Sea based Defense Equipment Global Market Report 2022, By Type, Operation, Application

Executive Summary

Major companies in the sea-based defense equipment market include General Dynamics, Huntington ingalls industries, Naval Group (Formerly DCNS), Bae Systems plc., Fincantieri SpA, Northrop Grumman Corp., Leonardo SpA, Raytheon Co., Lockheed Martin Corporation and Mitsubishi Heavy Industries Ltd.

The global sea based defense equipment market is expected to grow from $ 47.77 billion in 2021 to $ 52.14 billion in 2022 at a compound annual growth rate (CAGR) of 9.1%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $ 71.34 billion in 2026 at a CAGR of 8.2%.

The sea-based defense equipment market consists of sales of sea-based defense equipment by entities (organizations, sole traders and partnerships) that manufacture sea-based defense equipment including support and auxiliary equipment for the sea-based defense such as radar, satellites, sonars and other auxiliary equipment. The sea-based defense equipment market is segmented into battle force ships and submarines.

The main types of sea-based defense equipment are battle force ships and submarines (including nuclear submarines). Battle force ships are authorized United States Ship (USS) warships suitable for participating in combat activities, or a United States Naval Ship which directly supports Navy warfighting or assistance tasks, and is required to be listed in the Naval Vessel Register. The different operations include autonomous sea-based defense equipment, manual and involve various applications such as search and rescue, combat operations, mcm operations, coastal surveillance, others.

Asia Pacific was the largest region in the sea based defense equipment market in 2021. Western Europe is expected to be the fastest growing region in the forecast period. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa.

The overall economic growth of the emerging economies is expected to positively impact the sea-based defense equipment manufacturing market. Rising disposable income, a result of the economic growth, in emerging markets had a positive impact on the demand for defense equipment. The International Monetary Fund (IMF) predicts that the global GDP growth will be 3.4% in 2021. Developed economies are also expected to register stable growth during the forecast period. Stable economic growth is expected to increase investments for the nation's security, thereby driving the sea-based defense equipment manufacturing market during the forecast period.

Geopolitical tensions are expected to have a negative impact on the sea-based defense equipment market during the forecast period. Repercussions of geopolitical tensions include sanctions on Russia, trade protectionism, and heightened military tensions in the Middle East. Sanction on Russia was related to the violation of the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991. For instance, the US imposed a number of sanctions on Russia, including sales of defense articles and services and government credit or other financial assistance. Many countries placed trade restrictions, especially on imports, to boost local production. For instance, Brexit is likely to lead to more trade restrictions between the UK and other countries in Europe. The US is also implementing several trade restrictions, especially with China, to boost its local production. Continued violence and terrorism in the Middle East and other parts globally are also expected to have a negative impact on the market.

Companies involved in sea-based defense equipment manufacturing are developing artificial intelligence and robotics-based equipment. Sea-based defense equipment such as submarines and warships implementing these technologies are well equipped to initiate an attack with less human intervention, to detect and determine threats. Following the trend, in 2019, Aquabotix Technology Corp., an underwater robotics company with operations in U.S.A and Australia, entered into a special purpose cooperative research and development agreement (CRADA) with the US Navy to initiate the testing phase of its SwarmDiver unmanned surface vehicle (USV). The SwarmDiver USV uses AI to collect data and communicate with each other. They make quick and accurate decisions to arrange themselves in groups of various swarm formations and dive simultaneously to collect brief data sets.

The countries covered in the sea-based defense equipment market are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela and Vietnam.

Companies Mentioned

A selection of companies mentioned in this report includes:

• General Dynamics
• Huntington ingalls industries
• Naval Group (Formerly DCNS)
• Bae Systems plc.
• Fincantieri SpA
• Northrop Grumman Corp.
• Leonardo SpA
• Raytheon Co.
• Lockheed Martin Corporation
• Mitsubishi Heavy Industries ltd.

Methodology