To protect maritime borders from illegal activities, countries across the globe have been steadily increasing their military capital expenditure (CapEx) on naval vessels. As a result, the growth of the naval vessels and surface combatants market is forecast to reach $519.8 billion by 2032 at a compound annual growth rate (CAGR) of 3.23%, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, ‘Global Naval Vessels and Surface Combatants Market 2022–2032’, reveals that the key trends driving the demand for these systems over the next decade will include the modularity in naval vessels to reduce lifecycle costs, and countries opting for indigenous development of naval vessels.

Chandan Kumar Nayak, Defense Analyst at GlobalData, comments: “Various countries across the globe are focusing on the indigenous development and maintenance of their naval vessels to reduce their dependency on imports. Indigenously built ships can be customized, maintained, repaired, and overhauled in a domestic facility without depending on a foreign supplier for spare parts and other accessories.

“The increased use and proliferation of naval vessels is expected to aid the growth of the frigates segment in the coming years, as these types of vessels provide navies with multispectral capabilities, including ballistic missile defense and anti-submarine warfare.”

Navies across the world are working on high-value programs, such as the US Navy’s Constellation-class program, the Canadian Navy’s ‘Canadian Surface Combatant’ program, the Australian Navy’s Hunter-class (SEA 5000) program, the Royal Navy’s Type 26 Global Combat Ship, and the German Navy’s MKS 180 Multirole Combat Ship.

Disputes over maritime boundaries, abetted by the need to exploit offshore resources, including unexplored oil and gas reserves and fertile fishing zones, are expected to be the major drivers for strengthening maritime capabilities for many nations. In addition, navies are also focusing on the design and construction of naval vessels capable of changing their primary role by swapping modular mission packages. This approach has enabled navies to significantly reduce the acquisition, maintenance, and operational costs of naval platforms over their life cycle.

Nayak concludes: “The integration of advanced digital technologies such as high-speed processors, combat management system, and data links along with increased automation and sensor fusion have led to significant enhancements in the combat performance of naval vessels and surface combatants.”