Naval Vessels Market Size

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.