In recent years, the marine industry has been focusing on investing in the maintenance of naval vessels. This is because of the advancements in equipment and machines used for maintenance, known as MRO (Maintenance, Repair, and Overhaul). There are several reasons behind this growth. One of them is the support of favorable government policies. Some governments have made laws that exempt MRO services from customs and countervailing duties. This means that companies don't have to pay extra fees and taxes when they provide MRO services. This encourages more investments in naval vessel maintenance.
To meet the increasing demand for MRO services, many companies are expanding their facilities. They are building new structures and increasing the size of their existing facilities. By doing this, they can handle more maintenance work and serve their customers better. Companies are also trying to locate their facilities closer to their customers. This way, they can reach their customers faster and provide more efficient services. These expansions and relocations are expected to contribute to the overall growth of the global naval vessels MRO market.
In conclusion, the marine industry is investing more in the maintenance of naval vessels. This is driven by advancements in MRO equipment and machines. Many companies are expanding their MRO facilities and moving closer to their customers to provide better services. This is expected to drive the growth of the global naval vessels MRO market. MRO service providers can optimize their operations, improve efficiency, and deliver high-quality services to their clients. As a result, outsourcing has become an integral part of the MRO industry, benefiting both MRO service providers and the overall market.
Report Attribute/Metric | Details |
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Market Opportunities | · Increasing Demand for C4ISR Systems Will Open Up New Markets. |
Market Dynamics | · Increase in Outsourcing of Navy Vessel MRO Services to Benefit Market. |
Naval Vessel MRO Market Size was valued at USD 8.1 billion in 2022. The naval vessel MRO market industry is projected to grow from USD 8.5 Billion in 2023 to USD 12.2 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.03% during the forecast period (2023 - 2030). Increased investments in military vessel MRO systems and outsourcing of naval vessel MRO services are the key market drivers enhancing the market growth.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Naval Vessel MRO Market Trends
The market CAGR for MRO services for naval vessels is being propelled by rising demand for these services. Outsourcing MRO services increases efficiency while also significantly reducing maintenance costs. This opens doors for private companies to work with governments and provide MRO services for naval vessels. This is anticipated to encourage expansion of the MRO market for naval vessels in the ensuing years. Furthermore, as a more affordable alternative to purchasing new naval vessel fleets, many nations are focusing on MRO, retrofits, and upgrades for their naval vessels.
This is one of the main factors that is anticipated to encourage the growth of the MRO market for naval vessels in the upcoming years. Additionally, it is anticipated that demand for repair and maintenance services will rise significantly as the naval fleet ages.
The MRO market for naval vessels will further benefit from this in the upcoming years. Additionally, the main market players are concentrating on introducing cutting-edge technologies to prolong the lifespan of naval vessels. Over the course of the assessment period, this will further increase the demand for naval vessel MRO services. Naval ships typically require routine maintenance. Unfortunately, this drives up maintenance costs. A naval vessel's initial maintenance and repair costs are typically on the higher side. Additionally, it is essential to have skilled labour available to carry out the necessary maintenance tasks.
Due to the burden this place on service providers, the future expansion of the naval vessel MRO market may be hindered. Using 3D printing technology to convert electronics into 3D surfaces is a growing trend in the industry. As a result, the naval vessel MRO market revenue is increasing.
Naval Vessel MRO Market Segment Insights
Naval Vessel MRO Vessel Type Insights
The naval vessel MRO market segmentation, based on Vessel type includes corvettes, submarines, destroyers, frigates and others. Destroyers are swift, nimble, long-endurance warships designed to protect larger ships in a fleet, convoy, or battle group against powerful short-range assaults. Destroyers are the navy's workhorses. They participate in a number of activities. Anti-air, anti-surface, anti-submarine, strike, naval gunfire support, ballistic missile defense, you name it. Because of their ability to fight and protect themselves in diverse warfare zones, they can operate independently as well as in a defensive screen with other ships. They may transport helicopters in order to boost mission capabilities and effective range.
Naval Vessel MRO Type Insights
The component MRO, engine MRO, regular maintenance, and dry dock MRO segments of the worldwide naval vessel MRO market segmentation have been divided ly. MRO for dry docks held a substantial market share, Dry docking has been used for many years to repair ships. It is a process for creating, caring for, and repairing ships in a location known as the "lock." In terms of simplicity, a lock is comparable to a "garage" used for ship maintenance. The sole distinction is the building of a lock to position the beach for simpler ship handling and seawater drainage.
Naval Vessel MRO Service Insights
The naval vessel MRO market data, based on service, includes maintenance & repairs (MR), overhaul. The main purpose of a dry dock is to expose the underwater parts for inspection, maintenance & repairs (MR). In order to facilitate better examination and maintenance, the ship that requires repair is maneuvered into the lock, the gates are closed, and all seawater that has accumulated inside the ship is evacuated.
The major purpose of a dry dock is to efficiently execute repairs and maintenance on parts that are constantly in contact with marine water but are out of sight until the water is removed. Vessels must undergo this procedure if dry docking is considered necessary by the Classification Society. The most common dry-docking techniques are the floating dock and the graving dock, which are among the five main dry-docking methods that are currently known.
