analysis, By Ship Type (Destroyers, Corvettes, Submarines, Amphibious Ships, Frigates, Auxiliary Vessels, and Others), By System (Marine Engine System, Weapon Launch System, Sensor System, Control System, Electrical System, Auxiliary System, and Communication System), By Solution (Line Fit and Retro Fit), By Application (Search and Rescue, Combat Operations, MCM Operations, Coastal Operations, and Others), and Regional Forecast, 2023-2030

Region : Global | Format: PDF | Report ID: FBI102695

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global naval vessels and surface combatants market size was valued at USD 429.10 billion in 2022 and is projected to grow from USD 460.38 billion in 2023 to USD 674.81 billion by 2030, exhibiting a CAGR of 5.6 % during the forecast period.

WE ARE IN THE PROCESS OF REVAMPING Naval Vessels and Surface Combatants Market WITH RESPECT TO RUSSIA-UKRAINE CONFLICT

Request Sample

The naval forces use warships in sea-based battlefield operations. They include anti-submarine torpedo launching systems, rocket launchers, vertical missile launchers, and other armament systems. Increasing use of surveillance and gathering Information, Communication and Technology (ICT) in the naval ship drives the market's growth. On April 25, 2021, China commissioned three main battle warships, a large destroyer, an amphibious assault ship, and a nuclear-powered ballistic missile submarine. The rapidly evolving technology in the weapon and sensor systems responsible for replacing conventional systems is a significant factor influencing market growth. 


COVID-19 IMPACT


Unprecedented Challenges for the Shipbuilding Industry Due to COVID-19 Pandemic


The shipbuilding industry was affected due to the COVID-19 pandemic. The market was hit hard due to massive decline in deliveries of surface combatants. Reduced number of ship orders, supply chain disruptions, and delayed deliveries of naval vessels and surface combatants led to negative growth in the market.



  • According to VesselValue, a U.K based vessel valuation agency, new ship orders decreased by 41% in 2020 compared to the same period in 2019. The new shipbuilding orders were reduced to 532 in 2020 from 906 in 2019.

  • India’s first Indigenous Aircraft Carrier (IAC), INS VIKRANT’s delivery, was delayed six months due to the COVID-19 pandemic. It was built by Cochin Shipyard Limited (CSL) and can carry 40,000 tons.

  • The BRP Antonio Luna (FF-151) delivery, the Philippine Navy’s second missile-capable frigate, was delayed from the Q3 2020 to the Q1 of 2021.


RUSSIA-UKRAINE WAR IMPACT


Ongoing Conflict between Russia and Ukraine Increases Importance of Naval Vessels Globally Propelling Market Growth


The ongoing war between Russia and Ukraine has significantly impacted the naval vessels and surface combatants market, particularly in those region. As both sides aim to enhance their maritime capabilities, this conflict increases demand for warships and related equipment.


Further, Russia has been increasing its naval presence in the Black Sea region and has invested heavily in its naval fleet recently. This has included the development and deployment of new vessels, as well as upgrades to existing ones. For instance, in November 29, 2022, Russia deployed twelve warships into the Black Sea, including one vessel equipped with eight Kalibr missiles. Additionally, Russia has been working to develop new technologies and weapons systems for its naval vessels, including hypersonic missiles and unmanned underwater vehicles. In addition, in March 2023, Russia planned to equip some Navy vessels with Kalibr missiles. An expert on maritime policy said this weapon would be increasingly important in the country's arming of its fleet.


The conflict had an adverse effect on the Navy. The sanctions imposed by the International Community, or more specifically western countries, on Russia have had a material effect on the country's defense industry, which reduced its capacity for shipbuilding and exports of ships. Moreover, the conflict is making it harder for Ukraine's shipyards to obtain new shipbuilding resources, as many in the areas are currently under Russia's control.


LATEST TRENDS


Increasing Demand for 3D Printing Technology for Complex Ship Geometries to Enable Growth of the Market


3D printing is used to build complex naval vessels and surface combatant geometries. Advanced 3D printers create complex parts such as metal pipes, cylinders, metal plates, and curved & hilly shapes of the warship. For instance, in January 2021, the Naval Group developed a fully metal 3D-printed propeller for a French Navy ship. The vessel has joined this new generation propeller on all its operations missions since it was brought aboard a Tripartite class mine hunter. This propeller is a technological exploit with its 2.5-meter span supported by five 200-kg blades.


Faster product development, fast molds with cavities, instant repair, reduces human errors from interpreting complex machine drawings, and low-cost production is the main feature of 3D printing technology. For instance, in March 2023, the U.S. Navy planned to allow sailors to create replacement parts for vessels at sea, examining how 3D printing technology can be used. The Navy tested 3D printers on board its ships in addition to a test carried out by the U.S. Essex at Rim of the Pacific exercises in July 2022, which allowed sailors to create replacement parts for damaged or missing components rather than wait for an established supply chain.


