Market Trends of Naval Vessels Industry
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.
