Market Size of North America Naval Vessels Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 19.04 Billion |
Market Size (2029) | USD 39.48 Billion |
CAGR (2024 - 2029) | 15.70 % |
Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
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North America Naval Vessels Market Analysis
The North America Naval Vessels Market size is estimated at USD 19.04 billion in 2024, and is expected to reach USD 39.48 billion by 2029, growing at a CAGR of 15.70% during the forecast period (2024-2029).
The market is primarily driven by the initiatives undertaken by nations such as the US to enhance its naval warfare capabilities due to a rise in naval conflicts, the growth of piracy, and human and drug trafficking. The ongoing geopolitical turmoil has led to an arms race that has encouraged the US to develop and deploy advanced naval vessels with similar or better operational characteristics than its potential adversaries.
On this note, the US is planning to include 46 more ships in its naval fleet by the end of 2023. However, Canada’s naval vessel market is expected to experience slow growth during the forecast period, owing to the government's insufficient and ineffective budget allocation and the country's reluctance to upgrade its naval capabilities.
Manufacturers are under growing pressure to provide various countries with their individual customized vessels as per the requirement of their own. Development and manufacturing costs increased as a result of the application of advanced digital technology, e.g., High-Speed Processors, Combat Management Systems, and Data links in combination with enhanced automation and sensor fusion. Nevertheless, these technologies have led to an important increase in the combat performance of maritime vessels.
North America Naval Vessels Industry Segmentation
A naval vessel is a specialized watercraft operated by naval forces for military and security purposes. These vessels serve diverse roles, including defense, surveillance, and power projection at sea. They encompass various types, such as aircraft carriers, submarines, destroyers, and patrol boats, each designed for specific missions. Equipped with advanced weaponry and technology, naval vessels are instrumental in safeguarding a nation's maritime interests and territorial waters, contributing significantly to its national security and defense strategy.
The North American naval vessels market is segmented by vessel type and geography. Based on vessel type, the market is segmented into aircraft carriers, destroyers, frigates, submarines, corvettes, and other vessel types (including amphibious warfare ships, littoral combat ships, cruisers, mine countermeasure ships, and patrol ships). The report also offers the market size and forecasts for two countries across the region. For each segment, the market sizing and forecasts have been done based on value (USD).
Vessel Type | |
Aircraft Carriers | |
Destroyers | |
Frigates | |
Corvettes | |
Submarines | |
Other Vessel Types |
Geography | |
United States | |
Canada |
North America Naval Vessels Market Size Summary
The North America Naval Vessels Market is poised for significant growth, driven primarily by the United States' efforts to bolster its naval capabilities in response to increasing naval conflicts, piracy, and trafficking issues. The geopolitical landscape has spurred an arms race, prompting the US to develop advanced naval vessels to maintain a competitive edge over potential adversaries. This strategic focus is evident in the US Navy's plans to expand its fleet with new frigates and other vessels, supported by collaborations with major shipbuilders. While the US market is experiencing robust growth, Canada's naval vessel market is expected to grow at a slower pace due to budgetary constraints and a lack of urgency in upgrading naval capabilities. Nonetheless, Canada's Canadian Surface Combatant program aims to enhance its naval fleet, contributing to the overall market dynamics.
The market is characterized by a consolidated landscape with key players such as Lockheed Martin Corporation, General Dynamics Corporation, and Huntington Ingalls Industries dominating the scene. These companies are actively engaged in various naval vessel development programs, leveraging advanced technologies to enhance combat performance. The US Navy's strategic initiatives, including the construction of next-generation frigates and expeditionary medical ships, underscore the ongoing modernization efforts to counter global naval threats. Despite the challenges posed by established players, opportunities for growth exist through partnerships and collaborations, as evidenced by recent acquisitions and contracts aimed at supporting naval operations. The market's trajectory is further influenced by the US Navy's ambitious fleet expansion plans, which are set to drive demand for naval vessels in the coming years.
North America Naval Vessels Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Vessel Type
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2.1.1 Aircraft Carriers
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2.1.2 Destroyers
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2.1.3 Frigates
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2.1.4 Corvettes
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2.1.5 Submarines
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2.1.6 Other Vessel Types
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2.2 Geography
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2.2.1 United States
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2.2.2 Canada
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North America Naval Vessels Market Size FAQs
How big is the North America Naval Vessels Market?
The North America Naval Vessels Market size is expected to reach USD 19.04 billion in 2024 and grow at a CAGR of 15.70% to reach USD 39.48 billion by 2029.
What is the current North America Naval Vessels Market size?
In 2024, the North America Naval Vessels Market size is expected to reach USD 19.04 billion.