Request a Free sample to learn more about this report.


DRIVING FACTORS


Various Technological Advancements in Naval Vessels and Surface Combatants to Aid Market Growth


Advanced technologies in naval vessels provide safe and efficient maritime operations. The introduction of next-generation technologies such as integrated electric propulsion, solar and wind-powered ships, and increased buckypaper material propels the market growth. Furthermore, around 67% of their production processes use robotic systems. The growing use of robotics improves the production rate of the shipbuilding industry. Shipbuilding robotics carry out the shipyards' heavy lifting, welding, blasting, painting, and other tasks. Further, growing technological advancement in the maritime propulsion system by various key players and emerging countries is anticipating market growth. For instance, in May 2023, the U.S. Department of Defense's Research and Innovation Agency, DARPA, declared a 42-month program for evolving an underwater propulsion system using Magnetohydrodynamic Kinetic (MHD) drive without any moving parts which silently propel boats and ships with electric current and magnet.


Growing Adoption of LNG-Fueled Engines in Naval Ships to Boost Market Growth


Liquefied Natural Gas (LNG) is used for naval vessels and surface combatants. In LNG engines, the carbon dioxide emission is reduced by 20% compared to conventional diesel engines. Sulfur oxide (SOX) is almost zero, and Nitrogen oxide (NOX) emissions are reduced by 90%. Furthermore, in January 2023, LNG reduced greenhouse gases up to 21% over the entire life cycle, thus driving the market growth. For instance, in January 2023, Japan's second-largest shipbuilding company, Japan Marine United (JMU), started building vessels fueled by liquefied natural gas, considered a transitional technology for the sector it wishes to decarbonize fully. Japan Marine United (JMU) aims to exploit environmentally responsible technology to satisfy demand in the increased competition with China and South Korea.


RESTRAINING FACTORS


High Development Cost of Naval Vessels and Surface Combatants Hampers Market Growth


The high development cost of building surface combatants is a prime factor that hampers the market growth. Naval vessels include highly expensive sensor systems, weapon launch systems, auxiliary systems, communication systems, and a combat management system. Rapidly changing technologies in weapon launch and sensor systems are accountable for replacing the conventional system. Therefore, the high cost of building naval warships is restraining the market growth. Moreover, with increased maintenance delays and costs, Navy ships receive fewer steaming hours. 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.


SEGMENTATION


By Ship Type Analysis


Increasing Need of Destroyers for Multi Missions Offensive and Defensive Purposes to Gain Momentum during 2023-2030 


Based on ship type, the market is segmented into destroyers, corvettes, submarines, amphibious ships, frigates, auxiliary vessels, and others.


The destroyers segment is estimated to be the fastest growing during 2023-2030. The growth is due to its applications, such as anti-submarine warfare, long-range attacks against surface targets and ships, and escort missions. For instance, in April 2023, Raytheon Technologies' missiles and defense business was said to engineer the combat system of the U.S. Navy’s Zumwalt-class guided missile destroyers under a one-year contract period, and the agreement cost was around USD 308.5 million. These funds will cover miscellaneous items and travel activities supporting operations on the fleet's mission systems and equipment.


The amphibious ships segment will showcase significant market share owing to the rising demand for amphibious ships as it performs multiple tasks in naval operations. It has high firepower and endurance with more troop-carrying capacity. For instance, in October 2022, HII’s Ingalls Shipbuilding was awarded a fixed-price-incentive contract worth USD 2.4 billion by U.S. Navy for the detailed design and construction of their amphibious assault ship LHA 9. If implemented, this award provides options that would bring the contract's total value to USD 3.2 billion. On April 2020, Ingalls won the original long lead time material contract for a fourth ship of America's class.


The corvettes segment is anticipated to show remarkable growth during the forecast period. This growth is due to its numerous applications, such as participating in minor wars, coastal patrolling, and partaking in show-the-flag missions.


By System Analysis


Marine Engine Segment Dominates the Market Due to Rising Deliveries of Warships 


Based on system, the market is segmented into weapon launch system, sensor system, marine engine system, control system, auxiliary system, electrical system, and communication system. The marine engine system segment held the highest shares in 2022. Rising demand for marine engine systems such as stern gear sub-systems, steering gear, thrust blocks, propulsion shafting for ships, and stabilizers boost segmental growth.


The auxiliary system segment will witness remarkable growth during the forecast period. This growth is attributed to the growing use of auxiliary systems in amphibious ships, frigates, destroyers, corvettes, and auxiliary vessels.


