North America Naval Vessels Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 19.04 Billion |
| Market Size (2029) | USD 39.48 Billion |
| CAGR (2024 - 2029) | 15.70 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Naval Vessels Market Analysis
The North America Naval Vessels Market size is estimated at USD 19.04 billion in 2024, and is expected to reach USD 39.48 billion by 2029, growing at a CAGR of 15.70% during the forecast period (2024-2029).
The market is primarily driven by the initiatives undertaken by nations such as the US to enhance its naval warfare capabilities due to a rise in naval conflicts, the growth of piracy, and human and drug trafficking. The ongoing geopolitical turmoil has led to an arms race that has encouraged the US to develop and deploy advanced naval vessels with similar or better operational characteristics than its potential adversaries.
On this note, the US is planning to include 46 more ships in its naval fleet by the end of 2023. However, Canada’s naval vessel market is expected to experience slow growth during the forecast period, owing to the government's insufficient and ineffective budget allocation and the country's reluctance to upgrade its naval capabilities.
Manufacturers are under growing pressure to provide various countries with their individual customized vessels as per the requirement of their own. Development and manufacturing costs increased as a result of the application of advanced digital technology, e.g., High-Speed Processors, Combat Management Systems, and Data links in combination with enhanced automation and sensor fusion. Nevertheless, these technologies have led to an important increase in the combat performance of maritime vessels.
North America Naval Vessels Market Trends
Frigates Segment Expected to Account for the Largest Market Share
Frigates are expected to dominate the market share during the forecast period on account of the development and induction of new frigates by the US. The US is concentrated on enhancing the lethality and low detection capabilities of frigates and is one of the foremost countries in the world engaged in the design and development of new frigates. Its new program of guided missile frigate FFG(X) is in progress and includes the construction of about 20 FFG(X) next-generation frigates by 2030. The US Navy has selected five shipbuilders, Austal USA, Fincantieri S.p.A., General Dynamics Corporation, Huntington Ingalls Industries, and Lockheed Martin Corporation, for the program, and it is currently evaluating its designs. It expects to receive the first ship by July 2026 and the second ship by October 2026.
In addition, Canada aims to be a major contributor to the global security sector, and its Canadian Surface Combatant (CSC) program aims at building a new class of multi-purpose frigates to expand the country's current naval fleet, in order to excel in every aspect of warfare. For instance, in August 2023, the Canadian government announced an investment of USD 463 million in the Canadian Surface Combatant (CSC) project to ensure timely delivery of the CSC vessel for the Royal Canadian Navy. The objective of the program is to introduce a Single Class Ship for Operations in Open and Coastal Environments, replacing both Iroquois class destroyers as well as Halifax multirole patrol frigates. Such developments are expected to help the growth of the segment during the forecast period.
The United States is Expected to Dominate the Market During the Forecast Period
The US has the largest naval fleet in North America and ranks fourth globally in terms of fleet size. The US Navy has deployed over 484 ships in active service and the reserve fleet, with about 90 more in the planning and ordering stage or under construction. Both the US Navy and the Department of Defense (DoD) have been working to achieve a more distributed fleet architecture featuring a smaller proportion of larger ships, a larger proportion of smaller ships, and a new third tier of large, unmanned vehicles. 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 Navy’s FY2021 five-year (FY2021-FY2025) shipbuilding plan includes 42 new ships, 13 less than the 55 included in the FY2020 (FY2020-FY2024) five-year plan. In 2021, the US Navy received a Los Angeles-class attack submarine, an Arleigh Burke-class destroyer, about five littoral combat ships (LCS), and John-Lewis-class oiler naval vessels.
Huntington Ingalls Industries was awarded a contract modification worth USD 113.6 million from the US Navy for long-lead-time material and advance procurement activities for the amphibious assault ship LHA 9. Thus, as the US has been striving to modernize and expand its entire naval fleet to remain competitive against the Chinese Naval fleet, new orders are anticipated to be placed during the forecast period, which may drive the North American naval vessels market in the coming years.
North America Naval Vessels Industry Overview
The naval vessel market is consolidated, with a handful of companies taking major revenue shares in the market. Some of the prominent players in the market are Lockheed Martin Corporation, General Dynamics Corporation, HII, Austal Limited, and Irving Shipbuilding Inc.
