Naval Vessels and Surface Combatants Market Research Report Information By Ship Type (Destroyers, Corvettes, Submarines, Amphibious Ships, Frigates, and Auxiliary Vessels), By System (Marine Engine System, Weapon Launch System, Sensor System, Control System, Electrical System, Auxiliary System, Communication System, and Others), By Solution (Line Fit and Retro Fit), By Application (Search and Rescue, Combat Operations, MCM Operations, Coastal Operations, and Others), By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Ma

Global Naval Vessels and Surface Combatants Market Overview

Naval Vessels and Surface Combatants Market Size was valued at USD 435.5 Billion in 2022. The naval vessels and surface combatants market industry is projected to grow from USD 460.75 Billion in 2023 to USD 723.367 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.80% during the forecast period (2023 - 2032). Due to market drivers like the growing emphasis on modernizing naval defense and the escalating geopolitical tensions in different regions, the market for naval vessels and surface combatants is experiencing significant expansion.

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Naval Vessels and Surface Combatants Market Trends

Growing maritime security challenges is driving the market growth

The market for naval vessels and surface combatants is anticipated to increase at a rapid pace in the future due to rising maritime security challenges. Any internal or external violation of vessel security is referred to as a maritime security hazard. By defending accessible resources and coastal areas, naval vessels and surface combatants contribute to the nation's sovereignty defense against potential threats in the oceans and deep waters. For instance, in 2023, armed robberies and pirate attacks against ships in the Straits of Malacca and Singapore increased, with 72 reported cases recorded, up from 70 in 2021, according to a report by the International Maritime Organization (IMO), a UN specialized agency with headquarters in the UK that oversees shipping. Remarkably, attacking a moving ship within these waters accounted for around 81% of the occurrences reported in 2022. Thus, the market for surface combatants and naval vessels is expanding as a result of growing challenges to maritime security.

The market for surface combatants and naval vessels is anticipated to increase at a rapid pace in the future due to the growing maritime traffic. The exchange of products, commodities, and services via shipping and navigation on seas, oceans, and other waterways is referred to as maritime trade. By offering security, defending shipping lanes, and guaranteeing the protection of priceless cargo, naval ships and surface combatants support maritime trade and enable secure, continuous international trade. For instance, in September 2023, the intergovernmental United Nations Conference on Trade and Development, with its headquarters in Switzerland, predicted that marine trade would increase by 2.4% in 2023 and by more than 2% between 2024 and 2028. As a result, the market for surface combatants and naval vessels is being driven by the growth in maritime trade.

Modern naval ships are equipped with cutting-edge technology for effective and safe marine operations. The industry is growing due to the advent of next-generation technology including integrated electric propulsion, ships powered by solar and wind energy, and more buckypaper. Moreover, robotic technologies are used in about 67% of their industrial operations. The shipbuilding industry's production pace is improved by the increasing usage of robotics. Robots used in shipbuilding perform heavy lifting, welding, blasting, painting, and other operations in shipyards. In addition, rising technological advancements in the maritime propulsion system by major companies and developing nations portend further market expansion. For instance, in May 2023, the Research and Innovation Agency (DARPA) of the U.S. Department of Defense announced a 42-month program to develop an underwater propellant system using Magnetohydrodynamic Kinetic (MHD) drive, which uses electric current and magnets to propel boats and ships silently. The MHD drive system has no moving parts. Thus, driving the naval vessels and surface combatants market revenue.

Naval Vessels and Surface Combatants Market Segment Insights

Naval Vessels and Surface Combatants Ship Type Insights

The naval vessels and surface combatants market segmentation, based on ship type includes Destroyers, Corvettes, Submarines, Amphibious Ships, Frigates, and Auxiliary Vessels. The frigates segment dominated the market. Over the course of the projection period, the category of frigates is expected to grow at the fastest rate because to the growing demand for them from expanding Asian nations such as China and India. The main responsibility of frigates is to protect other navy boats from potentially dangerous submarines.

Naval Vessels and Surface Combatants System Insights

The naval vessels and surface combatants market segmentation, based on system, includes Marine Engine System, Weapon Launch System, Sensor System, Control System, Electrical System, Auxiliary System, Communication System, and Others. The marine engine system category generated the most income. The propulsion shafting, stabilizers, thrust blocks, particular heat exchangers, line shaft bearings, and stern gear subsystems of the ship make up the navigational engine system. The weapon launch system consists of fire control systems, anti-submarine rocket launchers, and torpedo launchers.

Naval Vessels and Surface Combatants Solution Insights

The naval vessels and surface combatants market segmentation, based on solution, includes Line Fit and Retro Fit. The line fit category generated the most income spurred by developing nations' interest on homegrown shipbuilding. For instance, in March 2023, Cochin Shipyard Limited (CSL) was given a contract to build six Next Generation Missile Vessels (NGMV) for the Indian Navy.

Naval Vessels and Surface Combatants Application Insights

The naval vessels and surface combatants market segmentation, based on application, includes Search and Rescue, Combat Operations, MCM Operations, Coastal Operations, and Others. The coastal operations category generated the most income. The increasing quantity of naval drills involving various nations' naval forces stimulates the expansion of the industry. For instance, the Indian Navy and the U.S. Navy held a two-day naval drill in the eastern Indian Ocean region in March 2021. In the "PASSEX" exercise, the Indian Navy sent out its long-range maritime patrol aircraft, the P8I, and the cruiser Shivalik; the USS Theodore Roosevelt CSG (Carrier Strike Group) represented the US Navy.