The weapon launch system segment is estimated to show significant growth during the forecast period. This growth is due to several naval forces' increasing adoption of rocket launchers and torpedo launcher systems. The weapon launch system is projected to grow significantly from 2023 to 2030. It includes torpedo launching systems, anti-submarine rocket launchers, and fire control systems.


By Solution Analysis


Increasing Indigenous Manufacturing of Ships by Emerging Countries is Driving the Market Growth 


Based on solution, the market is classified into line fit and retro fit.


The line fit segment is expected to be the fastest-growing segment during the forecast period. As emerging countries are focused on indigenous manufacturing of ships, the line fit segment is anticipated to propel segmental growth in the future. For instance, in March 2023, Cochin Shipyard Limited (CSL) signed a contract to build six Next Generation Missile Vessels (NGMV) for Indian Navy. Moreover, for instance, in April 2019, Cochin Shipyard Limited (CSL) had signed the contract with the Indian Navy for the construction and supply of eight Anti-Subsurface Warfare Shallow Water Crafts (ASWSWCs).


Retro fit is growing side by side to line fit as significant countries focus on modernization and upgradation of their naval fleet with next-generation technologies. For instance, in September 2021, BAE System signed a contract with Royal Navy to support early design and concept work onboard the Royal Navy's next generation of submarines.


By Application Analysis


Increasing Various Naval Exercises across Armed Forces Worldwide to Propel the Market Growth


By application, the market is classified into combat operations, search and rescue, Mine Countermeasures (MCM) operations, coastal operations, and others. The coastal operations segment is the fastest-growing segment during the forecast period. The growing number of naval exercises from naval forces operations of different countries boosts market growth. For instance, in March 2021, the Indian Navy conducted a two-day naval exercise with the U.S. Navy in the eastern Indian Ocean region. Indian Navy deployed its long-range maritime patrol aircraft P8I and warship Shivalik in the ‘PASSEX’ exercise, and the USS Theodore Roosevelt CSG (Carrier Strike Group) represented the U.S. Navy.


The search and rescue segment accounted for the highest market share in 2022. The rising procurement of search & rescue ships worldwide catalyzes market growth. For instance, in March 2023, Defense Ministry signed a contract with Goa Shipyard Ltd (GSL) to procure 11 Next Generation Offshore Patrol Vessels (NG-OPV). Seven of these 11 ships are indigenously designed, developed, and produced by GSL. The delivery is scheduled to commence in July 2026.


To know how our report can help streamline your business, Speak to Analyst


REGIONAL INSIGHTS


The market is segmented based on region into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.


Asia Pacific Naval Vessels and Surface Combatants Market Size, 2022 (USD billion)

To get more information on the regional analysis of this market, Request a Free sample


The Asia Pacific market is estimated to hold the highest naval vessels and surface combatants market share and was dominant region in 2022 due to increase in defense expenditure from China, India, South Korea, and others. For instance, in February 2021, China agreed with Pakistan to procure F-22P frigates, four Type 054A/P ships, Hangor-class submarines, and other weapons. In addition, in February 2020, Indian Navy awarded a contract to L&T to build Fifth Offshore Patrol Vessel ICGS Varad Commissioned for Indian Coast Guard. Further, the Asia Pacific’s market growth is attributed to increasing focus of countries, such as India, on procuring different naval vessels for maritime applications.


North America witnessed a significant growth in the market in 2022. The region’s rapid growth can be attributed to the highest spending on procurement of naval vessels and strengthening of naval forces. In April 2021, the U.S. Navy signed a contract worth USD 107 million with Huntington Ingalls Industries to procure the amphibious assault ship LHA 9. In addition, in July 2022, the U.S. Navy awarded a contract to Austal USA to produce two towing, salvage, and rescue ships.


In Europe, rising investments from private firms to construct naval vessels and surface combatants are projected to bolster the market growth. The presence of major key players such as BAE Systems plc, Naval Group, Thales Group, and others propel the market growth. Moreover, the ongoing conflict between Russia/Ukraine will create more opportunities in the region for naval forces across the region. Thus Europe's naval vessels and surface combatants’ market size is anticipated to propel significantly during the forecast period.


The Middle East & Africa is anticipated to register moderate growth during the forecast period. This growth is due to procuring advanced destroyers and frigates and rising defense spending from Saudi Arabia, Israel, Turkey, Egypt, and South Africa. Latin America is expected to register remarkable growth during the forecast period due to OEMs such as Abu Dhabi Ship Building (ADSB) increasing maritime capabilities with maintenance and repair services for maritime security naval platforms operating in the region for UAE and MENA region. This growth is owing to the increasing expenditure on auxiliary vessels from Latin America.


