Naval Vessels Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 153.32 Billion |
| Market Size (2029) | USD 229.07 Billion |
| CAGR (2024 - 2029) | 6.98 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Naval Vessels Market Analysis
The Naval Vessels Market size is estimated at USD 153.32 billion in 2024, and is expected to reach USD 229.07 billion by 2029, growing at a CAGR of 6.98% during the forecast period (2024-2029).
As geopolitical tensions and maritime disputes between various countries are increasing, they are striving to enhance their naval capabilities. Several countries are upgrading their existing naval fleets or replacing their aging fleets with newer-generation vessels with advanced features. With several countries increasing their defense spending over the past decade, the industry witnessed large-scale procurement and development activities.
Technological advancements also support the development of newer-generation naval vessels, as each country wants to update its naval combat capabilities. As several countries currently operate older naval fleets, they are emphasizing procuring vessels with the latest technologies to gain a qualitative technological edge over their adversaries.
High production costs are a significant barrier to market growth for surface fighters and naval vessels due to various included systems. The naval fleets of countries like the US, the UK, China, India, and Japan have been witnessing significant growth over the past few years as they are strengthening their military capacities and global reach.
Counties around the world are heavily investing in the development, expansion, modernization, and gradation of their existing naval fleet. The development and procurement of new naval vessels, such as frigates, submarines, etc., are expected to generate demand for newer combat vessels.
Naval Vessels Market Trends
Aircraft Carrier Segment is Expected to Witness Significant Growth
The increasing geopolitical issues and territorial disputes between various nations led to the development of aircraft carrier ships. An aircraft carrier is a warship that acts as a seagoing airbase, consisting of a full-length flight deck and facilities to carry, arm, deploy, and recover aircraft. Aircraft carriers are the largest warships in the naval fleet as they require a large amount of deck room. They also have defensive capabilities for protecting many aircraft and crew onboard.
The nuclear-powered aircraft carriers are in major demand due to their larger capacity of carrying over twice the volume of aircraft fuel as compared to the conventionally powered aircraft carrier. In addition to endurance, its nuclear reactors give the ship greater space for aviation fuel, ordnance, and stores, which are important advantages over oil-powered carriers. The increased focus on maritime security and the high usage of nuclear energy are the main factors driving the market. In September 2022, India inducted INS Vikrant, the country's indigenous nuclear-powered aircraft carrier.
In January 2024, Newport News Shipbuilding (NNS), a division of HII, was awarded an advanced planning contract for the refueling and complex overhaul (RCOH) of USS Harry S. Truman (CVN 75), a nuclear-powered aircraft. The agreement has a total potential worth of USD 913 million and covers various tasks, such as engineering, design, material procurement and fabrication, documentation, resource forecasting, and pre-overhaul inspections. However, with technological developments and the rising popularity of relatively smaller naval vessels, such as frigates and corvettes, the market for aircraft carriers is expected to witness modest growth during the forecast period.
North America to Witness Highest Growth During the Forecast Period
The US mainly drives the North American naval vessels market. The US Navy has over 490 ships in active service and the reserve fleet, with about 90 more in the planning and ordering stage or under construction. The US Navy has been actively implementing force structure expansion plans, aiming to reach its 355-ship goal by FY 2034 through a mix of service life extensions and new construction. The US has invested its vast technological prowess toward the indigenous development of several weapon systems to foster its military prowess over all dominion - land, air, and water.
In the FY2023 budget proposal, the Navy proposed a total budget request of USD 230.8 billion, including USD 180.5 billion for the Navy and USD 50.3 billion for the Marine Corps. As part of the country’s naval expansion projects, the US Navy, in its FY2023 budget, proposed plans to modernize its fleet with the exclusion and inclusion of various warships and carrier fleets in the navy. The USS Nimitz is to be removed from the battle force by the FY2025, gradually accepting the Gerald R Ford-class carriers to be inducted readily into the fleet of agile force. The first of the new ships, USS Gerald R Ford (CVN 78), is scheduled for its first operational deployment near or in the third quarter of 2022.
Naval Vessels Industry Overview
The market for naval vessels is fragmented, with the many local players in Europe and Asia-Pacific catering to the requirements of naval vessels to the navies. Some of the prominent players in the naval vessels market are General Dynamics Corporation, Huntington Ingalls Industries Inc., BAE Systems plc, Naval Group, and Korea Shipbuilding & Offshore Engineering Co., Ltd.
With the industry's growing competition, innovation is a critical factor for the players to stand out. Many countries are trying to procure next-generation warships that possess advanced capabilities. For instance, in February 2023, the UK Royal Navy awarded a contract to BAE Systems plc to initiate construction of the third Dreadnought Class submarine, Warspite, at its shipyard in Cumbria. The submarine will have advanced technology and a carrying capacity for nuclear deterrence.
