Naval Vessels and Surface Combatants Market Size, Share & Trends Analysis Report By Platform (Aircraft Carriers, Destroyers, Corvettes, Amphibious Ships, Frigates, Auxiliary Vessels), By System (Marine Engine System, Weapon Launch System, Sensor System, Control System, Electrical System, Auxiliary System), By Applications (Search And Rescue, Combat Operations, MCM Operations, Coastal Surveillance) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global naval vessels and surface combatants market revenue was valued at USD 104.9 billion in 2024. It is projected to reach USD 271.1 billion by 2032, growing at a CAGR of 12.60% during the forecast period (2023-2031). 

Modern warships deployed for operations on the seafront include naval ships and surface combatants. Weapon launching systems, such as anti-submarine rocket launchers, torpedo launching systems, and vertical missile launchers, are installed on maritime warships. The different surface combatants are the ships, platforms, aircraft carriers, destroyers, corvettes, amphibious ships, frigates, and auxiliary vessels. Integrating information, communication, and technology (ICT) into the navy ship is one of the aspects anticipated to drive the market. The market is projected to grow as naval drills occur more frequently worldwide. The market has prospects due to projects aimed at creating cutting-edge autonomous warships and digitalizing the marine sector. A significant factor influencing market growth is the rapidly evolving technology in the sensor systems and weapon launch systems responsible for replacing the old system.

Market Dynamics

Global Naval Vessels and Surface Combatants Market Drivers

Robotics and Technological Advancements Adopted by Shipbuilding Facilities

New navy ships and surface combat technologies make sea operations safe and effective. Robotics for shipbuilding is utilized in the shipyard to complete jobs including welding, blasting, heavy lifting, and painting. Around 30 ships are launched annually at some major shipyards, like Geoje Shipyard in South Korea. They are adopting robotic technologies to automate the manufacturing process by more than 65%. These mechanical systems assist the producers of ships in boosting production rates, preserving precision, and lower total production costs. 

The market for naval ships and surface combatants is expanding quickly due to the benefits afforded by robotic technology in shipbuilding. This growth is aided by the quick uptake of sophisticated automation technology in emerging nations like China and Brazil, with shipyards playing a vital role in this development. Brazil's shipyards, for instance, are quickly automating to satisfy the marine and offshore industries' needs and address their skills gap.

Global Naval Vessels and Surface Combatants Market Restraint

High Cost of Naval Ships and Surface Combatants' Development

A significant barrier to market growth is the high production costs related to developing surface fighters and naval vessels. The price of maritime vessels and surface combatants includes a battle management system, radar systems, auxiliary systems, communication systems, and gun launch systems. More industrial skills may also reduce production levels, restraining demand expansion. The Manufacturing Institute claims that a combination of a lack of qualified labor and more significant production costs might cause a net sales loss of over 11%.

Global Naval Vessels and Surface Combatants Market Opportunities

Modernization of the Naval Forces

Territorial conflicts and new marine dangers, including smuggling, piracy, and terrorism, are predicted to be the main drivers behind the acquisition of naval platforms. Fleets in Russia, China, India, the United Kingdom, France, and Canada are all getting older and need to be replaced. As a result, many nations have started naval modernization plans to replace outdated ships in active service to enhance their naval capabilities to counter asymmetric threats. The ongoing counter-piracy operations in areas like the Malacca Straits and Gulf of Aden, which have been severely affected by marine commercial routes, further support the requirement for more naval boats. As a result, new navy vessels will continue to be purchased globally throughout the forecast period.

Rising R&D and Manufacturing Joint Ventures

There have been suggestions that the government thinks about merging DPSUs, selling off DPSUs, or purchasing struggling civilian shipyards to form a small number of influential firms that can dominate the Indian commercial and navy shipbuilding industry. Establishing strategic joint ventures with foreign yards or permitting 100% FDI in the shipbuilding sector is conceivable to obtain best practices and technology. These ideas, however, strike me as bold and unproven; any attempt to alter shipbuilding needs to be discussed and approved by the marine and shipbuilding industries. They specifically require the government's strategic leadership and direction.

Regional Analysis

The global naval vessels and surface combatants market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

North America is the most significant revenue contributor and is expected to grow at a CAGR of 13.30% during the forecast period. The carrier replacement program and purchases of corvettes made on the American market are credited with this growth. In addition, the market is expected to grow due to major companies in North America, such as General Dynamics Corporation, Huntington Ingalls Industries, Inc., and Lockheed Martin Corporation.

Asia-Pacific is expected to grow at a CAGR of 14.60% during the forecast period. Asia-Pacific is expected to increase at the quickest rate during the projection period. This development is attributable to the People's Liberation Army Navy (CHINA) and the Indian Navy's rising defense spending. The Indian Navy and Garden Research Shipbuilders and Engineers Ltd. (GRSE), Hindustan Shipyard Ltd., Cochin Shipyard Ltd., and Mazagon Docks Ltd. agreed to a USD 2,000 million purchase agreement for seven corvettes in November 2016. These corvettes will partially replace the traditional Russian-built 1241-RE missile boats.

