Naval Vessels MRO Market Size, Share, and Industry Analysis By Type of Vessel (Surface Vessels and Submarines), By MRO Services (Preventive Maintenance, Corrective Maintenance, and Overhaul and Refurbishment), By Systems (Propulsion Systems, Electrical and Electronics Systems, and Weapons and Combat Systems), and Regional Forecast, 2026-2034

The global naval vessels mro market size was valued at USD 119.01 billion in 2025. The market is projected to grow from USD 127.12 billion in 2026 to USD 215.46 billion by 2034, exhibiting a CAGR of 6.82% during the forecast period.

The global naval vessels MRO market is expanding because of growing age and difficulty in naval fleets worldwide, together with international stresses. Naval Vessels Maintenance, Repair and Overhaul (MRO) consists of many important services that help make naval fleets worldwide operational, durable and effective.

Increased use of advanced technologies and more outsourcing of MRO functions are leading to major growth in the market. Modern technologies like artificial intelligence (AI), the Internet of Things (IoT) and predictive analytics play an increasing role in maintenance and repair for naval forces.

Naval Vessels MRO Market Driver

Geopolitical Tensions to Expand the Market

The market for maintenance, repair and overhaul (MRO) of naval vessels depends largely on geopolitical tensions and naval modernization. Because of global unrest and maritime challenges like disputes, new claims and the rise of new threats, countries must improve their naval strength and remain active in important areas. Both investing in modern vessels and improving the performance of current ones are required because maritime security faces new threats all the time.

Emerging Markets to Advance the Market

Many countries are dealing with ageing naval fleets, which is also driving this market. Several decades have gone by, and an important share of ships in the world navy have been active longer than the time they were meant to operate. While shipyards are making new vessels, the older fleet must still be maintained, so extending their service is both logical and affordable.

Naval Vessels MRO Market Restraint

High Capital Expenditure to Pose Potential Impediments on this Market

There are limits to the growth of the naval vessels MRO market, primarily because of high capital expenditure. Keeping, fixing and upgrading large and advanced naval ships usually costs a lot of money. The large investment is needed to purchase the specific dry docks, leading diagnostic equipment, advanced repair tools and skilled workers needed to work on naval propulsion, combat and electronics systems.

Naval Vessels MRO Market Opportunity

Outsourcing Maintenance to Create Opportunity in this Market

Outsourcing maintenance, repair and overhaul (MRO) work is helping the Naval Vessels MRO market expand. More naval forces are realising that allowing private companies to handle maintenance, repair and overhaul tasks is a good choice compared to handling everything in-house. With this, navies profit from the advanced experience, high-tech facilities and higher efficiency available from defence contractors and specialised shipyards.

Segmentation

Key Insights

The report covers the following key insights:

• Market drivers, restraints and opportunities
• Influence of key industrial players and key developments
• Geopolitical tensions
• Technological Advancements

Analysis by Type of Vessel

By Type of Vessel, the Naval Vessels MRO market is divided into Surface Vessels & Submarines

At present, the surface vessel sector commands the largest segment of the naval vessels MRO market, and this is growing because they are used for many purposes and are deployed globally. For awareness of activities in local waters, fighting pirates, assisting in humanitarian issues and global naval engagement, which uses frigates, destroyers, aircraft carriers and corvettes extensively.

The underwater vehicle segment in MRO is expanding due to their important role in defence, intelligence collection and strategic deterrence. Both nuclear-powered attack submarines (SSNs) and ballistic missile submarines (SSBNs), which operate in extreme places, use advanced and carefully protected mechanisms for staying hidden and powerful propulsion, as well as weapons.

Analysis by MRO Services

Based on MRO Services, the market is divided into Preventive Maintenance, Corrective Maintenance & Overhaul and Refurbishment

The purpose of preventive maintenance is to carry out regular upkeep to keep equipment free of problems, ensure naval assets last longer and guarantee navy assets are always operating. This industry is growing rapidly due to AI, the Internet of Things (IoT) and predictive analytics.

Corrective maintenance works to get equipment back to working condition following a breakdown or failure. Corrective maintenance has not lost its significance in the MRO market because naval vessels are complex, and trouble can arise at any time during operations.

Analysis by Systems

Based on Systems, the market is divided into Propulsion Systems, Electrical and Electronics Systems & Weapons and Combat Systems

The MRO market for propulsion systems is growing majorly because they are crucial for a naval vessel’s motion, speed and overall effectiveness. All types of propulsion, together with diesel-electric, gas turbine, nuclear and integrated electric propulsion systems, experience tremendous stress while being used in naval operations.

The Electrical and Electronics Systems segment is growing quickly because modern naval warfare depends heavily on advanced technology. The segment contains power generation and delivery, navigation aids, communication equipment, radar and sonar systems and comprehensive combat and electronic warfare setups.

Regional Analysis

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Based on region, the Naval Vessels MRO market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Most of the influence in the naval vessels MRO market comes from North America, due to the United States. Being the biggest and most advanced naval force, the U.S. Navy depends on high and regular budgets for its MRO services. This requires repeated upgrades, new technologies and help with running several aircraft carriers, submarines, destroyers and frigates. Defence companies in the region are recognised, along with modern shipyard facilities that provide maintenance, services and upgrades to ships.

• According to NAVSEA, 115 counts of annual U.S. Navy ship maintenance contracts were awarded.
• According to America’s Navy, 42 counts of dry dock facilities were used for naval MRO in U.S.

In the naval vessels MRO market, Europe holds a major position due to many countries here spending heavily on fleet repairs and modernisation, including the United Kingdom, France and Germany. Every European country has specialist shipbuilding and maintenance facilities made for its specific fleet. MRO service demand within the European navy comes from the need to keep older ships current and increase readiness in response to new regional security issues. Government agencies and companies in Europe are closely collaborating, which leads to many contracts and advances in maintenance, repair and operations.

The region of Asia Pacific is becoming the area with the strongest growth in naval vessel MRO, mainly because of greater political pressures, disputes at sea and forceful plans for naval updating and expansion by countries such as China, India, Japan and South Korea. More money is being allocated to defence and navies in the region, which is leading to an increase in MRO services. Countries are working to build new ships and also update and sustain their existing fleets to stay prepared and deter trouble in areas such as the South China Sea and the Indian Ocean.

Key Players Covered

The report includes the profiles of the following key players:

• General Dynamics Corporation (U.S.)
• Huntington Ingalls Industries, Inc (U.S.)
• Lockheed Martin Corporation (U.S.)
• Navantia SA SME (Spain)
• ThyssenKrupp AG (Germany)
• BAE Systems PLC (U.K.)
• Naval Group (France)
• Rolls-Royce Holdings PLC (U.K.)
• Rhoads Industries, Inc. (Philadelphia)
• Abu Dhabi Ship Building Company (Abu Dhabi)
• Larsen & Toubro Limited (India)

Key Industry Developments

Hanwha Ocean is making big strides in the U.S. because of its purchase of Philly Shipyard in December 2024 for $100 million and renaming it Hanwha Philly Shipyard. The aim is to benefit from the U.S. trying to renew its shipbuilding industry and increase its total fleet, especially President Trump’s desire for Navy expansion.

The Indian business firm Larsen & Toubro (L&T) has been working closely with the U.S. Navy, concentrating on providing ship maintenance and repair services. The partnership uses L&T’s strong shipbuilding and repair skills at its Kattupalli Shipyard, which is near Chennai, India.