Naval Vessels and Surface Combatants Market Size, Share and Industry Analysis, By Platform (Aircraft Carriers, Destroyers, Corvettes, Amphibious ships, Frigates, and Auxiliary Vessels), By System (Marine Engine System, Weapon Launch System, Sensor System, Control System, Electrical system, Auxiliary system), By Application (Search and Rescue, Combat operations, MCM Operations, Coastal Surveillance), and Regional Forecast, 2019-2026

The global naval vessels and surface combatants market Size was valued at USD 34.24 billion in 2018 is projected to reach USD 41.82 billion by 2026, exhibiting a CAGR of 2.52% during the forecast period.

Naval vessels and surface combatants are technologically advanced warships used for sea-based battlefield operations. Naval warships are equipped with their weapon launches systems such as anti-submarine rocket launchers, torpedo launching systems, rocket launchers, and vertical missile launchers. By platform, naval ship and surface combatants are classified into aircraft carriers, destroyers, corvettes, amphibious ships, frigates, and auxiliary vessels.

The factors expected to drive the market are the incorporation of information, communication, and technology (ICT) in the naval ship. Moreover, the increasing number of naval exercises across the globe is anticipated to boost the market. Initiatives for the development of advanced autonomous warships and digitalization in the marine industry are the opportunities for the market. Rapidly changing technology in the sensor systems and weapon launch system that are accountable for replacing the conventional system is an important factor driving the market growth. However, the high cost related to the building of the naval vessels and surface combatants are hampering the market. In Aug 2019, General Dynamics Corporation and the U.S. Navy signed a contract with a valuation of USD 1,600 million for the construction of sea base ships.

MARKET TRENDS

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Rising Adoption of Integrated Electric Propulsion Technology

In terms of integrated electric propulsion technology, gas turbines and diesel generators are used to generate three-phase electricity. Electricity generated by gas turbines and diesel generators is provided to electric power motors to turn the propellers. Integrated electric propulsion technology uses electric transmission instead of mechanical transmission. This technology eliminates the need for clutches and gearboxes. Furthermore, this technology helps to reduce the noise created by the marine engines as well as help to reduce the weight of the overall naval ship. Thus the future surface combatant will be adopting electric propulsion systems. HMS Queen Elizabeth of Royal Navy, as well as Zumwalt Class destroyers of the US Navy, adopted the integrated electric propulsion technology.

Increasing Demand for 3D Printing Technology to Build Complex Geometries of Ship

3D printing technology is used to build complex geometries of naval vessels and surface combatants. Initially, this technology is used for developing prototypes and scale models for upcoming naval vessels and ships. But the rapid adoption of 3D printing for manufacturing small metals and composites are driving the naval vessels and surface combatants market. Technologically advanced 3D printers are used to create complex parts such as metal plates, metal pipes, cylinder, curved & hilly shapes of the warship. Faster product development, instant repair, fast moulds with cavities, eliminates human errors from the interpretation of complex machine drawings and descriptions, and low-cost production is the main feature of 3D printing technology. The increasing adoption of the 3D printing technology in the naval industry is anticipated to boost the market.

MARKET DRIVERS 

Use of Robotics and Technological Advancements Naval Vessels and Surface Combatants Shipbuilding Facilities

New technologies in naval vessels and surface combatants provide safe and efficient maritime operations. Shipbuilding robotics is used to carry out welding, heavy lifting, blasting, painting, and other tasks in the shipyards. South Korea based Geoje Shipyard is launching an estimate of about 30 ships in a year. Near around 67% of their production processes are carried out by using robotic systems. These robotics systems are increasing the production rate of the shipbuilding industry. Hyundai Heavy Industries that developed mini welding robots is set to adopt robotics technology in shipbuilding. The increasing demand for robotics technology in shipbuilding is refueling naval vessels and surface combatants market growth.