The OEMs are expected to enjoy healthy revenue growth owing to fleet expansion and modernization efforts from navies worldwide. The market players are also collaborating to develop advanced naval vessels to cater to the demand from armed forces. Such partnerships are expected to help the players expand their business during the forecast period.
Naval Vessels Market Leaders
General Dynamics Corporation
Huntington Ingalls Industries Inc.
BAE Systems plc
Korea Shipbuilding & Offshore Engineering Co., Ltd.
Naval Group
*Disclaimer: Major Players sorted in no particular order
Naval Vessels Market News
- April 2023: The UK Ministry of Defence awarded BAE Systems a USD 57 million contract to provide support for communication, command, control, computer, and intelligence (C4I) services for surface vessels. As per the contract, BAE Systems will likely assist with C4I services and data deliverables throughout the five phases of shipboard integration.
- March 2023: An agreement was made between an Indian Shipbuilder and the Indian Navy to produce 11 offshore patrol vessels and six missile vessels for the next generation.
Naval Vessels Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Vessel Type
5.1.1 Destroyers
5.1.2 Frigates
5.1.3 Submarines
5.1.4 Corvettes
5.1.5 Aircraft Carriers
5.1.6 Other Vessel Types
5.2 Geography
5.2.1 North America
5.2.1.1 US
5.2.1.2 Canada
5.2.2 Europe
5.2.2.1 Germany
5.2.2.2 UK
5.2.2.3 France
5.2.2.4 Russia
5.2.2.5 Spain
5.2.2.6 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 India
5.2.3.3 Japan
5.2.3.4 South Korea
5.2.3.5 Australia
5.2.3.6 Singapore
5.2.3.7 Rest of Asia-Pacific
5.2.4 Latin America
5.2.4.1 Brazil
5.2.4.2 Mexico
5.2.4.3 Rest of Latin America
5.2.5 Middle-East and Africa
5.2.5.1 UAE
5.2.5.2 Saudi Arabia
5.2.5.3 South Africa
5.2.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 General Dynamics Corporation
6.1.2 ThyssenKrupp AG
6.1.3 BAE Systems plc
6.1.4 Naval Group
6.1.5 EDGE Group PJSC
6.1.6 Damen Holding B.V.
6.1.7 Korea Shipbuilding & Offshore Engineering Co., Ltd.
6.1.8 Huntington Ingalls Industries Inc.
6.1.9 United Shipbuilding Corporation
6.1.10 Lockheed Martin Corporation
6.1.11 Austal Limited
6.1.12 FINCANTIERI S.p.A.
6.1.13 Hanwha Ocean (Hanwha Group)
6.1.14 LARSEN & TOUBRO LIMITED
6.2 Other Players
6.2.1 PT PAL Indonesia
6.2.2 Navantia SA
6.2.3 Kalashnikov Group
6.2.4 Lurssen Werft GmbH & Co. KG
6.2.5 China Shipbuilding Corporation Limited
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Naval Vessels Industry Segmentation
A naval vessel or ship is a military vessel used by a navy. Generally, naval vessels are damage-resilient and armed with weapon systems.
The naval vessels market is segmented by vessel type and geography. The vessel types include destroyers, cruisers, frigates, submarines, corvettes, aircraft carriers, and other vessel types (including amphibious warfare ships, littoral combat ships, cruisers, mine countermeasure ships, and patrol ships). The report also covers the market sizes and forecasts for the naval vessel market in major countries across different regions.
For each segment, the market size is provided in terms of value (USD).
| Vessel Type | |
| Destroyers | |
| Frigates | |
| Submarines | |
| Corvettes | |
| Aircraft Carriers | |
| Other Vessel Types |
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Naval Vessels Market Research FAQs
How big is the Naval Vessels Market?
The Naval Vessels Market size is expected to reach USD 153.32 billion in 2024 and grow at a CAGR of 6.98% to reach USD 229.07 billion by 2029.
What is the current Naval Vessels Market size?
In 2024, the Naval Vessels Market size is expected to reach USD 153.32 billion.
Who are the key players in Naval Vessels Market?
General Dynamics Corporation, Huntington Ingalls Industries Inc., BAE Systems plc, Korea Shipbuilding & Offshore Engineering Co., Ltd. and Naval Group are the major companies operating in the Naval Vessels Market.
Which is the fastest growing region in Naval Vessels Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Naval Vessels Market?
In 2024, the Asia Pacific accounts for the largest market share in Naval Vessels Market.
What years does this Naval Vessels Market cover, and what was the market size in 2023?
In 2023, the Naval Vessels Market size was estimated at USD 142.62 billion. The report covers the Naval Vessels Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Naval Vessels Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Naval Vessels Industry Report
Statistics for the 2024 Naval Vessels market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Naval Vessels analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