The Middle Eastern market will also experience significant expansion during the anticipated timeframe. This expansion is related to the planned purchase of Saudi Arabian Arleigh Burke-class destroyers. The rest of the world will experience tremendous growth throughout the projection period. This development results from rising Middle Eastern, African, and Latin American spending on auxiliary ships. The region's market for naval vessels and surface fighters is expanding due to the rise in geopolitical issues and conflicts in the area.

The European market is expected to grow due to rising private sector investments in constructing naval vessels. Increased demand for cutting-edge autonomous warships and cruises is anticipated to drive market expansion in the United Kingdom.

Segmental Analysis

The global naval vessels and surface combatants market is segmented by platform, system, and application.

Based on platform, the global naval vessels and surface combatants market is bifurcated into aircraft carriers, destroyers, corvettes, amphibious ships, frigates, and auxiliary vessels.

The aircraft carriers segment is the highest contributor to the market and is estimated to grow at a CAGR of 13.60% during the forecast period. A vessel that acts as a seagoing airbase and has a full-length flight deck and spaces for storing, preparing for deployment, and bringing back aircraft is known as an aircraft carrier. As it enables a naval force to project air power globally without depending on the local bases for staging aircraft operations, it is typically the capital ship of a fleet. Since their invention at the beginning of the 20th century, carriers have changed from wooden boats used to launch balloons to nuclear-powered battleships that transport many fighters, strike aircraft, helicopters, and other aircraft types. Even while heavier planes like fixed-wing gunships and bombers have been launched from aircraft carriers, they have never landed successfully there.

Multipurpose naval warships are destroyers; both their firepower and endurance are powerful. Amphibious ships support ground-based forces by providing ammunition, transportation, refueling for military vehicles, and protection from hostile surface ships and aircraft. Offshore patrol boats, interceptor boats, and fast-speed boats were all considered auxiliary vessels. The primary purpose of additional ships is to provide operational support for combatant navy ships.

Due to the rising demand for frigates from emerging Asian economies like China and India, the frigates category is predicted to increase at the quickest rate during the forecast period. The primary duty of frigates is to defend naval vessels against threatening submarines. The corvette segment is anticipated to account for the most significant market share among surface combatants and naval vessels. This expansion is attributable to the corvette's multiple uses in sea-based military operations. A small, technologically sophisticated warship with a weapon launcher is called a corvette. Due to their excellent mobility, corvettes are frequently deployed in smaller seas like the Red Sea and others.

Based on the system, the global naval vessels and surface combatants market is bifurcated into a marine engine system, a weapon launch system, a sensor system, a control system, an electrical system, and an auxiliary system.

The marine engine system segment owns the highest market and is estimated to grow at a CAGR of 11.90% during the forecast period. The navigational engine system consists of the ship's propulsion shafting, line shaft bearings, stabilizers, specific heat exchangers, thrust blocks, and stern gear subsystems. Torpedo launchers, anti-submarine rocket launchers, and fire control systems make up the weapon launch system. Stabilized radio detection and ranging (RADAR) systems are part of sensor systems. It detects naval ships and land impediments to providing bearing and distance for collision avoidance. 

The Control System includes combat management, integrated bridge management, automated power management, and integrated platform management. Electrical systems are made up of starters, switchboards, distribution boards, control panels (AC/DC), and ship degaussing systems. Auxiliary systems include blast-proof hangar shutters, helicopter landing gear, boat davits, and specific pressure-proof hatches. Specialized modems, very high frequency (VHE), and ultra-high frequency (UHF) connection equipment are all communication systems utilized to provide a secure communication interface.

Based on application, the global naval vessels and surface combatants market is bifurcated into search and rescue, combat operations, mcm operations, and coastal surveillance.

The coastal surveillance segment is the highest contributor to the market and is estimated to grow at a CAGR of 12.70% during the forecast period. To support global coastal monitoring efforts, coastal surveillance comprises target tracking, law enforcement, and surveillance operations. The combat operations segment will hold the most significant market share. The rising frequency of naval drills worldwide is blamed for this growth. The Indian Navy and the Navy of Qatar's Emir performed Za'ir-Al-Bahr, a three-day naval exercise, in November 2019. The maritime surveillance, air defense, interdiction operation, and anti-terrorism operation were all part of the maritime exercise Zair-Al-Bahr. Through mine countermeasures, naval troops are equipped to deal with any mine threat. MCM operations comprised dedicated mine countermeasure operations, organic mine countermeasure operations, mapping survey and intelligence operations, and surveillance operations.

Recent Developments

• February 2023- MBDA won the contract to supply CAMM to Royal Saudi Navy’s MMSC.
• August 2022- By 2035, the Ukrainian government hopes to have a new naval fleet in place according to a three-phase plan. It is anticipated that the first stage will be finished by 2024, the second by 2030, and the last by 2035. The Berdyansk naval facility will be built as part of the modernization strategy, which also calls for the development, production, and introduction of locally produced corvettes, armed vessels, and small submarines.