Naval Combat Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2030)

The Naval Combat Systems Market is segmented by Type (Weapon Systems, Electronic Warfare, C4ISR), Platform (Aircraft Carrier, Destroyers, Frigates, Corvettes, Submarine, Others), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The report offers market size and forecasts by value (USD billion) for all the above segments.

Market Snapshot

Naval Combat Systems Market Overview
Study Period: 2018 -2030
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 2.69 %

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Market Overview

The Naval Combat Systems Market is forecasted to grow from USD 29 billion in 2020 to USD 38.95 billion in 2030, witnessing a CAGR of 2.69% during the forecast period (2021-2030).

The COVID-19 pandemic has resulted in several supply chain constraints on a global scale which has escalated the cost of acquisition for several naval programs. With shipyard workers being exposed to COVID-19 infection, the overall attendance declined by 50% during the peak of the pandemic, which resulted in the extension of deadlines for the completion of several shipbuilding programs. Besides, marine vessels are prone to uncertain breakdowns due to the extreme complexity of the integrated systems that may result in unplanned work for the shipyards. On this note, the electrical failure onboard the CVN 75 resulted in an extra three months of repairs to the ship’s availability schedule that resulted in the subsequent delay in the repair schedule of USS Abraham Lincoln. For instance, the US Navy’s shipyards were able to complete only 38 out of 51 maintenance orders for aircraft carriers and submarines during 2015-2019 and as per the August 2020 report of the US Government Accountability Office (GAO), the effects of COVID-19 are expected to exacerbate the carrier and submarine maintenance delays that already plague the US Navy shipyards.

The Naval Combat Systems Market is driven by the demand for new naval vessels as a result of the envisioned and ongoing fleet modernization programs of the global armed forces. However, the inherent capital-intensive nature of the industry due to the high associated cost of R&D, and the recent COVID-19 induced disruption in the global supply chain are some of the factors that hinder the growth of the market in focus during the forecast period.

Scope of the Report

The naval combat systems market encompasses the traditional aspects of defense forces categorization, including the procurement, upgrade, and modernization plans for naval assets for enhancing the prowess of global armed forces.

The study assimilates data from annual defense budget allocations of various countries to develop a comprehensively detailed overview of the current naval defense capabilities of the countries. Furthermore, the study also analyzes the emerging trends, such as network-centric warfare (NCW) and the development of joint-strike capabilities that would promote the rapid adoption of advanced naval combat systems for detecting, tracking, and neutralizing modern threats.

The Naval Combat Systems Market is segmented based on Type, Platform, and Geography. By Type, the market is segmented into Weapon Systems, Electronic Warfare, and C4ISR. By Platform, the market is segmented into Aircraft Carrier, Destroyers, Frigates, Corvettes, Submarine, and Others; and by Geography into North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa. Others include Support Vessels, Patrol Boats, and Amphibious Ships.

Additionally, the report provides an overview of the efforts divested by the countries toward enhancing their defense capabilities against evolving weaponry systems, such as stealth aircraft and hypersonic missiles. The report also covers the market sizes and forecasts for the Aircraft Naval Combat Systems Market across major regions. For each segment, the market sizing and forecasts have been done based on value (USD billion).

Weapon Systems
Electronic Warfare
Aircraft Carrier
North America
United States
United Kingdom
Rest of Europe
Rest of Asia-Pacific
Latin America
Rest of Latin America
Middle-East and Africa
Saudi Arabia
Rest of Middle-East and Africa

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Key Market Trends

The C4ISR Segment to Register the Highest CAGR During the Forecast Period

The C4ISR segment is expected to register a high CAGR during the forecast period. C4ISR is a combination of technologies like C2 systems for command and control, SDR, satellites, and other portable devices for communication. Integrated C4ISR systems are gaining significant acceptance in the market, and their use is likely to increase in the next five years. C4ISR systems are now being adopted widely for maritime patrolling. SIGINT and ISR activities are also increasing in naval operations. The defense sector is also increasingly turning to SATCOM for efficient communication. Another trend in the market is the growing use of UUVs in ISR activities to perform surveillance stealthily. This is also propelling the growth of the segment. 

