Naval Vessel MRO Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 57.76 Billion |
| Market Size (2029) | USD 63.62 Billion |
| CAGR (2024 - 2029) | 1.95 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Naval Vessel MRO Market Analysis
The Naval Vessel Maintenance, Repair, and Overhaul Market size is estimated at USD 57.76 billion in 2024, and is expected to reach USD 63.62 billion by 2029, growing at a CAGR of 1.95% during the forecast period (2024-2029).
The market for naval vessel maintenance, repair, and overhaul (MRO) was slightly affected due to the COVID-19 pandemic, resulting from a lockdown implemented as a precaution against the spread of the virus. However, due to the pandemic, the military budgets are expected to decrease in the coming years, which may hamper the fleet modernization plans of navy fleets globally. Several shipyards performing MRO activities have also faced delays in project executions due to the COVID-19 pandemic.
The pandemic has led to the integration of advanced technologies to perform checks, inspections, and repairs of the existing fleets of naval vessels. Such technological advancements are expected to propel the growth of the market during the forecast period.
The increasing need to maintain, repair, and overhaul the existing fleet of naval vessels worldwide, owing to the increasing maritime disputes, may lead to growth in the naval vessel maintenance, repair, and overhaul (MRO) market.
Insufficient funds allocated by the governments for mid-life extension and maintenance of naval vessels can restrain the growth of the market.
Naval Vessel MRO Market Trends
This section covers the major market trends shaping the Naval Vessel MRO Market according to our research experts:
Destroyers Accounted for a Major Share by Revenue in 2021
Destroyers are fast, maneuverable, long-endurance warships that escort and support larger vessels in a fleet and defend them against the attacks of smaller, powerful short-range surface combatants. The current global fleet of destroyers is around 250. Countries such as the United States, China, and Japan account for the highest share of the existing fleet of destroyers in the world. Due to their rather expensive procurement and operating costs, only a select few navies operate destroyers globally. With the global fleet age of destroyers increasing, countries around the world are investing in the modernization of their fleet with advanced equipment and in-service maintenance and overhaul plans. Also, the growing requirement for equipping the newer destroyers with the latest weapon systems is driving the need for destroyer modernization programs. For instance, in July 2021, MBDA UK was awarded an 11-year contract to integrate the Common Anti-Air Modular Missile, often referred to as Sea Ceptor, into the UK Navy's Type 45 destroyers' Sea Viper weapon systems. The work will also include the upgrade of the Sea Viper command and control (C2) system. Fitting CAMM onto the Type 45s will give the destroyers a 50% increase in the number of air defense missiles. The first Type 45 destroyer is expected to be overhauled by summer 2026. Also, as of 2021, the navies of France and Italy were planning to conduct a mid-life upgrade of the Horizon class of air warfare destroyers that have been in service for more than ten years. In 2020, Naviris provided a contract to Naval Group, which was contracted through OCCAR (Organization for Joint Armament Co-operation) to conduct a feasibility study for the upgrade. Countries are also investing in sustaining the existing destroyer fleets by upgrading decades-old ships with newer systems and extending their service life. In 2021, the United States started upgrading the sensors, electronics, and weapons aboard the existing fleet of DDG-51 Arleigh Burke-class Flight IIA destroyers. Such developments are expected to drive the growth of the segment during the forecast period.
The Asia-Pacific Region Held the Highest Market Share in 2021
The Asia-Pacific region currently dominates the market, and it is expected to continue its dominance during the forecast period. Countries like China, India, and Japan are increasing their investment in strengthening their naval capabilities due to the ongoing geopolitical tensions in the region. China is one of the largest navies in the world, with 335 naval vessels (2019), about 55% larger than in 2005, where the majority of the fleet is more than 13 years. Similarly, other countries (like India and Japan) are also operating fleets of aging naval vessels. Due to this, the countries are modernizing their naval vessel fleets by integrating advanced technologies (modifications) into the vessels. In this regard, the Australian government announced an investment of USD 75 billion over the next decade to enhance its naval capabilities. Out of the total investment, approximately one-third of the investment is expected toward the improvement and sustainment of its naval vessels. Under this investment, the country plans to upgrade its Hobart Class Destroyers, ANZAC Class Frigates, and the navy's Amphibious ships and invest in the upgrade and life extension of the Collins Class submarines that are currently in service (average age of more than 20 years). Similar investments in the modernization of naval vessels are anticipated to accelerate the demand for naval vessel MRO in the region in the coming years.
Naval Vessel MRO Industry Overview
The market for naval vessel MRO is fragmented, with the presence of many international and domestic players that support navies around the world. Some of the prominent players in the naval vessel MRO market are General Dynamics Corporation, ThyssenKrupp AG, Naval Group, BAE Systems PLC, and Huntington Ingalls Industries. The companies are expanding their presence in the market by incorporating new technologies to decrease maintenance costs and receive new long-term contracts from navies around the world. In this regard, Indra, in collaboration with the Spanish Navy, tested new artificial intelligence systems that can predict malfunctions and improve the maintenance of its fleet of F100 frigates and Offshore Patrol Vessels BAM. Such new solutions are expected to help the companies predict and offer efficient MRO services to their customers, thereby increasing their shares in the market. The Middle Eastern countries are tying up with small players present in Europe and Asia-Pacific to form joint ventures and partnerships to gain access to markets while also helping them establish their business units and MRO facilities. Some of these partnerships are also mandated by the government offset clauses, which are being led by the United Arab Emirates and Saudi Arabia in the Middle East and India, Thailand, Indonesia, and Vietnam in Asia-Pacific.
