Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2030)

The Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market is Segmented by Vessel Type (Submarines, Frigates, Corvettes, Aircraft Carriers, Destroyers, and Other Vessel Types), MRO Type (Engine MRO, Dry Dock MRO, Component MRO, and Modification), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The report offers the market size and forecasts for all the above segments in value (USD billion).

Market Snapshot

Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market Overview
Study Period: 2018 -2030
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: <1 %

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Market Overview

The naval vessel maintenance, repair, and overhaul (MRO) market was valued at about USD 53 billion in 2020, and it is projected to register a CAGR of about 1% during the forecast period (2021 - 2030).

The market for naval vessel maintenance, repair, and overhaul (MRO) was slightly affected due to the COVID-19 pandemic, resulting in a lockdown implemented as a precaution against the spread of the virus. However, due to the pandemic, the military budgets are expected to decrease in the coming years, which may hamper the fleet modernization plans of the navies globally.

The pandemic has led to the integration of advanced technologies to perform checks, inspections, and repairs of the existing fleet of naval vessels. Such technological advancements are expected to propel the growth of the market during the forecast period.

The increasing need to maintain, repair, and overhaul the existing fleet of naval vessels worldwide, owing to the increasing maritime disputes, may lead to growth in the naval vessel maintenance, repair, and overhaul (MRO) market.

Insufficient funds allocated by the governments for mid-life extension and maintenance of naval vessels can restrain the growth of the market.

Scope of the Report

The maintenance, repair, and overhaul operations, conducted periodically on naval vessels are crucial for sustaining and extending the life of a ship. It involves all the functions related to the maintenance, overhaul, routine checks, inspection, repair, and modification of the vessel and its components. Performing MRO services helps ensure the safety and worthiness of the naval vessels. The market for naval vessel maintenance, repair, and overhaul (MRO) is segmented based on vessel type into submarines, frigates, corvettes, aircraft carriers, destroyers, and other vessel types. The other vessel types segment includes amphibious warfare ships, littoral combat ships, cruisers, mine countermeasure ships, and patrol ships, among others. The market is segmented by MRO type into engine MRO, dry dock MRO, component MRO, and modification. The report also covers the market size and forecasts for the naval vessel maintenance, repair, and overhaul (MRO) market in major countries across different regions. The market sizing and forecasts have been provided in value (USD billion).

Vessel Type
Submarines
Frigates
Corvettes
Aircraft Carriers
Destroyers
Other Vessel Types
MRO Type
Engine MRO
Dry Dock MRO
Component MRO
Modification
Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle-East and Africa
United Arab Emirates
Saudi Arabia
Egypt
Rest of Middle-East and Africa

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Key Market Trends

The Other Naval Vessels Segment Dominates the Market in Terms of Market Share

The other naval vessels segment currently has the highest market share due to the large fleet of support vessels like amphibious warfare ships, cruisers, littoral combat ships, mine countermeasure ships, patrol ships, and training vessels, among others. In North America alone, the age of naval vessels under the segment is more than 15 years. Due to such a high age of support vessels globally, the demand for maintenance, repair, and overhaul is expected to grow in the coming years for their safe operations. In addition to MRO demand, the navies are also upgrading the equipment onboard naval vessels with new and advanced payloads that will enhance their capabilities and provide better situational awareness. In this regard, in 2017, the Israeli Navy installed the advanced ALPHA (Advanced Lightweight Phased Array) ELM-2258 radar system onboard Saar 4.5 and Saar 5 missile ships to upgrade its operational capabilities. The ALPHA system is a lightweight rotating AESA radar that supports the detection and classification of naval targets, tracking a large number of maritime and aerial targets and integration into guided missile systems for defense and attack. Such modernization plans of navies across the world are expected to accelerate the growth of the segment during the forecast period.

Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market Share

The Asia-Pacific Region Held the Highest Market Share in 2020

The Asia-Pacific region currently dominates the market, and it is expected to continue its dominance during the forecast period. Countries like China, India, and Japan are increasing their investment in strengthening their naval capabilities due to the ongoing geopolitical tensions in the region. China is one of the largest navies in the world, with 335 naval vessels (2019), about 55% larger than in 2005, where the majority of the fleet is more than 13 years. Similarly, other countries (like India and Japan) are also operating a fleet of aging naval vessels. Due to this, the countries are modernizing their fleets of naval vessels through the integration of advanced technologies (modifications) into the vessels. In this regard, the Australian government announced an investment of USD 75 billion over the next decade to enhance its naval capabilities. Out of the total investment, approximately 1/3rd of the investment is expected toward the improvement and sustainment of its naval vessels. Under this investment, the country plans to upgrade its Hobart Class Destroyers, ANZAC Class Frigates, and the country navy’s Amphibious ships and invest in the upgrade and life extension of the Collins Class submarines that are currently in service (average age more than 20 years). Similar investments in the modernization of naval vessels are anticipated to accelerate the demand for naval vessel MRO in the region in the coming years.

Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market Growth By Region

Competitive Landscape

The market for naval vessel MRO is fragmented with the presence of many international and domestic players that support navies around the world. Some of the prominent players in the naval vessel MRO market are General Dynamics Corporation, ThyssenKrupp AG, Naval Group, Damen Shipyards Group, and FINCANTIERI SpA. The companies are expanding their presence in the market by incorporating new technologies to decrease maintenance costs and receive new long-term contracts from navies around the world. In this regard, Indra, in collaboration with the Spanish Navy, tested new artificial intelligence systems that can predict malfunctions and improve the maintenance for its fleet of F100 frigates and Offshore Patrol Vessels BAM. Such new solutions are expected to help the companies predict and offer efficient MRO services to their customers, thereby increasing their shares in the market.

Recent Developments

In January 2021, Spanish shipbuilder Navantia was selected as a preferred bidder to provide repair and maintenance services for the US Navy’s Arleigh Burke-class destroyers (DDGs) and other navy ships deployed at the Naval Station Rota in Spain.

In July 2020, Naviris, a 50/50-owned joint venture by Fincantieri and Naval Group, was selected by the Organisation for Joint Armament Cooperation (OCCAR) to begin a feasibility study on the mid-life upgrade (MLU) of the four Horizon-class frigates that are currently in service of the French and Italian navies.

In June 2020, the Australian Navy announced that the HMAS Arunta, the second Anzac Class Frigate, will undergo the Anzac Midlife Capability Assurance Program (AMCAP) upgrade. The AMCAP program was expected to extend the combat readiness of naval vessels until the new Hunter Class Frigate enters service in the late 2020s.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers/Consumers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      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 Vessel Type

      1. 5.1.1 Submarines

      2. 5.1.2 Frigates

      3. 5.1.3 Corvettes

      4. 5.1.4 Aircraft Carriers

      5. 5.1.5 Destroyers

      6. 5.1.6 Other Vessel Types

    2. 5.2 MRO Type

      1. 5.2.1 Engine MRO

      2. 5.2.2 Dry Dock MRO

      3. 5.2.3 Component MRO

      4. 5.2.4 Modification

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 United Kingdom

        2. 5.3.2.2 Germany

        3. 5.3.2.3 France

        4. 5.3.2.4 Russia

        5. 5.3.2.5 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 Latin America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Rest of Latin America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 Saudi Arabia

        3. 5.3.5.3 Egypt

        4. 5.3.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 General Dynamics Corporation

      2. 6.2.2 Huntington Ingalls Industries Inc.

      3. 6.2.3 Lockheed Martin Corporation

      4. 6.2.4 NAVANTIA SA

      5. 6.2.5 ThyssenKrupp AG

      6. 6.2.6 BAE Systems PLC

      7. 6.2.7 Naval Group

      8. 6.2.8 Rolls-Royce Holdings PLC

      9. 6.2.9 Rhoads Industries

      10. 6.2.10 Abu Dhabi Ship Building Co.

      11. 6.2.11 Larsen & Toubro Limited

      12. 6.2.12 Damen Shipyards Group

      13. 6.2.13 FINCANTIERI SpA

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Naval Vessels Maintenance Repair and Overhaul Market market is studied from 2018 - 2030.

The Naval Vessels Maintenance Repair and Overhaul Market is growing at a CAGR of <1% over the next 5 years.

The Naval Vessels Maintenance Repair and Overhaul Market is valued at 53 Billion USD in 2018.

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

Asia Pacific holds highest share in 2020.

General Dynamics Corporation, ThyssenKrupp AG, Naval Group, Damen Shipyards Group, FINCANTIERI S.p.A. are the major companies operating in Naval Vessels Maintenance Repair and Overhaul Market.

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