Figure1 Naval Vessel MRO Market, by service, 2022 & 2030 (USD billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Naval Vessel MRO Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. North America is likely to dominate the naval vessel MRO market. Maritime infrastructure serves scientific, commercial, and national security purposes. Ship construction, port operations, maritime engineering, naval force projection, and oceanographic research are all inextricably linked.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2 NAVAL VESSEL MRO T MARKET SHARE BY REGION 2022 (%)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe’s naval vessel MRO market accounts for the second-largest market share due to rising defense investment and the modernization and armament of naval vessels in this region. Further, the German naval vessel MRO market held the largest market share, and the UK naval vessel MRO market was the fastest-growing market in the European region
The Asia Pacific Naval Vessel MRO Market is expected to grow at the fastest CAGR from 2023 to 2030. This is due to increased demand for marine vessel maintenance services throughout the region as sea commercial activities develop can help the naval vessel markets. Moreover, China’s naval vessel MRO market held the largest market share, and the Indian naval vessel MRO market was the fastest-growing market in the Asia Pacific region.
Naval Vessel MRO Key Market Players & Competitive Insights
Leading market players are investing a lot in R&D to diversify their product lines, which will fuel the growth of the naval vessel MRO market. Releases of new products, contracts, mergers and acquisitions, increased investments, and cooperation with other businesses are all significant market developments. Participants in the market are also taking a variety of strategic steps to broaden their reach internationally. If the MRO market for naval vessel is to expand and prosper in a more competitive and difficult market climate, it must offer reasonably priced items.
Local manufacturing to minimize operational costs is one of the key business strategies used by manufacturers in the worldwide naval vessel MRO industry to serve customers and increase the market sector. The MRO industry for navy vessels has provided some of the most significant benefits to medicine in recent years. Major players in the naval vessel MRO industry, including BAE Systems (UK), General Dynamics Corporation (US), Lockheed Martin Corporation (US), Raytheon Technologies Corporation (US), Northrop Grumman Corporation (US), and others, are seeking to expand their customer bases in the untapped naval vessel MRO market.
MBDA is a European multinational missile development and manufacturer. It was formed in December 2001 as a result of the amalgamation of the major French, British, and Italian missile businesses. These were the missile divisions of Aérospatiale-Matra (later merged with EADS and become Airbus), BAE Systems, and Finmeccanica (now Leonardo). "MBDA" is an abbreviation for the names of the three missile companies Matra, BAe Dynamics, and Alenia. The headquarters of the corporation are in Le Plessis-Robinson, France. In July 2021, MBDA UK was given an 11-year contract to integrate the Common Anti-Air Modular Missile, often known as Sea Ceptor, into the Sea Viper missile systems of the UK Navy's Type 45 destroyers. The upgrade will also feature the Sea Viper command and control (C2) system. The addition of CAMM to the Type 45 destroyers increases the quantity of air defense missiles by 50%.
Spike is Israeli anti-tank and anti-personnel guided missile with a tandem-charge high-explosive anti-tank (HEAT) warhead. It is in its fourth generation as of 2007. Rafael Advanced Defense Systems, an Israeli corporation, created and designed it. It is offered in three variants man-portable, vehicle-launched, and helicopter-launched. In Feb 2023, The Greek Ministerial Council for Foreign Affairs and Defense, chaired over by Prime Minister Kyriakos Mitsotakis, opted to proceed with the acquisition of SPIKE missiles from the Israeli company Rafael Advanced Defense Systems to equip the Hellenic Armed Forces. SPIKE fire-and-forget missiles, among other things, will be installed on eight military warships of two different classes.
Key Companies in the naval vessel MRO market include
Naval Vessel MRO Market Segmentation
Naval Vessel MRO by Vessel Type Outlook
Naval Vessel MRO By MRO Type Outlook
Naval Vessel MRO Market by MRO Service Outlook
Naval Vessel MRO Regional Outlook
Naval Vessel MRO Industry Developments
For instance,In December 2020, - Boeing, a well-known aircraft and telecom solutions supplier, has struck a two-year agreement with APA (Asia Pacific Aerospace), an Australian SME that provides MRO services. The agreement calls for General Electric (GE), an American multinational corporation that operates in the energy and electricity sectors, to supply spare parts for T700 series engines.
For instance,In December 2021, The US State Department has approved a possible contract with the Greek government for the upgrade of four MEKO Hydra-class frigates valued around USD 2.5 billion. Upgrades would entail, among other things, the modernisation of weapon systems, combat management systems, and sonar.
For instance,In August 2021, The US Navy awarded numerous contracts totaling up to USD 2.76 billion for the repair of Littoral Combat Ships (LCS). BAE Systems, Fincantieri Marine Systems North America, Austal USA, Colonna's Shipyard Inc., East Coast Repair & Fabrication LLC, Epsilon Systems Solutions Inc., General Dynamics NASSCO ship maintenance facility, North Florida Shipyards Inc., and Tecnico Corp. were among the companies awarded contracts.
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