Naval Vessel MRO Market Leaders
General Dynamics Corporation
ThyssenKrupp AG
Naval Group
BAE Systems PLC
Huntington Ingalls Industries Inc.
*Disclaimer: Major Players sorted in no particular order
Naval Vessel MRO Market News
- In December 2021, the US State Department approved a possible contract with the government of Greece for the modernization of four MEKO Hydra-class frigates in a deal worth around USD 2.5 billion. The upgrades would include the modernization of weapon systems, combat management systems, and sonars, among other things.
- In August 2021, US Navy issued multiple contracts with cumulative worth up to USD 2.76 billion for the maintenance of Littoral Combat Ships (LCS). The contracts were awarded to BAE Systems, Fincantieri Marine Systems North America, Austal USA, Colonna's Shipyard Inc., East Coast Repair & Fabrication LLC, Epsilon Systems Solutions Inc., General Dynamics NASSCO ship maintenance facility, North Florida Shipyards Inc., and Tecnico Corp., among others.
Naval Vessel MRO Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
1.3 Currency Conversion Rates for USD
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
3.1 Market Size and Forecast, Global, 2018 - 2031
3.2 Market Share by Vessel Type, 2021
3.3 Market Share by MRO Type, 2021
3.4 Market Share by Geography, 2021
3.5 Structure of the Market and Key Participants
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size and Forecast by Value - USD billion, 2018 - 2031)
5.1 Vessel Type
5.1.1 Submarines
5.1.2 Frigates
5.1.3 Corvettes
5.1.4 Aircraft Carriers
5.1.5 Destroyers
5.1.6 Other Vessel Types
5.2 MRO Type
5.2.1 Engine MRO
5.2.2 Dry Dock MRO
5.2.3 Component MRO
5.2.4 Modification
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 Germany
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Rest of Latin America
5.3.5 Middle-East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 Saudi Arabia
5.3.5.3 Egypt
5.3.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 General Dynamics Corporation
6.2.2 Huntington Ingalls Industries Inc.
6.2.3 Lockheed Martin Corporation
6.2.4 NAVANTIA SA SME
6.2.5 ThyssenKrupp AG
6.2.6 BAE Systems PLC
6.2.7 Naval Group
6.2.8 Rolls-Royce Holdings PLC
6.2.9 Rhoads Industries Inc.
6.2.10 Abu Dhabi Ship Building Company
6.2.11 Larsen & Toubro Limited
6.2.12 Damen Shipyards Group
6.2.13 FINCANTIERI SpA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Naval Vessel MRO Industry Segmentation
The maintenance, repair, and overhaul operations conducted periodically on naval vessels are crucial for sustaining and extending the life of a ship. It involves all the functions related to the maintenance, overhaul, routine checks, inspection, repair, and modification of the vessel and its components. Performing MRO services helps ensure the safety and worthiness of the naval vessels. The market for naval vessel maintenance, repair, and overhaul (MRO) is segmented based on vessel type into submarines, frigates, corvettes, aircraft carriers, destroyers, and other vessel types. The other vessel types segment includes amphibious warfare ships, littoral combat ships, cruisers, mine countermeasure ships, and patrol ships, among others. The market is segmented by MRO type into engine MRO, dry dock MRO, component MRO, and modification. The report also covers the market sizes and forecasts for the naval vessel maintenance, repair, and overhaul (MRO) market in major countries across different regions. The market sizing and forecasts have been provided in value (USD billion).
| Vessel Type | |
| Submarines | |
| Frigates | |
| Corvettes | |
| Aircraft Carriers | |
| Destroyers | |
| Other Vessel Types |
| MRO Type | |
| Engine MRO | |
| Dry Dock MRO | |
| Component MRO | |
| Modification |
| Geography | |||||||
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Naval Vessel MRO Market Research FAQs
How big is the Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market?
The Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market size is expected to reach USD 57.76 billion in 2024 and grow at a CAGR of 1.95% to reach USD 63.62 billion by 2029.
What is the current Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market size?
In 2024, the Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market size is expected to reach USD 57.76 billion.
Who are the key players in Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market?
General Dynamics Corporation, ThyssenKrupp AG, Naval Group, BAE Systems PLC and Huntington Ingalls Industries Inc. are the major companies operating in the Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market.
Which is the fastest growing region in Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market?
In 2024, the Asia Pacific accounts for the largest market share in Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market.
What years does this Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market cover, and what was the market size in 2023?
In 2023, the Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market size was estimated at USD 56.66 billion. The report covers the Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Naval Vessels MRO Industry Report
Statistics for the 2024 Naval Vessels MRO market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Naval Vessels MRO analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