Due to the availability of competent players in the US, it becomes difficult for new foreign players to enter and dominate the North American market. However, collaborations and partnerships between the players to support the naval vessel development programs of the naval forces may help the companies gain a strong and leading position in the market in the years to come.
For instance, in September 2023, Maritime Partners ‘one of its managed funds, acquired Marine Management LLC (USMMI) from Maersk Line, Limited. USMMI is the owner and operator of US flag vessels, including one owned maritime support vessel, three owned tankers, and one bareboat chartered tanker, to charter to the US Navy's Military Sealift Command. It's also engaged in the operation and maintenance of US government vessels, as well as has a single contract for operations and maintenance related to US military training boats that are ongoing in Japan.
North America Naval Vessels Market Leaders
Lockheed Martin Corporation
Austal Limited
General Dynamics Corporation
Irving Shipbuilding Inc.
HII
*Disclaimer: Major Players sorted in no particular order
North America Naval Vessels Market News
January 2024: Austal began construction of the first expeditionary medical ship as part of a USD 867 million contract that was awarded by the US Navy in December 2021. As per the terms of the contract, Austal will design and build three Bethesda-class expeditionary medical ships (EMS) that are derived from the US Navy’s expeditionary fast transport (EPF) vessels.
July 2022: Huntington Ingalls Industry revealed that its Ingalls Shipbuilding division was awarded a cost-plus-incentive-fee contract for engineering and design from the US Navy for the next-generation guided-missile destroyer DDG(X) program.
May 2022: Austal announced being awarded a USD 230.5 million contract by the US Navy for the detailed design and construction of EPF 16, which is set to become the US Navy's newest Expeditionary Fast Transport (EPF) ship.
North America 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 Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Vessel Type
5.1.1 Aircraft Carriers
5.1.2 Destroyers
5.1.3 Frigates
5.1.4 Corvettes
5.1.5 Submarines
5.1.6 Other Vessel Types
5.2 Geography
5.2.1 United States
5.2.2 Canada
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Lockheed Martin Corporation
6.1.2 General Dynamics Corporation
6.1.3 Austal Limited
6.1.4 HII
6.1.5 Irving Shipbuilding Inc.
6.1.6 Northrop Grumman Corporation
6.1.7 BAE Systems plc
6.1.8 Fincantieri S.p.A.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Naval Vessels Industry Segmentation
A naval vessel is a specialized watercraft operated by naval forces for military and security purposes. These vessels serve diverse roles, including defense, surveillance, and power projection at sea. They encompass various types, such as aircraft carriers, submarines, destroyers, and patrol boats, each designed for specific missions. Equipped with advanced weaponry and technology, naval vessels are instrumental in safeguarding a nation's maritime interests and territorial waters, contributing significantly to its national security and defense strategy.
The North American naval vessels market is segmented by vessel type and geography. Based on vessel type, the market is segmented into aircraft carriers, destroyers, frigates, submarines, corvettes, and other vessel types (including amphibious warfare ships, littoral combat ships, cruisers, mine countermeasure ships, and patrol ships). The report also offers the market size and forecasts for two countries across the region. For each segment, the market sizing and forecasts have been done based on value (USD).
| Vessel Type | |
| Aircraft Carriers | |
| Destroyers | |
| Frigates | |
| Corvettes | |
| Submarines | |
| Other Vessel Types |
| Geography | |
| United States | |
| Canada |
North America Naval Vessels Market Research Faqs
How big is the North America Naval Vessels Market?
The North America Naval Vessels Market size is expected to reach USD 19.04 billion in 2024 and grow at a CAGR of 15.70% to reach USD 39.48 billion by 2029.
What is the current North America Naval Vessels Market size?
In 2024, the North America Naval Vessels Market size is expected to reach USD 19.04 billion.
Who are the key players in North America Naval Vessels Market?
Lockheed Martin Corporation, Austal Limited, General Dynamics Corporation, Irving Shipbuilding Inc. and HII are the major companies operating in the North America Naval Vessels Market.
What years does this North America Naval Vessels Market cover, and what was the market size in 2023?
In 2023, the North America Naval Vessels Market size was estimated at USD 16.05 billion. The report covers the North America Naval Vessels Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Naval Vessels Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Naval Vessels Industry Report
Statistics for the 2024 North America Naval Vessels market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Naval Vessels analysis includes a market forecast outlook to for 2024 to 2029) and historical overview. Get a sample of this industry analysis as a free report PDF download.