Figure 1: Naval Vessels and Surface Combatants Market, by Application, 2022 & 2032 (USD Billion)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Naval Vessels and Surface Combatants Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American naval vessels and surface combatants market area will dominate this market. The biggest spending on the acquisition of naval vessels and the bolstering of naval forces is responsible for the region's explosive expansion. The U.S. Navy and Huntington Ingalls Industries inked a contract in April 2021 for the purchase of the amphibious assault ship LHA 9. The deal was valued USD 107 million. Furthermore, Austal USA was given a contract by the United States Navy in July 2022 to build two towing, salvage, and rescue ships.

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 VESSELS AND SURFACE COMBATANTS MARKET SHARE BY REGION 2022 (USD Billion)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe naval vessels and surface combatants market accounts for the second-largest market share. Growing private company investments in Europe are expected to support the expansion of the market for surface fighters and naval vessels. The market is growing due to the existence of significant important players like Thales Group, BAE Systems plc, Naval Group, and others. Furthermore, the ongoing hostilities between Russia and Ukraine will present more chances for naval troops operating in the area. Further, the German naval vessels and surface combatants market held the largest market share, and the UK naval vessels and surface combatants market was the fastest growing market in the European region.

The Asia-Pacific Naval Vessels and Surface Combatants Market is expected to grow at the fastest CAGR from 2023 to 2032 as a result of rising defense spending from South Korea, China, India, and other countries. For instance, China and Pakistan reached an agreement in February 2021 to purchase four Type 054A/P ships, F-22P frigates, Hangor-class submarines, and other armaments. The expansion of the Asia Pacific market is also linked to nations like India placing more emphasis on acquiring various navy vessels for maritime uses. Moreover, China’s naval vessels and surface combatants market held the largest market share, and the Indian naval vessels and surface combatants market was the fastest growing market in the Asia-Pacific region.

Naval Vessels and Surface Combatants 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 vessels and surface combatants 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, naval vessels and surface combatants 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 vessels and surface combatants industry to benefit clients and increase the market sector. In recent years, the naval vessels and surface combatants industry has offered some of the most significant advantages to medicine. Major players in the naval vessels and surface combatants market are attempting to increase market demand by investing in research and development operations includes BAE Systems (U.K.), Mazagon Dock Shipbuilders Limited (India), Larsen & Toubro Ltd. (India), Garden Reach Shipbuilders and Engineers (GRSE) (India), Hyundai Heavy Industries Co. Ltd. (HHI) (South Korea), Navantia (Spain), FINCANTIERI S.p.A. - Via Genova (Italy), ThyssenKrupp Marine Systems (Germany), General Dynamics Corp NASSCO (U.S.), and Damen Shipyards Group (Netherlands).

L&T is a conglomerate in the industrial sector. The business provides a broad range of goods and services for different market niches. For its clients, it provides engineering, production, construction, and technology. It provides hydrocarbon, shipbuilding, hydraulics, machinery for rubber processing, and valves. Along with goods for energy distribution and management, the company also manufactures and distributes equipment for mining and construction. In addition, it offers financial services linked to infrastructure finance, general insurance, agricultural finance, wholesale finance, and housing finance, among other things.

A holding firm, HD Hyundai Co Ltd (HD Hyundai) was formerly known as Hyundai Heavy Industries Holdings Co Ltd. Through its subsidiaries, it offers services to the energy and heavy industry sectors. The company operates in the petrochemical, shipbuilding, offshore engineering, refinery, and smart energy management industries. HD Hyundai offers maritime solutions, including as offshore plants, ship lifecycle maintenance, and propulsion systems for ships. The corporation has operations in Europe, Asia, North America, and Korea. The head office of HD Hyundai is located in Daegu, Yeongnam, South Korea.

Key Companies in the naval vessels and surface combatants market include

• BAE Systems (U.K.)


• Mazagon Dock Shipbuilders Limited (India)


• Larsen & Toubro Ltd. (India)


• Garden Reach Shipbuilders and Engineers (GRSE) (India)


• Hyundai Heavy Industries Co. Ltd. (HHI) (South Korea)


• Navantia (Spain)


• FINCANTIERI S.p.A. - Via Genova (Italy)


• ThyssenKrupp Marine Systems (Germany)


• General Dynamics Corp NASSCO (U.S.)


• Damen Shipyards Group (Netherlands)

Naval Vessels and Surface Combatants Industry Developments

For Instance, April 2023: The U.K. Ministry of Defence awarded BAE System a contract to assist engineers with communication, command, control, intelligence, and computer support (C4I) for surface vessel operators. The contract was worth USD 57 million in total. As per the terms of the agreement, BAE Systems will support C4I services and data deliverables during all five onboard integration phases.

For Instance, March 2021: Navantia has reached an agreement with Luciad Hexagon to develop sophisticated location intelligence and real-time situational awareness apps. These applications will be integrated into the combat system of five F-110 frigates that the Spanish Navy will acquire in the future.

Naval Vessels and Surface Combatants Market Segmentation

Naval Vessels and Surface Combatants Ship Type Outlook

• Destroyers


• Corvettes


• Submarines


• Amphibious Ships


• Frigates


• Auxiliary Vessels

Naval Vessels and Surface Combatants System Outlook

• Marine Engine System


• Weapon Launch System


• Sensor System


• Control System


• Electrical System


• Auxiliary System


• Communication System


• Others

Naval Vessels and Surface Combatants Solution Outlook

• Line Fit


• Retro Fit

Naval Vessels and Surface Combatants Application Outlook

• Search and Rescue


• Combat Operations


• MCM Operations


• Coastal Operations


• Others

Naval Vessels and Surface Combatants 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
  
  
  • Latin America