| Study Period | 2020 - 2030 |
| Market Size (2025) | USD 19.93 Billion |
| Market Size (2030) | USD 24.32 Billion |
| CAGR (2025 - 2030) | 6.60 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Naval Vessel Defense Systems Market Analysis
The Naval Vessel Defense Systems Market size is estimated at USD 19.93 billion in 2025, and is expected to reach USD 24.32 billion by 2030, at a CAGR of 6.60% during the forecast period (2025-2030).
The increasing global use of unmanned systems, stealth systems, and supersonic/hypersonic threats have exponentially increased the threat for naval vessels, urging the armed forces to strengthen their naval defense capabilities. This factor is expected to drive the market growth for naval defense systems during the forecast period. Naval defense systems mainly operate on a layered defense strategy, with different layers of defense working together to protect naval assets. A warship has radar and EW systems to detect and disrupt threats, followed by CIWS and SAMs to intercept and destroy them. Furthermore, growing defense expenditure and adopting advanced naval defense systems boost market growth.
The market for directed energy systems will see a surge in the future due to their countering aerial threats. The US is focusing its directed energy weapons research on technologies ready to be fielded. For instance, According to the Navy's Fiscal Year 2025 budget documents, the US Navy is eyeing a 2026 timeline to install a high-powered microwave prototype system on one of its vessels. This system is being developed under the Navy's Project METEOR, which focuses on creating a directed energy weapon system prototype for ship integration in 2026.
Naval Vessel Defense Systems Market Trends
Missile Defense to Dominate Market Share During the Forecast Period
The missile defense segment holds the highest market share in the naval vessel defense systems market. Advanced naval defense systems combine sensors, electronics, and modern weaponry to create robust missile protection. Countries like the US and Russia focus on integrated platforms to reduce infrared and radar signatures of warships that can reveal assets' positions to the enemy. Aegis System, developed by Lockheed Martin Corporation and RTX Corporation, has introduced features such as open architecture and an open-source library capable of providing real-time data fleets in the combat area and leveraging for future improvements. The Aegis system will also propel the market for SM 3, SM 2, and SM 6 interceptor missiles for beyond and inside atmosphere interception of Intercontinental and Mid-Range ballistic missiles.
In addition, the demand for robust missile defense capabilities is increasing as countries try to mitigate threats to their assets on the sea. For instance, in April 2023, the Indian Navy and Defence Research and Development Organisation (DRDO) successfully conducted a maiden flight trial of a sea-based endo-atmospheric interceptor missile in the Bay of Bengal. The trial was to engage and neutralize a hostile ballistic missile threat. With this trial, India became one of the few nations that have tested naval ballistic missile defense (BMD) system. Also, the BARAK MX system developed by IAI uses BARAK MRAD, BARAK LRAD, and BARAK ER missiles ranging from 35 kilometers to 150 kilometers. Thus, growing expenditure on procurement of advanced missile defense systems and rising spending on enhancing naval capabilities drive the segment's growth.
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North America to Hold the Highest Market Share During the Forecast Period
North America held the highest market shares and continued its domination during the forecast period. The growth is attributed to the rising demand for naval defense systems from the US Navy and the adoption of next-generation defense systems.
According to the Stockholm International Peace Research Institute (SIPRI), the US was the largest defense spender in the world, with a defense budget of USD 916 billion in 2023. Other countries' development of supersonic and hypersonic missiles is forcing the US to invest in the development of existing systems that are not fully equipped to defend the country's sea-based assets in case of a supersonic or hypersonic weapon attack since they function as a mere countermeasure.
Also, the heightened tension between the US and its adversaries has led the country to develop more technologically advanced ships in water bodies around the Middle East and Europe and its territorial waters. Currently, the US has Aegis, Phalanx, and RIM-116 Rolling Airframe Missile (RAM) naval defense systems. Also, in February 2024, the Pacific Missile Range Facility in Kauai, Hawaii, successfully conducted the first phase of a multi-sensor test. This phase showcased the Aegis Weapon System's capability to track and differentiate a complex scene involving a Medium Range Ballistic Missile target, even amidst countermeasures. The test's second phase saw the firing of a Standard Missile – 3 Block IIA (SM-3 Blk IIA), which successfully intercepted the same Medium Range Ballistic Missile target, further validating the SM-3 Blk IIA's enhanced functionalities. Such procurement and deployment plans are expected to further boost the region's market growth during the forecast period.
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Naval Vessel Defense Systems Industry Overview
The naval vessel defense systems market is consolidated due to the presence of few players holding significant shares. General Dynamics Corporation, Lockheed Martin Corporation, RTX Corporation, BAE Systems plc, and Northrop Grumman Corporation are prominent players in the market.
