The global naval vessels, surface combatants, and associated maintenance, repair and overhaul (MRO) market is anticipated to record a compound annual growth rate (CAGR) of 3.31% during 2016-2026, according to a report by Strategic Defence Intelligence (SDI).
Titled “The Global Naval Vessels, Surface Combatants and Related MRO Market 2016-2026”, the report states that the market is expected to be valued at $36.3bn in 2016 and will reach the $50bn mark by 2026.
Naval vessels and surface combatants are primarily classified into five segments; aircraft carriers, amphibious ships, corvettes, destroyers, and frigates.
The corvettes segment is expected to attract the biggest share of investment, accounting for 26.7% of the total market share, while destroyers and frigates, with market shares of 23.3% and 20.1% respectively, are expected to be the second and third biggest segments respectively.
North America is anticipated to overshadow the market with a spending of $19.7bn during the forecast period, followed by Asia Pacific and Europe with $16.6bn and $14.7bn respectively.
The demand for the naval vessels and surface combatants is largely driven by high investments by emerging economies in the Asia Pacific region, including India and China, as well as MRO and upgrade programmes implemented by the US, the UK, Russia, Denmark and Greece.
The global economic slowdown and defence budget cuts being implemented by developed economies such as the US, the UK, France, Germany and Italy are, however, anticipated to affect the warship procurement programmes.