naval combat systems_keytrend1

The Asia-Pacific Market to Register the Highest CAGR During the Forecast Period

Currently, North America is the largest market in the naval combat systems market. The region is a prime manufacturing hub and the largest market for naval subsystems. The United States is the main market in the region currently. However, the demand in the United States is expected to be mostly replacement demand, as the equipment becomes obsolete. Thus, the growth from the region is expected to be slow. However,  Asia-Pacific is expected to foresee significant growth during the forecast period, due to various conflicts and tensions in the regions. Tensions in the Arabian Sea, the Indian Ocean, and the South China Sea are influencing the navies of the countries, like India, Pakistan, China, Japan, South Korea, to procure advanced naval combat systems, thereby propelling the growth of the market. 

naval combat _geography

Competitive Landscape

Some of the prominent players in the market are BAE Systems PLC, Lockheed Martin Corporation, Raytheon Technologies Corporation, Thales Group, and General Dynamics Corporation. Many players in the market are working together to develop advanced and innovative combat systems for various militaries worldwide. This is expected to help the technology transfer and enhance the mission capabilities due to the integration of different spheres of technologies in the end product. For instance, companies, like Saab AB, BAE Systems PLC, and Lockheed Martin Corporation, are working together to deliver a combat system integration for the Hunter class frigates to Australia. Such partnerships are expected to help the growth of the market and revenues simultaneously for each of the players during the forecast period.

Recent Developments

  • In August 2021, India started conducting sea trials on its first indigenous aircraft carrier INS Vikrant. Currently, the country is engaged in the indigenous development and manufacturing of 44 other ships and submarines.
  • In April 2020, a Zumwalt class destroyer was delivered to the US Navy. The ship has a functional combat system and is scheduled to undergo a new phase of developmental and sea testing.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value - USD billion)

    1. 5.1 Type

      1. 5.1.1 Weapon Systems

      2. 5.1.2 Electronic Warfare

      3. 5.1.3 C4ISR

    2. 5.2 Platform

      1. 5.2.1 Aircraft Carrier

      2. 5.2.2 Destroyers

      3. 5.2.3 Frigates

      4. 5.2.4 Corvettes

      5. 5.2.5 Submarine

      6. 5.2.6 Others

    3. 5.3 Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

      2. 5.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. Rest of Asia-Pacific

      4. 5.3.4 Latin America

        1. Brazil

        2. Mexico

        3. Rest of Latin America

      5. 5.3.5 Middle-East and Africa

        1. Saudi Arabia

        2. Israel

        3. Egypt

        4. Rest of Middle-East and Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 BAE Systems PLC

      2. 6.2.2 Lockheed Martin Corporation

      3. 6.2.3 Raytheon Technologies Corporation

      4. 6.2.4 Thales Group

      5. 6.2.5 General Dynamics Corporation

      6. 6.2.6 Saab AB

      7. 6.2.7 L3Harris Technologies Inc.

      8. 6.2.8 Northrop Grumman Corporation

      9. 6.2.9 Safran SA

      10. 6.2.10 Elbit Systems Ltd

      11. 6.2.11 Terma Group

      12. 6.2.12 Kongsberg Gruppen ASA


**Subject to Availability

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Frequently Asked Questions

The Naval Combat Systems Market market is studied from 2018 - 2030.

The Naval Combat Systems Market is growing at a CAGR of 2.69% over the next 5 years.

The Naval Combat Systems Market is valued at 29 Billion USD in 2018.

The Naval Combat Systems Market is valued at 39 Billion USD in 2030.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

BAE Systems PLC, Lockheed Martin Corporation, Thales Group, General Dynamics Corporation, Raytheon Technologies Corporation are the major companies operating in Naval Combat Systems Market.

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