Naval Vessels and Surface Combatants Market Report 2026

The naval vessels and surface combatants market size has grown steadily in recent years. It will grow from $40.76 billion in 2025 to $42.74 billion in 2026 at a compound annual growth rate (CAGR) of 4.9%. The growth in the historic period can be attributed to increasing naval modernization programs driving procurement of advanced surface combatants, rising need for maritime security and patrol operations in contested waters, growth in deployment of missile and torpedo boats for coastal defense missions, advancements in naval propulsion and hull design enabling improved vessel performance, expansion of mine countermeasure operations requiring specialized naval platforms.

The naval vessels and surface combatants market size is expected to see steady growth in the next few years. It will grow to $49.96 billion in 2030 at a compound annual growth rate (CAGR) of 4%. The growth in the forecast period can be attributed to growing demand for multi-role surface combatants with integrated combat management systems, increasing investment in stealth technologies to enhance survivability in modern naval warfare, expansion of unmanned and remotely operated systems integrated into naval vessels, rising focus on blue-water capabilities driving procurement of larger and more advanced patrol vessels, development of next-generation weapon systems enhancing the lethality and versatility of naval platforms. Major trends in the forecast period include increasing demand for multi-role surface combatants, rising fleet modernization programs by navies, growing adoption of stealth hull designs, expansion of coastal security and patrol requirements, integration of advanced mine countermeasure capabilities.

The surge in maritime trade is anticipated to drive the growth trajectory of the naval vessels and surface combatants market. Maritime trade encompasses the exchange of commodities, goods, and services via shipping across various water bodies. Naval vessels and surface combatants play a crucial role in this arena by ensuring security along shipping routes and safeguarding valuable cargo. This guarantees the seamless flow of international trade. Projections from the United Nations Conference on Trade and Development estimate a 2.4% growth in maritime trade in 2023 and a consistent increase of over 2% from 2024 to 2028, affirming the pivotal role of escalating maritime trade in propelling the demand for naval vessels and surface combatants.

Leading companies in the naval vessels and surface combatants market are creating advanced products, including unmanned surface vessels (USVs), to fulfill the specific needs of the navy. A USV is a watercraft that operates on the water's surface without a crew, employing remote control or autonomous navigation for various functions such as surveillance, data collection, and environmental monitoring. For example, in January 2024, the U.S. Navy launched the Vanguard Unmanned Surface Vessel, a pioneering autonomous maritime vessel developed by Austal USA in partnership with L3Harris, specifically designed for the U.S. Navy. The Vanguard was launched from Austal's shipyard in Mobile, Alabama, and is the first unmanned surface vessel built entirely for autonomous operations. It is part of the Overlord program, which aims to enhance the Navy's experimentation with unmanned systems and support tactical development for future naval operations. Once outfitting and testing are completed, Vanguard will autonomously navigate to San Diego to join other unmanned vessels in the Navy's fleet, representing a significant advancement in maritime technology.

In September 2024, Fairbanks Morse Defense, a US-based private defense contractor, acquired the naval propulsors and handling business from Rolls-Royce Plc for an undisclosed amount. This acquisition aims to strengthen Fairbanks Morse Defense's offerings for U.S. maritime defense customers and broaden its global presence by integrating complementary capabilities in naval applications. Rolls-Royce is a UK-based engineering company specializing in the design, manufacture, and distribution of power systems for maritime applications.

Major companies operating in the naval vessels and surface combatants market are Huntington Ingalls Industries Inc., General Dynamics Corporation, Damen Shipyards Group, Naval Group, BAE Systems PLC, Navantia SA, Fincantieri SpA, Daewoo Shipbuilding & Marine Engineering Co. Ltd., United Shipbuilding Corporation, China State Shipbuilding Corporation, Eastern Shipbuilding Group, Cochin Shipyard Ltd., Mitsubishi Heavy Industries Ltd., Marine Engineering Co. Ltd., Larsen & Toubro Ltd., Lockheed Martin Corporation, ThyssenKrupp Marine Systems, Lürssen Werft GmbH & Co. KG, Mitsui Engineering & Shipbuilding, Saab Group, Kockums AB, Hyundai Heavy Industries, STX Offshore & Shipbuilding Co. Ltd., Singapore Technologies Engineering Ltd., Boustead Naval Shipyard, Ishikawajima Heavy Industries Corporation, Shipyard De Hoop, Austal Limited, Bharati Defence and Infrastructure Limited.

North America was the largest region in the naval vessels and surface combatants market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the naval vessels and surface combatants market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are affecting the naval vessels and surface combatants market by increasing the cost of imported steel, propulsion systems, electronics, and weapon components, thereby raising shipbuilding expenses and extending delivery timelines. These impacts are most pronounced across systems such as weapon launch platforms, marine engines, and sensor systems, and strongly affect regions with heavy import reliance, including Asia-Pacific and parts of Europe. However, tariffs also stimulate domestic shipbuilding, encourage localized sourcing, and promote technological self-reliance, creating selective benefits despite the overall challenges.

The naval vessels and surface combatants market research report is one of a series of new reports that provides naval vessels and surface combatants market statistics, including naval vessels and surface combatants industry global market size, regional shares, competitors with a naval vessels and surface combatants market share, detailed naval vessels and surface combatants market segments, market trends and opportunities, and any further data you may need to thrive in the naval vessels and surface combatants industry. This naval vessel and surface combatants market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Naval vessels and surface combatants constitute a category of warships specifically designed and armed for combat on the water's surface. These vessels serve the purpose of impeding enemy movements and, when necessary, engaging them in battle.

The primary classifications of naval vessels and surface combatants encompass a range of types such as aircraft carriers, battleships, cruisers, destroyers, frigates, destroyer escorts, among others. An aircraft carrier is a significant vessel equipped to launch and recover airplanes. These vessels integrate various systems like marine engines, weapon launch systems, sensors, controls, electrical systems, and auxiliary components, facilitating functions like search and rescue, combat operations, mine countermeasures (MCM), coastal surveillance, and other naval operations.

The countries covered in the naval vessels and surface combatants market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The naval vessels and surface combatants market consists of sales of large patrol vessels, missile boats, torpedo boats, mine countermeasures vessels, and other types. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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