Market Trends of Europe Naval Vessels Industry
Frigates to Dominate Market Share During the Forecast Period
Frigates are larger warships compared to corvettes and smaller compared to destroyers. Frigates weigh more than 3,000 tons and have a considerable mix of defense and offensive capabilities. These warships find applications in patrol missions, escorting larger ships to protect sea lines of communication and as an auxiliary component of a strike group. The high lethality and low detection capabilities of the frigates are the major reasons for navies around the world to increasingly procure frigates. This has also resulted in countries increasing their annual defense budget in the procurement of frigates.
The replacement programs in various European countries to replace the current aging fleet of combat ships with modern detection and weapon systems equipped with frigates that have anti-ship, anti-submarine, and air-defense capabilities are propelling the demand for frigates. During the forecast period, the majority of frigate procurement is planned in Europe. For instance, in November 2022, the UK Ministry of Defence (MoD) awarded a USD 4.4 billion contract to BAE Systems plc to manufacture the five City Class Type 26 frigates for the Royal Navy in Glasgow. Thus, the frigates segment of the market studied is anticipated to witness steady growth during the forecast period.
United Kingdom to Exhibit Significant Growth During the Forecast Period
The UK is expected to have a notable market share and will exhibit a substantial growth rate, owing to the long coastal line and increased defense procurement. The country has approximately 12,000km of coastal line that needs to be operated. The country experiences border protection issues and crisis management with the increasing number of individuals crossing the English Channel, which has allowed the nation to stay vigilant and keep its naval vessels ready for operations.
Due to the increasing causalities in the English Channel, France, and the UK initiated conversations to establish legal migration routes to address the channel crisis. Efforts of the country to modify its existing fleet and increase operational capabilities have led to the UK's procurement of advanced warships.
For instance, in December 2021, the Defense Select Committee of the UK announced its plans to increase the number of Royal Navy's frigates and destroyers to more than 19 by 2026 and acquire 20 more frigates and destroyers by 2030. These initiatives were taken post the report published by the UK Defense Committee that the country needs to double the escort fleet and increase the size of attack submarines over the coming years. In August 2022, five Astute-class submarines were commissioned into service, and two were under construction. The entry into service of the last submarine is planned for 2026.