Increasing Adoption of LNG Fueled Engines in the Naval Vessels and Surface Combatants

Liquefied Natural Gas (LNG) is an alternate fuel for naval vessels and surface combatants. In the LNG engines, CO2 emission is reduced by 20% as compared to conventional diesel engines. Nitrogen oxide emission (NOX) emissions are cut by almost 90%, while sulphur oxide (SOX) emissions are eliminated. Furthermore, the new generation of naval vessel engines are strongly required to comply with the TIER 3 restrictions of 2016 by the International Maritime Organization (IMO). Therefore, the increasing adoption of LNG fueled engines will propel the market.

MARKET RESTRAINT

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

High development cost associated with the building of naval vessels and surface combatants is a prime factor to hamper the market growth. Naval vessels and surface combatants consist of highly expensive weapon launch systems, sensor systems, auxiliary systems, communication systems, and a combat management system. Most of the naval shipbuilding contracts are long term contracts, and delay at shipbuilding production phrases may lead to an increase in the naval ship and surface combatant program cost. Therefore, the high cost associated with the building of naval warships is restraining market growth.

SEGMENTATION

By Platform Analysis

Requirement of Surface Combatant for Safeguarding Maritime Border to Gain Momentum

Based on the platform, this market is classified into aircraft carriers, destroyers, corvettes, amphibious ships, frigates, and auxiliary vessels. Aircraft carriers are large naval vessels with a long flat deck on which the aircraft can easily take off and land. Destroyers are multitasking naval warships. It has high firepower and high endurance. Amphibious ships are warfare ships supported ground-based troops in terms of ammunition, transport, refuelling of military vehicles, and to protect the troops and military vehicles from enemy aircraft as well as surface vessels. An auxiliary vessel included offshore patrol vessels, interceptor boats, and fast speed boats. Auxiliary vessels are mainly designed to operate in support of combatant naval ships.

The frigates segment is anticipated to be the fastest-growing segment during the forecast period, and this is attributed to the increasing demand of frigates from the emerging Asian economy such as China and India. The leading role of frigates are to protect the naval ship from any hostile submarines.

The corvette segment is projected to register the largest naval vessels and surface combatants market share during the forecast period. This growth is attributed to numerous applications of the corvette in the sea-based battlefield operation. A Corvette is a technologically advanced small warship, which has a weapon launch system. Corvette has high maneuverability; therefore, they are majorly used in the smaller seas such as the Red Sea and others.

By System Analysis

Increasing Use of Connectivity Features in Naval Vessels is Supporting  Growth of Market

Based on the system, this market is classified into the marine engine system, a weapon launch system, sensor system, control system, electrical system, auxiliary system, and communication system. Increasing the use of IoT based sensors in marine systems is expected to drive the system segment of naval vessels and surface combatant market.

The marine engine system includes steering gear, stern gear sub-systems, stabilizers, special heat exchangers, thrust blocks, special seals, propulsion shafting for ships, and line shaft bearings. The weapon launch system is a combination of torpedo launching systems, rocket launchers, anti-submarine rocket launchers, and fire control systems.  Sensor Systems includes stabilized radio detection and ranging (RADAR) system. It is used to detect naval ships and land obstacles to give bearing and distance for the collision avoidance Control System includes a combat management system, an integrated bridge system, an automated power management system, and an integrated platform management system. Electrical systems contain control panels (AC/DC) switchboards, distribution boards, starters, and ship degaussing systems. Auxiliary systems include blast-proof hanger shutters, helicopter landing gear, boat davits, and special pressure-proof hatches. Communication systems include special modems, very high frequency (VHF) linking equipment, ultra-high frequency (UHF) linking equipment, which is used for a secure communication interface.

The weapon launch system is projected to register significant growth during the forecast period. This growth is owing to the increasing adoption of the rocket launcher system and torpedo launcher system from the several naval forces across the globe.

By Application Analysis

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Increasing Number of Naval Exercises across Globe Propelling  Market

By application, this market is classified into search and rescue, combat operations, mine countermeasures (MCM) operations, coastal surveillance, and others.  The combat operations segment holds the largest market share during the forecast period. This growth is attributed to the increasing number of naval exercises across the globe. In November 2019, A three-day naval exercise, Za’ir-Al-Bahr, was being conducted between the Indian navy and Qatar Emiri navy. The naval exercise Za’ir-Al-Bahr included maritime surveillance, air defence, interdiction operation, and anti-terrorism operation. Mine countermeasures provide naval forces, the capability to counter any mine threat. MCM operations included mapping, survey and intelligence operations, surveillance operations, organic mine countermeasures operations, and dedicated mine countermeasure operations. Coastal surveillance includes law enforcement, surveillance, target tracking activities to support coastal monitoring activities across the globe.