As the number of naval vessels threats increases, companies are involved in R&D efforts to produce better naval vessel defense systems. An increasing focus on developing directed energy weapons for naval ships is also expected to create significant growth opportunities for the players during the forecast period. For instance, in February 2023, Naval Group signed two contracts worth AED 407 million (USD 11 million) with the UAE armed to provide CANTO anti-torpedo systems and MU90 lightweight torpedoes. These systems will be fitted aboard the future Gowind corvettes of the UAE Navy.
Naval Vessel Defense Systems Market Leaders
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Lockheed Martin Corporation
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General Dynamics Corporation
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RTX Corporation
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BAE Systems plc
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Northrop Grumman Corporation
- *Disclaimer: Major Players sorted in no particular order
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Naval Vessel Defense Systems Market News
- August 2024: Ingalls Shipbuilding, a division of HII, secured contracts worth USD 9.6 billion to construct four amphibious warships. Of this, a USD 5.79 billion contract is allocated for the detailed design and construction of three Flight II San Antonio-class amphibious warships – LPD-33, LPD-34, and LPD-35. A separate USD 3.8 billion contract covers the advanced procurement, detailed design, and construction of the future big deck amphibious warship, Helmand Province (LHA-10).
- August 2024: Austal USA clinched a contract modification worth USD 54.997 million to build two more LCU 1700-class vessels for the US Navy. Also, in September 2023, Austal USA secured an initial deal for three LCU 1700-class vessels, with an option to add nine more. If fully realized, the contract's value for all 12 vessels could reach USD 379.7 million. With this latest modification, Austal USA has five LCUs scheduled or in construction.
- April 2024: The US Navy's High Energy Laser Counter Anti-Ship Cruise Missile (ASCM) Project (HELCAP) is on track to wrap up in 2025 with a significant demonstration. The Navy has outfitted a single San Antonio-class amphibious transport ship with the 150 kW Mk 2 Mod 0 Laser Weapon System Demonstrator (LWSD). Additionally, eight Arleigh-Burke class destroyers boast the Optical Dazzler Interdictor Navy (ODIN). In contrast, one destroyer is armed with the 60 kW High Energy Laser Integrated with Optical-Dazzler and Surveillance (HELIOS) system.
- April 2023: RTX Corporation’s missiles and defense business was awarded a USD 308 million contract to engineer the combat system of the US Navy’s Zumwalt-class guided missile destroyers.
Naval Vessel Defense Systems Industry Segmentation
Naval vessel defense systems are designed to protect ships and other naval assets from various threats, including torpedoes, missiles, and mines. These defense systems involve multiple components that work together to detect and intercept incoming threats. The report covers the latest trends and technological developments in the naval vessel defense market.
The naval vessel defense system market is segmented based on type, system, and geography. By type, the market is segmented into anti-ship and anti-aircraft systems, anti-submarine warfare, missiles defense, and anti-torpedo and mine defense systems. By system, the market is segmented into threat detection and countermeasures. The report also covers the market sizes and forecasts for the naval vessel defense systems market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
| Type | Anti-ship and Anti-aircraft Systems | ||
| Anti-Submarine Warfare | |||
| Missile Defense | |||
| Anti-Torpedo and Mine Defense Systems | |||
| System | Threat Detection | ||
| Countermeasures | |||
| Geography | North America | United States | |
| Canada | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | India | ||
| China | |||
| Japan | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Latin America | Brazil | ||
| Rest of Latin America | |||
| Middle East and Africa | United Arab Emirates | ||
| Saudi Arabia | |||
| Israel | |||
| Rest of Middle East and Africa | |||
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Naval Vessel Defense Systems Market Research FAQs
How big is the Naval Vessel Defense Systems Market?
The Naval Vessel Defense Systems Market size is expected to reach USD 19.93 billion in 2025 and grow at a CAGR of 6.60% to reach USD 24.32 billion by 2030.
What is the current Naval Vessel Defense Systems Market size?
In 2025, the Naval Vessel Defense Systems Market size is expected to reach USD 19.93 billion.
Who are the key players in Naval Vessel Defense Systems Market?
Lockheed Martin Corporation, General Dynamics Corporation, RTX Corporation, BAE Systems plc and Northrop Grumman Corporation are the major companies operating in the Naval Vessel Defense Systems Market.
Which is the fastest growing region in Naval Vessel Defense Systems Market?
North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Naval Vessel Defense Systems Market?
In 2025, the North America accounts for the largest market share in Naval Vessel Defense Systems Market.
What years does this Naval Vessel Defense Systems Market cover, and what was the market size in 2024?
In 2024, the Naval Vessel Defense Systems Market size was estimated at USD 18.61 billion. The report covers the Naval Vessel Defense Systems Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Naval Vessel Defense Systems Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Naval Vessel Defense Systems Industry Report
Statistics for the 2025 Naval Vessel Defense Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Naval Vessel Defense Systems analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
