The Europe naval vessels and surface combatants market witnessed significant growth and is expected to grow at a CAGR of around 10.61% during the forecast period (2023-2031).
The modern warships employed in seaborne warfare and surveillance are naval vessels and surface combatants. Such modern vessels are outfitted with technological technology that helps their operations, such as launching, communication, sensors, etc.
The Europe Naval Vessels and Surface Combatants Market is active and developing. European geopolitics, the necessity for strong naval forces, and the rising demand for modern naval vessels are driving the industry. Budgetary constraints and competing defense objectives are also affecting the market. Defense contractors have several opportunities.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The European geopolitical environment, which includes territorial conflicts and security concerns, has increased the demand for strong naval forces. As a result, modern naval warships and surface combatants are in high demand to ensure regional security. There are several territorial conflicts in Europe, notably the current confrontation between Russia and Ukraine over Crimea. These disagreements have heightened regional tensions and generated worries about maritime channels' security and coastal regions' security. The Russian Navy is Europe's largest navy. The fleet has undergone a modernization program in recent years and is currently one of the world's most powerful navies. The Russian Navy is in charge of protecting Russia's interests in the Arctic, Baltic Sea, and Black Sea. The geopolitical environment in Europe is pushing for higher investment in naval forces, driving European market growth.
Many European nations have restricted military resources, which might influence their naval purchase and modernization initiatives. This might cause delays in procuring new boats, fleet modifications, and investment in sophisticated technology. NATO nations' average defense spending as a percentage of GDP in 2021 was 1.9%. This is less than the 2% threshold set by NATO. The Royal Navy of the United Kingdom has suffered budget difficulties recently, resulting in delays and reductions in its naval purchase plans. For example, due to budget difficulties, the planned acquisition of Type 26 frigates was originally postponed, and the fleet strength was decreased from 13 to 8 ships.
European countries are increasingly looking into joint development and collaboration opportunities to maximize resources and decrease expenses. Collaborative initiatives enable the exchange of technological skills, R&D, and cooperative procurement, resulting in economies of scale and better capabilities. The Franco-Italian FREMM frigate program and the European Patrol Corvette (EPC) program are two examples. The initiative is a collaboration between France's Naval Group and Italy's Fincantieri to develop and produce multi-mission frigates for both nations' fleets. The initiative exemplifies European shipbuilders' collaborative efforts to economize resources, share expenses, and use technological knowledge. Furthermore, the European Union developed the European Defense Fund to boost joint initiatives and enhance European nations' defense capacities. These activities will likely propel the European market for naval vessels and surface fighters forward.
The market is analyzed in Russia, France, Germany, Italy, the U.K., and the rest of Europe. The rest of Europe is the highest contributor to the market and is expected to grow at a CAGR of 11.38% during the forecast period. The United Kingdom, France, Germany, Italy, and Russia are the market leaders in European naval vessels and surface combatants. These countries invest in new naval vessels and surface fighters to retain their military capabilities. Various reasons drive the market, including the geopolitical scenario in Europe, the necessity for powerful naval forces, and the rising demand for modern naval vessels. The United Kingdom is a European country investing in naval vessels and surface combatants. The government of the United Kingdom has announced intentions to raise defense spending by 20% over the next four years. This boost will likely be used for navy purchases and modernization. The European naval vessels and surface combatants market provides several prospects for military companies. Creating new naval vessels and surface combatants, providing maintenance and support services, and delivering weaponry and sensors are among the potential.
The Europe naval vessels and surface combatants market is segmented based on system platform, application, and country.
The market is segmented into Aircraft carriers, frigates, corvettes, destroyers, auxiliary vessels, and amphibious by platform.
Aircraft carriers led the market and are expected to grow at a 10.92% CAGR during the forecast period. Aircraft carriers are the largest and most powerful warships in the world. They can transport dozens of aircraft, giving them a substantial edge over other warships. Aircraft carriers are utilized for many roles, including projecting power onshore, providing air support to ground forces, and performing anti-submarine warfare. Corvettes are the smallest and lightest sort of warship on this list. They are often armed with various armaments, including missiles, cannons, and torpedoes. Corvettes are utilized for several duties, including coastal defense, anti-submarine warfare, and maritime patrol.
The market is further segmented into Marine Engine systems, weapon launching systems, control systems, communication systems, sensor systems, electrical systems, and auxiliary systems.
Marine Engine systems contribute a major market share and are expected to grow at a CAGR of 9.36% during the forecast period. Systems that power a ship are called marine engine systems. In addition to one or more primary engines, they frequently have auxiliary engines that power the ship's electrical system and other systems. Any ship's propulsion system depends on its marine engine systems, which must be meticulously maintained to guarantee reliable performance. Sensor systems are used to find and follow other ships, planes, and other things. Sonar, radar, and electronic warfare technologies are frequently included in them. Sensor systems are crucial to a ship's defense and must function well under any circumstances.
The market is further segmented into Coastal surveillance, search, and rescue operations, combat operations, MCM operations, and others by application.
Coastal surveillance holds a major market share and is expected to register a CAGR of 10.27% over the forecast period. Coastal surveillance is monitoring coastal waterways to discover and identify possible risks. It is generally carried out by ships, planes, and satellites. Coastal surveillance is critical for protecting coastal regions from dangers like terrorism, smuggling, and illegal immigration. Combat operations are military actions done to defeat an opponent. Combat operations might take place on land, sea, or air. Soldiers, sailors, and airmen are normally in charge of combat operations.