REGIONAL ANALYSIS

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The market of naval vessels and surface combatants has been segmented into North America, Europe, Asia Pacific, Middle East, and the Rest of the World. North America is anticipated to earn the largest market share during the forecast period. This growth is attributed to the carrier replacement program and spending on corvettes from the U.S. market. Furthermore, the presence of key players in North America, which includes Lockheed Martin Corporation, Huntington Ingalls Industries, Inc., and General Dynamics Corporation, is projected to boost the market.

Asia-Pacific witnesses to be the fastest-growing region during the forecast period. This growth is attributed to the increasing defence budget from the People's Liberation Army Navy (CHINA) and the Indian Navy. In November 2016, The Indian Navy signed a contract worth USD 2,000 million with Garden Research Shipbuilders & Engineers Ltd. (GRSE), Hindustan Shipyard Ltd., and Cochin Shipyard Ltd., Mazagon Docks Ltd., to buy seven corvettes. These corvettes will help to replace the conventional Russian-built 1241-RE missile boats.

In Europe, increasing investments from the private firm to build naval vessels are projected to boost the market. In the U.K., increased demand for advanced autonomous warships and cruises are expected to propel the market growth. The market in the Middle East will also register significant growth during the forecast period. This growth is attributed to the proposed acquisition of Arleigh Burke-class destroyers from Saudi Arabia. The Rest of the world will register a remarkable growth during the forecast period. This growth is owing to the increasing expenditure on auxiliary vessels from Latin America and the Middle East & Africa. An increase in the geopolitical issues and conflicts in the region is driving the growth of the market of naval vessels and surface combatants in the region.

KEY INDUSTRY PLAYERS

Increase In The Long Term Naval Shipbuilding Projects By The Key Market Player Are Propelling Market Growth

Integrated electric propulsion technology, 3D printing technology is used to build complex geometries of naval vessels, and surface combatants are the upcoming trends in the market. A diversified product portfolio coupled with R&D activity are the prominent factors responsible for the dominance of these key market player. These key players are adopting merger & acquisition strategies to sustain in the market.

LIST OF KEY COMPANIES PROFILED:

• Abu Dhabi Ship Building


• ASC PTY LTD


• Austal Limited


• BAE Systems.


• Damen Shipyards Group


• DSME Co., Ltd.


• General Dynamics Corporation


• Hyundai Heavy Industries Co., Ltd.


• Huntington Ingalls Industries, Inc.


• Mazagon Dock Shipbuilders Limited


• Naval Group


• PO Sevmash JSCo


• Lockheed Martin Corporation.


• Thales Group


• ThyssenKrupp Marine Systems AG

KEY INDUSTRY DEVELOPMENTS:

• November 2019 -  Austal Limited and the Australian Department of Defense signed a contract to deliver the fifth guardian class patrol boat to the Australian Department of Defense. The expected delivery of the patrol boat is scheduled in 2020.


• August 2018- Lockheed Martin Corporation and Fincantieri Marinette Marine delivered the Littoral Combat Ship (LCS) 11, and the future USS Wichita, LCS 13, to the U.S. Navy. LCS 11 is the 6th Freedom-variant LCS and future USS Wichita, LCS 13 is the 7^th freedom class variant LCS designed and built by the Lockheed Martin Corporation.

REPORT COVERAGE

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The naval vessels and surface combatants market report offers qualitative and quantitative insights on the market and the detailed analysis of market size & growth rate for all possible segments in the market.

Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the adoption trends of naval vessels and surface combatants by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends. In addition to the factors that have mentioned above, the report encompasses several factors that contributed to the market growth over recent years.

Report Scope and Segmentation