KEY INDUSTRY PLAYERS


Key Companies to Focus on Business Expansion through Merger & Acquisitions 


The market is fragmented as several players are involved in developing naval vessels and surface combatants. Original Equipment Manufacturers (OEMs) introduced advanced technologies such as 3D printing, integrated electric propulsion, and robotic systems to design and develop naval vessels and surface combatants.


Hyundai Heavy Industries Co. Ltd., General Dynamics Corporation, Thales Group, and BAE Systems are some of the major players in 2022. Hyundai Heavy Industries Co. Ltd. was expected to complete Daewoo Shipbuilding & Marine Engineering Co. (DSME) acquisition in the first quarter of 2021. In May 2023, Hanwha Group received permission from South Korean regulators to conclude the acquisition of a controlling 49.3% stake in troubled shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME).


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • April 2023 – BAE System won a contract from the U.K. MoD to support engineers for communication, command, control, computer, and intelligence for (C4I) service for surface vessels. The total value of the contract was USD 57 million. Under the contract, BAE Systems will assist C4I services and data deliverables throughout the five phases of shipboard integration.

  • February 2023 – Royal Navy awarded a contract to BAE System to start the construction of the third Dreadnought Class submarine, Warspite, at its shipyard in Barrow-in-Furness, Cumbria. The BAE will provide robust and technically advanced technology with the carrying capacity of a nuclear deterrent.

  • January 2023 – The U.K. Navy awarded a contract to Navantia as Team Resolute to build the vessels supplying munitions, stores, and provisions to the Royal Navy’s aircraft carriers, frigates, and destroyers. With Navantia, the team comprising Harland&Wolff and BMT will supply three Fleet Solid Support (FSS) ships for the Royal Fleet Auxiliary.

  • March 2023 – The Indian Navy signed a contract with an Indian Shipbuilder to manufacture 11 next-generation offshore patrol vessels and six next-generation missile vessels.

  • March 2021 - Navantia agreed with Luciad Hexagon’s platform for building advanced location intelligence and real-time situational awareness applications, which will be equipped in the combat system of five future F-110 frigates for the Spanish Navy.


REPORT COVERAGE


An Infographic Representation of Naval Vessels and Surface Combatants Market

To get information on various segments, share your queries with us



The research report provides an in depth analysis of the market. It focuses on key aspects such as leading companies, different platforms, systems, and applications of naval vessels and surface combatants. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.


Report Scope & Segmentation






















































ATTRIBUTE



DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 5.6% from 2023-2030



Unit



Value (USD Billion)



Segmentation



By Ship Type



  • Destroyers

  • Corvettes

  • Submarines

  • Amphibious Ships

  • Frigates

  • Auxiliary Vessels

  • Others



By System



  • Marine Engine System

  • Weapon Launch System

  • Sensor System

  • Control System

  • Electrical System

  • Auxiliary System

  • Communication System

  • Others



By Solution



  • Line Fit

  • Retro Fit



By Application



  • Search and Rescue

  • Combat Operations

  • MCM Operations

  • Coastal Operations

  • Others



By Geography



  • North America (By Ship Type, System, Solution, Application, and Country)

    • U.S. (By Ship Type)

    • Canada (By Ship Type)



  • Europe (By Ship Type, System, Solution, Application, and Country)

    • U.K. (By Ship Type)

    • Germany (By Ship Type)

    • France (By Ship Type)

    • Italy (By Ship Type)

    • Russia (By Ship Type)

    • Rest of Europe (By Ship Type)



  • Asia Pacific (By Ship Type, System, Solution, Application, and Country)

    • China (By Ship Type)

    • India (By Ship Type)

    • Japan (By Ship Type)

    • South Korea (By Ship Type)

    • Australia (By Ship Type)

    • Rest of Asia Pacific (By Ship Type)



  • Middle East & Africa (By Ship Type, System, Solution, Application, and Country)

    • Turkey (By Ship Type)

    • Egypt (By Ship Type)

    • Iran (By Ship Type)

    • South Africa (By Ship Type)

    • Rest of Middle East (By Application)



  • Latin America (By Ship Type, System, Solution, Application, and Country)

    • Brazil (By Ship Type)

    • Colombia (By Ship Type)

    • Mexico (By Ship Type)

    • Argentina (By Ship Type)

    • Rest of Latin America (By Ship Type )





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 429.10 billion in 2022 and is projected to reach USD 674.81 billion by 2030.

Registering a CAGR of 5.6%, the market will exhibit steady growth during the forecast period (2023-2030).

Line fit in the solution segment is expected to lead this market during the forecast period due to growing procurement contracts of warships from naval forces.

Hyundai Heavy Industries Co. Ltd. is the leading player in the global market.

Asia Pacific dominated the market in terms of share in 2022.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Sep, 2023
  • 2022
  • 2019-2021
  • 200

    CHOOSE LICENSE TYPE

  • $4850
    $5850
    $6850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X