The global naval vessels market size was US$ 74.4 billion in 2021. The global naval vessels market size is forecast to reach US$ 255.6 billion by 2030, growing at a compound annual growth rate (CAGR) of 16.8% during the forecast period from 2022 to 2030.

Naval vessels are a primary component of a nation’s naval force, designed to hold ammunition, crew, essential supplies for the crew, and weapons. The main purpose of naval vessels is to fight in battle. In addition to serving in warships, they offer more mobility, increased safety, and faster conveyance. Naval vessels, on the other hand, are owned by the navy. Corporations, individuals, and cooperatives all operate them.

Factors Influencing Market Growth

• The growing regional disputes and maritime conflicts, the rise in piracy, terrorism, and smuggling, and the upsurge in global defense expenditure drive the global naval vessels market.
• Increasing manufacturing costs may slow down the overall market growth.
• The increasing shift in technology in the sensor systems and weapon launch systems responsible for replacing the conventional system drives the global market growth.
• The rising usage of information, communication, and technology (ICT) in the naval ship fuels the global market growth.

Impact Analysis of COVID-19

The COVID-19 pandemic had a negative impact on the global naval vessels market. Several governments worldwide imposed a lockdown and restrictions. As a result, manufacturers of naval vessels have seen a decline in the manufacturing and operational efficiency of operating units globally due to disruptions in the supply chain. In addition, the COVID-19 outbreak diverted the attention of government spending from defense to the healthcare industry. Thus, it declined the need for naval vessels. 

Regional Insights

The Asia Pacific region is forecast to have lucrative growth in the market during the forecast period. The escalated anxieties between the countries have increased their military spending and naval fleets, which is forecast to fuel the market growth in the region during the forecast period. Countries like South Korea, Australia, India, China, and Indonesia, are mainly investing in developing construction and acquiring new naval vessels in the region. The existence of shipbuilding companies, like Austal, China State Shipbuilding Corporation, and Hyundai Heavy Industries (HHI), is helping the local manufacturing of naval vessels grow. Thus, these factors are forecast to fuel the market growth in the region.

Leading Competitors

The leading prominent companies profiled in the global naval vessels market are:

• ThyssenKrupp AG
• BAE Systems PLC
• General Dynamics Corporation
• The Naval Group
• Abu Dhabi Ship Building PJSC
• Damen Shipyards Group
• Lurssen Werft GmbH & Co. KG
• Hyundai Heavy Industries Group
• United Shipbuilding Corporation
• Kalashnikov Group
• Huntington Ingalls Industries Inc.
• Lockheed Martin Corporation
• Austal Limited
• Other Prominent Players

Scope of the Report

The global naval vessels market segmentation focuses on Vessel Type, Operation, Application, and Region.

Segmentation based on Vessel Type

• Destroyers
• Frigates
• Submarines
• Corvettes
• Aircraft Carriers
• Other Vessel Types

Segmentation based on Operation

• Surface Fleet
• Undersea Fleet

Segmentation based on Application

• Search and Rescue
• Combat Operations
• MCM Operations
• Coastal Surveillance
• Others

Segmentation based on Region

• North America
• The U.S.
• Canada
• Mexico
• Europe
• Western Europe
• The UK
• Germany
• France
• Italy
• Spain
• Rest of Western Europe
• Eastern Europe
• Poland
• Russia
• Rest of Eastern Europe
• Asia Pacific
• China
• India
• Japan
• Australia & New Zealand
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa (MEA)
• UAE
• Saudi Arabia
• South Africa
• Rest of MEA
• South America
• Brazil
• Argentina
• Rest of South America