With recent defense spending having been dominated by the land-based conflicts in Iran and Afghanistan, many naval vessels and surface combatants are approaching the end of their operational lives. Spending in the sector is expected to focus on the refitting or replacement of these vessels, with inter-navy collaborations also increasing.
Overview of the global naval vessels and surface combatants market
The global naval vessels and surface combatants market consists of corvettes, frigates, destroyers, cruisers, amphibious ships and aircraft carriers, and its value is expected to increase during the forecast period. This is because the main markets, including the US and some countries in Europe and Latin America, are expected to modernize their naval fleets which were neglected during the Afghanistan and Iraq wars.
The US and Canada are the largest defense spenders in North America, and destroyers, frigates and aircraft carriers are expected to dominate the naval surface combatants market in the region. The top markets in Europe are expected to be the UK, Russia and France, while India, China and South Korea are the leading markets for naval surface combatants in Asia, as these countries face threats such as territorial disputes, domestic unrest, and a growing arms race in the region. Among Latin American countries, Brazil is expected to dominate naval spending and procure destroyers, frigates and amphibious ships. Middle Eastern procurement, represented by the UAE, Saudi Arabia and Israel, is expected to centre on littoral combat ships and corvettes due to threats of regional disputes and terrorism.
According to detailed market intelligence from ICD Research, the market is expected to increase at a CAGR of 1.30% during the forecast period (2011 - 2021), with destroyers expected to account for the majority of the global naval and surface combatants market, followed by frigates and aircraft carriers. During the ICD report’s 2011–2021 forecast period, cumulative global expenditure on naval vessels and surface combatants is expected to reach US$266.9 billion.
North America expected to represent the largest market share
Despite the North American countries’ high fiscal deficits, this region is expected to account for the largest share of the naval surface combatants market during the forecast period, with a share of 48.4%. Europe has borne the main brunt of the economic crisis, with countries currently facing deep fiscal deficits, and demand is, therefore, expected to decrease marginally during the forecast period; Europe is expected to account for 22.1% of the total market during this period. Strong economic growth, territorial disputes, domestic unrest and modernization programs will create a significant demand for naval surface combatants in Asia, which will account for a share of 24.2% of the total naval surface combatants market during the forecast period.
South American countries are also expected to modernize their naval fleets over the forecast period, with countries such as Brazil, Chile, Venezuela and Colombia locked in an arms race to establish military supremacy in the region. The aggressive modernization strategy being pursued by Latin American countries is expected to result in the region recording the highest growth in the naval surface combatants market during the forecast period, at 15.6%. Demand in Africa is expected to be fall during the forecast period, with the region representing only 2.4% of the total market size.
Destroyers, frigates and aircraft carriers constitute the majority of the market
Together, destroyers, aircraft carriers and frigates are expected to account for the largest share of the total naval surface combatants market across the forecast period: destroyers are expected to account for 30.4% of the total market, while aircraft carriers and frigates are expected to account for 20.2% each. Demand for destroyers, frigates and aircraft carriers is expected to increase, as countries such as the US, the UK, China, India and Brazil have launched new procurement programs throughout the forecast period. Countries facing conventional threats such as territorial disputes and hostile neighbors will also drive demand for these vessels. The wars in Iraq and Afghanistan resulted in many countries focusing on their armies and air forces, and neglecting their navies. With the conflicts on the verge of ending, many countries are now expected to increase their spending on strengthening their naval combat capabilities.
Demand for smaller multi-role ships capable of operating in littoral waters
The changing nature of warfare has forced governments around the world to spend on smaller surface combatants capable of operating in littoral waters, and advanced weapons and communication systems to enable these ships to perform multiple missions. These advanced systems require more power for operation, which has led to innovative propulsion systems being installed on surface combatants. As the capabilities of these ships increase, so too do the threats they face, leading to the development of advanced technology to reduce the ships’ signatures and increase their stealth capabilities. The combat capabilities of these ships are also being enhanced to make them capable of handling helicopters, which has led to the development of mobile deck handlers.
Western austerity measures to encourage consolidation
Global defense cuts, combined with a substantial increase in the cost of developing technologically superior weapons platforms, have encouraged collaboration between governments, services and industries. This has led to in-country and cross-border consolidation, and an increase in joint development and procurement programs, which are expected to continue in the next ten years.
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Overview of the global naval vessels and surface combatants market
The global naval vessels and surface combatants market consists of corvettes, frigates, destroyers, cruisers, amphibious ships and aircraft carriers, and its value is expected to increase during the forecast period. This is because the main markets, including the US and some countries in Europe and Latin America, are expected to modernize their naval fleets which were neglected during the Afghanistan and Iraq wars.
The US and Canada are the largest defense spenders in North America, and destroyers, frigates and aircraft carriers are expected to dominate the naval surface combatants market in the region. The top markets in Europe are expected to be the UK, Russia and France, while India, China and South Korea are the leading markets for naval surface combatants in Asia, as these countries face threats such as territorial disputes, domestic unrest, and a growing arms race in the region. Among Latin American countries, Brazil is expected to dominate naval spending and procure destroyers, frigates and amphibious ships. Middle Eastern procurement, represented by the UAE, Saudi Arabia and Israel, is expected to centre on littoral combat ships and corvettes due to threats of regional disputes and terrorism.
According to detailed market intelligence from ICD Research, the market is expected to increase at a CAGR of 1.30% during the forecast period (2011 - 2021), with destroyers expected to account for the majority of the global naval and surface combatants market, followed by frigates and aircraft carriers. During the ICD report’s 2011–2021 forecast period, cumulative global expenditure on naval vessels and surface combatants is expected to reach US$266.9 billion.
North America expected to represent the largest market share
Despite the North American countries’ high fiscal deficits, this region is expected to account for the largest share of the naval surface combatants market during the forecast period, with a share of 48.4%. Europe has borne the main brunt of the economic crisis, with countries currently facing deep fiscal deficits, and demand is, therefore, expected to decrease marginally during the forecast period; Europe is expected to account for 22.1% of the total market during this period. Strong economic growth, territorial disputes, domestic unrest and modernization programs will create a significant demand for naval surface combatants in Asia, which will account for a share of 24.2% of the total naval surface combatants market during the forecast period.
South American countries are also expected to modernize their naval fleets over the forecast period, with countries such as Brazil, Chile, Venezuela and Colombia locked in an arms race to establish military supremacy in the region. The aggressive modernization strategy being pursued by Latin American countries is expected to result in the region recording the highest growth in the naval surface combatants market during the forecast period, at 15.6%. Demand in Africa is expected to be fall during the forecast period, with the region representing only 2.4% of the total market size.
Destroyers, frigates and aircraft carriers constitute the majority of the market
Together, destroyers, aircraft carriers and frigates are expected to account for the largest share of the total naval surface combatants market across the forecast period: destroyers are expected to account for 30.4% of the total market, while aircraft carriers and frigates are expected to account for 20.2% each. Demand for destroyers, frigates and aircraft carriers is expected to increase, as countries such as the US, the UK, China, India and Brazil have launched new procurement programs throughout the forecast period. Countries facing conventional threats such as territorial disputes and hostile neighbors will also drive demand for these vessels. The wars in Iraq and Afghanistan resulted in many countries focusing on their armies and air forces, and neglecting their navies. With the conflicts on the verge of ending, many countries are now expected to increase their spending on strengthening their naval combat capabilities.
Demand for smaller multi-role ships capable of operating in littoral waters
The changing nature of warfare has forced governments around the world to spend on smaller surface combatants capable of operating in littoral waters, and advanced weapons and communication systems to enable these ships to perform multiple missions. These advanced systems require more power for operation, which has led to innovative propulsion systems being installed on surface combatants. As the capabilities of these ships increase, so too do the threats they face, leading to the development of advanced technology to reduce the ships’ signatures and increase their stealth capabilities. The combat capabilities of these ships are also being enhanced to make them capable of handling helicopters, which has led to the development of mobile deck handlers.
Western austerity measures to encourage consolidation
Global defense cuts, combined with a substantial increase in the cost of developing technologically superior weapons platforms, have encouraged collaboration between governments, services and industries. This has led to in-country and cross-border consolidation, and an increase in joint development and procurement programs, which are expected to continue in the next ten years.
To puchase the full version of this report, please click here.
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Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.
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The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.
With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.
For more information, please visit our website at www.industryreview.com
For more information on the article, please contact:
Press Contact
Shelly Wills
Tel: +44 (0) 20 7936 6671
shelly.wills@industryreview.com
Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.
We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.
The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.
With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.
For more information, please visit our website at www.industryreview.com
For more information on the article, please contact:
Press Contact
Shelly Wills
Tel: +44 (0) 20 7936 6671
shelly.wills@industryreview.com
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